Arvind Panagariya on Tuesday resigned as the vice-chairman of NITI Aayog.
The Indian-American, who joined as the first Vice Chairman of Niti Aayog in January 2015, is the second high profile academic-economist after former RBI Governor Raghuram Rajan to quit a top job in India to return to the teaching profession in the US.
According to the reports, which could not immediately be confirmed, Modi had accepted Panagariya's resignation.
He, has, however told the Prime Minister that he would be available for serving the nation in anyway possible while continuing his academic assignment.
His last day in office would be August 31.
Panagariya, who will turn 65 on September 30, has often batted openly in favour of the so-called Gujarat-model of development under Narendra Modi's chief ministership. He holds a Ph.D degree in Economics from Princeton University.More news: ASUS holding press event on August 19 to announce ZenFone 4
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A PhD in economics from Princeton, Panagariya has served in several global institutions namely the World Bank, IMF, WTO and the United Nations Conference on Trade and Development (UNCTAD).
Governing Council, a key body of Niti Aayog comprising all chief ministers of states as its members met only three times in the past over three years.
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.
Padma Bhushan awardee Panagariya was born on September 30, 1952 and has worked his way through prestigious global organisations to be known as one of the top economists in the world. He is known for his market-friendly views and is a close associate of well-known trade economist Jagdish Bhagwati.
He has also served at the Centre for International Economics and the University of Maryland at College Park.
President of India had honored Panagariya with prestigious "Padma Bhushan" award.