The international challenge is to sustain the effective role that Governor Rajan has played in global policy discussions and thought leadership. Edited excerpts:It is yet another example of messy politics getting in the way of sound economic policymaking, thereby adding to the anxiety about the market valuation of risk assets. A sell-off in the Indian stock market and a weaker rupee will be the immediate takeaways from Raghuram Rajan 's decision to not seek an extension of his term as RBI chief, said Mohamed El-Erian , Chief Economic Adviser, Allianz SE. In an interview to Sanam Mirchandani, California-based El-Erian said Rajan's exit is an example of "messy politics" but it should not destabilise Indian markets in the long term unless there is some policy mistake. The loss is not India's alone.

Source: Economic Times June 19, 2016 23:42 UTC