Rajan's 'structural changes' to benefit economy: India Inc

Concerned that RBI Governor Raghuram Rajan is leaving at a "tumultuous" time, India Inc today said global factors are posing multiple risks to India's economic stability, even as it hoped the structural changes by the apex bank chief will yield positive results going forward.

Industry body Assocham expressed hope that Rajan will be persuaded to reconsider his decision even as it observed that the way the public discourse and narrative on the entire issue took shape could have been avoided.

According to Ficci, Rajan's contribution to the country's economy is "exemplary" and he would always be remembered for his outstanding work.

"We are sure the government will soon find an able hand to continue the good work done by the present RBI governor when his term gets over," Ficci President Harshavardhan Neotia said in a statement.

Rajan has been a huge factor in confidence building at a challenging time in the Indian economy, he said.

"Many structural changes initiated by the RBI governor be it in banking regulations, monetary policy or exchange rate will have positive impact on the economy going forward and he will always be remembered for his outstanding contribution," Neotia added.

Rajan, whose tenure as the RBI chief will end on September 4, had yesterday announced his decision against pursuing a second term.

Stating that the development was not a good sign for Indian economy, Assocham said: "Rajan leaving RBI at a time of tumultuous global economy poses several risks to India, which along with the banks grappling with mounting non-performing assets, is quite unfortunate."

"While institutions are paramount, individuals provide leadership which makes all the difference. Rajan 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 ecosystem," Assocham Secretary General D S Rawat had said in a statement yesterday.

Infosys Chairman Emeritus N R Narayana Murthy said, "It is sad that the country lost services of highly accomplished economist at this point of time we in India want 10 per cent growth rate and 10 million jobs."

He said it was very important today to attract more talent from accross the world to address the challenges here.

Biocon Chairperson and Managing Director Kiran Mazumdar-Shaw said, "I know many voices in corporate India who are disappointed. Today we are in a very complex economic environment globally, a strong understanding of global economics and the kind of wisdom and experience Raghuram Rajan brought in to counter many of these kind of headwinds is something that we benefited from."