Shaktikanta Das, the former Governor of the Reserve Bank of India (RBI), has been appointed to a newly established position as Principal Secretary-2 to Prime Minister Narendra Modi. This role sees Das working alongside the current Principal Secretary Pramod Kumar Mishra, offering his extensive background in economic policy to the Prime Minister's Office (PMO). His tenure in this role will end concurrently with Prime Minister Modi's term.
An Experienced Hand in Economic Affairs
Hailing from the Tamil Nadu cadre, Das is a seasoned bureaucrat, having entered the Indian Administrative Service (IAS) in 1980. Over the past four decades, he has played significant roles in shaping and implementing key economic policies. His contributions include the implementation of the Goods and Services Tax (GST) and the management of the demonetization drive, both of which stood as significant economic milestones for India.
During his tenure as RBI Governor, which concluded in December 2023, Das was recognized for focusing on financial stability and driving regulatory reforms. His approach to tackling liquidity crises in the non-banking financial sectors and his initiatives to maintain open communication with financial markets were particularly noteworthy.
Strategic New Role Amid Economic Challenges
Das's appointment is viewed as a strategic move to bring synergy between fiscal and monetary policies at a time when India's economy faces numerous challenges. These include slowing economic growth and fluctuations in currency markets. By leveraging his deep understanding of economic intricacies and international diplomacy, the PMO hopes to reinforce its strategies in navigating these difficulties.
Das has also been India's Sherpa at G20 meetings, a role that has seen him represent the nation at various reputable forums like the International Monetary Fund (IMF) and the BRICS summit. His experience on such global platforms is expected to play a crucial role as India continues to engage closely with the global economy.
While the move is largely seen as a way to bolster the government’s economic strategy during turbulent times, it hasn't been without its critics. Some opposition voices have raised eyebrows over the timing and intent of the appointment, questioning whether there is a political undercurrent to the decision. Despite these criticisms, many see Das's wealth of experience as a valuable asset in pushing forward Prime Minister Modi’s economic agenda.
As the country awaits the impact of this strategic appointment, all eyes are on how this new collaboration in the PMO might shape the economic landscape in the coming years.