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Taken aback by Raghuram Rajan’s exit, industry terms it nation’s loss

NEW DELHI: Amidst concerns that Raghuram Rajan’s impending exit as RBI Governor – which has been termed as ‘Rexit’ – could lead to adverse impact on the country’s financial markets, top industry leaders said it will be “nation’s loss” as Rajan brought economic stability and enhanced India’s credibility on the world stage.

While the Governor did not specifically refer to the ‘market concerns’, he said in his letter that the RBI would be able to “ride out imminent sources of market volatility like the threat of Brexit”.

India Inc led by Anand Mahindra, Deepak Parekh, NR Narayana Murthy, Kiran Mazumdar-Shaw, Mohandas Pai hoped that Rajan’s successor will continue with the ‘good work’ he did, even as industry chambers CII and FICCI declined to comment.

Reacting to the development, Infosys’ Indian-origin CEO Vishal Sikka said Raghuram Rajan has been “outstanding” as RBI Governor and he being a green-card holder should not be an issue.

NRI economist Lord Meghnad Desai too said Rajan being a green-card holder doesn’t mean that he is not an Indian enough.

Mahindra & Mahindra chairman Anand Mahindra said he was “saddened” to hear about Rajan’s decision.

HDFC chairman Deepak Parekh said: “It’s a pity to lose him. I’m wondering what has precipitated this action by the governor. I am sure the government, at the right time, would have considered giving him another two years term as most governors have got.”

Narayana Murthy, who had pitched for at least two more terms for Rajan, expressed sadness over the development and said Rajan deserved more dignity than what he was treated with.

Similarly, Biocon chairperson & managing director Kiran Mazumdar-Shaw tweeted: “RBI Gov Raghuram Rajan not seeking second term – Academic gain, RBI loss. He leaves a legacy of economic stability.”

Adi Godrej, who had earlier supported Rajan’s second term, declined to comment.

Mohandas Pai said in a tweet that it is a “very sad day for us great talent driven away by alcontents, cronies…deeply concerned.”

RPG Enterprises chairman Harsh Goenka tweeted: “Globally acknowledged. Inflation warrior. Economic guru. Independent mind. Bank surgeon. #RaghuramRajan leaving is a loss to the nation.”

Eminent banker Meera Sanyal tweeted: “Academia’s gain is India’s loss : Gov Rajan to return to Chicago on Sept 16.

—With Input Agencies