He is currently a professor of finance at University of Chicago’s Booth School of Business. He is also the honorary economic advisor to Prime Minister Manmohan Singh.
Prior to resuming teaching in 2007, Dr. Rajan was the chief economist at the International Monetary Fund. Since then, he has chaired the Indian government’s committee on financial sector reforms, which submitted its report in September 2008, according to his biography posted on the University of Chicago website. His recent book, Fault Lines: How Hidden Fractures Still Threaten the World Economy, received recognition all over the world.
The chief economic adviser's post fell vacant after Kaushik Basu's extended term ended on July 31, 2012.
Last month, a finance ministry committee had recommended the names of Mr. Rajan and Ajay Chibber for the post to the Prime Minister, who was then holding additional charge as the finance minister.
Now with P. Chidambaram taking charge as finance minister, he has officially given his approval to Mr. Rajan's name, after discussing the matter with the Prime Minister.
“My uppermost duty is to regain the confidence of all stakeholders,” Chidambaram had said on Monday.
The appointment should give confidence to stakeholders as Mr. Rajan is an economist of international repute.
As a matter of protocol, any search or selection panel of the government for crucial appointments generally recommends two names. In this case, Mr. Rajan was the front runner.
The appointment now awaits clearance from the cabinet secretary and the appointments committee of the Cabinet. The appointments committee comprises the Prime Minister and home minister Sushil Kumar Shinde.