This Article is From Oct 07, 2014

US-Based Arvind Subramanian Unlikely to be Chief Economic Advisor: Report

US-Based Arvind Subramanian Unlikely to be Chief Economic Advisor: Report

FILE photo: Arvind Subramanian

New Delhi: US-based economist Arvind Subramanian is unlikely to become India's chief economic adviser after the prime minister questioned a request to appoint him, news agency Reuters reported today, citing an unnamed source.

Finance Minister Arun Jaitley would soon send a new list of names to Prime Minister Narendra Modi and a final decision would be taken by the two men, said Reuters.

It's not clear if Mr Subramanian's name will be on the new list. The development economist worked closely with Reserve Bank of India Governor Raghuram Rajan when both were at the International Monetary Fund.

Mr Subramanian, a senior fellow at the Peterson Institute for International Economics, was informally recommended to the post by the Finance Minister more than a month ago.  Mr Jaitley was discharged yesterday from hospital after a long illness.

Traditionally, the chief economic adviser is responsible for producing the annual Economic Survey - a document on the state of economy that underpins the drafting of the Budget - and a mid-year economic update that is presented to Parliament.

Recently, Mr Subramanian criticised the Indian government's decision to derail a WTO deal struck last year to streamline trade procedures by tying it to a separate controversy over food subsidies.

He also criticised Mr Jaitley's maiden budget in July for being too optimistic in its revenue forecasts.

© Thomson Reuters 2014
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