Arvind Panagariya
Arvind PanagariyaReuters

Arvind Panagariya on Tuesday resigned as the vice-chairman of NITI Aayog. The 64-year-old said he will return to academics in the US. His last day in office will be August 31.

Before joining NITI Aayog, Panagariya was a faculty at Columbia University.

Panagariya was named Niti Aayog vice-chairman in January 2015. He has also held the post of the chief economist with the Asian Development Bank and professor of economics and co-director, Center for International Economics, University of Maryland.

When asked about the reason for his sudden decision to quit, Panagariya said he was going back because he had exhausted his leave of absence at Columbia University. He clarified that he had no problem with anyone in his role as vice-chairman of NITI Aayog, Business Standard reported.

Prime Minister Narendra Modi has accepted his resignation.

A firm supporter of Prime Minster Narendra Modi, he describe the goods and services Tax (GST) and the insolvency and bankruptcy act as some of the biggest economic reforms undertaken by the NDA government.

He has claimed that India would witness GDP growth of 7.5 percent in 2017-18 before entering a sustained growth trajectory of over 8 percent before the end of the present government's term ends in 2019.

He has written several books including 'India: The Emerging Giant', which was published in March 2008 by the Oxford University Press. In his long career as economist, he has also edited 'India Policy Forum', a journal modeled on the Brookings Papers on Economic Activity and jointly published by the Brookings Institution, and the National Council on Applied Economic Research.

In March 2012, Panagariya was honoured with Padma Bhushan, the third highest civilian award the country bestows in any field.