RBI governor Raghuram Rajan’s tenure in 9 charts
PremiumWhile fortuitous factors like a drop in commodity prices have helped steady the fundamentals of the economy, so have sound macroeconomic policies
Premium
The Indian economy has seen significant changes over the three years that Raghuram Rajan has been the governor of the Reserve Bank of India.
In September 2013, when Rajan took over, the economy was part of the infamous ‘Fragile Five’ grouping. Today, it is celebrated as the fastest growing major economy in the world.
While fortuitous factors like a drop in commodity prices have helped steady the fundamentals of the Indian economy, so have sound macroeconomic policies like a focus on bringing down inflation, building foreign exchange reserves and allowing a steady increase in foreign participation in the Indian debt markets.
A summary of how economic indicators have evolved over the last three years:
web.jpg "Consumer price inflation has slowed from over 10% to 5.76%.")
web.jpg "While Rajan initially increased the repo rate, a drop in inflation allowed for a 150 basis points cut since 2015.")
web.jpg "Rate cuts have allowed the 10-year yield and hence funding costs to drop.")
web.jpg "Equity markets have gyrated to domestic and global factors but are well above levels seen three years ago.")
web.jpg "The rupee which had hit record lows just before Rajan joined has been steady.")
web.jpg "Foreign portfolio investors have invested $30.8 billion in Indian stocks and $29.3 billion in local debt over the past three years.")
web.jpg "Growth remains a pain point for India. While GDP growth is at the same level as when Rajan took over, many doubt the GDP data.")
web.jpg "Growth in industrial production too has remained volatile over this period.")
web.jpg "Manufacturing remains weak but is expanding.")
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