The Indian-American economist and Professor of Indian Political Economy at Columbia University, Panagariya had joined as the first Vice-Chairman of the Niti Aayog, which had replaced the Planning Commission, in January 2015.
Talking to reporters, he said the Columbia University was not giving him further extension and he would be leaving Niti Aayog on August 31.
He said that about two months ago he had expressed his desire to the Prime Minister, who is the Chairperson of NITI Aayog, to be relieved by August 31.
In March 2102, he was honoured with Padma Bhushan, the third highest civilian honours India bestows in any field.