Indian economist and former Governor of Reserve Bank of India (RBI) Raghuram Rajan said that the real reason for the ceasefire is ceasefire credit. This has nothing to do with buying oil from Russia. “This dispute stems from diplomatic disagreements over individuals and credit for reducing India-Pakistan tensions,” Rajan said at the UBS Center Forum for Economic Dialogue.
India did not give credit to Trump for ceasefire
In Zurich, Raghuram Rajan said that the person sitting in the White House promoted tension with India. He told, ‘Pakistan played it correctly. The main issue was about several personalities, especially a person sitting in the White House. India made many negative comments on Trump’s ceasefire claim. Whereas Trump himself took credit for stopping the India-Pakistan conflict.
Pakistan acted cleverly
The moderator asked Rajan whether buying less oil from Russia was a way to please Trump? Rajan said, ‘I don’t think buying Russian oil was ever the central issue. Just yesterday you saw that Hungarian Prime Minister Viktor Orban ignored the oil purchase.
Pakistan adopted the right path- Rajan
Raghuram Rajan said that Pakistan gave credit to Trump for stopping the ceasefire in front of the whole world, while India said that the ceasefire was the result of direct communication between the military leaders. Pakistan adopted the right path. Pakistan said that all this happened because of American President Trump. The result was that India got 50% tariff, while Pakistan got only 19% tariff.
Rajan recalls Operation Sindoor
Raghuram Rajan recalled the conflict between India and Pakistan that took place in May 2025. New Delhi: 26 civilians were shot dead by Pakistani terrorists in Pahalam, Jammu and Kashmir. Then India entered Pakistan and destroyed many terrorist hideouts and killed them. Then conflict started between Pakistan and India. Attacks were taking place from both sides of the border. The matter had become so serious that America had to intervene. After the ceasefire, Trump talked about ceasefire all over the world, but India rejected it.
India-US relations weakened since August
Under the leadership of Donald Trump, America imposed tariffs of up to 50% on most goods imported from India. Trump said New Delhi bought subsidized Russian oil despite US sanctions and ‘funded the war in Ukraine.’ Trump described this move as a response to ‘one-sided’ trade relations with India. Tensions rose when Trump’s allies, such as Peter Navarro and Stephen Miller, made personal attacks on the Indian political leadership. Navarro even made racist and mocking comments, turning the trade dispute into an unusually confrontational situation.