Economy

Arvind Subramanian to stay on as Chief Economic Advisor

Chief Economic Advisor Arvind Subramanian.

Chief Economic Advisor Arvind Subramanian.   | Photo Credit: PTI

Govt. extends his tenure by one year.

Chief Economic Adviser (CEA) Arvind Subramanian, who had planned to return to the U.S. after his three-year tenure ended on October 16, has been persuaded by the government to stay back for another year.

Official orders to this effect will be issued soon, Union Finance Minister Arun Jaitley said on Saturday, putting an end to rumours about Dr. Subramanian’s resignation.

“All the speculation in the media is factually incorrect. The CEA’s first three-year tenure ends on October 16. I have already signed the file, and you will soon be getting a formal release on his continuation,” Mr. Jaitley said.

Ministry’s tweet

“Dr. Arvind Subramanian will continue for one more year after the completion of his three-year tenure on 16th October, 2017,” the Finance Ministry said on its Twitter handle.

An IIM-Ahmedabad alumnus, who went to Oxford University for further studies, Mr. Subramanian was a Senior Fellow at the Peterson Institute for International Economics before he took over as India’s Chief Economic Advisor (CEA) in October 2014.

Officials said that while Mr. Subramanian was keen on returning to the U.S. after his tenure ended, the Finance Minister had been “personally quite keen that he continue” and had requested him formally to stay on.

Mr. Subramanian’s term as CEA has been marked by dynamic suggestions and analysis to do with the economy — including coining the term ‘JAM trinity’ (for Jan Dhan, Aadhaar and Mobile), mooting the idea of a ‘bad bank’ to deal with the persistent problem of non-performing assets (NPAs) afflicting the balance sheets of banks and corporates, and proposing the concept of a Universal Basic Income.

In August, NITI Aayog Vice-Chairman Arvind Panagariya resigned to pursue his career in academics in the U.S. The CEA’s post had been vacant since September 2013 before Mr. Subramanian took charge, after the previous incumbent Raghuram Rajan resigned to take over as the Governor of the Reserve Bank of India. Dr. Rajan resigned as Governor in September 2016, after a three-year term, without receiving an extension from the government.

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Printable version | Jul 15, 2020 12:13:08 PM | https://www.thehindu.com/business/Economy/arvind-subramanian-to-stay-on-as-chief-economic-advisor/article19741250.ece

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