Raghuram Rajan takes charge as CEA
Raghuram G Rajan, a former International Monetary Fund (IMF) chief economist and Chicago University professor famed for his perceptive warnings about the global financial crisis of 2008, on Wednesday assumed charge as India’s new chief economic adviser (CEA).
“The world economy faces very serious challenges right now and India is no exception... I hope that over the coming days, I can help in whatever solution we devise,” he said.
Rajan replaced Kaushik Basu, who has returned to Cornell University to don his academic robes once again, after his term ended on July 31. Rajan (49), a PhD from Massachusetts Institute of Technology, is known for his outspoken views about India’s economic management.
“I am glad to be here,” he told reporters.
Rajan has said that immediate steps need to be taken on key aspects of second generation reforms such as raising retail prices of fuel, deregulate and align these with international crude price movements.
Many expect that Rajan and finance minister P Chidambaram will steer India’s economy out of its current mess.
His book Fault Lines: How Hidden Fractures Still Threaten the World Economy won the Financial Times Business Book of the Year award in 2010.
On Wednesday, he met planning commission deputy chairperson Montek Singh Ahluwalia prior to assuming charge as CEA.