New Delhi: RBI Governor Raghuram is referred as one of the best bankers in the world. He is known to have candid views on state of affairs in the Indian and global economy.
Since taking over the RBI in September 2013, Rajan helped the Indian economy to bounce back and maintain stability despite weak or non favourable economic scenario. Now, he is due to retire from the post in September this year. In the past few months, there has been speculation rife whether Rajan would be given another term.
At an event in Greater Noida, Rajan was asked whether he would like to pad up for a second innings after his term ends on September 4. To this, he said, “That question, I can't answer. First I have to be asked, 'Do you want to continue?' Then, I can answer.”
“I love teaching. I will go back to academia once I am done with my work here,” Rajan, who in 1991 joined the Booth School of Business at the University of Chicago and went on to become a Professor of Finance there, said.
Rajan, an academic and former chief economist at the IMF, has been one of the most influential Governors in the RBI’s 81-year old history, building a significant profile abroad as a voice for emerging markets.
Rajan, an IIT Delhi alumnus, took charge as the 23rd Governor of RBI on September 4, 2013 for a three-year term, amid a bleeding rupee threatening to plunge to 70 levels, very high current account deficit, growth screeching south and rating agencies threatening to junk the sovereign.
The Governor successfully brought down retail inflation to 3.8 per cent in July from 9.8 per cent in September 2013. At that time, economist Arvind Subramanian had said that Rajan should start fearing deflation and not inflation.
The only few big misses of Rajan are the sudden fall of the rupee following the China crisis, and the massive spike in bad loans that almost doubled. But his achievements, on every other front dwarf these shortcomings.
Experts believe that Rajan should be given a second term after his first expires in September this year. This will help in keeping the bond and rupee markets stable. Brokerage firm and investment group CLSA too has stated that Indian bond and currency markets will be under big risk if his term is not renewed.
