Swamy has accused Rajan of “wilfully” wrecking the economy. He also said that the RBI governor is “mentally not fully Indian” as he continues to renew the Green Card issued to him by the US government.
Rajan was appointed RBI Governor by the previous UPA government in September 2013 for a three-year term, which can be extended.
After assuming charge as RBI governor in September 2013, Rajan gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and had retained the high rates throughout 2014. He kept the rates high, citing inflationary concerns despite intense pressure from the Finance Ministry and the industry for softening them with a view to boosting growth.
Earlier, he had given the example of hypermarkets chain Wal-Mart, which he said, is “trying hard to come to India”, and when it does that there “will not be a level-playing field” because of Rajan.
“Because Walmart gets capital in their own country at two percent interest rate. And then they come to India… and in India, the competitor trader he gets, thanks to Raghuram Rajan, 12 per cent interest rates and in the informal market 25 per cent interest rate. How can you compete?” he questioned.