The appointment of a renowned economist as the new head of the Indian central bank seems like a promising step towards turning around the country's battered financial markets, but analysts CNBC spoke to are in broad agreement that Raghuram Rajan has his work cut out for him.
The former chief economist at the International Monetary Fund inherits an economy struggling with the slowest growth in a decade, rising inflation, a hefty deficit and a battered down currency, together with long-standing issues like India's much needed deregulation of its industry.
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"Rajan can't exactly be said to be facing the easiest of tasks. The words poisoned and chalice spring to mind," said Robert Prior-Wandesforde, head of Southeast Asia and India economics at Credit Suisse bank.
"Rajan was wise to point out that he doesn't have a magic wand that will fix the economy's considerable woes," added Prior-Wandesforde.
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Rajan, who is economic advisor to the Prime Minister and the Ministry of Finance, has been tasked to head the Reserve Bank of India (RBI) for a three-year term, replacing incumbent Divvuri Subbarao, who retires next month.
The appointment of the engineer-turned-economist, who is widely acclaimed for having predicted the 2008 global financial crisis two years before it struck, has been mostly met with positive feedback from the financial community.