With reference to "Promise of continuity" (August 22), everybody is wondering what prompted Prime Minister Narendra Modi to finally select Urjit Patel as the new Reserve Bank of India (RBI) governor. Is it his excellent credentials in academics or his wide-ranging experience with the central bank? Unlike Raghuram Rajan, the outgoing governor who made about 38 outstanding speeches, Patel is a man of few words and has not made more than two-three speeches as a central banker. Speeches reveal the mind of a person. So Modi could not have decoded Patel's personality through his public talks. But one feature that Patel wrote in a 2012 article co-authored with former finance secretary Vijay Kelkar would have triggered Modi's decision-making process in his favour. "The profligacy of the central government has its primary driver in populist spending policies initiated in early 2008 by the ruling coalition leading up to national elections in May 2009," Patel wrote. Since then, he has been on the same page as the current government when it comes to assessing the financial health of the economy. In what is his only public speech as a central banker on January 13 last year, Patel talked about "the national objective to make India a global manufacturing hub and a substantive part of international supply chains". He said, "The Make in India vision strategy is apposite and provides a much needed focal point to inculcate durable competitiveness in key sectors of our economy."
Patel also said, "Let me conclude by quoting a participant at the inaugural session of this year's Vibrant Gujarat Global Summit: 'India will be a bright spot in an otherwise mediocre global economic outlook.'" That one speech of Patel is good enough to show where he stands. When Rajan questioned the export-centric approach of Modi's Make in India initiative, Patel gave it the thumbs up. Does one need any more evidence for his elevation?
K V Rao Bengaluru
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