Panagariya departs

Arvind Panagariya has announced his intention to move on, from Niti Ayog on Parliament Street in New Delhi to Columbia University on 116th Street in New York. Professor Panagariya was among the original believers in the Narendra Modi project; he, along with his mentor Jagdish Bhagwati, had believed that given a new political coherence, a robust leadership, and an intellectual clarity, the Indian economy could be steered to a takeoff stage. It was with this faith and confidence that the venerable Planning Commission was rechristened as Niti Ayog, as if a change in nomenclature itself would be a game-changer. Still, Panagariya availed of his new responsibility to move the economy away from the old impulses, habits and practices associated with the previous regimes. 

No one will know for sure the reason for his track back to Columbia. It is quite possible that he has had enough of policy-making, just as it is also possible that Columbia was insisting on his return if he wanted to retain his tenure. Outsiders do not always appreciate the charm and security of a tenured professorship; but the academic world has its own enchantment. It is possible that it will be slightly tired, somewhat bruised Professor Panagariya who takes leave of Niti Ayog. It has been known that in the last few months he has faced considerable opposition and challenges from the swadeshi crowd. His inability to win clearly those battles as well as a realisation that he would not get much political protection probably helped him make up his mind to pack his bags. 

Panagariya’s resignation is the first major depletion from the core Modi team, though it is not easy to determine whether it is a case of unhappy departure or a principled defection. Starting with demonetisation, the direction and purpose of the economy appear to have changed and no one would be surprised if the purist in Panagariya found himself at odds with the increasingly political-steering of the economic decision-making. In any case, his move to Columbia comes in the background of a growing skepticism about the nature of economic growth, with critics unwilling to be taken in by the hype. His departure will only deepen the skepticism.