Indian Economists and Their Ideas
Arvind Subramanian: JAM and Twin Balance Sheets
How Arvind Subramanian as Chief Economic Adviser coined the "JAM trinity" and "twin balance sheet problem", proposed a universal basic income, and later questioned India's GDP estimates.
Arvind Subramanian (born 1959) served as India’s Chief Economic Adviser from 2014 to 2018.
JAM trinity
The Economic Survey 2014-15 described the JAM trinity: Jan Dhan bank accounts, Aadhaar and mobile phones, as a platform for direct benefit transfers.
Twin balance sheet problem
He highlighted India’s “twin balance sheet” problem: over-indebted companies and banks burdened with bad loans, both holding back investment.
Universal basic income
The Economic Survey 2016-17 discussed a universal basic income as an alternative to many subsidy schemes.
GST
He advocated a simple GST with few rates.
GDP debate
In 2019, after leaving office, he published research suggesting India’s growth had been overestimated from 2011-12 to 2016-17, sparking debate.
Books
Of Counsel (2018) reflected on his time as CEA.
Legacy
His Economic Surveys introduced memorable frameworks for Indian policy.
A subsidy is paid directly into a Jan Dhan account linked to Aadhaar, and the recipient gets an SMS on her mobile, the JAM trinity in action.
Subramanian's surveys introduced new policy ideas.
- Subramanian was Chief Economic Adviser in 2014-18.
- He coined the JAM trinity and twin balance sheet problem.
- He discussed universal basic income in 2016-17.
- He later argued GDP growth was overestimated.
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