 "Arvind Subramanian")
Finance Minister Arun Jaitley might have to begin a fresh search for filling the long-vacant post of chief economic advisor in the finance ministry, with Prime Minister Narendra Modi expressing reservations on the "same old set of names" being proposed.
According to officials, the PM has asked the finance ministry to consider more names before finalising the candidate. There are indications that on the new list, economists currently working in India would be preferred to Indian economists settled abroad. "He is asking why there are only a handful of candidates who are considered each time and why can't there be new names?," said an official who did not wish to be identified.
Among the names suggested by the finance ministry, noted economist Arvind Subramanian was considered a strong contender. Subramanian is presently a senior fellow, Peterson Institute for International Economics and Center for Global Development, based in the US. The post has been vacant since Raghuram Rajan resigned about a year ago after he was appointed Reserve Bank governor. The Modi government's first Economy Survey, in July, was released without a CEA.
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The CEA heads a team of economic advisors who bring out the government's annual Economic Survey. The team also pens a mid-year analysis of the economy, presented in the winter session of Parliament. The main activities here include monitoring macro economic trends and policy issues.
With larger economic growth expected to only gradually recover this financial year from below-five per cent in 2012-13 and 2013-14, and inflation still to show a consistent pattern of a decline, the new CEA will have a lot on his plate.
The process of finding more names came to a halt in the last few weeks as the finance minister was hospitalised. Now that he has been discharged, the process is likely to be speeded up.
The CEA would have to present the next Survey in February 2015.
