New Delhi: As India inches closer to what seems like a sequel to the 1991 economic crisis, it is also moving towards a similar political arrangement to manage the economy. It may be recalled that in June 1991, PV Narasimha Rao chose Dr Manmohan Singh — a non-politician then — as the finance minister to ring fence the management of the economy. There is a growing buzz on Raisina Hill that Prime Minister Manmohan Singh would like Dr C Rangarajan, currently the chairman of the Prime Ministers' Economic Advisory Council to take charge of the economy as the finance minister.
The prime minister has increasingly turned to Dr Rangarajan to work on solutions to complex issues, which were earlier referred to the Planning Commission and to Montek Singh Ahluwalia. In just the past two weeks the former RBI Governor has been asked to head three new committees — a panel to work on a new poverty line, a way to manage fuel pricing and subsidies and contracts with oil companies for exploration and production.
While these are still early days, the idea obviously is to look at a scenario post the elections for the President. A clearer picture will emerge once the Congress Party president Sonia Gandhi firms up her choice for President. The proponents of the 1991 formulation believe that if and when Pranab Mukherjee is nominated, the government would need a person who knows the system and whose presence will send a positive signal to investors and the economy. Dr Rangarajan has, like Manmohan Singh, worked across the spectrum of economic positions in government. Among the factors favouring the move is his erudition as an economic guru, his proximity to the PM, and most critically, his clean non-controversial image.
Given the disastrous condition of the economy there is a growing perception within the Congress Party that a specialist be brought in to fix the economy before they go in for the next general elections.
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