Raghuram Rajan has hit the ground running. He has done well to begin his tenure as governor of the Reserve Bank of India (RBI) by clearly stating what he intends to do in the months ahead. Rajan has been put in charge of monetary affairs at a very difficult time, so his most immediate task will undoubtedly be to deal with the storm clouds that hang over the Indian economy.

But parts of the agenda that he outlined — such as the appointment of a group under deputy governor Urjit Patel to take a closer look at the operating framework of monetary policy — suggest that he will also be focused on structural reform at the Indian central bank. The time frames he has announced mean that this is not blue-sky thinking, but a concrete reform plan. Read More