PM revives Economic Advisory...
When contacted, Roy told Business Standard: “I have just been informed by the Prime Minister’s Office. I am right now in New York on an assignment to United Nations. I look forward to serving in the new role.” Bhalla tweeted, “Thanks to all for support (including the critics!) hope to provide inputs to help Indian economy and working with EAC and @bibekdebroy.” The council has been set up at a time when economic growth declined to 5.7 per cent during the first quarter of 2017-18, the lowest in the past three years. The country’s current account deficit has soared to a four-year high of 2.4 per cent of gross domestic product in the first quarter of 2017-18 from 0.6 per cent in the previous quarter, and 0.1 per cent in April-June 2016.
The government is looking for options to spur the economy and create jobs as it faces a resource crunch since the Centre’s fiscal deficit has already touched 92 per cent of the Budget Estimates for FY18.
As such, Debroy and his team may now provide innovative ideas to Modi to reshape the economy. The Manmohan Singh government relied on Rangarajan for vital assessment of the economy as his views were sought on almost every crucial issue facing the economy, be it the food security Bill, the gas pricing formula or sugar pricing. It is yet to be seen how crucial a role Debroy will play as advisor to Modi. Debroy has been instrumental in bringing transformational change in the Indian Railways during his stint as member of the NITI Aayog. It was based on the Debroy Committee’s recommendations that the government abolished the British-era legacy of a separate Railway Budget and merged it with the General Budget and embarked on changing the fiscal year from April-March to January-December.
The Debroy committee recommended liberalisation of the railways to attract private sector participation for project execution and setting up an independent regulator to promote competition. Debroy has also been a long-time proponent of pruning departments in large states to 30 to enable better coordination, governance and efficiency.
Educated at Presidency College (Calcutta), Delhi School of Economics and Trinity College (Cambridge), Debroy began his career as a teacher at his alma mater, Presidency College, and worked later at Gokhale Institute of Politics and Economics (Pune), Indian Institute of Foreign Trade (Delhi), and National Council of Applied Economic Research (Delhi). He has served as a consultant to the department of economic affairs in the finance ministry.