The games the maverick politician Subramanian Swamy has been playing on RBI governor may have no bearing on whether Dr Raghuram Rajan will get an extension beyond September 4. In fact, the PM and the FM have said words to that effect. What is intriguing about this mudslinging is that Dr Swamy has not been reined in yet, as evidenced by his continuing to bait the RBI governor on various counts with criticism based on cryptic clues as well as personal attacks.
Maybe a touch of rivalry over economics is to be discerned in this if there is no more sinister motive to Dr Swamy’s attacks. After all, Bernard Shaw did say, “If all the economists were laid end to end, they’d never reach a conclusion.” Mr Rajan’s pronouncements on the subject have been most restrained, his taking down of Dr Swamy’s attacks coming with a touch of humour. Whatever he has said has only enhanced his standing, as much as his actions on the economy have lent stability in uncertain times.
In finding a conservative balance in the debate on inflation versus growth while also indicating a willingness to be accommodative if the conditions change with a normal monsoon, he has displayed integrity and honesty. The RBI governor has demonstrated he is not going to be railroaded into lowering rates just because politicians are pleading for softer credit to industry. While it’s true banks were encouraged to borrow from NRIs in the early part of Mr Rajan’s tenure, it would also be in India’s interest if he were to handle its fallout.
