Former RBI Governor Duvvuri Subbarao’s memoir has sparked a political firestorm, with the Bharatiya Janata Party (BJP) launching a scathing attack on the Congress party. Subbarao alleges that during the tenures of Pranab Mukherjee and P Chidambaram as finance ministers, the finance ministry exerted pressure on the Reserve Bank of India (RBI) to manipulate interest rates and paint an overly optimistic picture of economic growth.

Union Minister Smriti Irani condemned the Congress party, asserting that Subbarao’s claims underscore its willingness to deceive rather than prioritize national interests. She emphasized the detrimental impact of such actions on India’s economy and accused Congress of misleading citizens during its tenure.

Finance Minister Nirmala Sitharaman joined the criticism, questioning the credibility of the UPA government’s economic performance. Sitharaman highlighted the contradiction between the UPA’s purported economic success and Subbarao’s revelations regarding government interference in RBI affairs.

Amit Malviya, BJP’s IT Cell Chief, echoed these sentiments, accusing Congress of destroying institutional integrity during its rule.

Subbarao’s memoir sheds light on the lack of understanding and respect for the RBI’s autonomy within the UPA government. He recalled instances where government officials pressured the RBI to adjust growth and inflation estimates to suit their narrative, rather than relying on objective assessments.

Subbarao cited a specific incident involving then FM Pranab Mukherjee, then Finance Secretary Arvind Mayaram, and then Chief Economic Advisor Kaushik Basu, where discussions transitioned from objective arguments to subjective demands for the RBI to align its projections with the government’s agenda.

“Mayaram went to the extent of saying in one meeting that ‘whereas everywhere else in the world, governments and central banks are cooperating, here in India, the Reserve Bank is being very recalcitrant,” he said.