NDA 3.0 Must Leverage Political Capital for Structural Reforms, Says Ex-RBI Chief

Former RBI Governor D Subbarao emphasized the need for NDA 3.0 to utilize its political capital to implement crucial structural reforms in the upcoming budget. He highlighted sustainable growth, reducing inequality, and the importance of job creation as key focus areas. Subbarao also discussed currency valuation and the implications of 'freebies' culture.

In a candid interview, former Reserve Bank of India Governor D Subbarao urged the NDA 3.0 government to leverage its substantial political capital to implement critical structural reforms in the forthcoming budget. He stressed that such reforms are essential to fuel growth and generate employment opportunities.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025-26 amid global economic uncertainty, Subbarao noted the importance of steering the economy towards a sustainable, high-growth trajectory. However, he cautioned that growth must be inclusive to effectively reduce inequality.

Subbarao underlined the need for a focus on promoting the MSME sector and labour-intensive exports to boost job creation. Additionally, he touched on currency valuation and called for a dialogue on regulating the competitiveness of political freebies to ensure long-term fiscal health.

(With inputs from agencies.)