New Delhi: In comments that could possibly embarrass the BJP government, newly nominated Rajya Sabha MP Subramanian Swamy today launched a scathing attack on RBI Governor Raghuram Rajan saying ‘he is not fit for the nation’ and should be removed as early as possible.
He also accused him of adopting faulty policies which has escalated unemployment in the nation.
“In my opinion, the RBI Governor is not apt for our country. His move to increase the interest rates, so as to cut down inflation and stabilize the economy, has backfired and has badly affected the nation,” Swamy said.
“All the industries have collapsed and as a result unemployment has increased. In my opinion, he should be removed as early as possible,” he added.
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Swamy’s remark came against the backdrop of Rajan’s lecture at the Cambridge University where he had said that the foreign banks have stopped opening branches in India as they need to set aside a lot more capital due to the country’s ‘higher risk’ credit rating and they feel it is ‘not worth’ doing so.
Swamy’s observation about Rajan came at a time when debate over Rajan’s 2nd term is gaining momentum. Rajan is due to retire in September this year.
The RBI Governor had earlier described Indian economy as ‘the one-eyed man’ being king in the land of blind. “I think we have still to get to a place where we feel satisfied. We have this saying -- ‘In the land of the blind, the one-eyed man is king’. We are a little bit that way,” Rajan said.
Not only Swamy, Finance Minister Arun Jaitley too had earlier condemned the policies enacted by the RBI Governor. Jaitley had termed Rajan’s monetary tactics as non-compatible with India’s aim to increase domestic production.
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. The Governor began the process of lowering the rates in January 2015 and since then it has come down by 1.50 per cent to 6.50 per cent.
