The Centre has appointed US-based economist Arvind Subramanian as India's next Chief Economic Advisor in the Finance Ministry.

This was a keenly awaited appointment of the new Modi Government that is facing the challenge of modest economic growth coupled with runaway inflation in recent years.

Although inflation has seen some moderation in recent months, there is still the challenge of sluggish industrial production, mainly due to poor manufacturing sector performance.

Soon after assuming charge, Subramanian said he would focus on growth, investment and creating opportunities for all segments of Indian society.

"For any economy like India, the two big things are macro economic stability and creating conditions for rapid investment and growth while creating opportunities for all segments of society. No one should be left out of this process", he told reporters outside North Block on Thursday.

Subramanian is the third economist of international renown to have been appointed to the key post of chief economic advisor in the recent years.

Kaushik Basu (World Bank Chief Economist) and Raghuram Rajan (current RBI Governor and former IMF chief economist) were the other two internationally renowned economists who recently served as CEA.

Subramanian’s academic work has focused on trade and its effect on developing countries. He is a fellow at the Peterson Institute for International Economics and also at Center for Global Development – both based in Washington.