Duvvuri Subbarao
Duvvuri Subbarao | |
|---|---|
| Born | August 11, 1949 Eluru, West Godavari district, Andhra Pradesh, India |
| Occupation(s) | Economist, former central banker, retired IAS officer |
| Years active | 1972–present |
| Known for | 22nd Governor of the Reserve Bank of India (2008–2013) |
| Notable work | Who Moved My Interest Rate?; Just A Mercenary? |
Duvvuri Subbarao (born 11 August 1949) is a renowned Indian economist, former central banker, and retired IAS officer. He held the position of the 22nd Governor of the Reserve Bank of India (RBI) from September 2008 until September 2013, with his term extended in 2011 during the tenure of Prime Minister Dr. Manmohan Singh. Following his leadership at the RBI, he took on the role of Distinguished Visiting Fellow at the National University of Singapore and subsequently at the University of Pennsylvania.
Early life
Born in Eluru, located in West Godavari district, Andhra Pradesh, Subbarao completed his schooling at Sainik School, Korukonda between 1962 and 1965. He graduated with a BSc (Honours) in Physics from the Indian Institute of Technology Kharagpur in 1969 and went on to earn an MSc in physics from the Indian Institute of Technology Kanpur. In 1972, he successfully cleared the Civil Services Examination and joined the Indian Administrative Service (IAS), assigned to the Andhra Pradesh cadre.
Between 1977 and 1978, Subbarao pursued a master's degree in economics at Ohio State University. He was awarded a Humphrey Fellowship at MIT during 1982–83, focusing on public finance studies. In 1988, he completed his PhD in economics from Andhra University, presenting a dissertation titled Fiscal reforms at the sub-national level.
Career
Subbarao’s initial professional years involved administrative roles within Andhra Pradesh. Serving as Collector of Khammam district in 1979, he implemented land restoration initiatives that significantly benefited tribal communities. Later, as managing director of the Andhra Pradesh State Finance Corporation from 1986 to 1988, he encouraged investment by first-generation entrepreneurs across industrial and service sectors.
While on deputation to the Government of India as joint secretary in the Ministry of Finance, he played an active role in shaping and executing the pivotal economic reforms introduced in 1991. Between 1993 and 1998, Subbarao acted as Finance Secretary for Andhra Pradesh, facilitating the release of a critical white paper on state finances in 1996 that paved the way for challenging fiscal reforms.
From 1999 until 2004, he served as Lead Economist at the World Bank, spearheading public expenditure reforms and conducting research on decentralization across East Asia. Upon returning to India, he joined the Prime Minister's Economic Advisory Council from 2005 to 2007 before being appointed Finance Secretary in 2007.
On 5 September 2008, Subbarao was named Governor of the Reserve Bank of India (RBI), becoming both the first incumbent civil servant and the first individual born after Independence to assume this office. His tenure was extended by two years in 2011. Arun Ramanathan succeeded him as Finance Secretary following his RBI appointment.
Achievements
During his time as Finance Secretary to the Government of India, Subbarao contested the allocation of valuable telecom spectrum in 2007 that was priced based on outdated rates from 2001. He advocated for re-auctioning to reflect contemporary market values. Subsequently, he provided testimony in the CBI investigation into alleged corruption related to 2G spectrum allocation; his statements were referenced in the court’s judgment.
Subbarao’s governorship at the RBI coincided with significant economic upheavals, including the outbreak of the 2008 financial crisis. After steering India through this turbulent period, his priorities shifted towards curbing inflation and managing severe depreciation of the rupee triggered by quantitative easing policies implemented by the Federal Reserve, known as the Taper tantrum. While credited with stabilizing India's economy during these challenges, some critics have questioned his approach to handling currency depreciation.
His leadership stressed safeguarding RBI’s independence and advancing transparency through proactive stakeholder engagement and public communication. Subbarao was instrumental in advancing financial inclusion efforts, notably contributing to making Ernakulam district in Kerala India's inaugural financially inclusive district. He is also recognized for developing the New Trilemma theory tailored for central bankers—the "Holy Trinity" encompassing price stability, financial stability, and sovereign debt sustainability. This framework offers a distinct Indian viewpoint contrasted with the conventional "impossible trinity" model centered on fixed exchange rates, free capital flows, and independent monetary policy.
Personal life
Subbarao is wedded to Urmila Subbarao. The couple has two sons, Mallik and Raghav, who, following in their father's footsteps, are alumni of the Indian Institutes of Technology (IIT).
Works
In July 2016, Subbarao published Who Moved My Interest Rate?: Leading the Reserve Bank of India Through Five Turbulent Years, a book that reflects on his period at the Reserve Bank of India and highlights the importance of central bank independence. Later, in 2024, he released his memoir, Just A Mercenary?: Notes from My Life and Career, which offers a detailed account of his professional experiences and the obstacles encountered during his tenure as RBI governor.