CEA Subramanian to leave finance ministry, will return to academia

Move ahead of budgetary exercise beginning Oct 12

In a surprise development, Chief Economic Advisor Krishnamurthy Subramanian on Friday announced his resignation. Subramanian, whose tenure is ending on December 6, said he would return to academics. He will remain in office till the end of his term.    

The announcement has come ahead of the budgetary exercise for FY23 starting on October 12. Sources indicated that the government would soon start the selection process for a new CEA. Subramanian’s successor, even if appointed without delay, will not have much time to write the Economic Survey of FY22 to be released before the Union Budget. 

“Being provided the opportunity to contribute during a period of tremendous uncertainty and epochal change has been the lucky icing on the cake. So, while being conscious of the enormous privilege bestowed on me, I will happily return back to serving the country as a researcher after fulfilling my three-year commitment,” Subramanian, 50, said in a long statement.

The chief architect of the last three Economic Survey, Subramanian is known for interesting concepts such as ‘Thalinomics’, ‘V-shaped economy’ and ‘virtuous investment cycle’. On Friday, he said that Economic Survey had taught him to pick a team like some of the popular captains of Indian cricket team. 

Subramanian was appointed chief economic advisor to the government on December 7, 2018, nearly five months after his predecessor Arvind Subramanian had stepped down. Subramanian had quit with close to a year of his tenure remaining. He had cited ‘’very compelling reasons’’ to return to the US at that time.

In his note, the CEA said he had received tremendous support from the government and that he was fortunate to enjoy a warm relationship with senior functionaries. “I am yet to encounter a more inspiring leader than Prime Minister Narendra Modi. His intuitive understanding of economic policy combines with an unmistakable determination to use the same to elevate the lives of common citizens.’’ 
 

Praising Finance Minister Nirmala Sitharaman, he said she’s a scholar at heart and had been instrumental in the Economic Surveys with their free spirit. Citing her commitment and support, he spoke about how the FM had taken draft chapters of the Survey to read on a cross-country flight and had suggested changes that better incorporated India’s institutional features. He added that the FM’s sense of humour and easy manner played a critical role in enabling a healthy debate that is so essential amidst epochal change.