Raghuram Rajan Clarifies Remarks on Manufacturing in India

Former RBI Governor Raghuram Rajan has clarified his previous comments on manufacturing in India, stating that he is not against manufacturing itself but remains concerned about the government’s use of subsidies and tariffs in a non-transparent manner. Rajan expressed support for domestic defense production and job creation in manufacturing, but raised concerns about policies that have allowed labor-intensive manufacturing to decline while subsidizing areas like chip manufacturing, where India lacks expertise. He questioned the effectiveness of subsidizing old-generation chip production and emphasized the need for transparency in government policies.

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