New Delhi, Aug. 30 -- Former Reserve Bank of India (RBI) Governor recently took to LinkedIn, suggesting a measure to mitigate the economic fallout from recent additional US tariffs on Indian goods, prompted by imports of Russian oil.

Rajan proposed that the Indian government should consider imposing a windfall tax on oil refiners who are profiting from discounted crude oil. He argued that the funds collected could be redirected to support India's small and medium enterprises (SME), particularly textiles and apparel, which are now facing the brunt of the hefty tariffs imposed by the US.

A windfall tax ensures that those who benefit from Russian oil also contribute to offsetting the costs it imposes on others, Rajan suggested.

A windfall...