Echoes in support of Raghuram Rajan for his second term as RBI Governor


While buzz are surfacing on debate whether Raghuram Murthy to be appointed as RBI Governor for the second time or not, one more voice came up supporting the governor. NR Narayan Murty on Thursday showed his support to Reserve Bank India (RBI) governor Raghuram Rajan saying that Mr. Rajan should be offered two more terms as per his track record.

Murthy, co-founder of Infosys, said, “ India should be very fortunate to have Rajan serve this country for not just one, but I would say two more terms.”

The echoes come barely a month after Rajan’s second term as the Chief of RBI came into question over comments of BJP MP Subramanian Swamy.

Swamy had written to the Prime Minister Narendra Modi demanding to sack Rajan immediately, alleging him ‘mentally not fully Indian’ and has recklessly wrecked the economy. He also added that Rajan’s concept of raising interest rates to control inflation was “disastrous”.

However, Murthy is not alone in voicing Rajan support. Here are some other voices that came up to support Rajan.

Arun Shourie

Former Union Minister Arun Shourie on Wednesday said that Mr. Rajan cannot be blamed for various ‘wrongs’ including keeping the interest rates high and inflation as Rajan was just performing his duty. Intend to support Rajan, he said, “ As far his professionalism is concerned, I don’t think there has been any doubt on that at all.”


Late last month, the Associated Chambers of Commerce and Industry of India (Assocham) said that RBI has played a ‘pivotal role’ in ensuring India’s growth and in the in the absence of some "serious offence" an incumbent (Rajan) should not be "targeted".

"Surely, it is the appanage of the government to appoint and re-appoint a person to the coveted position of RBI governor, but the kind of media statements being issued about Raghuram Rajan do not forebode well for the country's financial system," Assocham said without naming Swamy.

Christopher Wood

Christopher Wood (Managing director & equity strategist, CLSA said that it will be the biggest risk for the Indian bond ans currency market if Rajana Rajan is not given a second term. Wood has pointed out Rajan’s strict monitoring and actions in controlling non-performing loans.