Former RBI Governor Raghuram Rajan may have exited, but Bharatiya Janata Party (BJP) leader Subramanian Swamy is still continuing to take pot shots at him for acts of omission and commission during his term in office. Swamy had previously accused Rajan of carrying on an agenda that deliberately kept Indian economic growth restricted as he was refusing to cut interest rates as the governor of the central bank – Rajan cited high inflation and other economic data for his hawk-like stance. Swamy had even sought to persuade PM Narendra Modi to sack the governor forthwith. But that had not happened, even as other BJP leaders had come out against him, and Rajan retired after his term was over.
But today, Swamy again tackled Rajan and took to Twitter to post his controversial view. Here it is: Subramanian Swamy @Swamy39: “Why has since Rexit Consumer Price Index declined and interest rates too? R3 and his cheer choir a hoax, or pushing an anti Indian agenda?” (Rajan’s exit was referred to as Rexit and was considered to be as momentous an event in itself as, in terms of nomenclature at least, Brexit or the earlier Grexit).
In fact as soon as Rajan retired, his successor Urjit Patel cut the repo rate by 25 bps in the next monetary policy meet as the Modi dispensation had wanted Rajan to do.
Rajan had indicated that he wanted to continue as the Governor for a second 3-year term, but was not allowed one by the PM Narendra Modi led government and Subramanian Swamy’s heft was blamed for it. FM Arun Jaitley was quite ambivalent about the outcome.
Rajan was well regarded by the analysts for being able to bring back on the rails the juggernaut that was the Indian economy which had run off tracks after years of profligate UPA years under PM Narendra Modi, which focussed more on doling out subsidies rather than on spending on infrastructure and taking other such actions that would boost growth and create jobs.