Raghuram Rajan Unfit To Be RBI Governor, Says Subramanian Swamy

12/05/2016 4:06 PM IST | Updated 15/07/2016 8:26 AM IST
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NEW DELHI, INDIA - JANUARY 12: BJP leader Subramanian Swamy arrives for the press conference at North Avenue on January 12, 2016 in New Delhi, India. BJP leader said that he has written to Prime Minister Narendra Modi for moving the Supreme Court to seek day-to-day hearing of civil appeals in the Ram Janmabhoomi case. (Photo by Ravi Choudhary/Hindustan Times via Getty Images)

NEW DELHI -- BJP leader Subramanian Swamy today suggested that Reserve Bank Governor Raghuram Rajan be removed from the post as he was responsible for "unemployment and collapse" of industrial activity.

"In my opinion, RBI Governor is not appropriate for the country. I don't want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country," he told reporters in Parliament House.

The Governor's actions have "led to collapse of industry and rise of unemployment in the economy", he said. "The sooner he is sent back to Chicago, the better it would be."

Rajan is the on-leave Professor of Finance at the University of Chicago's Booth School of Business.

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.

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