C. D. Deshmukh

Sir
Chintaman Dwarakanath Deshmukh
CIE, ICS

C. D. Deshmukh at Palam airport in 1952 (left)
Minister of Finance
In office
29 May 1950[1]– 24 July 1956[2][3]
Prime Minister Jawaharlal Nehru
Preceded by John Mathai
Succeeded by T. T. Krishnamachari
3rd Governor of the Reserve Bank of India
In office
11 August 1943 – 30 June 1949[4]
Preceded by James Braid Taylor
Succeeded by Benegal Rama Rau
Personal details
Born (1896-01-14)14 January 1896
Nate, Mahad, Raigad, Maharashtra
Died 2 October 1982(1982-10-02) (aged 86)
Hyderabad, Andhra Pradesh
Nationality Indian
Spouse(s) Rosina 1919-49 (her death)
Durgabai 1953- 1981 (her death)
Children 1
Alma mater University of Cambridge
Religion Hindu
Awards Padma Vibushan 1975

Sir Chintaman Dwarakanath Deshmukh, CIE, ICS (14 January 1896 – 2 October 1982) was an Indian civil servant and the first Indian[5] to be appointed as the Governor of the Reserve Bank of India in 1943 by the British Raj authorities. He subsequently served as the Finance Minister in the Union Cabinet (1950–1956). It was during this time that he also became a founding member of the Governing Body of NCAER, the National Council of Applied Economic Research in New Delhi, India's first independent economic policy institute established in 1956 at the behest of Prime Minister Jawaharlal Nehru. After resignation from Union Cabinet he worked as Chairman of UGC(1956–1961). He served as Vice-Chancellor of University of Delhi (1962–67). He was also President of Indian Statistical Institute from 1945 to 1964, Honorary Chairman of National Book Trust (1957–60). He founded India International Center in 1959 and served as Lifetime President of it. He was also chairman of Indian Institute of Public Administration.

Early life and education

Chintaman Deshmukh was born in a Marathi-speaking family to Dwarakanath Ganesh Deshmukh, a lawyer and Bhagirathibai on 14 January 1896 in Nategaon, near Fort Raigad, Maharashtra.[6] He was schooled at Roha and Tala and at the Elphinstone High School, Bombay.[7] In 1912, Deshmukh passed the Matriculation Examination of the University of Bombay with record marks and secured the first Jagannath Shankarseth Scholarship in Sanskrit.[8] In 1915 he went to England and graduated with a degree in Natural Sciences Tripos from Jesus College, Cambridge in 1917. He was awarded the Frank Smart Prize in Botany and was also president of the Majlis Society. In 1918 he sat for, and topped, the Indian Civil Service Examination, then held only in London.[9][10]

Civil service career

Deshmukh returned to India in 1920 and worked in the Central Provinces and Berar where he went on to hold several posts including as undersecretary to the government, Deputy Commissioner and Settlement Officer and was secretary to the Secretary-General at the Second Round Table Conference of 1931 and later becoming secretary to the finance and public works department.[11][12] He also served briefly as Joint Secretary to Government of India in the departments of education and health and was Custodian of Enemy Property.[13]

At the Reserve Bank of India

Deshmukh joined the Reserve Bank of India in 1939 and served successively as its Secretary to the Board, Deputy Governor and the Governor.[14] He was appointed Governor of the Reserve Bank of India in August 1943 and is only one of two Deputy Governors of the Bank who have gone on to become its Governor.[15][16] As Governor, Deshmukh helped establish the Industrial Finance Corporation and focused on the promotion of rural credit.[17] Deshmukh's tenure saw the RBI begin a Research and Statistics department, the demonetisation of bank notes of ₹ 500 and above, the ceasing of the RBI's role as the central banks of Burma and Pakistan and the enactment of the Banking Companies Act, 1949 that laid down the framework for regulation of India's banking sector.[18] The RBI was nationalised on January 1, 1949 through an the RBI Act, 1948.[19] Deshmukh opposed this proposal for nationalisation but agreed to continue as the chairman of the board of directors presiding over the transition of the bank from a private to a nationalised institution.[20][21][22] In July 1949 Benegal Rama Rau succeeded Deshmukh as the Governor of the RBI.[23]

