'I too had wondered if an MA in History...': Shashi Tharoor praises former RBI Governor Shaktikanta Das

Congress MP Shashi Tharoor on Thursday lauded former Reserve Bank of India (RBI) Governor Shaktikanta Das for leaving behind an "outstanding record of service to the nation." Tharoor admitted he too had initially doubted whether someone with an MA in History could successfully lead the RBI.  

"A word of tribute to @DasShaktikanta as he demits office as Governor of @RBI," Tharoor said. "Shakti was my junior in College, but I too had wondered whether an MA in History could take on such onerous financial and economic responsibilities."  

Tharoor added that he was pleased to see Das rise to the occasion: "I am delighted that he proved more than equal to the task. He leaves behind an outstanding record of service to the nation. All the best in whatever you next undertake, Shakti!"  

Das stepped down this week after a six-year tenure as the 25th Governor of the RBI. He assumed office on December 12, 2018, following the sudden resignation of Urjit Patel. Initially appointed for a three-year term, Das received a three-year extension in December 2021, making him the second-longest-serving RBI Governor in its 90-year history. Benegal Rama Rau served for 7.5 years in the 1950s.  

Das' appointment had raised eyebrows, as many questioned whether he could match the expertise of predecessors like Raghuram Rajan and Urjit Patel, who held advanced degrees in economics. 

Despite skepticism, Das — who holds a postgraduate degree in history from St. Stephen’s College, Delhi University — proved his mettle during his tenure. "If you had asked me in 2018 if Das was the right choice, I would have expressed doubt,” said Amol Agrawal, an economics professor at Ahmedabad University, while speaking to Bloomberg. "Yet here we are in 2024, standing strong."  

Das' tenure was marked by significant challenges, including navigating the economic fallout of the COVID-19 pandemic, geopolitical tensions, and rising inflation. Under his leadership, the central bank adopted a proactive approach to managing exchange rate volatility. India's foreign exchange reserves peaked at $700 billion, providing a robust buffer against external shocks.  

The Monetary Policy Committee (MPC), led by Das, sought to strike a balance between controlling inflation and fostering economic growth. Over the past 11 reviews, the MPC kept the repo rate unchanged at 6.5%, even as inflation and global uncertainties posed persistent risks.  

However, towards the end of his tenure, the RBI revised its GDP growth forecast for 2024-25 from 7.2% to 6.6%, citing global headwinds and a slowdown in domestic growth. Retail inflation also hit a 14-month high of 6.2% in October, breaching the RBI's tolerance threshold.  

Das’s leadership earned international recognition. In August 2024, he was ranked as the top central banker globally for the second consecutive year by 'Global Finance' magazine. Das was among three central bank governors to receive an "A+" rating, alongside Denmark's Christian Kettel Thomsen and Switzerland’s Thomas Jordan. 

'Global Finance' explained that the rankings, based on criteria like inflation control, economic growth, currency stability, and interest rate management, reflected the central bankers’ success in stabilising economies post-pandemic. "Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly," the magazine stated.