Raghuram Rajan assumes charge as CEA today

Former International Monetary Fund chief economist Raghuram G Rajan, also known for predicting 2008 global financial crisis, is assuming charge as the chief economic advisor (CEA) on Wednesday.

After Kaushik Basu’s term ended on July 31, the post has been lying vacant.

Rajan will be a key official in the core team of Finance Minister P Chidambaram, which will handle the critical job of making the last Budget (2013-14) of UPA-II government before the next general elections.

He will also play an important role in devising steps for steering the economy through the current difficult times in the backdrop of declining GDP growth and tough fiscal situation. The Appointments Committee of Cabinet (ACC) had cleared the appointment of Rajan as the new CEA on August 10.

An alumni of IIM-Ahmedabad and IIT-Delhi, Rajan was earlier honorary economic adviser to Prime Minister Manmohan Singh. He is also a doctorate from Massachusetts Institute of Technology.