Bretton Woods Conference

Deshmukh was a member of a five-member delegation representing India at the Bretton Woods Conference that established the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD).[24] On the issue of quotas, Deshmukh suggested that India walk out of the conference since the original hierarchy would have excluded India from being automatically represented through an executive director at the IMF.[25] The delegation also succeeded in bringing the issues of poverty and development into the agenda of the IBRD.[26] It is said that John Maynard Keynes was so impressed by the “dignity, ability and reasonableness” of Deshmukh that he recommended Deshmukh head the IMF as its first managing director a suggestion that was however rejected by the United States.[27][28][29][30]

He was a member of the Board of Governors of both of these institutions from 1946-1956. In 1950, he was elected Chairman of the Joint Annual Meeting of the Boards of Governors of these institutions at its Paris Conference.[31]

Deshmukh Award

Following Partition, the division of income tax revenue and jute export duty between the Union and the states of India had to be decided based on the changed geographical realities. The Government of India appointed Deshmukh to resolve this matter pending the establishment of a Finance Commission. The Deshmukh Award factored in population in deciding the division of revenue and recommended the grants in aid for the various states. This arrangement remained till April 1952.[32][33][34]

Union Finance Minister

Deshmukh was one of 5 members of the Planning Commission when it was constituted in 1950 by a cabinet resolution.[35][36] Deshmukh succeeded John Mathai as the Union Finance Minister in 1950 after Mathai resigned in protest over the transfer of certain powers to the Planning Commission.[37] As Finance Minister, Deshmukh continued to remain a member of the Planning Commission.[38] His successors as Finance Minister were also made members of the Commission thus establishing a convention of the Finance Minister being an ex officio member of the Commission.[39] Deshmukh's term as Finance Minister covered the period of the First Five Year Plan. He employed deficit financing as a key tool in bringing about planned investment but inflation and revenue deficits became major challenges during this period.[40] Deshmukh was also chairman of a panel of economists that recommended the proposed Second Five Year Plan with its capital intensive model of development. Deshmukh envisioned a significant role for the village and cottage industries in curbing unemployment and inflation caused by deficit financing and got the Congress Working Committee to approve the draft plan.[41][42][43]

Deshmukh's first budget of 1951-52 proposed an overall rise in taxes.[44] The following year he presented an interim budget for 1952-53 and a full budget in the first elected Parliament of India to which he was elected from the Kolaba constituency of Bombay State.[45][46][47] In 1952 Deshmukh invited Paul Appleby to study Indian administration and Appleby's reports led to the establishment of the Organisation and Management Organisation in the Government of India and the establishment of the Indian Institute of Public Administration of which Deshmukh later became vice president and chairman.[48][49] In 1955, the State Bank of India was formed through the nationalisation and amalgamation of the Imperial Bank with several smaller banks. This was undertaken on the recommendation of the All-India Rural Credit Survey Committee although Deshmukh had been opposed to plans for nationalising the bank when he was the RBI Governor.[50][51] The nationalisation of insurance companies and the formation of the Life Insurance Corporation of India was accomplished by him through the Life Insurance Corporation of India Act, 1956.[52][53] He resigned over the proposal of the Government of India to move a bill in Parliament bifurcating Bombay State into Gujarat and Maharashtra while designating the city of Bombay a Union Territory.[54][55] Deshmukh's tenure - during which he delivered six budgets and an interim budget[56] - is noted for the effective management of the Indian economy and its steady growth which saw the economy recover from the impacts of the events of the 1940s.[57][58]

