Swamy writes to PM seeking termination of Rajan
BJP MP Subramanian Swamy wrote to Prime Minister Narendra Modi seeking immediate dismissal of RBI Governor Raghuram Rajan. Swamy alleged that the former IMF chief economist was "mentally not fully Indian" and has "wilfully" wrecked the economy. He wrote that Rajan's concept of raising interest rates to contain inflation was "disastrous" and that he believed Rajan was acting as a disrupter of Indian economy.
Raghuram Rajan was appointed RBI Governor by the previous UPA government in September 2013. Rajan's term at the helm comes to an end in September 2016.
Raghuram Rajan has been credited by many to have kept Indian economy in safe hands at a time when the global growth was slowing. He took over as RBI governor at a time when India's inflation was above 10%. Not only did he hike rates to tame inflationary expectations, Rajan also took a number of steps to stop the rapid depreciation of rupee.
Holding the RBI Governor responsible for "unemployment and collapse" of industrial activity, BJP leader Subramanian Swamy suggested that Rajan be sacked from the post. Swamy accused Rajan of harming the economy and said he was not appropriate for the country. He said that Rajan should be sent back to Chicago, where he is the on-leave professor at University of Chicago's Booth School of Business.
Swamy in Sep 2015, suggested that Rajan should be sacked if he did not cut bank rates. In Oct 2015, he remarked that Rajan has made a mess of RBI and the Prime Minister should sack him.
In his letter to PM, Swamy said that it was the previous UPA government that appointed Rajan and questioned why a UPA appointee should be retained. Swamy also pointed out that bad loans with public sector banks have doubled to Rs. 3.5 lakh crore in two years. He alleged that Rajan's decisions have squeezed small and medium business and increased unemployment in the country.
Reacting to Subramanian Swamy's comment against Raghuram Rajan, senior Congress leader Jairam Ramesh said, "Don't politicise the RBI governor's post, these are hallowed institutions and respected. Manmohan Singh appointed him with due consideration." BJP Spokesperson on Economic Affairs Gopal Krishna Aggarwal said that the remarks were Swamy's personal opinion. Aggarwal added that the final call on Rajan's tenure will be taken by the government
