Our new RBI Governor: Urjit Patel

Mr. Urjit Patel has been appointed as the new Governor of RBI, here are a few facts about him:

1) Patel is one the four deputy governors at the RBI. He heads the monetary policy department.

2) He was appointed by the UPA government in 2013.

3) His term, which was supposed to end this year, was extended by three years in January.

4) Reserve bank officials consider him to be incumbent RBI governor Raghuram Rajan's closest lieutenant.

5) Patel has an M.Phil from Oxford University, and a PhD (economics) from Yale University.

6) He worked on the India, US, Myanmar, and Bahamas desks at the International Monetary Fund (IMF) from 1990 to 1995.

7) He served as an IMF advisor to the RBI from 1996 to 1997.

8) Patel also worked as an consultant with the Department of Economic Affairs of India's Ministry of Finance from 1998 to 2001.

9) Before his 2013 RBI appointment, he was an advisor to the Boston Consulting Group, an American think-tank.

10) A committee headed by Urjit Patel recommended shifting the focus away from wholesale prices, and targeting consumer inflation with an aim to check volatile prices. In March last year, the Reserve Bank and the Ministry of Finance - headed by Arun Jaitley - agreed on a consumer inflation target of 4 percent, with a leeway of 2 percent more or less, by the financial year 2016-2017. The decision to use inflation-targeting is considered to be one of the most important changes to monetary policy since the 1991 reforms.
(Source: various articles, specially from Times of India)

The resume' looks commendable and impressive, lets hope our new governor takes over from where Mr. Rajan left and continue in his noble footsteps.

SMSR wishes the Mr. Urjit Patel all the best!!

Why India would need more business grads in the Modi era!

The present government at the centre has come out with some incredible (some might say desperate) features in the FDI policy this year. Even though they had opposed the then UPA government who took us through the global route in '91, realisation seems to have sinked in that foreign investment could solve most of our problems. Have a look at few of the pointers of the FDI policy of 2016:

• 100 per cent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India. 

• To attract investment in the defence sector, the government has removed the condition of 'state-of-art' technology, besides permitting foreign investment in manufacturing of small arms and ammunitions

• The government has also permitted 100 per cent FDI through automatic route in broadcasting carriage services like teleports, direct-to-home and mobile TV

• the government allowed 100 per cent FDI in airlines and relaxed norms for overseas investments in brownfield airports

• In private security agencies, FDI limit was raised to 74 per cent from 49 per cent earlier.

• The conditions related to local sourcing in single brand retail were exempted upto 3 years of initial operations

• In pharmaceuticals, government has allowed FDI upto 74 per cent through automatic route and beyond that under government approval

• The government has also relaxed the norms in animal husbandry sector

• And not to mention the infamous Private Universities act, which will become a reality in a few months, will bring in unprecedented and unopposed investments from abroad

With so many new avenues opening up in the current economy and market, who will manage all these new ventures and business which will be setup in our country through the FDI route? You know the answer, so if you are an MBA aspirant and planning to take it up this admission season then make sure you chose the right B-School. Probably the one which makes sure you are aware about all these current trends in the economy!

Source: Economic Times