When RBI Governor, Raghuram Rajan leaves office on September 4th, he will leave behind a legacy that will need to be carried forward by India’s 24th RBI Governor, Urjit Patel. So will Patel do it?
It can be difficult sometimes when reigns change hands. New people come in with their beliefs, ideas, aspirations and truths. They use new resources at their disposal to build upon a foundation created by their ancestors. But, it is especially important to have a sound transition between such individuals when they are taking charge of an economy as big as India.
Urjit Patel has served as a Deputy Governor during Rajan’s term and was appointed after receiving a glowing recommendation from Dr Manmohan Singh who said, “He is very important for the country.”
This LSE, Oxford and Yale graduate is considered to be an inflation hawk just like Rajan. He has also lead the team that wrote the monetary policy report. “I am confident that Dr. Urjit Patel, who has worked closely with me on monetary policy for the last three years, will ably guide the Monetary Policy Committee going forward in achieving our inflation objectives,” said Rajan.
Before being appointed as a Deputy, Patel worked in the financial sector for over 17 years. He was the president of Business Development at Reliance Industries Limited between 1997 to 2006. He also served the Ministry of Finance and Department of Economic Affairs as a consultant.
While Rajan used his unlimited resources as an academician and pulled India out from economic despair, Patel, with a history of hands on experience in business and finance can push the country towards growth. From all that we know as of today, it is safe to say that he has everything one needs to be a good heir. Mr Rajan is considered to be a legend by many. Whether Urjit Patel can successfully continue his legacy, only time will tell.