C. D. Deshmukh
Chintaman Dwarkanath Deshmukh
Deshmukh at Palam airport in 1952
|Minister of Finance|
29 May 1950– 24 July 1956
|Prime Minister||Jawaharlal Nehru|
|Preceded by||John Mathai|
|Succeeded by||T. T. Krishnamachari|
|3rd Governor of the Reserve Bank of India|
11 August 1943 – 30 June 1949
|Preceded by||James Braid Taylor|
|Succeeded by||Benegal Rama Rau|
|Born||14 January 1896|
Nate, Mahad, Raigad, Maharashtra
|Died||2 October 1982 (aged 86)|
|Spouse(s)||Rosina 1919-49 (her death)|
Durgabai 1953-1981 (her death)
|Alma mater||University of Cambridge|
|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 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 Chandraseniya Kayastha Prabhu (CKP) family to Dwarakanath Ganesh Deshmukh, a lawyer and Bhagirathibai on 14 January 1896 in Nategaon, near Fort Raigad, Maharashtra. He was schooled at Roha and Tala and at the Elphinstone High School, Bombay. In 1912, Deshmukh passed the Matriculation Examination of the University of Bombay with record marks and secured the first Jagannath Shankarseth Scholarship in Sanskrit. 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.
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 as secretary to the Secretary-General at the Second Round Table Conference of 1931, later becoming secretary to the finance and public works department. He also served briefly as Joint Secretary to Government of India in the departments of education and health and was Custodian of Enemy Property.
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. He was appointed Governor of the Reserve Bank of India in August 1943 and is one of the eight Deputy Governors of the Bank who have gone on to become its Governor. As Governor, Deshmukh helped establish the Industrial Finance Corporation and focused on the promotion of rural credit. 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 State Bank of Pakistan and the enactment of the Banking Companies Act, 1949 that laid down the framework for regulation of India's banking sector. The RBI was nationalised on 1 January 1949 through the RBI Act, 1948. 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. In July 1949 Benegal Rama Rau succeeded Deshmukh as the Governor of the RBI.
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). 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. The delegation also succeeded in bringing the issues of poverty and development into the agenda of the IBRD. 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.
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.
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, which was effected in 1950, factored in population in deciding the division of revenue and recommended grants in aid for various states and remained in force until April 1952.
Union Finance Minister
Deshmukh was one of 5 members of the Planning Commission when it was constituted in 1950 by a cabinet resolution. 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. As Finance Minister, Deshmukh continued to remain a member of the Planning Commission. 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. 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. 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.
Deshmukh's first budget of 1951-52 proposed an overall rise in taxes. 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. 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. 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. 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. 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 The City of Bombay a Union Territory. Deshmukh's tenure - during which he delivered six budgets and an interim budget - 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.
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. 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. 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. 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.
Deshmukh married Rosina Arthur Wilcox in 1920 with whom he had a daughter, Primrose. 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.
In 1974 he published his autobiography The Course of My Life.
In 1959, Deshmukh was a co-recipient (along with Jose Aguilar of the Philippines) 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.
The Reserve Bank of India organises the annual lecture series called 'Chintaman Deshmukh Memorial Lectures', since 1984. The National Council of Applied Economic Research also conducts the annual C.D. Deshmukh Memorial Lecture since 2013.
The Thane Municipal Corporation established the Chintamanrao Deshmukh Institute for Administrative Careers in 1987, to prepare the youth to enter the civil services. A road in the Tilakwadi area of the city of Belgaum has been named as 'C. D. Deshmukh Road'. The India International Centre in New Delhi has an auditorium named after Deshmukh.
In 2004, a commemorative postage stamp was released in his honour.
|Wikimedia Commons has media related to C. D. Deshmukh.|
- Dr. Rajendra Prasad swearing in Shri C.D. Deshmukh as Finance Minister at the ceremony held at Government House on May 29, 1950. photodivision.gov.in
- Ranjana Arora; Verinder Grover (1994). Federation of India and States' Reorganisation: Reconstruction and Consolidation. New Delhi: Deep & Deep Publications. p. 8. ISBN 9788171005413.
