Now that Brexit is done, dusted and fading from the front pages of Indian newspapers, it is time to return to a question that has more immediacy in the domestic context: What after Rexit?
The shrill reactions have subsided. Knee jerk reactions like “After Rexit, ruin,” have, fortunately, proved premature and alarmist. Rexit, of course, borrowing a reference from Brexit or Britain’s exit from the European Union (EU) to reflect Raghuram Rajan’s impending exit as Reserve Bank of India (RBI) governor. Now that the dust is beginning to settle over 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.