The Indian government recently decided to restructure the Economic Advisory Council to the Prime Minister (EAC-PM), placing it under the leadership of Dr. Bibek Debroy for a duration of two years following the end of its term in September 2021. This development has put the EAC-PM in the spotlight once again, drawing attention to its significant role within India’s economic landscape.
The Economic Advisory Council to the Prime Minister: An Overview
The EAC-PM stands as a non-constitutional and non-statutory body, independent in nature. Its primary function lies in providing advice on economic and related matters to the Government of India, with a special focus on advising the Prime Minister. This council is instrumental in flagging crucial economic issues to the Indian government from an impartial position.
The EAC-PM plays a pivotal role in advising the Prime Minister on various economic facets like inflation, microfinance, and industrial output. For all administrative, logistical, planning, and budgeting purposes, the NITI Aayog assumes the mantle of the Nodal Agency for the EAC-PM.
Terms of Reference of the EAC-PM
A significant part of the EAC-PM’s job involves analyzing any issue – economic or otherwise – that the Prime Minister refers to. Following thorough examination and assessment, the council then advises the Prime Minister accordingly. In addition to this, the council addresses matters of macroeconomic importance and presents its viewpoints on these topics to the Prime Minister. These subjects may come up either suo-motu or upon reference from the Prime Minister or other relevant parties.
There is also room for flexibility in the council’s responsibilities. The Prime Minister can assign any additional tasks to the EAC-PM as he deems necessary over time.
Periodic Reports Published by the EAC-PM
The council maintains a regular schedule of releasing reports that shed light on the nation’s economic status. Prominent among these scheduled releases are the Annual Economic Outlook and the Review of the Economy. These comprehensive reports provide deep insight into India’s economic health, enabling the government to plan, strategize, and implement policies more effectively.
To surmise, the EAC-PM plays an integral role in shaping India’s economic destiny. By offering informed, unbiased advice to the Prime Minister, the council helps guide key financial decisions to ensure the country’s sustained growth and prosperity. The recent restructuring of the council under Dr. Bibek Debroy is thus a significant development that is likely to have substantial implications for India’s economy.
