Chief Economic Advisor Resigns

Arvind Subramanian, Chief Economic Advisor has resigned from his post, a month prior compeleting his tenure, citing personal reasons.

Arun Jaitley, Minister of Finance, posted on social media, “Few days ago Chief Economic Advisor, Arvind Subramanian met me over video conferencing. He informed me that he would like to go back to the United States on account of pressing family commitments. His reasons were personal but extremely important for him. He left me with no option but to agree with him.”

Subramanian was appointed as CEA to the finance ministry on October 16, 2014 for a period of three years. In 2017 his term was extended for a year. Jaitley noted, “On the expiry of the three year I had requested him to continue for some more time. Even at that stage he told me that he was torn between family commitment and his current job.”

In his post, Jaitley lauded Subramanian for his early diagnosis of the twin balance-sheet that led India to adopt the macro-economic strategy of higher public investment in the Budget of 2015-16. “He conceptualised JAM (Jan Dhan, Aadhar, Mobile) as a data base for availing public benefits. He contributed to the debate of federalism by conceptualising that the Indian federalism has not merely to be cooperative but also competitive. He came out with newer ideas, policy reforms in the sectors of clothing, fertilizers, kerosene, power and pulses. His report on the Revenue Neutral Rate was of great use in forging a consensus which led to the constitution amendment enabling the GST. He participated in every meeting of GST, gave his independent views and was heard in rapt attention by almost every Finance Minister,” Jaitley stated.

Highlighting Subramanian’s approach for structurally evolving India’s economy, Jaitley said, “He thought ahead and, therefore, came out with futuristic ideas on rationalisation of removal of “subsidies for the rich”, universal basic income, climate change, from “socialism without entry and capitalism without exit” and the four C’s that he had historically paralysed decision making.”