Arvind Panagariya could be next RBI governor, say reports

Demand-driven pressures are likely to be stoked by the hike of salaries and pensions for about 10 million government employees and pensioners

Arvind Panagariya could be next RBI governor, say reports

It's nearly certain now that Arvind Panagriya, chairman of NITI Aayog, will be the next Governor of the Reserve Bank of India.

In January 2015, Modi appointed Panagariya to be vice-chairman of the NITI Aayog, the Modi government's think tank aimed at replacing the Planning Commission. A formal announcement is likely to be made after Prime Minister Narendra Modi returns from his Africa tour on Tuesday.

Those reports from unnamed sources were then picked up by Reuters, which put the news on its wire service - meaning the Panagariya speculation is now everywhere.

Arvind Panagariya was a professor in Columbia University. In the past, he's put in time at the World Bank, International Monetary Fund, World Trade Organisation and the United Nations Conference on Trade and Development.

Panagariya, who heads the government's main economic advisory body, is also India's Group of 20 summit negotiator.

RBI governor Raghuram Rajan tenure is ending on September 4 and he has refused government's offer of another term.

Indian-American economist Panagariya is a close associate of economist Jagdish Bhagwati.

Top government sources had said that the people in contention included former RBI Deputy Governors Subir Gokarn and Rakesh Mohan, RBI Deputy Governor Urijit Patel, Chief Economic Advisor Arvind Subramanian and Economic Affairs Secretary Shaktikanta Das.

The 64-year-old economist holds a Masters in Economics degree from Rajasthan University, along with a PhD in the same subject from Princeton University.

Rajan, who will have the shortest tenure as RBI Governor since liberilsation began in 1991, decided not to seek a second term amid unbridled political attacks against him including by BJP MP Subramanian Swamy.

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