Later career

Shortly after his resignation from the Cabinet, Deshmukh was appointed as Chairman of India's University Grants Commission in 1956, a post he held until 1961.[59][60][61] Deshmukh, who was the first chairman of the commission after it became a statutory body, played a key role in the development of university libraries during his tenure.[62][63] He was also the founding chairman of the National Book Trust which was inaugurated in 1957 with the aim of making available books priced moderately to the general public and libraries.[64] From 1962 - 1967, Deshmukh served as the tenth Vice Chancellor of the University of Delhi. He invited the Ford Foundation to survey and finance the upgradation of the Delhi University Library through a grant of US$ 1 million.[65]

Deshmukh contested the Indian presidential election of 1969 as a candidate of the Swatantra Party and the Jana Sangh and won the third-highest number of first preference votes.[66][67][68][69]

Personal life

Deshmukh married Rosina Arthur Wilcox in 1920 with whom he had a daughter, Primrose.[70] After Rosina's death in 1949, Deshmukh married Durgabai in 1953 and they were married until her death in 1981. Chintaman and I is her memoir published in 1980.[71]

In 1974 he published his autobiography The Course of My Life.[72]

Deshmukh died in Hyderabad on 2 October 1982.[73]

Awards

Deshmukh was appointed a Companion of the Order of the Indian Empire in 1937 and conferred a knighthood in 1944.[74][75]

He was awarded an honorary Doctor of Science by the University of Calcutta in 1957 and an honorary Doctor of Literature by the Panjab University in 1959.[76][77]

In 1959, Deshmukh was a co-recipient (along with Jose Aguilar of the Philippines[78]) of the Ramon Magsaysay Award for distinguished Government Service. Jesus College, Cambridge, Deshmukh's alma mater, elected him its Honorary Fellow in 1952 in recognition of his distinguished contribution in the areas of Indian and international finance and administration.

In 1975, Chintaman and Durgabai Deshmukh were awarded the Padma Vibhushan.[79]

Legacy

The Reserve Bank of India organises the annual lecture series called 'Chintaman Deshmukh Memorial Lectures', since 1984.[80] The National Council of Applied Economic Research also conducts the annual C.D. Deshmukh Memorial Lecture since 2013.[81][82][83]

The Thane Municipal Corporation established the Chintamanrao Deshmukh Institute for Administrative Careers in 1987, to prepare the youth to enter the civil services.[84] A road in the Tilakwadi area of the city of Belgaum has been named as 'C. D. Deshmukh Road'.[85] The India International Centre in New Delhi has an auditorium named after Deshmukh.[86][87]

In 2004, a commemorative postage stamp was released in his honour.[88]

