Arvind Subramanian , chief economic adviser at the finance ministry is likely to succeed Raghuram Rajan as the Reserve Bank of India governor, says Bloomberg News survey.
Seven of the thirteen economists who were part of the survey selected Arvind Subramanian as the most apt candidate to lead India’s central bank
“Arvind Subramanian stands on the dovish side of policy spectrum,” Nomura Holdings Inc. economists Sonal Varma and Neha Saraf wrote in a note circulated. “He is less of a believer in fiscal orthodoxy.”
According to reports the government is also considering Economc Affairs Secretary Shakthikanta Das former deputy governors Rakesh Mohan, Urjit Patel Subir Gokaran chairman of State Bank of IndiaArundhati Bhattacharya, and head of economic advisory body Aravind Panagariya for the coveted post.
Arvind Subramanian was with International Monetary Fund earlier. He was a senior fellow with Peterson Institute of International Economics. He has also taught at Harvard University’s Kennedy School of Government and Johns Hopkins’ School for Advanced International Studies.
As the chief economic adviser authors economic survey. Unlike Raghuram Rajan he is seen as a person who stands for easing of monetary policy to boost economic growth.
Raghuram Rajan is criticised by his adversaries for relying heavily on consumer price for setting monetary policy. But Arvind Subramanian argued for reducing the interest rate by considering the fact that whole sale price is coming down.
Raghuram Rajan’s position has been that whole sale prices does not indicate actual prices that the consumer pays. His insistence on this theory has won him more adversaries in the corporate world and among many those in the finance ministry.
Raghuram Rajan has announced last Saturday that he will go back to academia after his tenure ends in September 2016.
Many in the BJP and RSS was critical of his handling of interest rate in particular and monetary policy in general, which they accuse as stifling growth. But Rajan stood his position saying that interest rates cant be relaxed considering the inflation that exist.