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D Subbarao
Sounding a note of caution, former RBI Governor D Subbarao on Monday said that 'Make in India' should not transform into 'Make all that India needs' as it would hurt investments in the country and impact productivity. Subbarao further said the punitive 50 per cent tariffs on Indian exports imposed by the US will raise the costs of Indian goods in the most important overseas market, which is America. "If 'Make in India' degenerates into 'Make all that India needs', we risk losing the chance to attract investment away from China. "The tariffs remind us that openness, not isolation, is the path to sustainable growth," he told PTI in an interview. Subbarao said the success of 'Make in India' hinges on competitiveness, not protectionism. "Atmanirbhar Bharat, an aspiration that the Prime Minister reiterated in his Independence Day speech, must mean strategic self-reliance in sensitive areas like defence and energy, not blanket self-sufficiency," he said. According to him, 'Make in Indi
Former Reserve Bank of India (RBI) Governor Duvvuri Subbarao has said civil services in India have to be reformed and reinvented as the "steel frame" introduced by Britishers to govern India has certainly rusted. Subbarao, who held various positions, including that of the Union finance secretary, wrote in his new book titled 'Just A Mercenary?: Notes from My Life and Career' about the gender gap in the IAS. "The steel frame has certainly rusted," he told PTI. UPSC conducts the civil services examination every year in three stages -- preliminary, mains and personality test (interview) -- to select officers of Indian Administrative Service (IAS), the Indian Foreign Service (IFS) and the Indian Police Service (IPS), among others. "I firmly believe that a country of our size and diversity still needs a generalist service like the IAS but the service needs to be reformed, and even reinvented, in many ways. "The solution is not to throw away the rusted frame but to bring it back to its
If tax concessions announced by the government are treated as 'presumptive loss' by federal auditor Comptroller and Auditor General of India (CAG), it would diminish democracy and not enhance it, opined former RBI Governor Duvvuri Subbarao. Subbarao, who held various positions including the Union finance secretary, wrote in his new book titled 'Just A Mercenary?: Notes from My Life and Career' about his involvement in the decision-making on the pricing of the 2G spectrum, an issue that embroiled the UPA-2 government amid charges of mammoth corruption. "If a democratically elected government decides to forego revenue in order to serve the larger public good of deepening telecom penetration, is it open to the CAG to substitute his own judgement for the government's and call it a 'presumptive loss'?" he asked. Subbarao was responding to a question on the 2G scam case and the CAG's investigation of the presumptive loss to the government during the UPA-2 period. "If the CAG is allowed t
Former RBI Governor Duvvuri Subbarao has opined that only enlightened leadership at Centre and state levels can resolve the complex north-south divide in deciding on the distribution of the tax pool among states, saying it is beyond the remit of the Finance Commission. Subbarao, who held various positions including the finance secretary of Andhra Pradesh and Union finance secretary, and wrote extensively on issues in fiscal federalism in his new book titled 'Just A Mercenary?: Notes from My Life and Career' further said that horizontal sharing of the divisible pool of taxes has always been a contentious issue but will be even more so in this round. "This (north-south divide in deciding on the distribution of the tax pool among states) is a complex political challenge beyond the remit of the Finance Commission. "Resolving it will demand enlightened leadership at central and state levels that can look beyond politics and build a consensus around an optimal way forward," he told PTI.
Central Government under the leadership of Prime Minister should come out with a 'White Paper' to generate a consensus among political parties on the issue of giveaways or freebies, former Reserve Bank Governor D Subbarao has said adding that there has to be a thorough debate on how to impose restraints on political parties in this regard. He also said the public should be made more aware of the cost and benefits of these freebies and that it is the responsibility of the government to educate the population on this. I think this is ultimately a political issue and there has to be political consensus on this. The leadership has to be taken by the central government and the Prime Minister. I believe they must float a white paper and try to generate a consensus on this. "Educate people on the pros, and cons of these giveaways or freebies ( and ensure) how we can put a restraint on that and how we can enforce it, the former RBI governor told PTI in a recent interaction. Subbarao said t
Former RBI governor D Subbarao has suggested that the government should come up with a 10-year road map for privatisation of all Public Sector Banks (PSBs) as it would provide much needed predictability to stakeholders. Subbarao further said that the big bang approach to privatisation of state-owned banks is not desirable but at the same time the issue should not be put on the back burner. "Ideally, we should have a road map, maybe over a 10 year timeframe, to privatise all PSBs. "That will give much needed predictability to all stakeholders," he told PTI. Meanwhile, Subbarao said the government should also be thinking about corporatisation of public sector banks so that they come within the umbrella of uniform RBI regulation. In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises. The government think-tank NITI Aayog has already suggest
India's GDP growth of 13.5 per cent in the April-June quarter of 2022-23 has turned out be a cause for 'disappointment and concern', as there was expectation of a bigger bounce back from the first quarter of last year when economic activity was crippled by the Delta wave of COVID-19, former RBI governor D Subbarao said on Sunday. Subbarao added that risk factors for the country's growth outlook in the short term include high commodity prices, possibility of a global recession, monetary tightening by the RBI and an uneven monsoon that could threaten crop output, especially of rice. "The economy clocked growth of 13.5 per cent in the first quarter (April-June) of this fiscal year which would have been cause for celebration in any other circumstance. "In the event, it's turned out be a cause for disappointment and even concern," he told PTI in an interview. India's economy expanded 13.5 per cent in the April-June quarter, the quickest pace in a year. As per the RBI's estimates, the ..
In an exclusive interview with Business Standard, former Reserve Bank Governor D Subbarao explained why doubling the economy in 4 years might be too ambitious. Listen in here