As We all know both Urjit Patel and Raghuram Rajan are experts in their respective fileds. Urjit patel is known as one of the best economist in the world while Raghuram rajan is one of the best banker in the world. one is considered as the hawk on inflation while other is unbeatable in the filed of banking and its regulations known for exposing the figure of npa of indian psu banks.
The Difference between Raghuram Rajan and Urjit Patel.
Rajan has completed his B.Tech from IIT, PGDBM from IIM and PhD from MIT Sloan School of Management where he wrote a thesis, ‘Essays on Banking’. Thus, Rajan changed gears and moved towards Economics and Finance. He has a strong hold over Banking, Economics and Corporate Finance.
Patel’s Alma mater is entirely from Foreign Schools. Unlike Rajan, he is a pure Economist and a Finance guy. He obtained his Bachelor’s in Economics from the London School of Economics , M. Phil. degree from Oxford University and doctorate in Economics from Yale.
Rajan was a visiting Professor in various Business Schools and also taught Finance Courses at Chicago Booth School of Business. He has also been a Chief Adviser to IMF and also the Central Government relating to Financial Sector reforms. He was a RBI Governor from 2013–16. Also, he was credited for predicting the 2008 Economic Crisis. He has authored several books and articles relating to Capitalism and economics.
Unlike Rajan who is primarily also a Professor, Patel has had more Corporate roles along with Advisory roles to various institutions. He had also joined IMF and later became Deputy Governor in Rajan’s term and is now the RBI Governor.
Just a note. Rajan and Patel, both have studied at different places. Both have had varied proclivities in the initial stages but both have ended at the same place in the end.
Rajan was also criticized that he did not understand the Indian Economy because of his International degrees and exposure. However, Patel is no different.
Difference In Their Approach
Rajan was always charismatic and a Rock Star. He was flamboyant in his approach. He took charge of the problems with dynamism. He followed the unpopular approaches and was always criticized by one or the other segment, may it be the pensioners or the business class. Generally, the Central Bankers are known to fall in line with the Government’s policies. However, Rajan had his own ways and that created tensions. He is a risk taker and has always taken decisions which were doubted by many but truly understood by a few. “My name is Raghuram Rajan and I do what I do” approach is no longer present to drive discussions and reforms to new and diverse perspectives.
Patel on other hand keeps a low profile. He has not come off looking to hog the limelight. He is keeping up with the Government. He is a man of few words. Much of Patel as a Governor is to be seen in the future. Now that he is answerable to the diverse segments of the economy, the way he responds will project his way of doing things. Patel as a Deputy was an Inflation warrior. He gave key inputs to the Monetary policies of RBI but he was a backstage performer then.
Rajan has had several Professorships. He is a outspoken Critic and always has had long witty conversations and answers. He has respected the criticism diverted at him. More importantly, he has augmented the role of an Educator in the role of RBI Governor.
There are heaps of videos available of Raghuram Rajan where he is giving speeches to children, answering questions of diverse segments with varied age groups. He has never excused himself from answering questions and never gave half-hearted responses.
He has relied on his Dosanomics at times to convey his ideas. He also has used his position of influence in a good way to convey the facts which are often bitter to hear at the first instance such as lowering interest rates which always saddened the Pensioners. And he has given befitting replies to them that how it is beneficial in the end.
So, whether Patel would be able to pull that off is yet to be seen. Nothing memorable remains of Mr. Patel’s first monetary policy event, with his maiden press conference lasting a scant 20 minutes. Nothing, but a rate cut.
Both of them look at Governor’s role differently. That doesn’t mean that Patel’s approach will yield lesser results. Rajan had more leverage but that also has drawn heavy criticism at certain times and it may have also cost him another term as a Governor.