Raghuram Rajan’s exit: Rahul Gandhi attacks PM; says Modi knows everything, doesn’t need experts like Rajan

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Published: June 18, 2016 9:39:25 PM

Raghuram Rajan's decision to opt out for a possible second term at RBI has evoked strong reaction from Rahul Gandhi.

Rahul Gandhi Raghuram Rajan, raghuram rajan exit, rahul modi, rbi governorRahul Gandhi praised Raghuram Rajan, saying, “Thank you Dr Rajan for steering the economy in difficult times. People like you make India great.” (PTI Photo)

Raghuram Rajan’s decision to opt out for a possible second term at RBI has evoked strong reaction from Rahul Gandhi, with the Congress Vice President slamming PM Narendra Modi for the governor’s move. “Prime Minister Narendra Modi knows everything. He has no need for experts like Raghuram Rajan,” Rahul Gandhi posted on Twitter.

Rahul praised Rajan, saying, “Thank you Dr Rajan for steering the economy in difficult times. People like you make India great.”

Rajan in a letter to colleagues at RBI announced his decision to not take up a second term at the central bank. “Inflation is in the target zone, but the monetary policy committee that will set policy has yet to be formed. Moreover, the bank clean up initiated under the Asset Quality Review, having already brought more credibility to bank balance sheets, is still ongoing. International developments also pose some risks in the short term. While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016,” he wrote. “I will, of course, always be available to serve my country when needed,” he added.

 

 

Rajan’s letter led to a Congress attacking the Modi government, blaming the latter for the RBI governor’s exit. Senior Congress leader P Chidambaram said he was disappointed and profoundly saddened by Rajan’s decision against a second term, but he was not surprised by the development.

Also read: Raghuram Rajan’s exit will send signal that Modi government was unable to handle situation: Jamal Mecklai

“I am disappointed and profoundly saddened by the decision of Dr Raghuram Rajan to leave the RBI on completion of his term on September 4, 2016, but I hasten to add that I am not surprised at all,” he said in his reaction.

The former finance minister said the government had invited this development through a craftily-planned campaign of insinuations, baseless allegations and puerile attacks on a distinguished academic and economist.

“As I had said sometime ago, this government did not deserve Dr Rajan. Nevertheless, India is the loser,” he added.

(With inputs from Agencies)

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