"We are fortunate to have a leading economist like Raghuram Rajan as the RBI Governor," industry chamber Ficci said.
"He takes over at a time when the economy is in the midst of a difficult situation. While on one hand, the plunge in the rupee value has emerged as a critical challenge stoking fears about the already grave current account situation and on the other, the persistent slowdown in industrial growth continues to be a major concern," Ficci president Naina Lal Kidwai said.
Industrialist and former CII president Adi Godrej said Mr Rajan's experience globally and as a Chief Economic Advisor in the government would stand him in good stead.
Describing Mr Rajan a 'very good' choice, HDFC chairman Deepak Parekh said, "He is the right person to handle our financial markets, he is likely to be innovative about the banking sector."
Mr Rajan, 50, who as IMF economist had predicted the 2008 global crisis, was on Tuesday appointed the new RBI Governor.
He will succeed D Subbarao, who by his hawkish policy stood his ground on continuing with a tight monetary policy despite repeated entreaties from the government to ease interest rates to boost growth.
Mr Subbarao will demit office on September 4. Further, Ficci said, calibrating monetary policy amidst these multiple challenges would be a difficult task.
"We hope that given Rajan's experience and knowledge of markets, we will see the RBI working in conjunction with the government in creating an environment that will foster growth, generate employment and keep inflation at moderate levels," Ms Kidwai said.
Industry body Assocham said, "We extend full-cooperation and expects him to take bold steps needed for controlling inflation. The need of the hour is to create conducive monetary conditions that help build strong supply response in the economy."
EEPC chairman Aman Chadha expressed confidence that Rajan, with his vast experience, would effectively deal the issues like decline in value of rupee and high current account deficit.