It could be argued that Mr Rajan's decision not to seek a fresh term at the central bank and, more significantly, the government's reluctance to unequivocally condemn the bitter diatribe against the RBI governor might have egged on Mr Swamy to launch a much wider attack - this time against Chief Economic Advisor Arvind Subramanian and Economic Affairs Secretary Shaktikanta Das. What's more, Mr Swamy threatened to name 20-odd more senior civil servants, whose credentials to serve the BJP-led government, according to him, were questionable. These attacks not only undermined the independence of the institutions these officials served, but more worryingly, there was the real fear of a paralysis of decision making in the government. If senior government officials are attacked by a senior BJP member without any checks or condemnation from the head of the party or the government, the bureaucracy is likely to feel even more isolated and look for safety in inaction and postponement of legitimate decisions, which could deal a body blow to governance. Mr Swamy did not even spare the government's pet reforms plan to usher in the much-delayed goods and services tax, claiming that the new taxation regime was no big deal for the economy and would not benefit the economy significantly.
Two signals from these developments are difficult to ignore. One, the BJP has always taken pride in being a disciplined party. It was not like the Congress, whose leaders could escape unpunished even after acts of indiscipline and insubordination. But Mr Swamy so far is yet to be completely reined in, raising the question if the BJP can still claim to call itself to be a disciplined party. Two, it is significant that Prime Minister Narendra Modi on Monday defended Mr Rajan, but it would be debated why he took so long to dub criticisms like those against the RBI governor as improper. An unequivocal condemnation of Mr Swamy's attacks soon after they were first made could have arguably spared the country the trauma of one of its finest economists leaving the central bank under what were clearly unsavoury circumstances. The prime minister's reluctance to stop Mr Swamy from launching personal attacks against Mr Rajan and other finance ministry officials must have also had an unsettling effect on his finance minister. Now that Mr Modi has spoken out, such concerns, hopefully, would be a thing of the past.