FM Nirmala Sitharaman takes a swipe at former RBI governor Raghuram Rajan

FM Nirmala Sitharaman takes a swipe at former RBI governor Raghuram Rajan

Finance Minister Nirmala Sitharaman took a swipe at the former Reserve Bank Governor Raghuram Rajan for “failing to fulfill his duties as a banking regulator” and leaving the country’s lending ecosystem in torment.

In an exclusive media interaction, Nirmala Sitharaman FM accused Rajan of looking the other way while banks were doing fire-fighting from external pressure.

She went on to add that banks were in torment as the regulator looked the other way and phone calls were going to banks.

Rajan should’ve pointed out the rules to banks and protected them from external pressure,” further adding that the former governor was an economist or a politician every time he speaks.

The FM was responding to a question on India’s growth rate of 7%, which the former central banker had said wasn’t enough and that the country should be really aiming for “9 to 10% growth.”

Rajan had observed that at the current rate of growth, India would reach the current per capita income of China by 2047, but by this time it would also have to face an aging population.

Noting that an authoritarian shift with a focus on manufacturing along the lines of China would no longer be an option in the modern day and the global market, Rajan had pointed that India would have to focus on human capital and the capacity to create intellectual properties.

News Edit K.V.Raman