New Delhi: Ending months of speculation, India's central bank governor Raghuram Rajan on Saturday said he will step down when his term ends in early September. This decision caught many by surprise and also led to debate on whether it was his own call or it's a forced exit. Rajan, in a letter to RBI employees, said he would like to make a return to the academia, recent attacks by some senior functionaries of the ruling establishment led to speculation over the actual reason behind the ‘Rexit’.
Here are some of the reactions to his announcement:
The Government appreciates the good work done by him and respects his decision. A decision on his successor would be announced shortly.(2/2)— Arun Jaitley (@arunjaitley) June 18, 2016
Prime Minister Narendra Modi knows everything. He has no need for experts like Raghuram Rajan— Rahul Gandhi (@RahulGandhi) June 18, 2016
Subramanian Swamy, BJP lawmaker: “Raghuram Rajan is an employee of the Government of India. We don't select employees on the basis of popular vote”
Palaniappan Chidambaram, former finance minister, in a statement: “The government had invited this development through a craftily planned campaign of insinuations, baseless allegations and puerile attacks on a distinguished academic and economist. As I had said some time ago, this government did not deserve Dr. Rajan. Nevertheless, India is the loser.”
NR Narayana Murthy, Co-founder of Infosys: “India was lucky to have had the services of an outstanding economist like Rajan as the Governor of RBI. His performance was acclaimed not just in India but throughout the world. Experts in economics agree on that. I hope his leaving will not make other green card holders of Indian origin in the US and Indian permanent residents of other countries less confident about adding value to India”
Vishal Sikka, Infosys CEO: “He has been an extraordinary governor and we wish him all the best in his life and academia. I would love to see if there is some way to work together but he has done an extraordinary job and we wish him all the best.”
Kiran Mazumdar Shaw, Chairman and Managing Director Biocon: “RBI Governor Raghuram Rajan not seeking second term - Academic gain. RBI loss. He leaves a legacy of economic stability.”
State Bank of India’s Chairman Arundhati Bhattacharya in an e-mailed statement: "Dr. Rajan is a person of very high caliber, who has built ably on the reputation of our central bank and given it a very large measure of credibility."
Mahindra & Mahindra Ltd. Chairman Anand Mahindra said, "In my travels around the world and encounters with leading overseas businessmen it became clear that during his tenure he greatly enhanced the credibility and bankability of India. I trust that a successor will be found who will continue and enhance the great work done by Governor Rajan.”
The Associated Chambers of Commerce & Industry of India, in an e-mailed statement attributed to Secretary General D.S. Rawat said, “Dr. Raghuram Rajan leaving the RBI at a time when a tumultuous global economy poses several risks to India along with the banks grappling with an unprecedented challenge of mounting non-performing assets is quite unfortunate.”
Dr Amartya Sen, Nobel Laureate said, “We are losing one of the most skillful financial economic thinkers in the world. It is sad for the country and it is sad for the government of the country too. RBI is not a completely autonomous institution.”