Raghuram Rajan In TIME’s 100 Most Influentials List
April 22nd, 2016
Reserve Bank of India (RBI) Governor Raghuram Rajan makes it to the list of ‘100 most influential people in the world’ released by Time magazine on Thursday.
Time has praised Rajan as “ “India’s prescient banker” and said that he is among the rare breed of ‘economic seers’ who steered India through global crisis and fallout, “playing a large role in making it one of the emerging market stars of the moment”.
While serving as the youngest chief economist of the IMF from 2003 to 2006, Time said Rajan predicted the subprime crisis that would lead to the Great Recession, standing up to critics like former US Treasury Secretary Larry Summers, who labeled him a “Luddite”.
“Since then, more and more of the economic establishment has come to share Rajan’s view that debt-fueled growth is just a saccharine substitute for the real thing,” Time said.
Time’s annual list includes people like famous American composer Lin Manuel-Miranda, IMF head Christine Lagarde and Oscar-winning actor Leonardo DiCaprio, who are “exploring the frontiers of art, science, society, technology and more.”
Other Indians who made it to the list are Google CEO Sundar Pichai, Tennis star Sania Mirza, Actor Priyanka Chopra, Flipkart founders Binny and Sachin Bansal.
His achievements as RBI governor:
• Rajan is known for his primary focus on curbing inflation. His biggest achievement is that he successfully brought down retail inflation to 3.78% in July 2015 from 9.8% in September 2013 – the lowest since the 1990s. Wholesale inflation was down to a historic low of -4.05% in July 2015 from 6.1% in September 2013.
• In his first speech as RBI governor, Rajan promised banking reforms and eased curbs on foreign banking, following which Sensex rose by 333 points or 1.83%. After his first day at office, the rupee rose 2.1% against the dollar.
• Under Rajan, the RBI adopted consumer price index (CPI) as the key indicator of inflation, which is the global norm, despite the government recommending otherwise.
• India’s forex reserve is now stronger by about 30% than it was two years back. During the recent depreciation, Rajan said the central bank has forex reserves to the tune of $380 billion, which is a comfortable level, and would intervene if there was a need.
• Under Rajan, two universal banks have been licensed and eleven payment banks have been given the nod. This is expected to extend banking services to the nearly two-thirds of the population who are still deprived of banking facilities.
The Logical Indian congratulates all the six Indians who have made it to the Time’s list.