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Business News/ Politics / Policy/  Arun Jaitley’s new team takes shape at finance ministry after cabinet reshuffle
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Arun Jaitley’s new team takes shape at finance ministry after cabinet reshuffle

Santosh Gangwar and Arjun Ram Meghwal take charge as ministers of state in the finance ministry in place of Jayant Sinha, who has moved to aviation

(From left) ministers of state for finance Arjun Ram Meghwal and Santosh Gangwar, and finance minister Arun Jaitley. Photo: PTIPremium
(From left) ministers of state for finance Arjun Ram Meghwal and Santosh Gangwar, and finance minister Arun Jaitley. Photo: PTI

New Delhi: As a result of the rejig of the Union cabinet carried out on Tuesday, finance minister Arun Jaitley has been given a new team—Santosh Gangwar and Arjun Ram Meghwal took over as ministers of state in place of Jayant Sinha, who moved to aviation.

It gives the FM a pair of fresh eyes as he prepares to pursue the economic priorities—maintaining macro-economic stability and reviving the investment cycle—of the National Democratic Alliance (NDA) government over the next three years. Another member due to join India’s economic A-team will be the next Reserve Bank of India (RBI) governor, with the incumbent, Raghuram Rajan, due to step down on 4 September; the government is yet to choose a successor.

Though not as high-profile as the Harvard-educated Sinha, especially with foreign investors, the new ministers of state are no lightweights. Like him, both are elected members of the lower House.

Meghwal, 62, is a retired officer of the Indian Administrative Service from the state of Rajasthan—and someone who is popular for his low-carbon footprint, thanks to his use of the bicycle to commute to Parliament. Besides holding a degree in business administration, Meghwal is also a law graduate who holds a masters degree in political science. A dalit leader and two-term MP, he represents the Bikaner constituency in Rajasthan in the Lok Sabha.

A first-time minister, Meghwal is articulate and has been the chief whip of the Bharatiya Janata Party in the Lok Sabha since July 2014.

After taking charge as minister of state, clad in his trademark colourful Rajasthani turban and surrounded by numerous supporters, Meghwal said that achieving last-mile financial inclusion will be his key priority.

“The government has brought in many schemes to achieve financial inclusion like Jan Dhan Yojana, Atal Pension Yojana and the insurance schemes. I work in the grassroots and have seen the impact that these schemes have had. We will try to ensure everyone gets benefitted from these schemes," he said.

Jan Dhan Yojana aims to ensure that every household in the country has access to a bank account, along with a pension and life/health insurance covers.

Meghwal was also optimistic about the passage of the goods and services tax (GST) bill, but maintained that the government will not bow to demands by the Congress to cap the GST rate in the constitution amendment bill itself.

“We are hopeful the bill will get passed in the monsoon session," Meghwal said.

The second minister of state, Gangwar, 67, comes from the textiles ministry, where he was a minister of state with independent charge. In his tenure, the government finalized a 6,000 crore textiles package to revive the garment manufacturing sector and create jobs.

A kurmi leader representing Bareilly in Uttar Pradesh in the Lok Sabha, he has close ties with the Rashtriya Swayamsevak Sangh; a law graduate, he lists agriculture as his main profession in the member profile available on the Lok Sabha website.

Gangwar has been elected to the Lok Sabha since 1989, only losing one election in 2009. He was a minister of state in ministries such as petroleum and natural gas, labour and parliamentary affairs in the Atal Bihari Vajpayee government.

Gangwar, too, expressed optimism that the constitution amendment bill for GST’s passage will be passed in the monsoon session.

However, Sinha’s exit from the finance ministry put their appointments in the shade, at least among the experts.

“He was a professional who seemed to understand the financial sector well. I don’t know the reasons for his shift to civil aviation ministry, but it is a pity. He knew the markets well, the sector well and spoke the language of the investors, which they appreciated," said Sudipto Mundle, emeritus professor at the National Institute of Public Finance and Policy.

“For a country that is looking to attract FDI (foreign direct investment) into the country, this may not be considered as a good move. Sinha’s exit coming so close to Rajan’s will not go down well with foreign investors," he added.

Rajan said in June that he would demit office as RBI governor when his three-year term ends in September.

Krishnamurthy Subramanian, associate professor at the Indian School of Business, agreed with Mundle’s assessment of Sinha’s exit from the finance ministry.

“It is not a positive move. Bureaucrats do not understand finance and economy very well. Sinha was knowledgeable in both these matters and had good experience in the private equity space. His exit, so close to Rajan’s, is not good news."

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Published: 07 Jul 2016, 01:31 AM IST
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