<div><em>Only one Arvind was expected to be appointed to a key position in the economic policy making architecture of the Narendra Modi government, says <strong>Sutanu Guru</strong></em><br><br>Arvind Subramanian, Raghuram Rajan, Arvind Panagriya. </div><div> </div><div>Of the three, only one was expected to be appointed to a key position in the economic policy making architecture of the Narendra Modi government. One was supposed to be sent to greener pastures and the third was never supposed to be hired. All this, if you were member of the fan boys and girls club of Modi who expected him to demolish the influence of Luytens Delhi in favour of outsiders unsympathetic to the “cause”. Ironically, Raghuram Rajan, the Governor of the Reserve Bank of India, who was appointed by the previous UPA regime recently received a pat on the back from Modi. The other, Arvind Subramanian, was made the Chief Economic Advisor despite publicly slamming the first Modi era Union Budget presented by Arun Jaitley in July, 2014. The third, Arvind Panagriya, has been a vocal supporter of Modi as well as his so called Gujarat model even before the 2014 Lok Sabha elections along with Jagdish Bhagwati. Modi fans who were disappointed when a “vocal critic” like Subramanian was appointed, cheered loudly when Panagriya was asked to head the newly constituted Niti Ayog which has replaced the Planning Commission. </div><div> </div><div>But they would have been sorely disappointed with a recent report in The Indian Express which claims Panagriya is floundering around looking for a role and a place in the sun. The paper quotes a namesless official who says, “Before this confusion over his rank, when Panagariya called a meeting, it was attended by all Secretaries. In a meeting called after change in rank and pay, Secretaries sent across their juniors,” said a source. “It is for the Prime Minister to intervene in situations like these. The bureaucracy is the last in welcoming a foreign body into the system.” In sharp contrast, Subramanian has successfully authored the latest Economic Survey and continues to be candid in his opinions. For example, he publicly stated that there could be a debate on the decision of RBI Governor Raghuram Rajan to persist with high interest rates despite clear indications that lower interest rates are needed to fnance higher growth rates. Some pundits took it as a public expression of a feud between Rajan and Subramanian. But that is mere speculation and Rajan has given no indication that he is going to dramatically cut interest rates in the near future. This despite Arun Jaitley publicly stating that he is in favor of lower inerest rates. </div><div> </div><div>Normally, not many would be interested in what the RBI Governor, the CEA and the Niti Ayog Head are up to individually and collectively, except their stated positions on official policy. But it just so happens that all three are star economists who have been imported from the United States. All sorts of benevolent as well as malevolent motives can be ascribed to such American imports! In fact, the curiosity and page three gossip when Rajan was first appointed by the UPA government bordered on the voyeuristic. In this particular instance, gossip factories will keep churning out stuff. But the continuation and the performance of the trio reveals is that contrary to pre 2014 hopes of fans, Modi will continue to be measured and an incrementalist when it cmes to key economic policy making. </div><div> </div><div> </div>
