Charismatic leader
Raghuram Rajan's exit seems to be the result of a well-planned strategy by the government (“Raghuram Rajan's letter makes it clear – leaving the RBI wasn't his decision”). There are several reasons why they would have wanted him out.
First, in the interest of some corporates, the government, from the very beginning, pushed for the reduction of lending rates. Rajan, however, resisted this, keeping the high inflation in mind.
Rajan wanted to strengthen public-sector banks by tackling non-performing assets, which many did not like. As RBI chief, he wanted to streamline the functioning of the apex financial institution so that it remains an independent institution – not one that was subservient to the government. This made him an irritant.
He always called a spade a spade. He did not hide the reality pertaining to inflation, bad loans and the overall scenario of Indian economy.
Those who do not occupy important portfolios currently were jealous of his status and his achievements.
Rajan's exit will be a loss to the country and the various initiatives started by him could take a backseat. Good luck to Rajan. We will miss him as the smiling RBI governor. – Gurinder Gulati
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So what if Rajan goes. We have a lot of highly educated people who can take over, like our NRI prime minister, the Harvard-educated Subramanyam Swami, the multiple-degree holder Smriti Irani… the list can go on with all the other BJP and RSS members. It’s sad that our country has come to this. – Z Navder
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What sort of governance is this? On the one hand, you have a prime minister who travels the world to network, create more opportunities and foster economic growth. On the other, you have a regime desperate to throw an Indian economist out of the country because he has lived and worked abroad. – Apurva
Considered decision
It is Rajan’s choice whether to quit or continue (“Raghuram Rajan not to continue as RBI governor after September”). It will be a pity, however, if his decisions that targeted on inflation and on taking the Consumer Price Index into account while setting interest rates is reversed. – RSM
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We are not worthy of Rajan. Our top brass needs a yes-man and not an intelligent person who has a mind of his own. Years ago, we had Manmohan Singh as the Reserve Bank of India governor, who functioned more as a rubber stamp than an economist.
Arun Jaitley did not make any effort to retain Rajan, even as he saw the positive outcome of every policy. Subramanian Swamy unnecessarily tried to drag Rajan down to get the spotlight. I hope Modi tries to retain Rajan. – Shailendra
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This is the beginning of the end of India’s macro-economic stability. I hope the government can find someone with at least half of Rajan's ability, but it seems doubtful. Why are we self-destructive? – Narhari Rao
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Rajan is an outstanding economist who very successfully used his vast knowledge for the benefit of India. I wish his tenure had been extended. Our visionary prime minister should have intervened. – Shekhar Mandrekar
Empty words
Arun Jaitley’s statement that the government will select Rajan’s successor soon shows that all of them – Modi, Swamy and Jaitley – are birds of the same feather (“Arun Jaitley appreciates Raghuram Rajan’s 'good work', says his successor will be announced soon”). They seem to have teamed up to get rid of him because he was more concerned about the millions who do not get three square meals a day than about the elite few. Rajan is not a hypocrite like Modi, who shouts from the rooftops that he’s concerned about price rise but focuses more on industrialists. Our leaders make tall claims about being desh bhakts and nationalists even though they’re not bothered about the hardships that poor of this country face. – Onkar Singh
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No country’s fortunes rest on the shoulders of any one individual. In India, for instance, it was Manmohan Singh who liberalised the economy and put the country in top gear. Then, we found a good RBI governor in Rajan. Tomorrow, we may see another accomplished economist at the helm who will take India to even greater heights. Let us hope for the best. – S Hariharan
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Chetan Chauhan is going to head the National Institute of Fashion Technology. Now, maybe Anupam Kher could fancy a chance to head the RBI? This could be the time he reaps the reward of his loyalties. – Nisa Askari
Looking ahead
India is not lacking in financial wizards (“Raghuram Rajan did not just do what he did at RBI – he also dared to speak out”). Why lament Rajan’s decision to return to academics? It was one he would have taken weighing all the pros and cons. Nobody is indispensable. Let more lotuses bloom. They will. Please stop spreading despair and hero-worship. – JR Krishnan
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Any self-respecting man and thorough professional would have taken the same step as Rajan. Questioning his loyalty to India was the biggest insult to him. Modi would have possibly decided to extend his tenure, but he was clearly under pressure to make Rajan the scapegoat for the ills faced by the government.
It’s clear that Rajan took the right decision to tackle inflation on priority, something that the government failed to do, but they tried to deflect the blame by targeting him. They also tried to blame the opposition for stalling the goods and services tax, but its implementation will not make any difference to the Gross Domestic Product, contradictory to claims.
Modi, although refreshingly decisive as a prime minister, prefers to run the show and therefore wants loyal followers. One shall not be surprised that if a bureaucrat is made RBI governor.
Economists and those know what is good for the country will perceive Rajan’s departure as a huge setback. Foreign investors will think twice before coming to India as they were cognisant of Rajan’s abilities.
One can temporarily fool the public about the government’s performance with inflated figures, but the facts cannot stay hidden for long. – Srinivasan Iyer
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Your tribute to Rajan reminds me of the following verse by Sir Richard Francis Burton:
Do what thy manhood bids thee do
from none but self expect applause.
He noblest lives and dies
who makes and keeps his self-made laws.
– S Prabhala
Idle chatter
The commentary on Rajan’s exit on social media is nonsensical (“'Chetan Chauhan has offered 10% of his time for RBI': Twitter laments Raghuram Rajan's exit”). He is not indispensable. Why can't you consider the possibility of the next RBI governor being better than Rajan? – Vilas
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