NDTV Profit

RBI Chief Rajan's Star Power 'Makes Internet Swoon': Foreign Media

It's hard to find a government official in India with more star power than Raghuram Rajan, a University of Chicago finance professor who is now governor of India's central bank.
EMAIL
COMMENTS
Many chief executives of large companies have praised Raghuram Rajan's efforts to curb inflation (File photo)
Many chief executives of large companies have praised Raghuram Rajan's efforts to curb inflation (File photo)

Highlights

  1. Many chief executives have praised Rajan's efforts to curb inflation
  2. Rajan's efforts to clean up bad debts have also been praised
  3. He is commonly referred to as a "rock star" or India's "James Bond"
It's hard to find a government official in India with more star power than Raghuram Rajan, a University of Chicago finance professor who is now governor of India's central bank.

Rajan, 53, perhaps best known for predicting the global financial meltdown of 2008, has served as the chief of India's central bank since 2013, earning widespread praise for his sure-handed oversight of the economy. He's often mentioned as a successor to Christine Lagarde, head of the International Monetary Fund.

In the past three years, India's popular central-bank governor also developed - well, there's no other way to say it - quite a fan following.

His news conferences are covered live across television news networks. He is commonly referred to as a "rock star" or India's "James Bond" - a reference to a widely circulated newspaper illustration that depicted him as Agent 007. (In it, Rajan is the defender of the Indian currency - wielding a pistol made of rupee notes.)

When journalists compared him to both a hawk and Santa Claus at a news conference announcing a rate cut late last year, he simply smiled and said, "My name is Raghuram Rajan, and I do what I do." The Internet swooned.

In recent days, though, Rajan has been under fire from India's right, in what some people say is an organized effort to oust him or deny him an extension to his current term, which ends Sept. 4. 

Leading the charge is Subramanian Swamy, a controversial former Harvard University economics professor who is now a member of India's Parliament.

Swamy wrote a highly publicized note to Prime Minister Narendra Modi earlier this month to ask that Rajan be fired because he is "mentally not fully Indian," a reference to his U.S. ties. In a follow-up note, Swamy accused Rajan of enacting monetary policies that damaged economic growth and of publicly contradicting Modi's Bharatiya Janata Party.

Shortly after the killing of a Muslim man by a mob sparked a national debate about intolerance, for example, Rajan gave a widely covered speech in which he called for improving the environment for ideas "through tolerance and mutual respect."

Rajan, whose family hails from the south of India, graduated from the country's prestigious Indian Institutes of Technology and later earned a PhD in management from MIT. He went on to be the youngest chief economist of the IMF.

Not surprisingly, Rajan has a raft of defenders - including many prominent chief executives of large companies who have praised his efforts to curb inflation and clean up India's debt-ridden banks. A Change.org petition has been set up urging the government to keep him on. It now has more than 56,000 signatures.

Modi, who is said to be supportive of the governor, was circumspect about Rajan's future in an interview with the Wall Street Journal earlier this month.

"I don't think this administrative subject can be an issue for the media. And that issue is only in September, not now," the prime minister said.

Rajan has stayed above the fray. He noted in a speech earlier this month that while the economy is in the midst of a recovery, "there is still work to be done."

@ 2016 The Washington Post

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ ONGC To Buy Government Stake In HPCL For Rs 36,900 Crore

Advertisement

GAINERS / LOSERS

Advertisement