Raghuram Rajan, the governor of India's central bank has said that the he has not differences with the BJP leadership.
Some say that a change in leadership at the centre might affect several decisions at the central bank and certain reforms taken by the UPA government. Experts have said that the new government should not remove those holding important institutions in the government. Rajan has recommended higher monetary coordination among the central banks in emerging-market economies in order to check the imbalances that may arise if foreign institutional investors (FIIs) withdraw their investments from these economies.
According to latest estimates, the FII's current hold about $250 billion of Indian equities that is about 25 per cent of the overall equities market. Given such higher level of investment, the proposal for better coordination among developing nations might help avoid uncertainties and risks in the global economy.
The government and the RBI work o maintain a balance in their fiscal and monetary policies while considering the markets, inflation and growth in the Indian economy. The coordination between the two is important for a stable economic growth in the country.