KV Subramanian steps down as Chief Economics Adviser after three-year tenure will return to academics    

KV Subramanian in a statement said, “I have decided to return back to academia following the completion of my 3-year fulfilling tenure as the Chief Economic Adviser, Government of India.”

Why in News?

      • The Chief Economic Adviser (CEA) KV Subramanian announced on October 8, 2021, that he has decided to return to academia after the completion of his three-year term in the Finance Ministry of India.

        Subramanian in a statement said, “I have decided to return back to academia following the completion of my 3-year fulfilling tenure as the Chief Economic Adviser, Government of India.”

        The Indian Government is yet to announce KV Subramanian’s successor. In a statement confirming his resignation, Subramanian also thanked Prime Minister Modi and Finance Minister Nirmala Sitharaman for the opportunity provided to him.

Prime Minister Modi also took to Twitter to wish KV Subramanian the very best in future endeavours.

Key Points

          KV Subramanian on PM Modi’s leadership and understanding of economic policy

      • While speaking about his tenor as the Chief Economic Adviser, Subramanian said, “I Have received tremendous encouragement and support from within the Government and have been fortunate to enjoy a warm relationship with senior functionaries. In close to three decades of my professional life, I am yet to encounter a more inspiring leader than Prime Minister Modi. His intuitive understanding of the economic policy combines with an unmistakable determination to use the same to elevate the lives of common citizens.”

        Subramanian further added that the momentous change in India’s economic thinking post the pandemic-inter alia embracing wealth creation by empowering the private sector and economic recovery driven by government capital expenditure- bears testimony to PM Modi’s leadership.

        About KV Subramanian

        • KV Subramanian had taken over the charge of Chief Economic Adviser on December 7, 2018. The appointment was made nearly five months after his predecessor Arvind Subramanian had stepped down.

        • KV Subramanian, earlier in his career, had been part of the expert committees for the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).

        • Subramanian has also been well-versed with the private sector, with brief stints in top corporates including ICICI Bank, JPMorgan Chase, and Tata Consultancy Services.

        • Academically, the 50-years old has also been a part of the finance faculty at Goizueta Business School at Emory University in the US.

        • Subramanian is an alumnus of IIT Kanpur who holds a Master of Business Administration and PhD in financial economics. He completed his PhD under the supervision of Raghuram Rajan and Luigi Zingales.

Role of Chief Economic Adviser 

      • CEA (Chief Economic Adviser) is a post in the Government of India. It is equivalent to the rank of Secretary to the Government of India.

        The Chief Economic Adviser is head of the Economic Division of the Economic Affairs Department, Ministry of Finance. The extent to which the Indian Government takes into account the advice of CEA has generally been considered to be open-ended.

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