FIVE OF MPC'S SIX MEMBERS MAY SOON BE NEW

The nearly brand-new MPC will be up against challenging times ahead

- PUJA MEHRA

The nearly brand-new monetary policy committee (MPC) will be up against challenging times ahead as India's post-covid recovery may have entered a phase of fragility already, and Donald Trump's second presidency promises to be a period of disruption and uncertainty.

How should the appointment of the new governor of Reserve Bank of India (RBI) at this critical point for the economy be read? Continuity was not seen as an advantage in a phase of fragility. Unless deputy governor Michael Patra, whose term ends next month, is given an extension, the six-member monetary policy committee is all set to have five new members. Its three external members were appointed just weeks ago in October. Of the three RBI members, the governor is set to be replaced. In his long years, Patra—he was executive assistant to governor Bimal Jalan two decades ago—has served as an important bridge between the RBI's research department and successive governors, the board and in recent years the finance ministry.