Reserve Bank Governor Raghuram Rajan praised Prime Minister Narendra Modi for being an articulate spokesman for India. He also said that government was doing well in managing the economy.
“What we need to do is to back up his visits with action on the ground which reinforces the good impression that he has created.”
Dr. Rajan acknowledged the efforts of PM Modi to make India an investment destination for the investors.
Denying rumours of any confrontation between the Finance Ministry and Reserve Bank of India, Rajan said that the relationship between the two has been strong though he did not agree with the finance minister’s point of view on certain issues. “Otherwise, the public should start getting worried that the central bank is becoming too acquiescent. In a sense we have to be a gatekeeper and sometimes say no!” the Governor said.
He also praised the government for effective food management which according to him helped in keeping the food inflation in check despite two continuous years of drought. Advising India Inc, Dr Rajan said investors must take a plunge “with a hope and a prayer” and not wait for government actions. The RBI governor hinted that his work will involve sustained interaction with the political class but he seemed not interested in taking up politics as full time career. His three-year term will come to an end next year.