References

  1. ↑ http://photodivision.gov.in/waterMarkdetails.asp?id=14554.jpg
  2. ↑ Ranjana Arora; Verinder Grover (1994). Federation of India and States' Reorganisation: Reconstruction and Consolidation. New Delhi: Deep & Deep Publications. p. 8.
  3. ↑ Gopa Sabharwal (2007). India Since 1947: The Independent Years. Penguin UK.
  4. ↑ Partha Ray (November 17, 2014). "Political Economy of Central Banking in India" (PDF). IGIDR. p. 16. Retrieved July 25, 2016.
  5. ↑ "Chintaman Deshmukh Memorial Lectures". Reserve Bank of India. Retrieved 8 December 2006.
  6. ↑ M.L. Ahuja (2009). Great Administrators Of India. Delhi: Kalpaz Publications. p. 33. ISBN 9788178357294.
  7. ↑ Bakhtiar Dadabhoy (2013). Barons of Banking. Noida: Random House India. ISBN 9788184004762.
  8. ↑ Aruṇa Ṭikekara (2006). The Cloister's Pale: A Biography of the University of Mumbai. Mumbai: Popular Prakashan. p. 105. ISBN 9788179912935.
  9. ↑ Sumita Mukherjee (2010). Nationalism, Education and Migrant Identities: The England-returned. Oxon: Routledge. p. 129. ISBN 9781135271138.
  10. ↑ "Chintaman Deshmukh Memorial Lectures". Reserve Bank of India. Retrieved July 4, 2016.
  11. ↑ "TREASURY CODE VOL- II" (PDF). p. 5. Retrieved July 4, 2016.
  12. ↑ "Central Provinces & Berar Gazette" (PDF). Central Provinces & Berar Gazette: 1301. October 1937.
  13. ↑ "Deshmukh, Chintaman". Ramon Magsaysay Award Foundation. August 1959. Retrieved July 13, 2016.
  14. ↑ C R Rao (2014). Essays on Econometrics and Planning. New Delhi: Elsevier. p. 2.
  15. ↑ Tapan Raychaudhuri; Dharma Kumar; Irfan Habib; Meghnad Desai (1983). The Cambridge Economic History of India: Volume 2, C.1751-c.1970. Cambridge: Cambridge University Press. pp. 795–796.
  16. ↑ Alok Ghosh; Raj Kumar Sen (2002). Money, Banking, and Economic Reforms. New Delhi: Deep & Deep Publications. p. 89.
  17. ↑ Eric Helleiner (2014). Forgotten Foundations of Bretton Woods: International Development and the ... Cornell University Press. p. 251.
  18. ↑ Siddhartha Shankar Saha (2013). Indian Financial System & Markets. New Delhi: Tata McGraw Hill. p. 67.
  19. ↑ K. Vaidyanathan (2013). Credit Risk Management for Indian Banks. New Delhi: SAGE. p. 265.
  20. ↑ Latha Varadarajan (2010). The Domestic Abroad: Diasporas in International Relations. New York: Oxford University Press.
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  22. ↑ Gautam Majumdar (2013). Financial Terms Simplified. New Delhi: SAGE. p. 252.
  23. ↑ Siddhartha Shankar Saha (2013). Indian Financial System & Markets. New Delhi: Tata McGraw Hill. p. 67.
  24. ↑ Niranjan Rajadhyaksha (July 23, 2014). "A page from history: 70 years before the Brics bank". Live Mint. Retrieved July 11, 2016.
  25. ↑ Pallavi Roy (2015). Wartime Origins and the Future United Nations. New York: Routledge. p. 168. ISBN 9781134668731.
  26. ↑ Ankit Mital (July 11, 2016). "How India shaped international monetary policy at Bretton Woods". Live Mint. Retrieved July 11, 2016.
  27. ↑ Venkitaramanan S (2005). Indian Economy: Reviews And Commentaries - Volume 3. Hyderabad: ICFAI University Press. p. 98.
  28. ↑ Ankit Mital (July 11, 2016). "How India shaped international monetary policy at Bretton Woods". Live Mint. Retrieved July 11, 2016.
  29. ↑ Niranjan Rajadhyaksha (May 24, 2011). "That job at the IMF". Live Mint. Retrieved July 11, 2016.
  30. ↑ "World Bank or elite club?". Live Mint. May 22, 2007. Retrieved July 11, 2016.
