India Inc ‘saddened’ by Rajan’s decision over 2nd term

Updated - November 17, 2021 05:04 am IST

Published - June 18, 2016 08:13 pm IST - New Delhi

Top industry leaders on Saturday said RBI Governor Raghuram Rajan’s decision not to take a second term will be “nation’s loss” as he brought economic stability and enhanced India’s credibility on the world stage.

India Inc led by Anand Mahindra, Deepak Parekh, NR Narayana Murthy, Kiran Mazumdar-Shaw, Mohandas Pai hoped that Mr. Rajan’s successor will continue with the ‘good work’ he did, although industry chambers CII and FICCI declined to comment.

Reacting to the development, Mahindra & Mahindra Chairman Anand Mahindra said he was “saddened” to hear about Mr. Rajan’s decision to opt for academia at the end of his current term.

“In my travels around the world and encounters with leading overseas businessmen it became clear that during his tenure he greatly enhanced the credibility and bankability of India. I trust that a successor will be found who will continue and enhance the great work done by Governor Rajan,” Mr. Mahindra said.

HDFC Chairman Deepak Parekh said: “It’s a pity to lose him. I’m wondering what has precipitated this action by the governor. I am sure the government, at the right time, would have considered giving him another two years term as most governors have got.”

Mr. Murthy, who had pitched for at least two more terms for Mr. Rajan, expressed sadness over the development and said Mr. Rajan deserved more dignity than what he was treated with.

Similarly, Biocon Chairperson & Managing Director Kiran Mazumdar-Shaw tweeted: “RBI Gov Raghuram Rajan not seeking second term — Academic gain, RBI loss. He leaves a legacy of economic stability.”

Adi Godrej, who had earlier supported Rajan’s second term, declined to comment.

Mohandas Pai said in a tweet that it is a “very sad day for us great talent driven away by al-contents, cronies...deeply concerned.”

RPG Enterprises Chairman Harsh Goenka tweeted: “Globally acknowledged. Inflation warrior. Economic guru. Independent mind. Bank surgeon. #RaghuramRajan leaving is a loss to the nation.”

Eminent banker Meera Sanyal tweeted: “Academia’s gain is India’s loss : Gov Rajan to return to Chicago on Sept 16.

Swamy gets his way at the cost of India.”

Former Chief Economic Advisor Kaushik Basu tweeted: “Raghu has been one of the finest central bank governors anywhere.”

Describing RBI Governor Raghuram Rajan as a person of very high caliber, State Bank of India chief Arundhati Bhattacharya today said he has given a large measure of credibility to the central bank.

“Dr Rajan is a person of very high caliber, who has built ably on the reputation of our central bank and given it a very large measure of credibility,” she said in a statement.

Reuters adds:

“This will be seen as a disappointment by the market particularly the international investors' community,” said Ananth Narayan, regional head of financial markets for ASEAN and South Asia at Standard Chartered Bank.

“And we can only hope the government quickly announces a strong replacement to fill his big shoes.”

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