India Names Raghuram Rajan Next Central Bank Governor

NEW DELHI—India has named Chief Economic Adviser Raghuram Rajan to succeed central bank Governor Duvvuri Subbarao who is retiring in early September.

Prime Minister Manmohan Singh has approved Mr. Rajan's appointment, Finance Minister P. Chidambaram said Tuesday. His appointment at the Reserve Bank of India will be for three years, Mr. Chidambaram said.

Mr. Rajan didn't immediately comment on the appointment.

Mr. Rajan, a former chief economist at the International Monetary Fund, is known for his prescient warnings about a coming financial crisis in 2005. He joined the finance ministry last year, shortly after Mr. Chidambaram took over as finance minister.