Sprint (stint) at RBI ends

Raghuram Rajan’s stint in RBI ended up as a short sprint rather than as a decent middle-distance race, let alone being a marathon, similar to the tenures of Greenspan and Bernanke in the US. On balance, he has done quite well. His overall score card would at least be a B+ or A-. His latest interview with Supriya for ET NOW was a wide-ranging one. While he said that he never criticised the government in public, given the tendency of the media to pit him as an adversary of the government, he would have had to curb his natural instincts to share his well-meaning thoughts with the wider public.

I do not doubt his sincerity or intentions behind most of what he said. I also know that the media (and hence, BJP bigwigs) ignored all the good things he said about government policies. In fact, his praise of the government was more direct while his critical’ remarks were indirect. But, the media had no interest or no scope to play mischief with his praise. Hence, they ignored them. Hence, BJP leadership ignored them too. Pity. However, the moment one sensed this game on the part of media and the absence of homework on the part of BJP leadership, he should have or could have held himself back even more than he did.

Again, this is trivial. On matters of policy, as he had mentioned, RBI and the Government were on the same page and they delivered well together. Right now, there is macroeconomic stability in India, no matter how fragile it is. Even the inflation hawks at JP Morgan India do not seem to be alarmed that the CPI inflation rate had crept up above 6.0% in July.

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