Raghuram Rajan's Windfall Tax Proposal for Indian SMEs

Former RBI Governor Raghuram Rajan has proposed a windfall tax on Indian oil refiners to help small and medium enterprises (SMEs) cope with new U.S. tariffs. In a recent LinkedIn post, Rajan highlighted that the U.S. has imposed a hefty 50% tariff on Indian goods, particularly affecting the textile and apparel sectors. He suggests that the profits gained from discounted Russian oil should be taxed and redirected to support these struggling SMEs. This measure aims to ensure that oil refiners who benefit from these profits contribute to offsetting the economic burden on exporters, creating a more balanced economic environment.