Subramanian Swamy, now in the Rajya Sabha as a BJP MP, hounded Raghuram Rajan and made public statements questioning his qualification and integrity. Rajan has decided not to seek a second term at the RBI. Perhaps emboldened by this success, Swamy has now trained his guns on the PM’s Chief Economic Advisor (CEA).
In October 2014, six months after the BJP came to power, the Prime Minister appointed Arvind Subramanian his Chief Economic Adviser (CEA). The Oxford educated economist was close to RBI governor Raghuram Rajan and had worked with him even under the UPA government. The appointment, along with keeping Rajan on as RBI governor, was seen by many as a sign that when it came to economic policy, the Modi government would not be petty or partisan in its appointments. After all, the new CEA had been critical of the PM’s ‘Gujarat Model’ and even his new government.
A Critic Co-opted Into Government
Well before Narendra Modi became Prime Minister, the ‘Gujarat model’ was being held up as an example for the country. During the General Election campaign, Modi promised to run India like he did Gujarat. Clearly, the electorate bought the message. Arvind Subramanian though, was skeptic. As early as July 2013, he was debunking the Gujarat model.
By April 2014, the writing was on the wall. Narendra Modi would likely be Prime Minister of India. Arvind Subramananian could also see the BJP’s impending victory. However, in article in Business Standard on 5 April that year, he argued that the same traits that made Modi appealing to the electorate will prove a hindrance when it comes to managing the economy.
Even after the new government came to power and just three months before his appointment as CEA, Subramanian was critical of Arun Jaitley’s interim budget.
Since his appointment, Arvind Subramanian has stayed out of controversy most of the time. There are two notable exceptions though. First, in March 2016, he spoke about how a country deals with social divisions affects its economic growth. Then just a week later, he was asked about his opinion on the beef ban.
You know that if I answer this question I will lose my job. But thank you nevertheless for asking the question.Arvind Subramanian, Chief Economic Advisor, March 8, 2016
The Importance of Avoiding Pettiness
The CEA is well liked and respected. Believe me, between the ‘babus’ and the technocrats, that’s no easy feat.Source within the Finance Ministry
Subramanian Swamy’s attack on the CEA boils down to questioning his patriotism. Basically, his arguments have been a shrill, roundabout cry of ‘anti-national’. One of the key arguments against the Modi government from its critics has been over appointments. From Gajendra Chauhan at FTII to the ‘Rexit’, the Opposition has been given quite a bit of fodder to question the government’s decisions and biases.
Arvind Subramanian was a non-political credible appointment. He can be held up as an example of how, when it comes to the economy, the government chooses substance over politics.
For now, Finance Minister Arun Jaitley has stood by the CEA. Of course, from what we know of him, it is unlikely Subramanian Swamy will back down completely.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)