This refers to the report, “Rajan bids farewell to rate cut, leaves it for monetary policy panel” (August 10). By ushering significant economic reforms at a time when the country was struggling with a double digit inflation, volatile rupee, falling forex reserves and an impending banking crisis, Reserve Bank of India Governor Raghuram Rajan showed that he has the ability to ‘walk alone’, to face the challenge of growth inflation dynamic.
Rajan exuded impeccable acumen. He also brought a fundamental shift in Indian banking by initiating the process of bad debt clean-up and engaging banks in resolution of their non-performing assets.
However, his scathing observations about India being a one-eyed king in the land of the blind and Make-for-India as a more viable course of action vis-a-vis Make in India marked a few lows in an otherwise impressive stint due to which he and the Government found themselves on different pages. In other words, the last monetary policy announcement statement shored up the mixed legacy of the Rajan years.