Ambedkar Jayanti 2025: RBI, Labour Reforms, and NITI Aayog—Baba Saheb’s Contribution To India’s Economy

On the birth anniversary of Dr B.R. Ambedkar, the country pays tribute not only to the father of the Indian Constitution but also to a brilliant economist whose vision directed the financial foundations of India.

Born on April 14, 1891, Ambedkar became the first Indian to receive a doctorate in Economics from overseas. He also became South Asia's first double doctorate holder in the field. 

At Columbia University, he pursued a broad spectrum of subjects that included 29 economics courses, besides history, sociology, politics, and philosophy, reflecting his strong academic foundations.

The RBI Connection

One of the most impressive economic contributions of Dr Ambedkar was his work in preparing the ground for the Reserve Bank of India (RBI). His doctoral dissertation, "The Problem of the Rupee : Its Origin and Its Solution" (1923), tackled India's monetary problems under British rule. He contended that a stable independent central bank was needed to combat inflation and stabilize the economy.

The Hilton Young Commission then applied Ambedkar's suggestions when establishing the RBI in 1935. He authored, "Nothing will stabilize the rupee unless we stabilize its general purchasing power."

Driving Economic Reforms

As India's first Law Minister and previously as a member of the Viceroy's Executive Council (1942–1946), Ambedkar initiated crucial reforms in labor laws. He cut working from 12 hours to 8 hours and initiated welfare measures such as minimum wages, equal pay for equal work, medical leave, and worker insurance. He also advocated the establishment of employment exchanges and empowered trade unions.

Also Read: India's new labour codes: What are they and why are central unions opposing them?

Niti Aayog Connect

Ambedkar was of the view that economic liberty was vital for social equality. His insistence on state-driven industrial development, infrastructure creation, and social security later shaped the idea of India's Five-Year Plans which was further converted into Niti Aayog in 2015.

Ambedkar was a great advocate of women's empowerment. He famously stated,

“I measure the progress of community by the degree of progress which women had achieved. Let every girl who marries stand by her husband, claim to be her husband’s friend and equal, and refuse to be his slave. I am sure if you follow this advice, you will bring honour and glory to yourselves.” 

Modern Relevance 

In 2022, Prime Minister Narendra Modi opened the Dr B.R. Ambedkar School of Economics (BASE) in Bengaluru, further proving his increasing popularity as a visionary economist.

Dr Ambedkar's economic philosophy, founded on justice, equity, and planning is still very much applicable to India's growth. His legacy extends much further than social justice; it also lies firmly at the heart of India's economic stability and progress.