Apropos “Rajan’s replacement likely to be named in a month” (FE, June 20), strange are the ways of Modi government. It picks up a former cricketer, who is not even remotely connected to the world of fashion, to head National Institute of Fashion Technology and is ready to drop Reserve Bank of India chief, a globally acclaimed economist.
Arun Jaitely has said that RBI chief Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment and the government respects his decision. But his statement is contrary to what Rajan has said in his letter to the RBI employees; that he was open to a second term but after consultation with the government decided to quit. It is clear that government’s unwillingness to give him a second term compelled him to take the quit decision. Rajan’s policies resulted in reducing inflation to 5.24 from 9.52%, stable rupee and an all-time high foreign currency reserve.
An outspoken Rajan watched the interest of the country even at the risk of annoying the government. His departure will be a setback for the investors and country’s economy. It is pity that the government’s priority is Swamy’s politics rather than country’s economy.