As the Union Budget 2026-27 approaches, former RBI Governor Raghuram Rajan has called for a long-term, reform-driven economic strategy to steer India through what he described as “extremely dangerous times.” Speaking ahead of the February 1 budget, Rajan said fiscal planning must go beyond annual targets and focus on building resilience, reducing vulnerabilities and sustaining growth.
He stressed that the budget should be aligned with a broader vision that makes India more independent yet globally attractive, warning against excessive reliance on a few markets or entities. Rajan highlighted opportunities and risks from technologies such as artificial intelligence and underlined the need to better integrate India into global supply chains through tough policy choices, including tariff rationalization and stronger state-level investment policies.
Calling for a revival of the reform momentum of the 1990s, Rajan urged diversification of economic partnerships with Europe, East Asia, Australia and the Middle East. He also cautioned against poorly planned infrastructure and housing projects that may not deliver long-term value.
