Rajan one of the best economists: Chidambaram

Defending Rajan, he said, “The UPA government appointed one of the most outstanding economists of the world as the RBI Governor. We placed full confidence in him at that time and we continue to place full confidence in him today.” 

“I am beginning to think whether this government deserves Rajan,” he replied, when asked whether he should be given a second term. Interacting with reporters on two years of the Narendra Modi government at the Congress headquarters, Chidambaram first chose to ignore questions on BJP leader Subramanian Swamy’s attack on Rajan, insisting that the Congress will respond if the Prime Minister and the Finance Minister speak against the present governor. 

In a letter to Modi two days ago, Swamy asked him to sack the RBI governor, charging that his insistence on high interest rate had led to recession in the domestic small and medium industries causing not only a sharp decline in output, but also massive unemployment of semiskilled labour. 

“The world over, Finance Minister and Central Bank governor engage in such a dialogue that it does not mean the Finance Minister questions the competence of the RBI Governor. Each one approaches economy from his/her own perspective. Government’s perspective is growth. Central bank’s perspective is monetary stability,” he said. 

Chidambaram also said the Modi government should go for bold reforms. “Now this government has 282 or may be 283 (seats) in the Lok Sabha, it should pick up the courage and take up bold structural reform and in doing so, it must engage the opposition. The Congress party is willing to engage if the government means business,” added the Congress leader, who has been nominated from Maharashtra by the party for Rajya Sabha polls.