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Now, Subramanian Swamy trains his gun on Raghuram Rajan, says he is unfit to be RBI Governor
Thursday May 12, 2016 6:57 PM, Agencies

Subramanian Swamy

New Delhi:
BJP leader Subramanian Swamy, known for stoking controversies, on Thursday suggested that Reserve Bank Governor Raghuram Rajan be removed from the post as he was responsible for "unemployment and collapse" of industrial activity.

"In my opinion, RBI Governor is not appropriate for the country. I don't want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country," he told reporters in Parliament House.

The Governor's actions have "led to collapse of industry and rise of unemployment in the economy", he said.

"The country has suffered because of the way he raised interest rates saying that inflation will be curbed", he added.

"The sooner he is sent back to Chicago, the better it would be", he said.

Rajan is the on-leave Professor of Finance at the University of Chicago's Booth School of Business.

After assuming charge as RBI governor in September 2013, Rajan gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and had retained the high rates throughout 2014.

He kept the rates high, citing inflationary concerns despite intense pressure from the Finance Ministry and the industry for softening them with a view to boosting growth.

The Governor began the process of lowering the rates in January 2015 and since then it has come down by 1.50 per cent to 6.50 per cent.

Rajan has been very straightforward in his approach and words on India's economic situation.

Describing his job of formulating monetary policy in India as a 'joyful' and easy task, Rajan had said complexities arise when ensuring its political acceptance and one needs to be "a little more clever" for that.


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