Rajan’s ‘structural changes’ to benefit economy: India Inc

 Industry body Assocham expressed hope that Rajan will be persuaded to reconsider his decision even as it observed that the way the public discourse and narrative on the entire issue took shape could have been avoided. According to Ficci, Rajan’s contribution to the country’s economy is “exemplary” and he would always be remembered for his outstanding work.

 “We are sure the government will soon find an able hand to continue the good work done by the present RBI governor when his term gets over,” Ficci President Harshavardhan Neotia said in a statement. Rajan has been a huge factor in confidence building at a challenging time in the Indian economy, he said. 

“Many structural changes initiated by the RBI governor be it in banking regulations, monetary policy or exchange rate will have positive impact on the economy going forward and he will always be remembered for his outstanding contribution,” Neotia added. Rajan, whose tenure as the RBI chief will end on September 4, had on Saturday announced his decision against pursuing a second term.

 Stating that the development was not a good sign for Indian economy, Assocham said: “Rajan leaving RBI at a time of tumultuous global economy poses several risks to India, which along with the banks grappling with mounting non-performing assets, is quite unfortunate.”