Rajan's Exit from RBI and It's Implications for India

So finally the RBI governor Raghuram Rajan decided not to accept the second term at RBI's helm under the barrage of ludicrous attacks from the BJP MP Subramanian Swamy (see here, here and here). This decision was expected of Rajan and anyone who has left little bit of self-respect inside them. Rajan announced, in an internal letter to RBI staff, that once his term finishes in September he will return to academia where he basically belongs. Rajan is a professor of finance in the Booth School of Business, University of Chicago, USA. In my latest economic analysis below I discuss two things: why Rajan decided to resign from his position as RBI governor and, most importantly, what are the implications of his decision, especially how this decision will affect the Indian economy in future?