US-based economist Arvind Subramanian is all set to be named as Chief Economic Advisor in the Finance Ministry, a keenly awaited appointment of the new Modi Government that is facing challenges of high inflation and a modest economic growth.

Subramanian’s name has now been forwarded to Prime Minister Narendra Modi for his final approval, sources close to the development said.

If confirmed, Subramanian would be the third economist of international renown to have been appointed to the key policy post of CEA in recent years.

Kaushik Basu (World Bank Chief Economist) and Raghuram Rajan (current RBI Governor and former IMF chief economist) were the other two internationally renowned economists who recently served as CEA.

Subramanian’s academic work has focused on trade and its effect on developing countries. He is a fellow at the Peterson Institute for International Economics and also at Center for Global Development – both based in Washington.

Rating Modi Govt

Subramanian had in end June published a provisional scorecard for the Modi Government on the Peterson’s Institute’s website.

He gave Three As and one A- for the Modi administration’s efforts to curb grain and vegetable prices and ease labour laws.

But a D for threatening to raise import duties on sugar — an effort, he said, to appease local sugar lobbies.

Interestingly, the Modi Government on Friday hiked the import duty on sugar to 25 per cent from existing 15 per cent.

In another article on the Peterson Institute’s website, Subramnaian had said that the Modi Government’s first Budget was “disappointing but retrievable”.

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