Nageswaran will on January 31 present his third Economic Survey, a review of the country’s economic performance over the past fiscal
The CEA said that India's export of goods has stabilized at $450 billion amid the global economic slowdown. However, the export of services is experiencing steady growth, currently standing at $350 billion and expanding at a rate of 25-30%.
The government's top economist said the Centre will have a role to play in key areas such as securing India's energy needs as the world moves to cleaner sources of energy
Nageswaran also mentioned that the realistic medium-term growth is 6.5 per cent in contrast to eight or nine per cent, which was witnessed during the 2003-2008 period.
Nageswaran’s comments come before India assumes presidency of the G-20 in December
Economic Survey: Prior to his appointment as Chief Economic Adviser (CEA), Dr V Anantha Nageswaran worked as an author, teacher and consultant.
The government should not think of public goods as only those that enable human capital such as healthcare and education, but also needs to think in terms of physical and digital public goods, said Subramanian.
A doctorate in economics or finance is desirable but not essential (a master's degree is essential), and the age limit is 56 years.
Subramanian, who announced on October 8 that he will not seek an extension, will go back to Indian School of Business, Hyderabad. It is also learnt that for now at least, he has no plans to write a book about his time in the Finance Ministry, unlike his predecessor Arvind Subramanian.
Subramanian had taken over the charge of CEA on December 7, 2018, nearly five months after his predecessor Arvind Subramanian had quit.
Speaking to Moneycontrol, Subramanian said the economic impact of the third wave could be minimal, and that the vaccination programme seemed well on track to inoculate all adults by December-end
Subramanian said that Air India’s privatisation is in an advanced stage, and that the government was confident of meeting the FY22 divestment target of Rs 1.75 lakh crore.
Strap: Chief economic advisor Krishnamurthy Subramanian said the Centre is confident of completing the privatisation of Air India and Bharat Petroleum and the Life Insurance Corporation initial public offering by the fourth quarter
Recently during the monsoon session of Parliament, Insolvency and Bankruptcy Code (Amendment) Bill 2021 was passed.
"Now, the commanding heights of the economy are basically being given to the private sector, with the government to be in only a few select sectors," Subramanian said.
Krishnamurthy Subramanian tells Moneycontrol in an interview that credit guarantee loans to small borrowers and MSMEs were more targeted and effective than any direct cash transfer. The government's budget plank of higher capital expenditure will have a substantial multiplier effect on the economy, he said.
New farm laws to boost competition; farmers can sell produce to corporates: CEA
Chief Economic advisor also said that the finance minister has mentioned front-loading of capital expenditure.
Speaking on the latest episode of “Moneycontrol Macro Minutes” podcast, Subramanian said that the government had been deliberately conservative in its forecasts for the current financial year. While not ruling out an economic intervention like last year should the need arise, Subramanian said any further measures announced would likely be on the fiscal support and capital expenditure side.
Krishnamurthy Subramanian’s views echo that of RBI Governor Shaktikanta Das. In July 2020, Das had said a big push for mega infrastructure projects could reignite the economy, but banks saddled with infra-related NPAs, may not be best placed to finance these projects.
In an interview with Moneycontrol, Krishnamurthy Subramanian also said the measures taken by the Modi government to deal with the latest economic crisis are less inflationary than interventions by previous governments, and that some 100 crore people may be vaccinated for free.
In an interaction with Moneycontrol, Krishnamurthy Subramanian also said that the idea of a 'bad bank' was being discussed ahead of the Budget, and that a counter-cyclical fiscal policy was part of pre-Budget deliberations.
The Economic Survey 2020-21 batted for a counter-cyclical fiscal policy, recommended a massive increase in healthcare spending in light of the COVID-19 pandemic and regulator for the sector, and criticised credit rating agencies, saying their assessment does not match India's fundamentals.
"If you look at international evidence during times of crises, government spending is really crucial, because both consumption and investment which comes from the private sector, go down,” CEA Krishnamurthy Subramanian said.
The government is looking for candidates for the advisory post, with only six months to go for Prime Minister Narendra Modi's 5-year term to end