Written by- Ronak Pol
Published on 20th August 2016
Dr.Patel who is currently the Deputy governor of RBI was chosen today to fill Dr.Rajan’s shoes. This has placed him in a unique position to take charge of our Central Bank in midst of great global turmoil and domestic uncertainty (Read More).
In this article we will briefly look into the decisions he had taken in the past to gauge how he will shape our countries policies in future.
Early Life and Road so far.
When it comes to academic accomplishments he is a LSE and Oxford alumni and has complete his PhD in economics from Yale, after which he joined IMF and worked on the US, India, Bahamas and Myanmar desks.
He has been collaborating with the RBI since the 90s where he held an advisory position at RBI working on the development of debt market, banking sector reforms, pension fund reforms, real exchange rate targeting and evolution of the foreign exchange market.
Brief Career time line
- 1990 Completed his PhD from Yale
- 1990-95 Joined IMF
- 1996-97 Held an Advisory role in RBI
- 1998-2001 Consultant to the Ministry of Finance dpt. of Economics
- 2000-2004 Worked with the Indian government as an advisor in various forms
- 2007-2011 President (Business Development) Reliance Industries
- 2013- present Deputy Governor RBI
This is surely an impeccable resume for the position and addresses any questions relating to his ability to handle pressure situations.
What Changes will he bring?
Well this is a love or hate kind of deal, he headed the RBI’s monetary policy department under Dr.Rajan and is widely known to be his policy right hand. He was also infamous for holding liquidity when RBI was undergoing rate cuts.
In short he promises stability and a gradual progression in the way policies are formulated by RBI. Although his executive powers will be affected by the introduction of a Monetary Policy Committee but his decisions are bound to shape our economy for the next 3 years.
He promises stability and a gradual progression in the way policies are formulated by RBI
Some of the issues that will be immediately on his plate would be rising inflation and pressure to cut rates (Read more) but it is nothing new considering he is well versed with these issues. Good monsoon should also provide the necessary headroom to fight inflation in the short run. He will also face global headwinds in form of US elections and FED rate hikes which are bound to distort investment but Indian economy is currently strong enough to face any such challenges.
There is nothing to complain here, he is an excellent choice for the job and we will keep a close eye on all that he does for at least the next 3 years.