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Raghuram Rajan will be remembered for his bold initiatives: Vallabh Bhanshali, Enam Group

"Markets indeed have not seen a decisive governor like him, someone who created a lot of initiatives."

ET Now|
Updated: Jun 20, 2016, 01.42 PM IST
"Markets indeed have not seen a decisive governor like him, someone who created a lot of initiatives."
"Markets indeed have not seen a decisive governor like him, someone who created a lot of initiatives."
In an interview to ET Now, Vallabh Bhanshali, Chairman, Enam Group, shares his views on RBI Governor Raghuram Rajan stepping down post the completion of his first term, vis-à-vis how the markets would react to the news. Edited excerpts:

ET Now: What impact is this Raghuram Rajan's move going to have on the Indian economy, on bond or the currency markets, or for that matter the equity markets?

Vallabh Bhanshali: Well, each to his own and Mr. Rajan will be remembered for a long time for the kind of bold initiatives that he took. Life goes on in a nation like ours, and Mr. Rajan is a world asset. If he wants to do more work on academics, I would only support him in whatever he does.

ET Now: What impact is this move going to have on the Indian economy, on bonds even for that matter the currency?

Vallabh Bhanshali: I think this has come a little prematurely, because September is far away, and he said that decision will be taken in appropriate time and he has decided to announce this in whatever the circumstances and conditions, I do not know, but generally I have seen that the markets they have knee-jerk reactions and they move on. They must move on, whatever it is. The markets, I am sure, will probably show some nervousness but they try and figure out the way ahead, the life ahead.

ET Now: You have seen the governments in power and outside of it as well, you know the governor would have not taken this reckless decision without apprising the government about it. I am given to understand that the government did know about his decision. How do you then see the government reacting to this?

Vallabh Bhanshali: I do not why you would call it reckless, I think people like Raghuram Rajan they have been very upright, they have been very bright, they want to do their own think in life and at their own terms.

So we do not know what exactly transpired between the government and him but I do want to speculate unnecessarily and I genuinely respect what he decides to do and a country like India must move on.

Markets indeed have not seen a decisive governor like him, someone who created a lot of initiatives. He had his own share of controversies and criticism but that is part of a day’s work.

So I would think that I do not want to attribute any motives on either side. I think it is just one more decision. I think we must recognise that Mr. Rajan was not a career bureaucrat or someone who was in a post retirement job, he was rather young for an RBI governor.

He was an international person who came to India for a few years, left his mark and if he has a bigger plan, a better plan that suits his temperament or his ambition in life, I just want to read it as that and nothing more. The markets will definitely react adversely for the short time but I think the world will move on.

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