“I come back with great personal satisfaction because I was part of a team that showed leadership like Mahindra Singh Dhoni who used to do in very difficult times,” he told FE..
Krishnamurthy V Subramanian, who, as the chief economic advisor, helped steer the economy through the unprecedented Covid crisis and before that, left the Finance Ministry on Friday. He returns to academia, after serving for three years at the North Block.
“I am returning with great personal satisfaction because I have been part of a team that has shown leadership like Mahindra Singh Dhoni who used to do during very difficult times,” he told FE. Although the team scored only 129 points in the final of the T20 Champions Cup in 2013, Doni instilled the belief that they could beat England.
“In a similar way, we said that despite the highest drop in growth during the pandemic (real GDP contracted 7.3% in FY21), there would be a V-shaped rebound and it did happen. We now have the largest economic recovery with overall stability,” he said. “.
He praised Prime Minister Narendra Modi for showing “the tremendous courage of the conviction to be different amid the pandemic”. “When every other country was rushing to live through the pandemic, we made second-generation reforms,” he said. The government has implemented many supply-side measures, and unlike many others who are now seeing high inflation, they have not focused solely on increasing demand. He said the fiscal policy has been changed to focus more on capital expenditures, which have a large multiplier effect.
“This is what leadership is all about. During difficult times it is easy to pile on misery but leadership is shown by instilling a credible belief among everyone that we will get through this adversity.” I think these are the aspects that give me a huge amount of satisfaction. No CEA in independent India had to go through such a turbulent time.”
Subramanian recently said that this would be India’s decade for inclusive growth. “Remember my words, this decade will be India’s decade of inclusive growth. In fiscal year 23, we expect growth to be between 6.5% and 7% and then accelerate further as the impact of these reforms becomes apparent.
As the lead author of annual economic surveys in recent years, Subramanian advocated an “efficient investment cycle” to achieve high growth rates on a sustainable basis. He also came up with an interesting concept, ‘Thalinomics’, which was an attempt to quantify what the average person would pay for a full meal across India. He has hired Arvind Subramanian, who left in 2018, and cut his tenure short by a few months, citing “urgent family commitments”.
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