- Gopa Sabharwal (2007). India Since 1947: The Independent Years. Penguin UK. p. 89. ISBN 9789352140893.
- Partha Ray (17 November 2014). "Political Economy of Central Banking in India" (PDF). IGIDR. p. 16. Retrieved 25 July 2016.
- "Chintaman Deshmukh Memorial Lectures". Reserve Bank of India. Archived from the original on 30 December 2006. Retrieved 8 December 2006.
- Yogendra K. Malik (1981). South Asian intellectuals and social change: a study of the role of vernacular-speaking intelligentsia. the University of Michigan. p. 63.
CD. Deshmukh (1896-), a C.K.P., served as a civil servant, becoming nationally known as a financial expert only after the independence.
- M.L. Ahuja (2009). Great Administrators Of India. Delhi: Kalpaz Publications. p. 33. ISBN 9788178357294.
- Bakhtiar Dadabhoy (2013). Barons of Banking. Noida: Random House India. ISBN 9788184004762.
- Aruṇa Ṭikekara (2006). The Cloister's Pale: A Biography of the University of Mumbai. Mumbai: Popular Prakashan. p. 105. ISBN 9788179912935.
- Sumita Mukherjee (2010). Nationalism, Education and Migrant Identities: The England-returned. Oxon: Routledge. p. 129. ISBN 9781135271138.
- "Chintaman Deshmukh Memorial Lectures". Reserve Bank of India. Retrieved 4 July 2016.
- "TREASURY CODE VOL- II" (PDF). p. 5. Retrieved 4 July 2016.
- "Central Provinces & Berar Gazette" (PDF). Central Provinces & Berar Gazette: 1301. October 1937.
- "Deshmukh, Chintaman". Ramon Magsaysay Award Foundation. August 1959. Retrieved 13 July 2016.
- C R Rao (2014). Essays on Econometrics and Planning. New Delhi: Elsevier. p. 2. ISBN 9781483225616.
- 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. ISBN 9780521228022.
- Alok Ghosh; Raj Kumar Sen (2002). Money, Banking, and Economic Reforms. New Delhi: Deep & Deep Publications. p. 89. ISBN 9788176293907.
- Eric Helleiner (2014). Forgotten Foundations of Bretton Woods: International Development and the ... Cornell University Press. p. 251. ISBN 9780801470608.
- Siddhartha Shankar Saha (2013). Indian Financial System & Markets. New Delhi: Tata McGraw Hill. p. 67. ISBN 9781259051159.
- K. Vaidyanathan (2013). Credit Risk Management for Indian Banks. New Delhi: SAGE. p. 265. ISBN 9788132116516.
- Latha Varadarajan (2010). The Domestic Abroad: Diasporas in International Relations. New York: Oxford University Press. ISBN 9780199889877.
- V.S.P. Rao (1999). Bank Management. New Delhi: Discovery Publishing House. p. 338. ISBN 9788171415106.
- Gautam Majumdar (2013). Financial Terms Simplified. New Delhi: SAGE. p. 252.
- Niranjan Rajadhyaksha (23 July 2014). "A page from history: 70 years before the Brics bank". Live Mint. Retrieved 11 July 2016.
- Pallavi Roy (2015). Wartime Origins and the Future United Nations. New York: Routledge. p. 168. ISBN 9781134668731.
- Ankit Mital (11 July 2016). "How India shaped international monetary policy at Bretton Woods". Live Mint. Retrieved 11 July 2016.
- Venkitaramanan S (2005). Indian Economy: Reviews And Commentaries - Volume 3. Hyderabad: ICFAI University Press. p. 98. ISBN 9788178815732.
- Niranjan Rajadhyaksha (24 May 2011). "That job at the IMF". Live Mint. Retrieved 11 July 2016.
- "World Bank or elite club?". Live Mint. 22 May 2007. Retrieved 11 July 2016.
- 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.
- N. B. Ghodke (1985). Encyclopaedic Dictionary of Economics, Volume 1. Delhi: Mittal Publications. p. 311.
