Raghuram Rajan Announces His Departure, And Twitter Erupts!

RBI Governor Raghuram Rajan has officially announced that he will not extend his stay in India post the end of his tenure, and ‘will be returning to academia’.

In a letter to the RBI staff made public today, the Governor said that, ‘I have always made it clear that my ultimate home is in the realm of ideas,’ but ‘I will, of course, always be available to serve my country when needed.

The Governor’s term ends on September 4, 2016.

Subramanian Swamy and Rajdeep Sardesai Make Shocking Statements After Raghuram Rajan’s Exit Announcement

Recently, Rajya Sabha MP Dr. Subramanian Swamy had called for Rajan’s removal, accusing him of deliberately wrecking the Indian economy. He didn’t mince any words even today when he tweeted that:

R3 has said he will go back to US. Whatever figleaf he wants for hiding the reality that we should not grudge it. Say good bye!

Rajdeep Sardesai tweeted: “Economy won’t collapse because an RBI gov leaves. But reinforces perception that Govt. doesn’t like independent voices in top institutions.

India’s Finance Minister Mr. Arun Jaitley said that the government appreciates the good work done by him and respects his decision. A decision on his successor will be announced shortly.

India Inc. has been rallying in support of Raghuram Rajan for a while, and this has come as a big shock to them. The man initiated the massive clean-up of our public-sector banks, brought the inflation down to target range, and kept the Indian Rupee stable in an environment of high volatility. His main purpose was to strengthen the economy from the grassroots level, irrespective of what the financial markets thought or how they behaved.

A world renowned, top-class economist leaving India is a big loss for the nation, and for Narendra Modi-led government. Indian stocks, specifically the banking stocks, might not react positively to this development.