A question from a class 8 student in Mumbai recently left RBI Governor Raghuram Rajan very impressed. Rajas, a student of a Dombivali East school, had asked Rajan when Indian policy would be important enough to affect other countries.
"The mere rumour of the US cutting down on the federal stimulus saw the rupee crashing in value," said Rajas. "When will we see an Indian policy affecting other countries so intensively?"
The 52-year-old economist said that India shouldn't aspire to affect other countries adversely through its changes in policy.
"I have been saying that the US should worry about the effects of its policy on the rest of the world," he said. "So if we stood by that, we should not be very happy down the line when Indian policies affect the rest of the world adversely."
Rajan said that India would become "a significant force in the world economy" over the next decade, and its trade policies would influence other countries.
"I suspect that by the time you're my age, we will be one of the two or three great economies in the world," he told the student. "And you as Central Bank governor will have to decide the kinds of policies that are appropriate for the world, and not just for India at that time."