Dear Editor,
The choice of Urjit Patel, an eminent economist, consultant and banker, as the 24th Governor of the Reserve Bank of India reflects the Government’s preference for continuity to the Rajan tradition. It is a step in the right direction. Patel will face many challenges, from reining in inflation to managing currency volatility to cutting down the mountain of bad debt, but his understanding of the global economy and India’s financial problems will allow him to do a good job.
Patel’s appointment also comes as a relief to international investors. It ensures a smooth transition in monetary policy. It is said that that Patel is a strict fiscal disciplinarian, and hence also known as the “inflation warrior”. Patel will certainly bring down inflation within the accepted limit so that the growth can happen on a solid economic foundation. Apart from controlling inflation, the people expect Patel to follow through on his predecessor’s efforts to clean up bad bank loans and support investments.
Vinod C Dixit ‘
Ahmedabad
