PM Narendra Modi is likely to appoint his special adviser on economic affairs, Arvind Panagariya as next RBI chief, according to unnamed government sources. Panagariya is currently the policy adviser to Modi and also the country’s Group of 20 summit negotiator.
A formal announcement is likely to happen in two days, reported two national TV channels, quoting government sources. However, both the PMO’s office and Panagariya’s office are yet to confirm the news. Both offices have declined to talk to the media on the matter.
He was vocal supporter of PM Modi and his Gujarat model of development, which has been termed ‘Modinomics’ by its critics.
Panagariya will be finally replacing RBI Chief, Raghuram Rajan. His tenure comes to an end on September 4. Raghuram Rajan, who had a tumultuous tenure as RBI chief said that he is not interested in another term. Raghuram Rajan has received the ire of the right wing, especially from BJP MP and former Union Minister Subramanian Swamy. Earlier Swamy had written a letter to the PM Modi, urging to him to remove Mr. Rajan, even before his term ends officially, this September. Raghuram Rajan, also indirectly criticicised Modi’s economic policies saying that ‘we shouldn’t change policies on a yearly basis’.
Panagariya and his mentor, famous economist Jagdish Bhagwati, have co-authored the book ‘India’s Tryst with Destiny: Debunking Myths that Undermine Progress and Addressing New Challenges‘. In the book, they upheld Gujarat model as perfect example to guide India into economic prosperity and development.
After completing his PhD from Princeton University of US, he had served in key positions in the World Bank, International Monetary Fund, World Trade Organisation, Asian Development Bank and the United Nations Conference on Trade and Development. He is also the vice-chairman of the NITI Aayog.
Unlike Raghuram Rajan, who is known for his liberal leanings, Panagariya, has no reasons to worry the RSS and other saffron brigades.