Rajan leaving not a good sign for Indian economy: ASSOCHAM

The ASSOCHAM has said at a time when a tumultuous global economy posed several risks to India along with the banks grappling with an unprecedented challenge of mounting non-performing assets, the decision of Reserve Bank of India (RBI) Governor Raghuram Rajan to not continue with his current post after the end of his tenure was unfortunate.

"While it is the institutions which are paramount, individuals provide leadership and a quality leadership makes all the difference. That is what Dr Rajan has done to the RBI. Over the last three years, he provided a new dimension to entire approach of the central bank with a global perspective, yet keeping intact, the unique advantages of the Indian economy and eco system," ASSOCHAM Secretary General D. S. Rawat said.

He expressed hope that Rajan was persuaded to reconsider his decision though the way the public discourse and narrative on the entire issue took shape could have been avoided.

In a surprising announcement, Rajan yesterday said that he would return to the academic world at the end of his term on September 4, 2016, adding he will always be available to serve his country when needed and asserted that his 'successor' would take the nation to new heights.

Rajan is currently on leave from the Chicago Booth School of Business where he holds the post of Distinguished Service Professor of Finance.

Infosys founder Narayan Murthy had earlier voiced his support for Rajan, saying the central bank chief should be offered two more terms in recognition of his track record in steering monetary policy.

BJP leader Subramanian Swamy, who has been one of the chief critics of Rajan, yesterday welcomed the latter's decision to leave his post as the RBI Governor on the completion of his term this year, saying he was not even getting a second term in the first place.

Swamy told ANI that Rajan made this decision in order to save his self respect.

Swamy, who has been one of Rajan's chief critics in recent months, had earlier in May written to Prime Minister Narendra Modi and asked for the RBI Governor's removal.