Urjit Patel is the newly appointed governor of Reserve Bank of India. He took charges on 4th of September. Barely after taking over the governor’s office urjit Patel has issued his first warning to India and BRICS Nations. He warned to India and other BRICS nations to be prepared to confront Economic and political risks because of BRexit and US Presidential election.
New RBI Governor cited the challenges which global economy and BRICS countries are facing. RBI Governor urged to BRICS countries to make their domestic economies very attractive for foreign investment. Urjit Patel has taken the count on various international events like Brexit and US election which have the direct potential to upset the economy of any country. Former RBI Governor Raghuram Rajan and Finance Minister of India Arun Jaitley has different views on such events.
Former RBI governor Raghuram Rajan’s take on Brexit
Rajan said immediately after the Brexit that it would not make an effect on rupee as much as it is feared, it is little exaggerated. Rajan requested to investors to stay calm and said in June: “The Brexit vote would have some repercussions for financial markets and the political fabric of the EU. But we see no immediate dire impact on Britain.”
Raghuram Rajan also said that investment would slow down in Britain in the result of Brexit. Rajan put all the fear to rest by saying: “Nothing will happen immediately, things will unravel going ahead.”
Finance Minister Arun Jaitley’s take on Brexit
In a recent encounter with economic times finance minister Arun Jaitley said that India actually has tremendous opportunity for trade ties between India and UK. he said: “There is a huge amount of opportunity that I see between the United Kingdom and India entering into, some trade arrangements once they are formally out of EU and legally entitled to do so.”
Jaitley’s views on US election are similar with Urjit Patel. He expressed worry because of the uncertainty over the economic policies of next president of America. He Said: “The US presidential election, it is a worrisome situation. Disturbing because the anger in the electorate has led to the tenure of the entire debate being protectionist and if the world’s most powerful economy turns protectionist, then for others to grow out of protection becomes all the more difficult.”
- Note: This article is created after study from various news sources. The content was mainly taken from Business today. We have put our best to make this accessible and readable. Thanks for reading and please comment your views on how we can make this blog better.
Reference: Business Today