Business
Rangarajan urges oil reserves as Hormuz blockade shocks trade
The Hindu BusinessLine·
Former RBI Governor C Rangarajan said India must stockpile oil after shocks including the Strait of Hormuz blockade. At the ICFAI Foundation convocation on Saturday, he said U.S. tariffs and the U.S.-Iran war undermined tariff consensus and free sea trade. He said Make in India needs to keep industry competitive globally. India ranks 38th on the Global Innovation Index.
Prism
What It Means For You
- Building crude buffers would cushion households and firms if sudden wars block shipping lanes again.
- Rangarajan said dependence on imported energy must fall through alternative sources.
- Higher domestic production targets could shift hiring in sectors Rangarajan said deserve priority.
What's Happening
- Rangarajan spoke as Chancellor at the Hyderabad convocation.
- He linked recent U.S. tariff moves and Hormuz disruption to global trade shocks.
- Co-founder Ajai Chowdhry told graduates aspiration must outstrip resources.
Global Innovation Index Rankings
- Rangarajan cited South Korea at 4th and China at 10th on the Global Innovation Index.
- He said India at 38th shows room to strengthen innovation amid de-globalisation.
- He warned efficient import substitution may become compulsory for certain critical inputs.
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