Modi@1 : Raghuram Rajan takes Round 1 on points as RBI-govt bout continues

Despite all their public pronouncements of a “cordial” relationship, the government and the Reserve Bank of India, for one reason or another have been in opposite corners of the ring during the Narendra Modi government’s first year in power.

Much like the build-up to the Floyd Mayweather-Manny Pacquiao ‘fight of the century’ that took place earlier in May, the months preceding the Modi government’s coronation were littered with ‘trash talk’ from both sides.

Senior Bharatiya Janata Party leaders criticised the manner in which Governor Raghuram Rajan was handling inflation. Rajan too, on his part, said in early May 2014 that the government could “fire” him if it wanted to, but the monetary policy would be set by him.