The shrill reactions have subsided. Knee-jerk comments like “After Rexit, ruin,” have, fortunately, proved premature and alarmist. Now that the dust is beginning to settle over Reserve Bank of India (RBI) governor Raghuram Rajan’s surprise announcement that he will be returning to academia at the end of his term as India’s central banker, it is a good time for a reality check on how his decision will impact the Indian economy.

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