D. Subbarao

Duvvuri Subbarao (born 11 August 1949) is an Indian economist, central banker and retired IAS officer. He served as the 22nd Governor of the Reserve Bank of India (RBI) from September 2008 to September 2013, with an extension in 2011, under Prime Minister Dr.Manmohan Singh. After stepping down from the RBI, he became a Distinguished Visiting Fellow, first at the National University of Singapore and later at the University of Pennsylvania.

Early life

Subbarao was born in Eluru in the West Godavari district of Andhra Pradesh. He attended Sainik School in Korukonda, Andhra Pradesh from 1962–65. He then completed a BSc Honours program in Physics at the Indian Institute of Technology Kharagpur in 1969. He also completed an MSc in Physics at the Indian Institute of Technology Kanpur. Subbarao passed the Civil Services Examination in 1972 and was assigned to the Andhra Pradesh cadre of the 1972 batch of the Indian Administrative Service (IAS).

From 1977–78, Subbarao took study leave to earn a master's degree in economics at Ohio State University. During 1982–83, he was a Humphrey Fellow at MIT, where he studied public finance. In 1988, he received a PhD in economics from Andhra University. His doctoral thesis was titled "Fiscal reforms at the sub-national level."

Career

Subbarao's early career included field postings in Andhra Pradesh. As collector of the Khammam District of Andhra Pradesh in 1979, he implemented the land transfer regulation, which primarily involved restoring land to tribal households that had lost it due to indebtedness, as stipulated by protective legislation. As managing director of the Andhra Pradesh State Finance Corporation (1986–88), he encouraged first-generation entrepreneurs to invest in the industry and service sectors.

Subbarao was on deputation to the government of India as a joint secretary in the Ministry of Finance, where he helped formulate and implement the 1991 reforms. From 1993–98, he was the Finance Secretary to the Government of Andhra Pradesh. He contributed to the state government's decision to publish a white paper (1996) on state finances, which garnered popular support for economically difficult reforms.

From 1999 to 2004, he worked as a lead economist at the World Bank, where he promoted public expenditure reforms in developing countries. He also managed the World Bank's study on decentralization in East Asia.

Upon returning to India from the World Bank, he was appointed to the Prime Ministers' Economic Advisory Council (2005–07) before becoming the Finance Secretary in 2007. On 5 September 2008, he was appointed Governor of the Reserve Bank of India (RBI), becoming the first serving civil servant and the first person born after Independence to be appointed as central bank Governor. Arun Ramanathan was appointed as Finance Secretary on 21 September 2008, filling Subbarao's vacancy. Subbarao's term was extended for two years in 2011.

Achievements

As Finance Secretary to the Government of India, Subbarao questioned the allocation of valuable spectrum to telecom operators in 2007 at prices fixed in 2001, arguing for fresh bidding to determine the current price. Subbarao testified in the CBI case regarding alleged corruption by ministers and civil servants in the allocation of 2G spectrum, and the judge noted his testimony in the judgement.

Subbarao's term as Governor of the RBI coincided with a turbulent period for the world and India. The 2008 financial crisis began shortly after he assumed office. As the impact of the crisis on India diminished, efforts shifted to combating inflation (2009–11), which transitioned into addressing a sharp depreciation of the rupee due to taper tantrums. Subbarao is generally credited with guiding the Indian economy through the 2008 financial crisis, although some criticize his handling of the rupee's fall during the taper tantrums.

Subbarao's tenure as Governor of the RBI included efforts related to maintaining the central bank's autonomy. His term is also noted for his efforts to demystify the central bank, open communication channels with stakeholders, and outreach to the public. He helped ensure financial inclusion in the Ernakulam district of Kerala. Subbarao is known for his theory of the New Trilemma of central bankers, referring to the "Holy Trinity" of ''price stability'', ''financial stability'', and ''sovereign debt sustainability'' as opposed to the well-known " impossible trinity" of the Mundell's of a ''fixed exchange rate'', ''free capital flows'', and ''independent monetary policy''. Subbarao's exposition of the ''holy trinity'' has established the Indian perspective in the debate on the global central banking trilemma.

Personal life

He is married to Urmila Subbarao.

Works

Subbarao's book, "''Who Moved My Interest Rate?: Leading the Reserve Bank of India Through Five Turbulent Years"'', was published in July 2016.
In 2024, he published his autobiography entitled, "''Just A Mercenary?: Notes from My Life and Career''."

References

{{DEFAULTSORT:Subbarao, Duvvuri
1948 births
Indian Administrative Service officers
Living people
Governors of the Reserve Bank of India
Sainik School alumni
IIT Kanpur alumni
IIT Kharagpur alumni
Andhra University alumni
Ohio State University Graduate School alumni
People from Eluru
Businesspeople from Andhra Pradesh
Scientists from Andhra Pradesh
20th-century Indian economists
21st-century Indian economists
Reserve Bank of India