Chhibber, Aziz, Subramanian in the reckoning to be CEA

Post fell vacant earlier this month, when Raghuram Rajan was appointed RBI governor, after a year as CEA

The names of Ajay Chhibber from the Planning Commission, Jehangir Aziz from JPMorgan and Arvind Subramanian from the US-based Peterson Institute for International Economics have been mentioned for the now-vacant post of chief economic adviser (CEA) in the finance ministry.

The post of CEA assumes importance in these difficult  times when India's economic growth crashed to a four-year low of 4.4 per cent in the first quarter of this financial year and the much-awaited recovery remains elusive,  barring trade data for July and August.

All have international experience. The position fell vacant earlier this month, when Raghuram Rajan was appointed the Reserve Bank of India governor, after a year as CEA.

Aziz, who is Asia economist for JPMorgan, had served as principal economic advisor in P Chidambaram’s earlier stint at the finance ministry.

Subramanian, a senior fellow at Peterson and at the Center for Global Development, is a former economist of the International Monetary Fund (IMF), like Rajan.

Chhibber, recently appointed the first director-general of the Independent Evaluation Organisation in the Planning Commission, in the rank of minister of state, had applied for the post of CEA last year when the finance ministry invited these. At the time, he was assistant secretary general at the United Nations Development Programme. The government had, instead, chosen Rajan.

The CEA has the rank of secretary to the government and this might prevent Chhiber being appointed. However, the CEA is a more prestigious position, with wide exposures, so he might consider it, said a government official.

Unlike last year, the government is not planning to invite any applications this time. Chidambaram might propose a name to Prime Minister Manmohan Singh and orders would be issued after approval.

Though a CEA is appointed for three years, officials said some contenders are wary that the new person would be considered a political appointee, since a general election is due next year. If another government comes to power, it might prefer someone else.

“Moreover, there will be no full-fledged Budget next year because of elections. The CEA’s job will be to come out with a mid-year analysis in November and the Economic Survey in February but beyond that, there would not be much to do,” said a finance ministry official, who did not wish to be identified.

 

Unlike last year, the government is not planning to invite any applications for the post this time. Finance Minister P Chidambaram may propose a name to Prime Minister Manmohan Singh and orders would be issued after his approval.