"These are challenging times for the Indian economy... The government and the RBI are working together to address these challenges. We don't have a magic wand to make the problems disappear instantaneously. But I have absolutely no doubt, we will deal with them," he said.
After the announcement of his appointment as the new RBI governor, Rajan made a brief statement to reporters without taking any questions. He will be the 23rd governor of the Reserve Bank and will succeed Duvvuri Subbarao who demits office on September 4.
Rajan, who joined as the Chief Economic Advisor in the finance ministry in August 2012, said, "I look forward to working with many dedicated employees of the RBI to continue these traditions even though I will miss my colleagues in the finance ministry."
The RBI, he added, is a great institution with a tradition of great integrity, independence and professionalism. A former IMF chief economist Rajan joins the RBI at a time when the government is battling industrial slowdown, declining rupee, rising prices and all-time high current account deficit (CAD).
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