Owing to Rajan's independent mindset, many quarters in the political circuit may heave a sigh of relief.
Global central banking and India
India will now be on the verge of unleashing its potential of growth and development. This will also affect the global central banking community, which is facing its own challenges-. These challenges are essentially related to the tremendous policy burdens that key central banks have been forced to carry. Highly experienced, Raghuram Rajan had fierce academic rigor, talent and an acumen for finance that had the ability to bipass the most trying economic times.
In fact, under his leadership, the Central bank recovered India's macroeconomic stability, which is a mandatory condition for inclusive growth. Immense progress and policies were floated for the overall upliftment of the economy, including agriculture.
Having seen the potential, even foreign direct investments were attracted, which were particularly important for the development of the country.
For others, especially politicians, he was a bad choice as they felt that insufficient attention was being given to specific credit facilities.
How this will effect the world
Being a member of the global central banking community, Rajan has immense contribution in conceptualizing the international spillover effects from a period of prolonged monetary policy experimentation by Europe, Japan and the United States.
Rajan will not only be missed for his acumen in handling the RBI, but also for his policies that have benefitted not only the middle class but also the common man.