India's "rock star" RBI governor Raghuram Rajan, feted by foreign investors but under pressure from political opponents at home, stunned government officials and colleagues on Saturday by announcing he would step down after just one three-year term.
India’s “rock star” RBI governor Raghuram Rajan, feted by foreign investors but under pressure from political opponents at home, stunned government officials and colleagues on Saturday by announcing he would step down after just one three-year term. Rajan, a former chief economist at the International Monetary Fund, is held in high esteem by policymakers and investors at home and abroad for overhauling the way the Reserve Bank of India (RBI) operates.
Meanwhile there are series of reactions coming up:
1. Praising the goodwork done by Rajan in his tenure, Vishal sikka said, “Rajan is visionary, he predicted 2008 meltdow,I would have loved to see him continuing as RBI governor. I wish him all the best, he has done a brilliant job in his tenure.
2. Concerned over Raghuram rajan’s exit, Meera Sanya former CEO of RBS said in a statement ” This is going to extremely harmful for the Indian economy. We are entering a period of instability, with Britain’s exit vote set for next week and oil prices instability. There is a period of uncertainty ahead for the global economy and the Indian economy. And at such times, Raghuram Rajan not being in the position, would be quite harmful for us,”
3. Being disappointed over Rajan second term decission former Finance minister P Chidambaram tweeted, “I hasten to add that I’m not surprised at all.As I had said, this Govt didn’t deserve Dr Rajan. Nevertheless, India is the loser”
“Disappointed & saddened by Raghuram Rajan’s decision to leave the RBI on completion of his term on Sep 4,2016” P. Chidambaram added.
4. Meanwhile congress also reacted on Rajan’s second term. Congress said, “It is sad but expected. When you let loose people on him, what else will any self respecting person do?”
5. Also, Subramanian Swamy reacted to Rajan’s statement, said “Was he(Raghuram Rajan) getting a 2nd term in the first place? If he says he wants to go, I’ve no problem.”
“Raguram Rajan is a Govt employee, & govt employees are not selected on the basis of popular vote” added Swamy.
6. Appreciating good work done by Rajan in his tenure, Finance Minister Jaitley has cleared that govt respects Rajan’s decision, and will soon announce the successor
“Govt appreciates good work done by Raghuram Rajan&respects his decision. A decision on his successor would be announced shortly” Arun Jaitley tweeted
Rajan whose tenure ends on 4th September 2016 expressed his confidence that his successor will take India to new heights. He stated that he will still be working with the central bank for the next couple of months and thanked the RBI family for their dedicated work and unflinching support while asserting that it has been a ‘fantastic journey’.