Hire IAS officers from private sector and B-schools: Narayana Murthy's pitch for $50 trillion economy

Infosys co-founder NR Narayana Murthy proposes selecting IAS and IPS officers from business schools to enhance governance.

Infosys co-founder NR Narayana Murthy has proposed to reshape the civil services system and recommended that the government select Indian Administrative Service (IAS) and Indian Police Service (IPS) officers from business schools rather than only relying on the Union Public Service Commission (UPSC) examinations.

Speaking at the CNBC-TV18 Global Leadership Summit, Murthy suggested that this such a shift would help create a more dynamic, management-oriented approach to governance. The “management mindset", he said, will boost economic progress and help achieve the goal of a $50 trillion economy by 2047.

A change in mindset

“It is time for India to move from an administrative mindset to a management mindset. The administration is all about the status quo. On the other hand, management is all about vision and high aspiration. It’s about achieving the plausibly impossible," the Infosys founder said.

Murthy said that the current system of competitive UPSC examination can only produce civil servants trained in general administration. To match up to the changing demands of governance, Murthy suggested a management-based approach that focuses on vision, cost control, innovation, and rapid execution.

'Hire individuals from private sector'

Under the traditional model, candidates for the IAS and IPS must clear the UPSC exam, which tests their knowledge across a range of subjects, and then undergo training in administrative functions.

While this has produced generations of civil servants with a deep understanding of governance, Murthy believes it is no longer sufficient for meeting the needs of a fast-evolving country. He said that a more specialised approach, where civil service candidates are trained in specific fields like management, would lead to more effective governance.

He also stressed on choosing individuals with experience in the private sector and business world for prominent roles in government. Murthy said such people should be appointed as heads of key committees, reporting to cabinet ministers and shaping policy decisions.