  31. ↑ THE BALANCE BETWEEN MONETARY POLICY AND OTHER INSTRUMENTS OF ECONOMIC POLICY IN A MODERN SOCIETY (PDF). Washington D C: Per Jacobsson Foundation. 1965. p. 66.
  32. ↑ N. B. Ghodke (1985). Encyclopaedic Dictionary of Economics, Volume 1. Delhi: Mittal Publications. p. 311.
  33. ↑ V B Singh; Shailendra Singh (2002). Economic History of India: 1857-1956. New Delhi: Allied Publishers. p. 559.
  34. ↑ Sanjeev Kumar Mahajan; Anupama Puri Mahajan (2014). Financial Administration in India. Delhi: PHI Learning. p. 16.
  35. ↑ Jivanta Schoettli (2012). Vision and Strategy in Indian Politics: Jawaharlal Nehru’s Policy Choices and the Designing of Political Institutions. Oxon: Routledge. p. 106.
  36. ↑ S. A. PALEKAR (2012). DEVELOPMENT ADMINISTRATION. New Delhi: PHI Learning. p. 74.
  37. ↑ Inder Malhotra (September 26, 2014). "Once upon a plan". The Indian Express. Retrieved July 11, 2016.
  38. ↑ "REFERENCE MATERIAL 2010 NOTES ON THE FUNCTIONING OF VARIOUS DIVISIONS" (PDF). Planning Commission of India. 2010. Retrieved July 11, 2016.
  39. ↑ Jivanta Schoettli (2012). Vision and Strategy in Indian Politics: Jawaharlal Nehru’s Policy Choices and the Designing of Political Institutions. Oxon: Routledge. p. 106.
  40. ↑ K.S. Ramachandran (1 January 2007). Economic Environment of India. Northern Book Centre. pp. 5–. ISBN 978-81-7211-227-1.
  41. ↑ G. S. Monga; Madan Mohan Goel (1 January 2001). Wage Goods Approach to Development. Deep & Deep. pp. 140–. ISBN 978-81-7629-269-6.
  42. ↑ Stanley A. Kochanek (8 December 2015). The Congress Party of India: The Dynamics of a One-Party Democracy. Princeton University Press. pp. 179–. ISBN 978-1-4008-7576-4.
  43. ↑ Chanda Rai (1 January 2007). Indian Economic Planning: Analysis and Relevance of Economic Ideas of Dr. D.R. Gadgil. Deep & Deep Publications. pp. 32–. ISBN 978-81-7629-925-1.
  44. ↑ "SPEECH OF SHRI C.D. DESHMUKH, MINISTER OF FINANCE INTRODUCING THE BUDGET FOR THE YEAR 1951-52" (PDF). Retrieved July 25, 2016.
  45. ↑ "THE CENTRAL BUDGETS IN RETROSPECT" (Press release). Press Information Bureau. February 24, 2003. Retrieved July 11, 2016.
  46. ↑ "SPEECH OF SHRI C.D. DESHMUKH, MINISTER OF FINANCE INTRODUCING THE BUDGET FOR THE YEAR 1952-53 (Final)" (PDF). Retrieved July 13, 2016.
  47. ↑ STATISTICAL REPORT ON GENERAL ELECTIONS, 1951 TO THE FIRST LOK SABHA VOLUME I (PDF). NEW DELHI: ELECTION COMMISSION OF INDIA. p. 81.
  48. ↑ N. Jayapalan (2001). Indian Administration 2 Vols. Set. New Delhi: Atlantic Publishers. p. 270.
  49. ↑ "INDIAN INSTITUTE OF PUBLIC ADMINISTRATION NEW DELHI" (PDF). INDIAN INSTITUTE OF PUBLIC ADMINISTRATION. Retrieved July 26, 2016.
  50. ↑ "dated December 21, 1954: State Bank of India". The Hindu. December 21, 2004. Retrieved July 12, 2016.
  51. ↑ B S Thaur (April 20, 2003). "Tracing history of the SBI". The Tribune. Retrieved July 12, 2016.
  52. ↑ Arvind Panagariya (2008). India: The Emerging Giant. New York: Oxford University Press.
  53. ↑ P S Palande; R S Shah (2003). Insurance in India: Changing Policies and Emerging Opportunities. New Delhi: Response Books. p. 31.
  54. ↑ Ziaul Hasan Faruqi (1999). Dr. Zakir Hussain, Quest for Truth. Delhi: APH Publishing. p. 280. ISBN 9788176480567.
  55. ↑ Niranjan Rajadhyaksha (December 7, 2012). "The anxiety that lingers". Live Mint. Retrieved July 11, 2016.
  56. ↑ M M Sury (2003). "India: Central Government Budgets - 1947-48 to 2003-04". New Century Publications. Retrieved July 20, 2016.
