PM is “pleased” with Rajan, he may continue beyond September

New Delhi: Reserve Bank of India governor Raghuram Rajan got a pat from Prime Minister Narendra Modi on Wednesday for rise in economic growth during the last quarter , ending speculations about his removal. He may be allowed to continue after next September when his term expires.

Modi has expressed pleasure over increase in Gross Domestic Product to 7.9 per cent leaving China and all others way behind. This kind of growth was not estimated by any one, including financial experts.

This, in other words, means that Rajan may be persuaded to continue even if he wants to leave the RBI and take up some assignment in the United States, as has been reported by a section of the media.

In addition to PM finance minister Arun Jaitley has also expressed happiness over his working. Jaitley has gone to the extent of advising fellow ministers and party (BJP) men not to say anything for institutions like the RBI. Before him the party president Amit Shah has evaded questions regarding Rajan .

The Wednesday’s development should also quieten party MP Subramanian Swamy who has launched a campaign against Rajan and shot off two letters to the PM urging his removal.