Tag Archives: RBI Governor

Of experts and politicians – The Raghuram Rajan Drama: C. P. Chandrasekhar

Guest Post by C. P. CHANDRASEKHAR

The attack on Raghuram Rajan spearheaded by Sangh Parivar trouble-maker Subramanian Swamy has disturbed even those who otherwise support Prime Minister Modi’s government. The attack has received even more attention because it preceded Rajan’s surprise announcement of his departure from the Reserve Bank of India (RBI), prior to the government’s decision on whether he should be given a second term. It is clear from his letter to the RBI’s staff announcing his decision to keep out of the race for the job as central bank chief, that Rajan would have liked to serve a second term. But sensing that he was not going to be offered the extension and could even rejected if he applied for it, Rajan chose to step down.

It would be giving Swamy too much credit to hold that his letters to the Prime Minister claiming that Raghuram Rajan was wrecking the economy, was not “nationalist” enough because of his American green card, and was a stooge of the Congress, were responsible for the latter’s decision to exit. Swamy is widely seen as a maverick, and Rajan is too smart not to know that if anything, it is the BJP MP’s credibility that has been affected. What must have irked him more is the failure of the government and the PM to stand up for him. That silence possibly explains the arrogant shift of Swamy’s target of attack to the Chief Economic Advisor, Arvind Subramanian, who is more vulnerable because of his advice in the past to the US government, calling for stronger action against India on intellectual property issues. Continue reading Of experts and politicians – The Raghuram Rajan Drama: C. P. Chandrasekhar