From the time he has taken office in 2013, Raghuram Rajan is n the news for his greatly designed economic growth plans for India. He has been facing challenges and slashing them out of his way and has done it all in his inimitable style. This Stud from IIT Delhi with multiple prestigious awards from India and abroad is here to stay and guide India the good way. Here is why:
1. He likes to make processes simple and easy. Earlier banks needed to take approval from RBI. Dr. Rajan cancelled that to facilitate the process and reduce red-tape steps.
2. My Name is Raghuram Rajan and I do what I do. – The man has words of iron and is his jovial best when making serious disclosures about the RBI and its workings.
3. He uses the reserves to cut down inflation. Consumer price inflation has come down to 7.96% in July 2014 as compared to 9.8% in September 2013 when Dr. Rajan took charge as Governor of RBI.
4. He worked towards benefitting the poor man too. One big reason that farmer suicides increased Is that food inflation is much lower in 2014 at 9.3% as compared to 2013 when it was 11%.
5. Shopping is at best spirits now since wholesale price inflation is 5.2% as compared to 6.5% in September 2013.
6. The fate of the Rupee was indeed a very difficult to predict in 2014 and start of 2015. Not any more because Forex reserves are higher at $320 billion as compared to $275.5 billion in August 2013 and most important Rupee is much stronger as compared to US Dollar.
7. Indians can heave a sigh of relief as the GDP growth is 5.7% in the first quarter of 2014-15 against 4.7% during first quarter of last financial year. And there is more, investors are pouring in.
8. He actually foresaw the 2008 crisis in the global financial market. He presented a paper Has Financial Development Made The World Riskier? in 2005 at the Jackson Hole Economic Policy Symposium and was criticized for it. But it all turned true in three years.
9. He cut down interest base rates and suddenly the RBI revived its lost glory as the control point of India’s economic structure.
10. He actually said this on record:”Crony capitalism is a big threat to countries like India- One widely held hypothesis is that our country suffers from want of a ‘few good men’ in politics. This view is unfair to the many upstanding people in politics. But even assuming it is true, every so often we see the emergence of a group, usually upper middle class professionals, who want to clean up politics. But when these ‘good’ people stand for election, they tend to lose their deposits. Does the electorate really not want squeaky clean government? “