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Saturday, June 18

Raghuram Rajan - No 2nd innings for him

So finally the curtains on Raghuram Rajan  RBI Governor have been drawn.No more 2nd term for him.While i appreciate his academic acumen but as RBI Governor he was to cautious in his approach. Maybee that was his style of functioning but the aggressive style of working of Modi Government perhaps did not match his approach towards implementing economic policies of the government of the day. Inspite of repeated request by FM he did not bring down the interest rates,that in my view would have boosted demand & industrial production which in turn would have given a fillup to the markets by way of increased spending & even less NPA'S of banks.With the government relying heavily on infrastructure development & Make-In-India initiative the lower interest rates could have given a big boost by way of private sector investments in these areas.I remember the days of former Prime minister Atal Bihari Vajpai's regime when the interest rates were perhaps at the lowest & this has been the vision & policy of BJP'S economic policy as I understand.So what stopped him from toeing  the government line ? Today many congressmen are batting for him praising his academic capability but they conveniently forget that former PM Dr.Manmohan Singh was perhaps the most celeberated & widely accepted great economist but it was during his regime what happenned to the the economy is known to all.
Let's hope the new RBI Governor while continuing the good work of Dr.raguram Rajan will certainly persue the vision of the economic policies of the government by lowering interest rates & pushing more & more credit in the industry & agriculture.I am sure that stray cases of Vijay Mallya will not deter the Banks to approach the market with a more pragmatic & friendly best wishes to Dr.Rahuram Rajan for his future endeavours

About the Author

V P Marwah

Author & Editor

Has laoreet percipitur ad. Vide interesset in mei, no his legimus verterem. Et nostrum imperdiet appellantur usu, mnesarchum referrentur id vim.


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