The Government has given Dr.D.Subbarao IAS, a two year extension as the Governor of the Reserve Bank of India.
The prime minister has approved the extension of Dr.Subbarao for a further period of 2 years with effect from September 5, 2011 up to September 4, 2013.
This move is meant to give an impression of stability to the economy, because in this current global scenario, bringing a new person would not be seen as a intelligent decision.
Also we can say that the world economy is not completely recovered from the global crisis of 2008. Also another set of challenges is already on its way, given the panic across the world following the recent downgrade of US debt by S&P.
So in order to handle this dangerous situation, India's macro economy should be steered by an excellent Economist. Dr.Subbarao, no doubt is the right person for this. He had served in the Ministry of Finance in the early 1990s when Dr.Manmohan singh was the Finance minister.
Dr.Subbarao has proved his mettle after his baptism by fire during the economic crisis of 2008.
There were occasional hiccups when his inflation-fighting credentials were questioned. But he had no other way to control inflation other than hiking the interest rates.
He has tried to improve the conduct of monetary policy, bringing in more transparency and communication. So we can say that the decision to retain Dr.Subbarao at the Central Bank's helm for another two years is there for very welcome.
I hope that he will steer our economy in the right track through his intelligent decisions and policies.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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