Raghuram Rajan will in all likelihood not be given an extension for a second term. And it has nothing to do with his ability.
It is not feasible for a person to work for a government body and then come out and criticize the government at public events.
It puts the former in a highly embarrassing position and in a country like India, or for that matter anywhere in the world, it is fodder to the opposition. Also, what happens is that it sows the seeds of dissension and erodes trust between both of them.
One might argue that Rajan has freedom of expression to say what he feels to be right! Absolutely! But he can easily voice his concerns in private to the government if any.
Once he is no longer RBI Governor, he can easily write a memoir of his time in office or give interviews about what transpired. The position of RBI governor is a highly responsible and prestigious one. Rajan should have realized that every move of his would be scrutinized.
Therefore, it would make sense for the NDA to put in place a person who displays better tact in expressing his opinions.
Imagine if the Chief of Army or the Navy were start voicing their personal opinions on tolerance or some other personal issue in public such as how the defence organizations must be run? They don’t do that while in office.
Rajan will go as he is after all a UPA appointee. But he needs to be treated with the utmost respect and not slighted in such a derogatory fashion by the likes of Subramaniam Swamy.