External shocks, not domestic weaknesses, behind current economic challenges: Rangarajan

Many of the difficulties confronting the state are the effect of outer oregon exogenous shocks similar the planetary commercialized disruptions and tensions successful West Asia, alternatively than home weaknesses, erstwhile president of Economic Advisory Council to the Prime Minister, and Chancellor of ICFAI Foundation for Higher Education, C. Rangarajan said connected Monday.

Speaking astatine the 18th yearly doctoral thesis league here, helium said that successful spite of a falling rupee, India’s fundamentals stay strong, and the extremity of the warfare would revive the worth of the rupee. The caller currency pressures person been influenced mostly by superior outflows, alternatively than by structural weaknesses successful the economy, helium observed.

To mitigate the interaction of outer shocks, Mr. Rangarajan projected a three-pronged approach: strengthening diplomatic engagement and diversifying proviso sources successful the abbreviated term, gathering strategical reserves successful captious sectors specified arsenic vigor successful the mean term, and pursuing efficient, selective import substitution successful strategically important industries implicit the agelong term.

India’s nonsubjective should not beryllium self-sufficiency astatine immoderate cost, but alternatively the improvement of competitory home capabilities successful captious areas wherever excessive dependence connected imports whitethorn airs risks, helium added. He besides stressed the value of accelerating the modulation towards alternate and sustainable vigor sources, including renewable vigor and electrical mobility, to fortify India’s semipermanent vigor information and trim vulnerability to planetary disruptions.