A silly letter

Narendra Modi should ignore the demand made by Subramanian Swamy to replace RBI governor Raghuram Rajan


Photo: Bloomberg
Photo: Bloomberg

Narendra Modi should ignore the demand made by his party colleague Subramanian Swamy to replace Reserve Bank of India governor Raghuram Rajan.

The short letter is riddled with logical inconsistencies that are surprising for an economist trained at Harvard University. Swamy has got his economics terribly wrong. But it also does injustice to the success Rajan has had in bringing down inflation, forcing banks to begin cleaning up their toxic loan books, pushing for financial reforms and reclaiming the credibility that the central bank had lost during the period of high inflation.

India needs credible institutions as well as high-calibre people to lead them. Vicious personal attacks of this sort can do immense damage to the country. Swamy has mastered the art of staying in the public eye with the help of such quixotic campaigns. Modi should not only ignore his latest missive but draw a lakshman rekha to define the boundaries of what will be tolerated.

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