Arun Jaitley disapproves of personal attacks on RBI governor

On Thursday, firing a fresh salvo at Rajan, Swamy levelled six allegations against him including of sending confidential and sensitive financial information around the world and asked the Prime Minister to sack him immediately.

Rajan was countered by Junior Finance Minister Jayant Sinha and Commerce Minister Nirmala Sitharaman, who said he should have chosen his words more carefully. Besides, a number of sectors in China suffered from overcapacity and high leverage, he added.

“Both could be significant downside risks as they could have second round effects for SAARC economies”.

He has already strayed into economic affairs with his push to oust central bank Governor Raghuram Rajan, and in the interview he called for India to stop targeting inflation, abolish the income tax and shelve a proposed goods-and-services tax.

On the domestic front, Rajan said India has also embarked “on a cleanup of bad debts in the banking system so as to free bank balance sheets to support growth are elements of what we have practised in the wake of global uncer tainties”.

Rajan’s term comes to an end in September this year and after Swamy started attacking him, there has been support from the online community with nearly 50,000 signatories requesting Modi to ensure that Rajan gets a second term.

Dr Rajan further said significant efforts have been taken in the agricultural sector to boost productivity through better irrigation facilities, crop insurance, access to markets. “If the government was so troubled with him, they should have taken a decision when they came to power two years back”.

While one can argue about the inflation staying an obsession of the RBI, the central bank has been mandated by the targets of inflation set by an agreement set by the Finance Ministry.

“Rajan was appointed in 2013 for a three-year term by the then Congress party government after a highly distinguished policy and academic career at the International Monetary Fund (IMF) and the University of Chicago”.

“I can not see why someone appointed by the UPA Government who is apparently working against Indian economic interests should be kept in this post when we have so many nationalist minded experts available in this country for the RBI Governorship”. The region however, is now facing newer challenges arising from uncertainties in other parts of the world.