NEW DELHI (REUTERS) - The Indian government has appointed Mr Raghuram Rajan, the chief economic adviser in the finance ministry, to be the next governor of the Reserve Bank of India for a three-year term, a statement by the finance minister said on Tuesday.

He will replace Mr Duvvuri Subbarao, whose tenure ends on Sept 4 after five years.

Mr Rajan joined the Indian government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.