  57. ↑ "North Block Mavericks". Business Standard. March 1, 1997. Retrieved July 11, 2016.
  58. ↑ D K Rangnekar (2012). The Politics of Poverty: Planning India's Development. New Delhi: SAGE Publications. p. 134.
  59. ↑ "List of Former Chairpersons". University Grants Commission. Retrieved July 11, 2016.
  60. ↑ Om Prakash Gupta (1993). Higher Education in India Since Independence: UGC and Its Approach. New Delhi: Concept Publishing Company. p. 79. ISBN 9788170224471.
  61. ↑ A K Hota (1 January 2000). Encyclopaedia of New Media and Educational Planning. Sarup & Sons. pp. 88–. ISBN 978-81-7625-170-9.
  62. ↑ Om Prakash Gupta (1992). Development of University Libraries in India After Independence. New Delhi: Concept Publishing Company. p. 37.
  63. ↑ Amrik Singh (2004). Fifty Years of Higher Education in India: The Role of the University Grants Commission. New Delhi: SAGE Publications. pp. 202–203.
  64. ↑ "dated August 3, 1957: National Book Trust". The Hindu. August 3, 2007. Retrieved July 11, 2016.
  65. ↑ M L Saini (2002). Libraries and Information Studies in Retrospect and Prospect: Volume 2. New Delhi: Concept Publishers. pp. 499–500.
  66. ↑ Mahendra Prasad Singh (1981). Split in a Predominant Party: The Indian National Congress in 1969. New Delhi: Abhinav Publications. p. 81. ISBN 9788170171409.
  67. ↑ M V Pylee (2012). Constitutional Government in India. New Delhi: S Chand & Co. p. 229. ISBN 9788121922036.
  68. ↑ "PRESIDENTIAL ELECTION FROM 1952 TO 1997 BRIEF NOTES" (PDF). Election Commission of India. p. 22. Retrieved July 4, 2016.
  69. ↑ Bipan Chandra; Aditya Mukherjee; Mridula Mukherjee (2008). India Since Independence. New Delhi: Penguin Books. p. 298.
  70. ↑ "Deshmukh, Chintaman". Ramon Magsaysay Award Foundation. August 1959. Retrieved July 13, 2016.
  71. ↑ Prachi Deshpande (2008). The Oxford Encyclopedia of Women in World History: Volume 2. New York: Oxford University Press. p. 42.
  72. ↑ The Course of My Life C D Deshmukh ISBN 8125008241
  73. ↑ Bakhtiar K. Dadabhoy (2013). Barons of Banking. Random Business. ISBN 9788184003499.
  74. ↑ "To be Companions of the said Most Eminent Order". SUPPLEMENT TO THE LONDON GAZETTE, 1 FEBRUARY, 1937: 693. 29 January 1937.
  75. ↑ "Whitehall, March 21, 1944". The London Gazette: 1333. 21 March 1944.
  76. ↑ Honoris Causa
  77. ↑ "Record of Honoris Causa Degrees w.e.f. 1949". Panjab University. Retrieved July 5, 2016.
  78. ↑ "The Ramon Magsaysay Awardees by Name". The Ramon Magsaysay Foundation. Retrieved 8 December 2006.
  79. ↑ "Padma Awards Directory (1954-2014) Year-Wise List" (PDF). Ministry of Home Affairs, Government of India. p. 63. Retrieved July 12, 2016.
  80. ↑ https://www.rbi.org.in/Content/Annual_CDMemorial.aspx
  81. ↑ http://www.ncaer.org/event_details.php?EID=18
  82. ↑ http://www.ncaer.org/event_details.php?EID=48
  83. ↑ http://www.ncaer.org/event_details.php?EID=106
  84. ↑ http://www.cdinstitute.in/
  85. ↑ http://www.justdial.com/Belgaum/Mallikarjun-Stores-%3Cnear%3E-Tilakwadi-Belgaum/9999PX831-X831-121201142926-R6Q3_BZDET
  86. ↑ http://www.iicdelhi.nic.in/User_Panel/UserView.aspx?TypeID=1150
  87. ↑ http://www.iicdelhi.nic.in/User_Panel/UserView.aspx?TypeID=1223
  88. ↑ "Commemorative postage stamp on C.D. Deshmukh". Press Information Bureau, Government of India. January 13, 2004. Retrieved July 5, 2016.
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