Hobson’s choice before Subbarao

Reserve Bank of India (RBI) governor D. Subbarao begins his third year in office this week. His first year was spent managing fallout of the global financial crisis and second managing the recovery in Asia’s third largest economy. Subbarao’s third year in office, in many ways, will be more critical than the first two. Apart from high inflation and economic growth, he needs to manage the simmering tension between the finance ministry and the central bank.