Capitalist voice

My View on  "Raghuram Rajan’s tandava spells death for economy": 

Leaving aside the near personal comments against Dr Raghuram Rajan, resorted to, perhaps, to impress the reader about the author’s proximity to Dr Rajan’s earlier employer, let us look at the issues raised. The base rates announced by RBI takes time to make any impact on the deposit/lending rates of banks in India. Economic growth has always been a concern factored in Monetary Policy announcements. Interest rates in India are not comparable to those in developed countries like US where need to manage inflation is not much. RBI is dependent on GOI’s fiscal policy on getting the environment congenial for implementing a Monetary Policy which the central bank considers appropriate. Partly the lament in the article betrays the huge expectations from Dr Rajan about listening to the capitalist voice. Where one can dispute the growth rate in employment, Indian industry, viewed from any other growth parameter has not suffered. Last quarter major companies in India have posted better results. Indian companies, generally, have not been very keen in increasing the numbers on their pay rolls. 

- M.G.Warrier