The time when India is proving its resilience against REXIT as compared to other major economies, another mega storm awaits – REXIT. On 18th June, Mr Raghuram Rajan formally announced that he won’t be seeking a second term as RBI Governor. Economic pundits termed it as “REXIT”.Admirable IndiaLet us not be mistaken and underestimate his exit. With him we are not just losing a great economist but also a brilliant mind that strengthened Indian economy and took it to new heights.Raghuram Govind Rajan, who had earlier served IMF as a chief economist, joined at a time when the nation was struggling with Rupee value at an all-time low, inflation rising to double digits and Forex reserves depleting. And now, one of the best Central Governor the world has ever witnessed, is leaving with India being viewed as world’s fastest growing major economy at a time when economic slowdown has hit most of the major economies.
In his 3-year tenure as RBI Governor, Rajan restructured RBI and worked intensively on its monetary policy. Curbing down inflation was his primary focus for which he shifted from WPI (Wholesale Price Index) to CPI (Consumer Price Index) for calculating inflation. He also pressurized banks to clear bad loans i.e. NPA (Non Performing Assets) often lent by banks to the businessmen with political interference. There were also times when he criticized the Government policies especially regarding crony capitalism.
REXIT may bring uncertainty and turbulence in the market. Outflows may trigger. Also, there are chances that Rupee may lose its value. Onus lies on the new RBI Governor to continue the legacy and keep economy on growth path. After all, these are some big shoes to fill!
Admirable IndiaPost By: Vivek Swamy