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Arjun Ram Meghwal writes: Ambedkar, the economist

2 min read

B R Ambedkar's Multifaceted Economic Vision

B R Ambedkar, widely recognized as the chief architect of the Indian Constitution and a prominent advocate for justice, also stands as a profound economic thinker whose contributions to India's financial landscape remain vital yet underappreciated.

Early Academic Pursuits

  • At the age of 22, Ambedkar became the first Dalit student at Columbia University in New York.
  • His academic work began with a Master's thesis titled 'Ancient Indian Commerce' in 1915, followed by a PhD thesis named 'The National Dividend of India: A Historic and Analytical Study'.
  • Expanded his PhD thesis into 'The Evolution of Imperial Provincial Finance in India'.

Key Economic Contributions

  • Appointed as a professor of Political Economy in Bombay in 1918 after his return to India.
  • Moved to London in 1920 to continue his studies, completing an MSc thesis on 'Provincial Decentralisation of Imperial Finance in British India' in 1921.
  • Published a landmark work titled 'The Problem of the Rupee: Its Origin and Its Solution' in 1923, critiquing colonial monetary policies and proposing solutions.

Monetary Policy and Central Banking

  • Ambedkar criticized the colonial manipulation of the Indian rupee's relationship with the British pound, which imposed a significant financial strain on India.
  • Proposed the adoption of a gold exchange standard to stabilize the rupee and advocated for an independent Indian central bank to manage currency issuance and monetary policy.
  • Influenced the establishment of the Reserve Bank of India in 1934 and inspired the guidelines for the RBI Act.

Social and Economic Reforms

  • Advocated that economic planning was essential for social justice, emphasizing the link between a robust economy and human dignity.
  • As a member of the Viceroy’s Executive Council, he introduced policies favoring labor rights, including regulated working hours and maternity benefits.
  • Instrumental in founding India's employment exchanges and advancing water and power management projects like the Damodar Valley Project and Hirakud Dam Project.

Contemporary Relevance

  • Ambedkar's emphasis on financial discipline, transparency, and fairness is increasingly relevant in today's context of digital currencies and AI-driven finance.
  • His approach to responsible currency management and financial inclusion continues to resonate with India's inflation-targeting framework and welfare policies.

Legacy and Modern Context

Under the leadership of Prime Minister, India seeks to become the third-largest economy globally, aligning modern growth with Ambedkar's economic principles of justice, dignity, and self-reliance.

  • Tags :
  • Reserve Bank of India
  • B R Ambedkar
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