Economic Advisory Council to the Prime Minister (EAC-PM)

Recently, the Prime Minister of India chaired a meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) to deliberate on key economic issues and provide strategic inputs for sustaining India's growth trajectory and achieving the vision of Viksit Bharat.

About the Economic Advisory Council to the Prime Minister (EAC-PM)

The Economic Advisory Council to the Prime Minister (EAC-PM) is an independent advisory body constituted by the Government of India to provide expert advice on economic and related policy matters directly to the Prime Minister. It serves as a high-level think tank comprising distinguished economists and subject experts who assist the government in formulating evidence-based economic policies.

The Council functions independently and offers objective recommendations on issues affecting the Indian economy. Its recommendations are advisory in nature and are not legally binding on the Government. Nevertheless, its analyses and policy suggestions play an important role in shaping economic decision-making and long-term developmental strategies.

Apart from advising the government, the EAC-PM also contributes to promoting public awareness and understanding of economic issues through research publications, working papers, policy reports, and analytical studies.

Objectives and Terms of Reference

The primary objective of the EAC-PM is to provide independent, evidence-based economic advice to the Prime Minister on matters of national importance. It examines both short-term macroeconomic developments and long-term structural challenges affecting India's economy.

The Council analyses economic as well as other related issues referred to it by the Prime Minister and submits recommendations for appropriate policy responses. It also studies important macroeconomic trends, including economic growth, inflation, employment, fiscal policy, external sector developments, financial stability, productivity, and structural reforms.

The EAC-PM is empowered to undertake studies suo motu (on its own initiative) whenever it considers an issue to be of national importance. It may also examine matters referred by the Prime Minister or other authorities and undertake any additional assignments entrusted to it from time to time.

Composition

The Economic Advisory Council is headed by a Chairperson and consists of several eminent economists, policy experts, and professionals with expertise in diverse areas of economics and public policy.

There is no fixed statutory provision prescribing the exact number of members. The composition is determined by the Government depending on contemporary policy requirements and the expertise needed for addressing emerging economic challenges.

The Council is supported by a dedicated team of officials, economists, researchers, and administrative staff, who assist in research, policy analysis, data evaluation, and preparation of reports.

Administrative Support

Although the EAC-PM functions independently in its advisory role, NITI Aayog serves as its nodal agency for administrative, financial, logistical, planning, and budgeting support. This institutional arrangement enables the Council to function efficiently while maintaining operational independence in providing policy advice.

Functions of the EAC-PM

The Council continuously monitors the performance of the Indian economy and evaluates domestic as well as global economic developments that may influence India's macroeconomic stability.

It provides recommendations on issues such as economic growth, fiscal management, inflation control, investment climate, employment generation, industrial competitiveness, agricultural reforms, international trade, financial sector development, and sustainable economic development.

The EAC-PM also undertakes analytical research on emerging policy challenges and prepares reports that assist policymakers in designing long-term economic strategies. Through seminars, publications, and research papers, it enhances informed public discourse on important economic issues.

Significance of the EAC-PM

The Economic Advisory Council plays a crucial role in strengthening evidence-based policymaking by providing independent expert advice free from routine administrative constraints. It enables the Government to benefit from specialized economic expertise while responding to rapidly evolving domestic and global economic conditions.

Its recommendations help improve policy coordination, support macroeconomic stability, encourage structural reforms, and contribute to achieving the objectives of inclusive growth, economic resilience, and sustainable development. As India aspires to become a developed economy (Viksit Bharat) by 2047, the EAC-PM serves as an important institution for guiding long-term economic planning and policy formulation.