APPOINTMENT OF MR. ARVIND SUBRAMANIAN AS THE CHIEF ECONOMIC ADVISER
The appointment of Mr. Arvind Subramanian as the Chief Economic Adviser to the Government is a welcome step, given his strong credentials as a ‘pro market’ and ‘pro reforms’ economist who is likely to bring vast and varied experience, professional competence, intellectual spontaneity to synchronize well with the enterprising Government of Mr. Modi which is on the course to liberate the economy from the ‘clutches’ of ‘in efficacious’ incremental ism. Mr Arvind, in the company of a bold and reformist Prime Minister and an equally accomplished RBI Governor of international repute is much better placed than his predecessor to initiate the process of a far more integrated and concerted approach towards a ‘development oriented’ growth strategy with a careful,calculated and gradual abdication of inflation centric conservatism as far as interest rates are concerned.
The whole concept of growth along with ‘macro- economic’ stability revolves around the ‘intra- sectoral’ realization of potential accompanied by optimal channelization of ‘inter -sectoral’ transactions on a graduated scale of increment geared to equilibriate the forces of demand and supply with the least possible friction of time lag.No doubt, it would demand the creation of a wider operational space for inter disciplinary and inter contextual policy making characterized by efficient co ordination among the institutions like PMO, MoF, RBI.Advisory council and others.
Further, the appointment of right person at the right place may be a good beginning but the goal accomplishment in the long term would be conditioned in no small measure by the degree to which the political leadership succeeds in resisting the temptation to embrace ‘election centric’ popular ism which keep emerging from time to time.We hope that the present political leadership of the country riding on a huge popular mandate will create an exception.