Chidambaram’s remarks came as the senior Congress politician accused the Centre of failing to manage the economy and blamed it for the distress in two key sectors, agriculture and industry. He said the Congress will respond only if Prime Minister Narendra Modi and finance minister Arun Jaitley speak against Rajan.
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Defending Rajan, he said: “The UPA government appointed one of the most outstanding economists of the world as the RBI Governor. We placed full confidence in him at that time and we continue to place full confidence in him today”, he said at the briefing when asked about the Swamy seeking Rajan’s ouster.
“Prime Minister Narendra Modi can not be given a benefit of doubt since the statement did not come from him, Swamy is a nominated member by the BJP and their team member… grotesque and weird statement needs to be questioned”, Jha said. “It does not mean that any talk between finance minister and RBI government is a question mark on his capabilities”.
Swamy has been relentlessly targeting the RBI governor, accusing him from compromising national security by using an unsecured mail server and being part of USA effort to continue its domination of global economy to hurting the Indian economy by not lowering interest rates early enough and adequately. Dr Swamy had slapped an allegation that Dr Rajan had leaked sensitive financial information with other countries.
“The mood of the people is “sombre and sullen” because of the poor state of the economy and there is no evidence of any enthusiastic participation by the people in these so-called celebrations”. “Where are the jobs? That’s the most notable failure of the Modi government”.
Chidambaram said the annual sales growth of all firms, including manufacturing firms, was negative in 2015-16.
This could be one reason that the issue of his reappointment received this sort of media attention.
“I am beginning to think whether this government deserves Dr Rajan?”
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“There is talent and sound advice outside the government too”, he said, adding that this held for all governments.
