Three months on the job seem to have converted Reserve Bank of India Governor Raghuram Rajan from an inflation hawk to at least a pragmatist.
Indians' belief in the country's economic future has diminished in the recent years, with the COVID-19 pandemic taking a further toll on sentiment while pushing many middle-class citizens into poverty, former RBI governor Raghuram Rajan has said. Virtually addressing an event organised by the NALSAR University of Law, Rajan further said the domestic stock market is booming but that does not reflect the reality that many Indians are in deep distress.
Rupee has tumbled about 10 per cent alone since Rajan's appointment on August 6.
Terming Rajan as "India's prescient banker," Time said he is among a rare breed of "economic seers".
Central bank governor says the devaluation like China or Japan is neither feasible nor a good strategy
Though Nobel Prize nominations have been a secret for 50 years, speculation abounds over the contenders for this year's prize in economics.
Expectations are high. There is a little bit of euphoria in India, says RBI governor.
Design of these notes to be issued now is similar in all respects to the Rs 1000 Banknotes in Mahatma Gandhi Series-2005 issued earlier, RBI said.
Reserve Bank of India Governor Raghuram Rajan took charge of India's central bank when the rupee seemed to be in a tailspin while the country was facing runaway inflation.
'We have 100,000 students going abroad every year.' 'So, we have room for at least 100 universities of very high quality to service those 100,000 students.'
Rajan said he believes that capitalism is breaking down because it is not providing equal opportunities.
A paper authored by Rajan said, state-linked banks can be a first step in altering the ownership structure of some PSBs, where the government brings down its stakes to below 50 per cent, creating distance from operations of banks, and improving governance along the way.
The Governor, who completes one year in RBI on Wednesday, has stabilised the rupee and is getting a fix on inflation.
He takes over at Mint Road at a time when the governor's job is even less easy than it is normally.
'For a large vibrant economy like India's, there is always hope. We still have tools to tackle our problems. But we must exercise those tools with vigor and a sense of urgency.' Professor Raghuram Rajan, the celebrated economist who will be the Reserve Bank of India's next governor, revealed what India must do to start growing again in this memorable speech last year. Can he now deliver results?
RBI ex-governor's book on 'those turbulent but exciting times' to be launched on Sept 5 in Chennai.
The argument that India is going towards a 'Hindu rate of growth' is "ill-conceived, biased and pre-mature" when weighed against the respective data on savings and investments, said SBI Research in its Ecowrap report. The term Hindu rate of growth was coined by economist Raj Krishna in 1978, which denoted the economic growth of about 3.5-4.0 per cent in terms of GDP during 1947-1980. "India's quarterly sequential Y-o-Y GDP growth has been in a declining trend in FY23.
Given that the public is no longer willing to tolerate lack of transparency, politicians will see they have no alternative but to change, feels Raghuram Rajan, economic advisor to the prime minister. Interestingly, Professor Rajan made this hard-hitting speech at an event to release a book in Prime Minister Manmohan Singh's honour.
The ones who came more recently were clutching the green cards that gave them an escape hatch through which to return to green pastures: Arvind Panagariya, Raghuram Rajan, Arvind Subramanian and other perfectly honourable gentlemen like them, points out T N Ninan.
Rajan, as expected, furthered his predecessors' agenda and continued with the same resolution to make India's financial system safer, and direct the economy towards further liberalisation
The industrial output for the third month in a row remained in the negative territory, contracting 1.5% in January
Raghuram Rajan optimistic about passage of GST
Rediff.com did a word cloud analysis of the governor's speech.
Industrial countries cannot at this point wash their hands off developing economises and say we will do what we need to, and you do the adjustment you need to, says RBI Governor.
What differentiates Rajan from his predecessors is his proactive steps in anticipating a problem and coming up with out-of-the-box solutions
Never one to mince words, Rajan will walk away with a mixed legacy
'The 'Off-with-Rajan's-head' brigade bases its arguments on mistaken beliefs, erroneous causalities, and even downright prejudice.'
Former RBI governor Raghuram Rajan on Monday said the central bank will have to raise interest rates to tame inflation and the hikes need not be considered by politicians and bureaucrats as some "anti-national" activity. Known for his frank views, Rajan also said it was important to remember that the "war against inflation" is never over. "Inflation is up in India. At some point, the RBI will have to raise rates, like the rest of the world is doing," he said in a LinkedIn post.
"I am an Indian citizen, I have always been an Indian citizen. I always held an Indian passport. I held an Indian diplomatic passport when my father was in the foreign service and when I travelled on behalf of the ministry of finance," Rajan said.
India's consumer inflation should ease in the next two months, and will fall to 8 per cent by the end of the year, says RBI Governor Raghuram Rajan.
Six out of eight monetary policies announced by him during his entire tenure so far have been on Tuesdays
Sounding a note of caution, former Reserve Bank Governor Raghuram Rajan has said that India is "dangerously close" to the Hindu rate of growth in view of subdued private sector investment, high interest rates and slowing global growth. Rajan said that sequential slowdown in the quarterly growth, as revealed by the latest estimate of national income released by the National Statistical Office (NSO) last month, was worrying. Hindu rate of growth is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged around 4 per cent.
When asked if he sees himself back in Chicago, he said, "Yeah, Chicago has been kind to me over my history".
Former Reserve Bank of India governor Raghuram Rajan said that Rs 65,000 crore is required to help the poor affected by the coronavirus-induced lockdown. He also laid stress on the need to restart the economy while taking precautions.
Even before Prime Minister Narendra Modi swept to power in 2014, Subramanian Swamy was agitating for Rajan's removal.
It would be beneficial for the economy to hold on to high interest rates till inflation numbers are under control.
Rajan's appointment will be perceived as a positive development.
Rajan will evolve a policy with the help of professional persons for a national consensus if we have to carry on with implementing social and economic changes in a complex economy.
He endorsed transparency and financial stability in addition to issues related to inclusive growth and development, write Puran Singh and Nupur Pavan Bang.
'India's biggest loss is that we will not have anyone as principled and as courageous as Rajan.'
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