Where next for India following departure of 'revolutionary' RBI chief Rajan?

"Sluggish" Modi faces continued criticism

Fund managers are weighing up the potential market impact of the recent resignation of Reserve Bank of India (RBI) governor Raghuram Rajan, with investors split on whether the "unequivocal success" of reforms introduced during his tenure can continue to gain traction.

Earlier this month, Rajan (pictured) announced he is set to return to academia in September after three years at the helm of India's central bank, to the surprise of many who had come to respect his attempts at restoring economic stability. In particular, he won praise for popular policies such as the adoption of inflation targeting using the consumer price index instead of the wholesale price index, and pushing banks to recognise non-performing assets. How India's cyclical economy is set to boost bond markets But with criticism continuing to be directed at the sluggish pace of Pri...