- V B Singh; Shailendra Singh (2002). Economic History of India: 1857-1956. New Delhi: Allied Publishers. p. 559.
- Sanjeev Kumar Mahajan; Anupama Puri Mahajan (2014). Financial Administration in India. Delhi: PHI Learning. p. 16. ISBN 9788120349360.
- Chand, S.N. (2008). Public Finance, Volume 2. Atlantic Publishers. ISBN 9788126908820.
- Jivanta Schoettli (2012). Vision and Strategy in Indian Politics: Jawaharlal Nehru's Policy Choices and the Designing of Political Institutions. Oxon: Routledge. p. 106. ISBN 9781136627873.
- S. A. PALEKAR (2012). DEVELOPMENT ADMINISTRATION. New Delhi: PHI Learning. p. 74. ISBN 9788120345829.
- Inder Malhotra (26 September 2014). "Once upon a plan". The Indian Express. Retrieved 11 July 2016.
- "REFERENCE MATERIAL 2010 NOTES ON THE FUNCTIONING OF VARIOUS DIVISIONS" (PDF). Planning Commission of India. 2010. Retrieved 11 July 2016.
- K.S. Ramachandran (1 January 2007). Economic Environment of India. Northern Book Centre. pp. 5–. ISBN 978-81-7211-227-1.
- G. S. Monga; Madan Mohan Goel (1 January 2001). Wage Goods Approach to Development. Deep & Deep. pp. 140–. ISBN 978-81-7629-269-6.
- 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.
- 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.
- "SPEECH OF SHRI C.D. DESHMUKH, MINISTER OF FINANCE INTRODUCING THE BUDGET FOR THE YEAR 1951-52" (PDF). Retrieved 25 July 2016.
- "THE CENTRAL BUDGETS IN RETROSPECT" (Press release). Press Information Bureau. 24 February 2003. Retrieved 11 July 2016.
- "SPEECH OF SHRI C.D. DESHMUKH, MINISTER OF FINANCE INTRODUCING THE BUDGET FOR THE YEAR 1952-53 (Final)" (PDF). Retrieved 13 July 2016.
- STATISTICAL REPORT ON GENERAL ELECTIONS, 1951 TO THE FIRST LOK SABHA VOLUME I (PDF). NEW DELHI: ELECTION COMMISSION OF INDIA. p. 81. Archived from the original (PDF) on 8 October 2014.
- N. Jayapalan (2001). Indian Administration 2 Vols. Set. New Delhi: Atlantic Publishers. p. 270. ISBN 9788171569212.
- "INDIAN INSTITUTE OF PUBLIC ADMINISTRATION NEW DELHI" (PDF). INDIAN INSTITUTE OF PUBLIC ADMINISTRATION. Retrieved 26 July 2016.
- "dated December 21, 1954: State Bank of India". The Hindu. 21 December 2004. Retrieved 12 July 2016.
- B S Thaur (20 April 2003). "Tracing history of the SBI". The Tribune. Retrieved 12 July 2016.
- Arvind Panagariya (2008). India: The Emerging Giant. New York: Oxford University Press. ISBN 9780199890149.
- P S Palande; R S Shah (2003). Insurance in India: Changing Policies and Emerging Opportunities. New Delhi: Response Books. p. 31. ISBN 9780761997474.
- Ziaul Hasan Faruqi (1999). Dr. Zakir Hussain, Quest for Truth. Delhi: APH Publishing. p. 280. ISBN 9788176480567.
- Niranjan Rajadhyaksha (7 December 2012). "The anxiety that lingers". Live Mint. Retrieved 11 July 2016.
- M M Sury (2003). "India: Central Government Budgets - 1947-48 to 2003-04". New Century Publications. Retrieved 20 July 2016.
- "North Block Mavericks". Business Standard. 1 March 1997. Retrieved 11 July 2016.
- D K Rangnekar (2012). The Politics of Poverty: Planning India's Development. New Delhi: SAGE Publications. p. 134. ISBN 9788132109020.
- "List of Former Chairpersons". University Grants Commission. Retrieved 11 July 2016.
