PM's Economic Advisory Council Now Has A New Look: Mahendra Dev To Take Over As Chairman

Economist S. Mahendra Dev will lead the advisory council. Since Bibek Debroy's death last year, the post of chairman has remained vacant, although NITI Aayog Vice Chairman Suman Bery was given additional charge of the body. Dev will be entitled to the same status as that of a union minister. 

Among others, State Bank of India Group’s Chief Economist Soumya Kanti Ghosh and IIM Bangalore Professor Pulak Ghosh, along with Institute of Economic Growth Head Chetan Ghate, Delhi School of Economics Director Pami Dua, and Professor KV Raju will also be part of the newly constituted team.

Interestingly, the Ghosh and Ghosh team had jointly come up with a report in 2018 refuting claims that India was going through a phase of jobless growth. Deriving data from EPFO and Employees’ State Insurance Corporation, the two economists established a different interpretation of the country’s employment situation. 

Following their report, the Employees’ Provident Fund Organisation (EPFO) started to publish monthly payroll data.

Soumya Kanti Ghosh is also currently serving as a member of the 16th Finance Commission, which is slated to submit its report by October.

Prime Minister Narendra Modi approved the reconstitution of the Economic Council on June 4. The main aim of the council will be to navigate through the uncertain global dynamics while prescribing measures for economic growth.

As per the notification, a copy of which is with The Secretariat, the council will “analyse any issue, economic or otherwise, referred to it by the Prime Minister.”

Sanjeev Sanyal, Shamika Ravi and Sanjay Kumar Mishra will continue to serve as full-time members. Poonam Gupta, who is now the Deputy Governor of the Reserve Bank of India and was earlier serving as part-time member of the council, will not be part of the new team. 

Mishra, former Enforcement Directorate (ED) chief, joined the EAC-PM as a full-time member in March. Around the same time, former Cabinet Secretary Rajiv Gauba was appointed as a full-time member of the Niti Aayog.

Sources said that the Niti Aayog and the EAC-PM will work closely to support economic growth amid rising challenges. 

“It is key to have collaborations and cooperation between these two key bodies, and we are hoping this happens as we go along,” a senior government official told The Secretariat. 

As the economic growth slows and macroeconomic risks rise, the role of the council will be significant. 

India’s Macroeconomic Story

India clocked a GDP growth of 6.5 per cent in 2024-25. The RBI, on Friday, reduced the key policy rate—repo rate—by 50 basis points. 

The government is banking on boosting consumption to support economic growth. The reduction in policy rates is expected to support credit growth, thereby expanding economic activities. 

“The PMO (Prime Minister’s Office) now wants to keep a close eye on the economic situation and ensure that economic growth is on track. The new EAC PM will have to bear a large part of the responsibility for that,” the official said.