PM Modi Need Not Sack Raghuram Rajan

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Prime Minister Narendra Modi has often been perceived as someone who is domineering, narrow-minded, vengeful and someone who prefers flattery and likes to keeps things in complete control.

Well all of it was proved wrong when he chose his core team after winning the Lok Sabha election two years back. The core team Mr. Modi picked actually went on to show that he is someone who once agrees that someone is the right candidate for the job would pick up the person.

raghuram rajan

It is said by Mr. Modi's cabinet colleagues that he prefers people who have their own mind and can back up their ideas with evidences. Mr. Modi had to go for an ordinance to ensure that he could appoint Mr. Nripendra Mishra as his principal secretary.

In the same manner to get the right person for the job Mr. Modi retained Mr. Raghuram Rajan as the Reserve Bank of India's Governor and Mr. Syed Akbaruddin as Spokesperson of the Ministry of External Affairs despite the fact that both were appointed by the UPA government.

Mr. Akbaruddin after his many years with the MEA got his next posting as India's permanent representative at the United Nations since January 2016. This shows that Mr. Modi is not paranoid but shows immense trust.

This is the reason why Raghuram Rajan who has often criticised the government's moves has been able to stick to his job. Mr. Modi sure knows that RBI Governor should not say what the government wants to hear but say what he thinks is needed to be done.

When Dr. Subramanian Swamy wrote to PM Modi about sacking Rajan many felt that his target was Arun Jaitley and not the RBI Governor. Many experts advised PM to ignore the letter from Dr. Swamy.

Raghuram Rajan as RBI Governor:

Raghuram Rajan as RBI Governor has been doing a good job for the country. He has not brought down the interest rates as this is a tool that is available to him to contain inflation. Other thing is that small businesses have not been hurt by the high rates as data shows that compared to big businesses smaller ones have been doing well.

Rajan as some experts say should be given second term of two years as he is someone who provides the government with an independent view. Again Rajan has proved that he can face the expert bankers of the world and present India's ideas as to how world economy should function. This is of utmost importance as Indian economy can't work independently from world economy.

Rajan is a highly decorated intellectual who has earned lot of respect for his integrity. He has been providing practical inputs on economic policy of India which is beyond his role as RBI Governor. Rajan is an asset for Mr. Modi and provides PM with easy workable solutions.

Have a look at Raghuram Rajan's excellent academic and career record:

Academic Record:

1981 - Bachelor's degree in electrical engineering from IIT, Delhi. In the final year he was awarded the Director's Gold Medal as the best all round student.

1887 - Post Graduate Diploma in Business Administration from IIM, Ahmedabad. Rajan was a gold medalist too.

1991 - PhD from MIT Sloan School of Management. Thesis was titled 'Essays on Banking'.

Career:

1991 - Joined Booth School of Business at the University of Chicago. Went on to become a Professor of Finance.

2003 to 2006 - Chief Economist at International Monetary Fund (IMF).

2007 - Chaired the Indian Government's Committee on Financial Sector Reforms.

2008 - Honorary Economic Adviser to then Indian PM Manmohan Singh.

2009 - Member of the American Academy of Arts and Sciences.

2011 - President of American Finance Association.

2012 - Chief Economic Advisor to India's Ministry of Finance.

2013 - RBI Governor for a term of three years.

2015 - Vice-Chairman of the Bank of International Settlements.

Many want him to take over as the head of IMF once term of Christine Lagarde expires in 2016.

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