Mumbai: Former Reserve Bank Governor Raghuram Rajan on Wednesday cautioned against promoting import substitution under the government’s ‘Self-Reliant India’ initiative. He said that such attempts have been made in the country before but they have not been successful. Rajan said, “If the self-reliant India initiative insists on import substitution by imposing tariffs, then I believe this is the path we have taken before and it has failed. I would like to be careful about moving forward on this path. ‘
Rajan was addressing a webinar organized by SP Jain Institute of Management and Research Center for Financial Studies, Bharatiya Vidya Bhavan. He said that the exporters of the country need to import to keep their exports cheap. So that the imported goods can be used for export.
China also imports from many countries – Rajan made it clear that China has emerged as an export power. He imports various goods from outside, assembles them and then exports further. ‘You need to import for export. Don’t impose high tariffs but create a better environment for production in India. ‘
Rajan said that the expenditure targeted by the government can be fruitful in the long run. ‘I believe that one should keep an eye on the entire expenditure and be careful. This is not the time to issue an open check book. But in such a case the expenditure incurred on a goal if done wisely and carefully. So it can give you better results. ‘
The real problem will be solved only by identifying the real problem – the former governor of the Reserve Bank said that it is right to identify the real problem and carry out reforms. But in this process the consent of all parties is required. ‘People, critics, opposition parties may have some better suggestions, the more you agree to them, the more effective your reforms will be. I am not saying that issues should be discussed for a long time. But in a democracy, it is important to build consensus. “
Rajan said that one of the biggest hurdles in the development of infrastructural facilities is land acquisition, which requires some technical changes. Land should have better record and clear ownership. “Some states have taken initiatives in this direction but we need to do it all over the country.”
