Raghuram Rajan quits RBI: India loses, academia gains, industry saddened

New Delhi: Top industry leaders on Saturday said RBI Governor Raghuram Rajan’s decision not to take a second term will be “nation’s loss” as he brought economic stability and enhanced India’s credibility on the world stage. India Inc led by Anand Mahindra, Deepak Parekh, NR Narayana Murthy, Kiran Mazumdar-Shaw, Mohandas Pai hoped that Rajan’s successor will continue with the ‘good work’ he did, although industry chambers CII and FICCI declined to comment. [caption id=“attachment_2842696” align=“alignleft” width=“380”] Raghuram Rajan. Reuters[/caption] Reacting to the development, Mahindra & Mahindra Chairman Anand Mahindra said he was “saddened” to hear about Rajan’s decsion to opt for academia at the end of his current term. “In my travels around the world and encounters with leading overases businessmen it became clear that during his tenure he greatly enhanced the credibility and bankability of India. I trust that a successor will be found who will continue and enhance the great work done by Governor Rajan,” Mahindra said. HDFC chairman Deepak Parekh said: “It’s a pity to lose him. I’m wondering what has precipitated this action by the governor. I am sure the government, at the right time, would have considered giving him another two years term as most governors have got.” Infosys co-founder NR Narayana Murthy  expressed sadness over the development and said Rajan deserved more dignity than what he was treated with. “Have no doubts that he will continue to add value to the country. He deserves more dignity than what he was treated with,” Murthy told a private news channel. Similarly, Biocon Chairperson & Managing Director Kiran Mazumdar-Shaw tweeted: “RBI Gov Raghuram Rajan not seeking second term - Academic gain, RBI loss. He leaves a legacy of economic stability.” Adi Godrej, who had earlier supported Rajan’s second term, declined to comment. Mohandas Pai said in a tweet that it is a “very sad day for us great talent driven away by alcontents,cronies…deeply concerned.”

RPG Enterprises Chairman Harsh Goenka tweeted: “Globally acknowledged. Inflation warrior. Economic guru. Independent mind. Bank surgeon. #RaghuramRajan leaving is a loss to the nation.”

Eminent banker Meera Sanyal tweeted: “Academia’s gain is India’s loss: Gov Rajan to return to Chicago on 16 Sept. Swamy gets his way at the cost of India.”

Former Chief Economic Advisor Kaushik Basu tweeted: “Raghu has been one of the finest central bank governors anywhere.”

“He was one of the visionaries. He saw the crisis in 2008 happen, long before other people did. He has had a deep insight into how the global economy works. I’m particularly excited to see what he will do next. The economy is strong, things will go on. But he has surely done a remarkab”e job,” said Vishal Sikka, CEO, Infosys. Business chamber Assocham termed it unfortunate that Rajan is “leaving the RBI at a time when a tumultuous global economy poses several risks to India along with the banks grappling with an unprecedented challenge of mounting non-performing assets”. “While it is the institutions which are paramount, individuals provide leadership and a quality leadership makes all the difference. That is what Dr Rajan has done to the RBI. Over the last three years, he provided a new dimension to entire approach of the central bank with a global perspective, yet keeping intact, the unique advantages of the Indian economy and eco system,” said Assocham Secretary General DS Rawat, hoping Rajan is persuaded to reconsider his decision.