Arvind Subramanian will continue as CEA for 1 more year: Arun Jaitley

Key highlights:

• Finance Minister Arun Jaitley confirmed that Arvind Subramanian will continue as the Chief Economic Advisor for another year
• Finance Ministry tweeted quoting Jaitley on the announcement
• Subramanian said that there was need to fight economic challenges on multiple fronts

The Finance Minister Arun Jaitley on Saturday confirmed that Arvind Subramanian will continue as the Chief Economic Advisor (CEA) for another year after the completion of his 3 year tenure. The announced regarding the extension of his term comes after reports that the government was not going to give Subramanian another term.

The Finance Ministry tweeted quoting Jaitley saying that CEA Arvind Subramanian will continue for one more year after completion of his 3 year tenure on October 16, 2017.

FM @arunjaitley : CEA Dr. Arvind Subramanian will continue for one more year after completion of his 3 year tenure on 16th October, 2017.

— Ministry of Finance (@FinMinIndia) September 23, 2017

Jaitley also announced the extension of Subramanian's tenure as he spoke to reporters in New Delhi at a press conference.

Soon after the announcement Subramanian said that there was need to fight economic challenges on multiple fronts.

"We have lots of challenges ahead... we have seen growth slowing down and investment not picking up. So, we have to attack this problem on many fronts -- exchange rate, public investments while maintaining macroeconomic stability," he said.

He also identified stressed assets as a key area of concern.

On the appreciation of the rupee, Subramanian said all emerging economies face this problem, with a surge in capital inflow putting pressure on the exchange rate.

"All countries struggle with this challenge. Different countries take measures based on their trade-offs and objectives. What the RBI has been doing is to stem appreciation of the rupee," he pointed out.

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