“As a people we are understandably eager for our economy to sprint like a tiger rather than amble like an elephant…and when elephants start dancing, they can go on for a long time, provided the stage is clear.” - Duvvuri Subba Rao
Succeeding a Telugu bureaucrat Yaga Venugopal Reddy at the top echelons of the country’s apex banking regulator, the Reserve Bank of India (RBI), another Telugu man Duvvuri Subba Rao, Union Finance Secretary, will be donning the mantle as the next Governor.
Taking over the reins of the coveted responsibility may not be difficult for him. Yet, Dr. Rao, the all-India topper of 1972 batch of civil services, apparently has his task cut out much before stepping into the shoes of Dr. Reddy.
Delivering a lecture on ‘Elephants too dance: India growth story’ a few months ago, Dr. Rao said that leapfrogging from agriculture to service economy, bypassing the manufacturing sector did not help India. The five challenges staring at the country according to him were: stepping up agricultural growth; expanding employment opportunities; improving service delivery; bridging infrastructure deficit and managing globalisation.
Globalisation as an economic force was here to stay, he said. India was a truly globalised economy, as the two-way trade was now pegged at 35 per cent of the gross domestic product (GDP) and if two-way movement of capital flow was added, it would be almost 100 per cent of GDP.