“Since the day he took over charge (as new RBI governor), rupee has appreciated to 61.70 from 68-mark (against the dollar).
Whatever he announces on Friday will be good for India,” said Vinay Kumar Bansal about his IIMA batchmate, Raghuram Rajan, on Thursday.
And similar are the opinions voiced by other batchmates, seniors and professors at Rajan’s alma mater – Indian Institute of Management, Ahmedabad (IIMA) – who believe that the youngest RBI governor ever will take bold steps to boost up the Indian economy. Rajan belongs to the Class of ’87 of the premier B-School.
Rajan’s decisions will be good for the economy and country, added Bansal, who is general manager – Product PE, Reliance Industries. “He was my classmate and whenever I had interacted with him, I found him to be confident. I don’t know what actions he will take but I am pretty sure that his decisions will be good for the economy and the country.”
Former director and now faculty at IIMA, Samir Barua, believes Rajan will signal growth on Friday. “He (Rajan) may reduce CRR by 25 bps. He may show that RBI is concerned with GDP growth rate and hence, will be signalling growth,” said Barua, who taught Rajan in 1987.
Even Rajan’s seniors hold him in high regard. “Raghuram Rajan has an advantage of not having a bureaucratic background,” said Nayan Parikh of Nayan Parikh & Consultants, his senior from college. “He has an edge over others of performing in the global arena. He is an IIMA alumnus. His risk-taking appetite is bigger than that of bureaucrats. He is capable of taking big risks.”
Sentiments in the market have been positive in the past 10 days.
“I’m expecting Rajan to take some bolder steps – such as, rate cuts.
Rupee has appreciated due to various reasons and this positive environment will boost his morale to take a positive decision on Friday,” said Parikh.
Jagdeep Kochar, CEO at (n) code solutions and four years senior to Rajan at IIMA, is confident that Rajan will lead India into a growth-laden future. “Rajan is a free-market economist. He had access to the free market in 2007, and I hope he uses that experience to boost our economy and trigger positive sentiments,” said Kochar. “I believe that he will have a balanced approach – not only in his first meet, but also in the future.”