Today is a crucial day for RBI Governor Shaktikanta Das (Retd.IAS:1980:TN), as the Modi government is expected to decide whether he will receive an extension or be succeeded by a new appointee. His current three-year tenure ends tomorrow, December 10.
Initially, sources suggested Das was likely to get an extension, particularly before the Q2 GDP growth dropped to 5.4%, significantly below the RBI’s projection of 7%. Following this, speculation grew, with several names emerging as potential successors. However, Das’s recent visit to Delhi and his Saturday meeting with Finance Minister Nirmala Sitharaman have intensified rumors. While some viewed the meeting as related to his extension, others considered it a courtesy call recognizing his contributions.
Historically, decisions on extending RBI Governor tenures have been communicated well in advance. For example, Bimal Jalan was informed four months prior, D. Subbarao a month in advance, and Das himself weeks before his last extension in 2021.
The delay in the announcement has fueled speculation, but many believe Das is likely to secure an extension due to his effective management of the economy during the COVID era, post-pandemic recovery, and international economic crises. However, the government is known for its surprising decisions, and this time could be no different. If Das is granted another extension, it will underscore the government’s deep trust in his leadership, surprising many. Conversely, a new appointment could equally surprise those confident in Das’s continuation.
Among the speculative names as potential successors are Debashish Panda (Retd. IAS: 1988: UP), former Financial Services Secretary; Dr. Saurabh Garg (Retd. IAS: 1991: OR), MoSPI Secretary; Ajay Seth (IAS: 1987: KN), DEA Secretary; Tuhin Kant Pandey (IAS: 1987: OR), DIPAM Secretary; Anand Mohan Bajaj (IA&AS: 1990), Deputy CAG and Ananth Nageswaran, Chief Economic Advisor. (By-Rajeev Singh)
