Retain Rajan as RBI Chief, Bhagwati Advises Modi

Describing the BJP's election victory as an "astonishing triumph of Narendra Modi", noted economist Jagdish Bhagwati today advised him to retain Raghuram Rajan as RBI Governor and to hold monthly press conferences to articulate the government's agenda.

"The astonishing triumph of Narendra Modi in the greatest election ever held puts India back on the map.

"Unlike the UPA leaders, the new PM, who is not tongue- tied, should hold monthly press conferences where he can bring his agenda and actions before the public and carry them with him. He was wonderfully articulate during his campaign; he can do no less now that he is the Prime Minister," he said.

The economist put his weight behind Reserve Bank Governor Rajan, advocating that he should remain at the helm.

"I also believe that he (Modi) ought to keep Raghuram Rajan. He is a major economist who commands international respect as well," said Bhagwati, Professor at Columbia University.

There has been speculation that the Modi-led government could change the RBI Governor.