- Om Prakash Gupta (1993). Higher Education in India Since Independence: UGC and Its Approach. New Delhi: Concept Publishing Company. p. 79. ISBN 9788170224471.
- A K Hota (1 January 2000). Encyclopaedia of New Media and Educational Planning. Sarup & Sons. pp. 88–. ISBN 978-81-7625-170-9.
- Om Prakash Gupta (1992). Development of University Libraries in India After Independence. New Delhi: Concept Publishing Company. p. 37. ISBN 9788170224099.
- Amrik Singh (2004). Fifty Years of Higher Education in India: The Role of the University Grants Commission. New Delhi: SAGE Publications. pp. 202–203. ISBN 9780761932161.
- "dated August 3, 1957: National Book Trust". The Hindu. 3 August 2007. Retrieved 11 July 2016.
- M L Saini (2002). Libraries and Information Studies in Retrospect and Prospect: Volume 2. New Delhi: Concept Publishers. pp. 499–500.
- Mahendra Prasad Singh (1981). Split in a Predominant Party: The Indian National Congress in 1969. New Delhi: Abhinav Publications. p. 81. ISBN 9788170171409.
- M V Pylee (2012). Constitutional Government in India. New Delhi: S Chand & Co. p. 229. ISBN 9788121922036.
- "PRESIDENTIAL ELECTION FROM 1952 TO 1997 BRIEF NOTES" (PDF). Election Commission of India. p. 22. Retrieved 4 July 2016.
- Bipan Chandra; Aditya Mukherjee; Mridula Mukherjee (2008). India Since Independence. New Delhi: Penguin Books. p. 298. ISBN 9780143104094.
- "Deshmukh, Chintaman". Ramon Magsaysay Award Foundation. August 1959. Retrieved 13 July 2016.
- Prachi Deshpande (2008). The Oxford Encyclopedia of Women in World History: Volume 2. New York: Oxford University Press. p. 42. ISBN 9780195148909.
- Deshmukh; I.C.S. (1996). Course Of My Life, The- Centenary Edn. Orient Blackswan. pp. 8–. ISBN 978-81-250-0824-8.
- Bakhtiar K. Dadabhoy (2013). Barons of Banking. Random Business. ISBN 9788184003499.
- "To be Companions of the said Most Eminent Order". Supplement to the London Gazette: 693. 1 February 1937.
- "Whitehall, March 21, 1944". The London Gazette: 1333. 21 March 1944.
- Honoris Causa Archived 8 August 2011 at the Wayback Machine
- "Record of Honoris Causa Degrees w.e.f. 1949". Panjab University. Retrieved 5 July 2016.
- "The Ramon Magsaysay Awardees by Name". The Ramon Magsaysay Foundation. Retrieved 8 December 2006.
- "Padma Awards Directory (1954-2014) Year-Wise List" (PDF). Ministry of Home Affairs, Government of India. p. 63. Archived from the original (PDF) on 15 November 2016. Retrieved 12 July 2016.
- Reserve Bank of India - Publications. Rbi.org.in. Retrieved on 15 November 2018.
- The Inaugural C.D. Deshmukh Memorial Lecture 2013. Ncaer.org (4 January 2013). Retrieved on 2018-11-15.
- The C D Deshmukh Memorial Lecture 2014. Ncaer.org (11 February 2014). Retrieved on 2018-11-15.
- The Third C.D. Deshmukh Memorial Lecture 2015. Ncaer.org (9 February 2015). Retrieved on 2018-11-15.
- C D Deshmukh's Institute. Cdinstitute.in (14 August 2018). Retrieved on 2018-11-15.
- IIC| India International Centre - Introduction. Iicdelhi.nic.in (26 October 2018). Retrieved on 2018-11-15.
- IIC| India International Centre - C. D. Deshmukh Auditorium. Iicdelhi.nic.in (5 October 2017). Retrieved on 2018-11-15.
- "Commemorative postage stamp on C.D. Deshmukh". Press Information Bureau, Government of India. 13 January 2004. Retrieved 5 July 2016.