When the Chinese economy experienced tremendous growth in the 1980s, it was due in large part to the exportation of low cost goods to advanced countries. For India’s current period of economic growth, they now face a dramatically different world economy. Global trade has slowed, and low cost labor is at an all-time high. Despite the recent influx of service jobs, Indian economist Dr. Duvvuri Subbarao believes that won’t create the kind of sustained job growth the country needs. To combat the India’s high rates of poverty, he feels the country should shift its focus to manufacturing—not just for the global market, but for domestic consumption as well. Expanding India’s manufacturing sector to serve its own people, Dr. Subbarao maintains, will create more jobs and better serve the country in the long term.
Dr. Duvvuri Subbarao is the former Governor of the Reserve Bank of India. He assumed this role in September 2008—the week the world economy faced collapse. He went on to lead the country’s efforts in mitigating the effects of the recession by putting in place a number of reforms to support India’s overall economic health. Prior to his appointment as Governor, Dr. Subbarao served as Finance Secretary for the Indian Government from 2007 to 2008, as well as Secretary to the Prime Minister’s Economic Advisory Council from 2005 to 2007.
Previously, Dr. Subbarao was a Lead Economist at the World Bank, where he advised developing nations on public finance reforms. He also served on the Governing Boards of both the World Bank and the IMF. Dr. Subbarao is recognized as one of the leading experts in public finance management in India—combining rich practical experience with a deep understanding of theory. He is a frequent writer and speaker on issues relating to macroeconomic management, public finance, and financial sector reforms, and is currently a Distinguished Visiting Fellow at the National University of Singapore.