Raghuram Rajan Not Fit for India: Subramanian Swamy

Subramanian Swamy is not happy with the way Raghuram Rajan’s policies have panned out.

Subramanian Swamy talks to the media at Parliament House in New Delhi. (Photo: PTI)

BJP leader Subramanian Swamy on Thursday suggested that Reserve Bank Governor Raghuram Rajan be removed from the post as he was responsible for “unemployment and collapse” of industrial activity.

In my opinion, RBI Governor is not appropriate for the country. I don’t want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country. The sooner he is sent back to Chicago, the better it would be.

Subramanian Swamy, in Parliament House

Rajan is the on-leave Professor of Finance at the University of Chicago’s Booth School of Business.

Swamy felt that Rajan is not fit for the country, saying, “His move to increase the interest rates, so as to cut down the inflation and stabilise the economy, has backfired and badly affected the nation.

He also allegedly told reporters, “all the industries have collapsed and as a result unemployment has increased. In my opinion, he should be removed as early as possible.”

Rajan had delivered a lecture titled ‘Why banks?’ in Cambridge University on Cambridge Wednesday, where he talked about foreign banks and their hesitance to open branches in India given the “high risk” credit rating. The amount of capital needed in that instance is much higher, which banks don’t see as being worthwhile.

These comments come as Rajan’s term as the governor draws to a close in September, amid speculation about him bagging the second term.

Rajan’s policies have made an impact on India’s financial health with inflation coming down substantially from what it was before he joined. However, the reluctance of banks to open up in India is a threat that can spill over into the other sectors.