Rise of Kenyan-born economist to India central bank top job stokes controversy

The newly appointed Reserve Bank of India Governor Urjit Patel. His hiring despite nationality concerns is seen as a statement the State is interested in real talent. AFP PHOTO  

By BRIAN NGUGI, bnjoroge@ke.nationmedia.com

In Summary

• Some have criticised Urjit Patel for being ‘less Indian’ than his predecessor Raghuram Rajan whose term ends on September 4.

The recent appointment of Kenyan-born Urjit Patel as the governor of the Reserve Bank of India (RBI) has stoked controversy over his roots even as those who know him celebrated in Nairobi.

Some have criticised him for being ‘less Indian’ than his predecessor Raghuram Rajan whose term ends on September 4.

“Patel, perhaps, is far less Indian than Rajan (his predecessor) if we consider the fact that he took an Indian citizenship only after he was offered the post of RBI deputy governor in 2013.

Before that, Patel was a citizen of Kenya,” said Shweta Punj, the associate editor of India Today newspaper capturing the mood on the choice of the governor.

But Bharatiya Janata Party MP Subramanian Swamy on Sunday said it would be really ‘idiotic’ to criticise the newly appointed RBI governor for being born in Kenya.

Mr Swamy has been a bitter critic of the outgoing RBI governor, accusing him of pursuing policies geared toward controlling inflation at the expense of economic growth.

Mr Patel beat a pool of highly skilled contenders for the top job.

He was born in Kenya to Indian businessman Ravindra and his wife Manjula who ran a chemical factory named Rexo Products in Nairobi.

Described as “humble but very bright and knowledgeable” by his Kenyan acquaintances, Mr Patel studied in Visa Oshwal Primary School and later in Jamhuri High School in Nairobi.

He pursued a first degree from the London School of Economics and thereafter obtained a master’s degree from Oxford University in 1986 before obtaining a doctorate in Economics from Yale University in 1990.

He then immediately launched his career at the International Monetary Fund.

In picking Mr Patel, the Indian Prime Minister Narendra Modi was seen to have defied noise by critics over Mr Patel’s nationality.

Ms Punj also noted that Mr Patel also represented the need to pick the best for the job regardless of nationalistic sentiments.

“The message with this appointment is once again a reiteration of the global nature of India’s economy and that the government is looking beyond the usual tags of nationalism. It also shows that the government is genuinely interested in hiring real talent for the top job,” wrote the Ms Punj in a commentary.

A report by the Times of India said there was jubilation in Nairobi’s Premiere Club where Mr Patel’s father Ravindra Patel was a frequent goer.

“Ravindra and his wife Manjula ran a chemical factory named Rexo Products in Nairobi. It feels great to know that his son Urjit, who sometimes came for morning walks with his father at the club, has been appointed RBI governor,” Umakant Patel, President of Premiere Club was quoted as saying

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Speaking on the appointment Nairobi-based analyst Aly Khan Satchu said Mr Patel was stepping into some “very big shoes.” Times of India said Mr Patel is single and lives in south Mumbai with his octogenarian mother and spends most of his spare time reading.

“While the community is celebrating Patel’s appointment, the new governor - being single - is a bit of a loner,” the newspaper said.

Mr Patel was appointed deputy governor od RBI in January 2013 and given an extension in January