India’s new CEA

US-based economist Arvind Subramanian took charge as chief economic advisor (CEA) in the finance ministry.

He is a former International Monetary Fund economist. His key task will be to work out a new monetary policy framework in which the government will set the inflation target, to be implemented by a policy panel of the central bank.

He heads a team who are to bring out the government’s annual Economic Survey during the Budget session, and the Mid-Year Analysis of the economy in the Winter Session of Parliament in December. The challenge before him will be to defend policies and actions of the government, such as India’s stand at the World Trade Organization (WTO).

Chief Economic Adviser heads the Economic Division of Government of India. The main functions of the Division are advisory in nature. The Division examines domestic and international economic trends and undertakes research studies having a bearing on economic policies and management of the economy and renders policy advice.

Main activities of the Economic Division include:

• Monitoring of Prices and policies relating to price control.
• Monitoring of trends in Agricultural and Industrial Production and related policy issues.
• Monitoring of Production, Public Distribution and Stocks of food grains and related policy issues.
• Monitoring of Monetary and Credit Aggregates.
• Monitoring of Public Finance.
• Monitoring of Fiscal Policy and Tax Reforms.
• Monitoring of Foreign Trade and Balance of Payments.
• International Economic Institutions: World Bank and IMF, ADB and G-20 related issues.
• Preparation of Annual Economic Survey and Mid Year Review of the Economy.