Raghuram Rajan to take over as RBI Governor today.
Internationally renowned economist Raghuram Rajan will take over as the 23rd Governor of Reserve Bank of India (RBI) today in a time when the country battles a rapid fall in rupee, high inflation, low growth and burgeoning current account deficit (CAD).
50-year-old Rajan, is an alumni of IIM-Ahmedabad and IIT-Delhi and a former chief economist with the International Monetary Fund (IMF) who was economic advisor to the finance ministry, will takeover a difficult assignment from Duvvuri Subbarao on his completing five years in Mint Road.
Rajan has already said that he has no magic wand to face the challenge before the country but would deal with them one at a time.
The Government, which was at the receiving end of Subbarao’s unrelenting focus on inflation control at the cost of low interest rates, would hope that the new incumbent would reverse some of those policies.
Rajan, who was appointed as the Chief Economic Advisor in the Finance Ministry in August last year, bring to RBI a vast experience gained at the IMF and during the brief stint in the government.
Known for his frank views Rajan was acclaimed for predicting the 2008 global financial crisis. In 2005, he had delivered a lecture critical of the financial sector, arguing that a financial disaster might be looming.