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Swamy writes to Modi seeking removal of Raghuram Rajan as RBI Governor

Raghuram G. Rajan
Raghuram G. Rajan
Senior Bharatiya Janata Party (BJP) leader and nominted Rajya Sabha member Subramanian Swamy wrote to Prime Minister Narendra Modi on Tuesday seeking the immediate removal of Reserve Bank of India (RBI) Governor Raghuram Rajan from his position for various reasons, including that he was "mentally not fully Indian".
 
"I write this letter to strongly recommend that you consider terminating the appointment of the Governor, Reserve Bank of India, Dr. Raghuram Rajan, effective immediately or in any case when his term ends in September, 2016," Dr. Swamy said in his letter, dated May 16.
 
"The reason why I recommend this is that I am shocked by the wilful and apparently deliberate attempt by Dr. Rajan to wreck the Indian economy. For example, the concept of containing inflation by rising interest rates is disastrous. When the Wholesale Price Index (WPI) started to decline due to induced recession in the small and medium industry, he shifted the target from WPI to the Consumer Price Index (CPI) which has not however declined because of retail prices. On the contrary it has risen. Had Dr. Raghuram Rajan stuck to WPI, interest rates would have been much lower today, and given huge relief to small and medium industries. Instead they are squeezed futher and consequent increasing unemployment," he wrote.
 
Dr. Swamy said that, as a result, the estimated non-performing assets (NPA) in public sector banks had doubled to Rs. 3.5 lakh crore.
 
"These actions of Dr. Rajan lead me to believe that he is acting more as a disrupter of the Indian economy than the person who wants the Indian economy to improve. Moreover, he is in this country on a Green Card provided by the US Government and therefore mentally not fully Indian. Otherwise, why would he renew his Green Card as RBI Governor by making the mandatory annual visit to the US to keep the Green Card current?" he asked.
 
Subramanian Swamy
Subramanian Swamy
Dr. Swamy said the BJP had come to power under Mr. Modi's "inspiring leadership" in which thousands and thousands of educated persons contributed.
 
"I cannot see why someone appointed by the UPA Government who is apparently working against Indian economic interests should be kept in this post when we have so many nationalist minded experts available in this country for the RBI Governorship.
 
"I therefore urge you to terminate the appointment of Dr. Raghuram Rajan in the national interest," he added.
 
Dr. Rajan, 53, a well-known economist, was appointed on August 22, 2013 as the Governor of RBI for a three-year term. He assumed office on September 4, 2013, succeeding Dr. D. Subbarao on his retirement.
 
He had earlier served as Chief Economic Adviser in the Ministry of Finance and as Honorary Economic Adviser to the Prime Minister with the rank and status of Secretary to the Government of India.
 
Dr Rajan had earlier served as the Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business. Before that, between 2003 and 2007, Dr. Rajan was the Economic Counselor and Director of Research at the International Monetary Fund (IMF). 
 
Later, he chaired the Indian government’s Committee on Financial Sector Reforms, which submitted its report in September 2008.
 
His papers have been published in all the top economics and finance journals, and he has served on the editorial boards of the American Economic Review and the Journal of Finance. 
 
Dr Rajan had earlier served as a senior advisor to BDT Capital, Booz and Co, and on the international advisory board of Bank Itau-Unibanco. 
 
In January 2003, the American Finance Association awarded Dr. Rajan the inaugural Fischer Black Prize, given every two years to the financial economist under age 40 who has made the most significant contribution to the theory and practice of finance.
 
NNN
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