Government to opt for ‘continuity’ in key economic appointments amid upcoming transitions 

As the appointments to four key economic and statutory posts are set to be finalised soon, sources indicate the Centre may choose ‘continuity’ as the guiding principle wherever possible according to the rules. 

The terms of the all-powerful Comptroller & Auditor General (CAG), the Governor of the Reserve Bank of India (RBI), the Chairperson of market regulator Securities and Exchange Board of India (SEBI) and the Chief Economic Adviser (CEA) to the Ministry of Finance are set to end between November and February next year. 

The head of the CAG vacates the office upon attaining the age of 65 years or a six-year term, whichever is earlier or by impeachment proceedings. The present CAG chief, GC Murmu, will turn 65 on November 21 and thus cannot be reappointed. 

However, the other three officials are eligible for reappointment, and the decision on their candidature will be taken in the weeks ahead starting with the CAG, followed by the RBI Governor, the CEA and finally the SEBI chairperson. 

Shaktikanta Das, a retired IAS, assumed charge as the 25th Governor of the Reserve Bank of India on December 12, 2018. In 2021, he was given a three-year extension, which will end on December 10, 2024.  

Madhabi Puri Buch was appointed as Chairperson of the Securities and Exchange Board of India (SEBI) on March 1, 2022. She is the first woman to hold this position and the first person from the private sector to lead the organisation. 

Buch succeeded Ajay Tyagi, whose five-year term ended on February 28, 2022. Previously, she served as a whole-time member of SEBI from April 5, 2017, to October 4, 2021. Her tenure is set to end on February 28, 2024. There is a significant dilemma regarding her reappointment in light of the recent controversies. 

Sources indicate that CEA V Anantha Nageswaran, appointed by the Narendra Modi government in January 2022, may be offered an extension after completing his three-year term on January 28, 2025. There is no clarity if Nageswaran has been sounded out and whether he will be interested in such an extension, which maybe of one year.  

Prior to his appointment as CEA, Nageswaran was the Dean of the IFMR Graduate School of Business and a distinguished Visiting Professor of Economics at Krea University. He also served as a part-time member of the Economic Advisory Council to the Prime Minister of India from 2019 to 2021. 

The government is eager to maintain continuity in its economic policy framework, particularly as Nageswaran’s tenure coincides with the NDA coalition government’s second budget, scheduled for February 1, 2025. 

“This continuity is crucial for ongoing policy discussions,” a top finance ministry official said.  

While extensions for Chief Economic Advisors are not the norm, they have taken place in the past. For example, Arvind Subramanian, who was appointed in 2014, served a three-year term and received a one-year extension in 2017. He ultimately resigned before completing this extended term in June 2018.