ET now : 6 Aug 2013
NEW DELHI: Calling Raghuram Rajan's appointment as the next Reserve Bank of India's (RBI) Governor a welcome move, industry and economists have cheered the announcement.
Deepak Parekh of HDFC said that Rajan is a 'very good' choice for the post and has a good understanding of the global monetary policy system. "Rajan is the right person to handle our financial markets, he is likely to be innovative about the banking sector," Parekh told ET Now.
Parekh acknowledged that the current economic situation is 'very alarming' and emphasised the need to take bold measures. "Everyone is worried about therupee situation," he said.
Swaminathan Aiyar, Consulting Editor with ET Now called Rajan an 'extraordinary economist'. "Many Chief economists of IMF have been central bank governors," he said.
According to Aiyar, a central bank governor needs to concentrate on inflation and that while Chidambaram would want the new RBI governor to focus on growth, Rajan is also likely to give emphasis to inflation.
"There is no way that the central bank can fix the exchange rate," he added.
C Rangarajan, Chairman of the PMEAC also said that Raghuram Rajan is an 'excellent choice' for the RBI governor position. "Rajan is now familiar with the Indian economy, expect him to handle all issues in a mature manner," Rangarajan told ET Now.
Stating that the RBI has multiple objectives, but mostly that of maintaining price stability, Rangarajan went on to say that stabilising the rupee will be an important task for the RBI governor.
Reacting to the announcement, Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission said that Rajan will be taking over as the RBI governor at a 'tough-time.'
Echoing the same sentiment, DK Mittal, Former Banking Secretary said that Rajan will have his 'plate full in terms of what he has to understand.' "Pressure is being mounted on RBI to do things that government should be doing, Rajan understands the view of the Finance Ministry," he said.
While calling Rajan a 'mature and renowned economist', Mittal went on to say that he is not exposed to the banking sector operations in India.
Rajan will replace D Subbarao, who completes his five-year term on September 4, and will be the 23rd Governor of the central bank."Prime Minister Manmohan Singh has approved appointment of Raghuram Rajan as Governor of RBI for a term of three years," an official statement said.
Rajan, a former IMF chief economist, was appointed as the Chief Economic Advisor in the Finance Ministry in August last year.
Known for his frank views, Rajan was also honorary economic advisor to the Prime Minister.
Deepak Parekh of HDFC said that Rajan is a 'very good' choice for the post and has a good understanding of the global monetary policy system. "Rajan is the right person to handle our financial markets, he is likely to be innovative about the banking sector," Parekh told ET Now.
Parekh acknowledged that the current economic situation is 'very alarming' and emphasised the need to take bold measures. "Everyone is worried about therupee situation," he said.
Swaminathan Aiyar, Consulting Editor with ET Now called Rajan an 'extraordinary economist'. "Many Chief economists of IMF have been central bank governors," he said.
According to Aiyar, a central bank governor needs to concentrate on inflation and that while Chidambaram would want the new RBI governor to focus on growth, Rajan is also likely to give emphasis to inflation.
"There is no way that the central bank can fix the exchange rate," he added.
C Rangarajan, Chairman of the PMEAC also said that Raghuram Rajan is an 'excellent choice' for the RBI governor position. "Rajan is now familiar with the Indian economy, expect him to handle all issues in a mature manner," Rangarajan told ET Now.
Stating that the RBI has multiple objectives, but mostly that of maintaining price stability, Rangarajan went on to say that stabilising the rupee will be an important task for the RBI governor.
Reacting to the announcement, Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission said that Rajan will be taking over as the RBI governor at a 'tough-time.'
Echoing the same sentiment, DK Mittal, Former Banking Secretary said that Rajan will have his 'plate full in terms of what he has to understand.' "Pressure is being mounted on RBI to do things that government should be doing, Rajan understands the view of the Finance Ministry," he said.
While calling Rajan a 'mature and renowned economist', Mittal went on to say that he is not exposed to the banking sector operations in India.
Rajan will replace D Subbarao, who completes his five-year term on September 4, and will be the 23rd Governor of the central bank."Prime Minister Manmohan Singh has approved appointment of Raghuram Rajan as Governor of RBI for a term of three years," an official statement said.
Rajan, a former IMF chief economist, was appointed as the Chief Economic Advisor in the Finance Ministry in August last year.
Known for his frank views, Rajan was also honorary economic advisor to the Prime Minister.
He was acclaimed for predicting the 2008 global financial crisis.
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