CEA Arvind Subramanian, who once called Modi mediocre leader, efficient in riots, resigns

By Rajiv Shah
Prime Minister Narendra Modi has "lost" yet another topnotch economist, Chief Economic Advisor (CEA) with the Union finance ministry, Arvind Subramanian. Following Arvind Panagariya, who quit the Modi establishment in August 2017 reportedly over excessive bureaucratic interference, Subramanian has resigned, citing "personal" reasons.
Subramanian, it is well-known, was two years ago a victim of a running campaign by BJP Rajya Sabha MP Subramaniam Swamy, who demanded from the government: "Sack him!"
A senior fellow at the prestigious Peterson Institute for International Economics and Center for Global Development, US, and rated among 100 top world thinkers, earlier Subramanian had advised the US on how to do business with India. He has become the third top economist to quit the government, the first one being Raghuram Rajan, who quit as Reserve Bank of India governor in September 2016.
Yet, BJP hard-liner Swamy, while attacking the CEA, referred to a 2013 report in which Subramanian had called Prime Minister Narendra Modi “a mediocre leader, efficient in riots”, adding the CEA had not just stopped here; he even “asked the US to grill India in World Trade Organization.” He added, “Who said to US Congress on March 13, 2013, the US should act against India to defend US pharmaceuticals interests? Arvind Subramaniam! Sack him!!”

Arvind Panagariya

In the 2013 Congressional testimony which Swamy referred to, Subramanian had said, "American firms are increasingly facing implicit but substantial discrimination in India's large and growing market because of India signing (or on the verge of signing) free trade and economic partnership agreements with its largest trading partners that are all major competitors to the US: Europe, Japan, Singapore, ASEAN, and possibly ASEAN-plus 6.”
Subramanian had advised the US that it should “adopt” a “multi-pronged strategy for solving trade conflicts and maximizing the underlying potential”, which include US addressing “frictions especially where Indian policies are demonstrably protectionist... through multilateral (WTO) dispute settlement procedures. The US should not be reticent in this regard."
Before he was made CEA on Jaitley's advise in October 2014, five months after Modi took over, Subramanian had held the view that India should not oppose the World Trade Organization's (WTO's) Trade Facilitation Agreement (TFA), something the country did in 2014. By opposing TFA, he had said, India would be seen as an obstructionist. “A policy that has limited support in the WTO looks weak and lacks legitimacy, and, hence, is unlikely to succeed”, he had added.
While it is belived that Subramanian had strong views on demonetisation and Goods and Services Tax (GST), and these differed from those of Modi, he was instrumental in coming up with some of the most well-researched Economic Surveys for the Government of India, which had critical remarks on the the government's economic policies. Those in the corridors of powder say, he was upset with the government over not keeping him informed about major policy decisions.

Raghuram Rajan

While openly favouring the government, in interviews and chats with journalists, Subramanian left no stone unturned in declaring that he did not agree the way the government was going ahead with policy reforms. Once, on being confronted with a crucial issue related with the Indian economy, the CEA, whose advice should have ideally formed the foundation of the government’s macroeconomic policies, asked, “Why do you want to deprive my memoir of any commercial value?” In an interview to The Financial Times in early 2017, he admitted that he had learnt to watch his step on delicate topics that could upset the Modi government, especially during public interactions.
“I was asked for my views on the beef ban in Mumbai and said jokingly that if I speak on this I’ll probably lose my job — and that went on the front page of The Indian Express,” he told Financial Times. “In that case I was told to be a bit more careful.”
On another occasion, speaking on the impact of social divisions and communalisation on economic development, he said, “The way you react to social cleavages has a critical impact on economic development. India is a wonderful example. What have reservations done, what have they not done, what has religion done, what has it not done illustrates the general principle that these things have a huge impact.’’
Meanwhile, "thanking" Subramanain, Union finance minister Arun Jaitley said in a Facebook post, the CEA was "torn between family commitment and his current job which he considered the best and most fulfilling he has ever done", adding, he was "an advisor", whose job was to "analyse and thinks several steps ahead", adding he was "not a spokesman of the government."
Jaitley continues, Subramanian's "early diagnosis of the twin balance-sheet had led us to adopt the macro-economic strategy of higher public investment in the Budget of 2015-16. He conceptualised JAM (Jan Dhan, Aadhar, Mobile) as a data base for availing public benefits. He contributed to the debate of federalism by conceptualising that the Indian federalism has not merely to be cooperative but also competitive."

