PM Modi Articulate Spokesperson for India, Says Raghuram Rajan

Invoking PM Modi’s advice to India Inc, Dr Rajan said investors must take a plunge with a “hope and a prayer” and not wait for government actions.

Reserve Bank Governor Raghuram Rajan on Wednesday said that the government was doing a good job in managing the economy and praised Prime Minister Narendra Modi for being an “articulate spokesman for India”.

“What we need to do is to back up his visits with action on the ground which reinforces the good impression that he has created,” Dr Rajan said in an exclusive interview to NDTV, acknowledging PM Modi’s initiative to market India as an investment destination. (Highlights)

52-year-old Dr Rajan, who has been called a “rockstar” central banker, also sought to dispel the notion that there was bad blood between the Mint Street (RBI) and North Block (Finance Ministry).

Dr Rajan said the relationship between the RBI and the government has been strong, but added that he did not always agree with the finance minister’s point of view.

“Otherwise, the public should start getting worried that the central bank is becoming too acquiescent. In a sense we have to be a gatekeeper and sometimes say no!” the Governor said.

Dr Rajan praised the government for effective food management, which he said helped keep food inflation in check despite two consecutive years of drought. The RBI chief said he will be “accommodative” if data permits, signaling the possibility of further easing in interest rates.

Invoking PM Modi’s advice to India Inc, Dr Rajan said investors must take a plunge with a “hope and a prayer” and not wait for government actions. (Also read: RBI chief answers 12 questions in rapid-fire round)

“Those who move early will reap the rewards,” Dr Rajan said.

His work may involve sustained interaction with the political class, but Dr Rajan seemed averse to taking up politics as a full-time career once his three-year term comes to an end next year.

“The key decision maker is my wife and she said no,” Dr Rajan said when asked whether he would end up being in politics.