Rangarajan resigns as PM's economic advisor; to join union cabinet
08 Aug 2008
Mumbai: C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (EAC), has resigned from the post ahead of joining the union cabinet.
The development comes amidst rumours of a possible reshuffle in the council of ministers with the new UPA ally Samajwadi Party joining the government.
Rangarajan, who has for nearly four years been helping guide the Indian economy, is being nominated to the Rajya Sabha for a larger role (meaning a ministerial post), according to sources at the Prime Minister's Office.
Suresh Tendulkar, a senior economist and currently a member of the EAC, will take over as the new chairman. Tendulkar, a Ph. D in economics from Harvard University, has been a part time member of the EAC since January 2005. He is also the part time chairman of the National Commission on Statistics and is on the central board of directors of the Reserve Bank of India.
Rangarajan, a former governor of the Reserve Bank of India, has also served as governor of Andhra Pradesh and chairman of the Twelfth Finance Commission before assuming charge of the EAC.
The EAC is due to present the annual economic review for 2008-09 next week.
The Indians economy has been recording at an average nine per cent growth over the past four years although it as expected to moderate this financial year with inflation at a 13-year peak and interest rates at 7-year highs.
The Indian economy is expected to grow 7.5 to 8.0 per cent in the fiscal year ending March 2009, according to Rangarajan.