Comments

NPNAIR said…

No bother.We are going to get an efficient PM Rahul Gandhi.He will manage all economies !!

June 21, 2018

Gram sabha as reformer: Mandla’s quiet challenge to the liquor economy

By Raj Kumar Sinha* This year, the Union Ministry of Panchayati Raj is organising a two-day PESA Mahotsav in Visakhapatnam, Andhra Pradesh, on 23–24 December 2025. The event marks the passage of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), enacted by Parliament on 24 December 1996 to establish self-governance in Fifth Schedule areas. Scheduled Areas are those notified by the President of India under Article 244(1) read with the Fifth Schedule of the Constitution, which provides for a distinct framework of governance recognising the autonomy of tribal regions. At present, Fifth Schedule areas exist in ten states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana. The PESA Act, 1996 empowers Gram Sabhas—the village assemblies—as the foundation of self-rule in these areas. Among the many powers devolved to them is the authority to take decisions on local matters, including the regulation...

MG-NREGA: A global model still waiting to be fully implemented

By Bharat Dogra When the Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) was introduced in India nearly two decades ago, it drew worldwide attention. The reason was evident. At a time when states across much of the world were retreating from responsibility for livelihoods and welfare, the world’s second most populous country—with nearly two-thirds of its people living in rural or semi-rural areas—committed itself to guaranteeing 100 days of employment a year to its rural population.

Policy changes in rural employment scheme and the politics of nomenclature

By N.S. Venkataraman* The Government of India has introduced a revised rural employment programme by fine-tuning the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in operation for nearly two decades. The MGNREGA scheme guarantees 100 days of employment annually to rural households and has primarily benefited populations in rural areas. The revised programme has been named VB-G RAM–G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission – Gramin). The government has stated that the revised scheme incorporates several structural changes, including an increase in guaranteed employment from 100 to 125 days, modifications in the financing pattern, provisions to strengthen unemployment allowances, and penalties for delays in wage payments. Given the extent of these changes, the government has argued that a new name is required to distinguish the revised programme from the existing MGNREGA framework. As has been witnessed in recent years, the introdu...

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.

Rollback of right to work? VB–GRAM G Bill 'dilutes' statutory employment guarantee

By A Representative The Right to Food Campaign has strongly condemned the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–GRAM G) Bill, 2025, describing it as a major rollback of workers’ rights and a fundamental dilution of the statutory Right to Work guaranteed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement, the Campaign termed the repeal of MGNREGA a “dark day for workers’ rights” and accused the government of converting a legally enforceable, demand-based employment guarantee into a centralised, discretionary welfare scheme.

Making rigid distinctions between Indian and foreign 'historically untenable'

By A Representative Oral historian, filmmaker and cultural conservationist Sohail Hashmi has said that everyday practices related to attire, food and architecture in India reflect long histories of interaction and adaptation rather than rigid or exclusionary ideas of identity. He was speaking at a webinar organised by the Indian History Forum (IHF).

India’s Halal economy 'faces an uncertain future' under the new food Bill

By Syed Ali Mujtaba* The proposed Food Safety and Standards (Amendment) Bill, 2025 marks a decisive shift in India’s food regulation landscape by seeking to place Halal certification exclusively under government control while criminalising all private Halal certification bodies. Although the Bill claims to promote “transparency” and “standardisation,” its structure and implications raise serious concerns about religious freedom, economic marginalisation, and the systematic dismantling of a long-established, Muslim-led Halal ecosystem in India.

Search This Blog