Rajan’s statement in his first Policy back in September 2013 still resonates. At that time he said “let us remember that the postponement of tapering is only that, a postponement. We must use this time to create a bullet proof national balance sheet and growth agenda, which creates confidence in citizens and investors alike”
Taking off from there, his policies were seldom music to the ears (though he delivered a 150 bps cut against a 75 bps increase), but if we are to interpret the notes in his swan song, he is leaving on a high note having delivered on what he promised – a very strong foreign exchange reserve position, a steady Rupee, a national focus on keeping ‘relevant’ Inflation (CPI) in a band between 2% - 6%, and the country’s liquidity position improving from ‘deficit’ to ‘surplus’. As a result, he has prepared the stage for the new incumbent to play a symphony.
V S Parthasarathy
Group Chief Financial Officer,
Group CIO & President (Group Finance and M&A)
Member of the Group Executive Board, M&M Group
Mahindra Towers, Worli, Mumbai – 400018