Shaktikanta Das, who once led the Reserve Bank of India (RBI), is set to take on a substantial role as Principal Secretary-2 to Prime Minister Narendra Modi. This newly minted position within the Prime Minister's Office (PMO) underscores a strategic shift in economic policy leadership at the highest level of government. The decision for his appointment was made by the Appointments Committee of the Cabinet and will sync with the term of PM Modi, unless new directives are issued.
An IAS officer from the Tamil Nadu cadre, Das's pedigree spans over forty years in Indian bureaucracy. His experience predominantly focuses on areas such as finance, taxation, and infrastructure—fields that offer valuable insights as India navigates its global economic footprint. Before his new role, Das served as the RBI Governor from 2018 until 2023, a period shadowed by notable fiscal challenges such as the controversial demonetization policy and the economic tremors induced by the COVID-19 pandemic.
Strategic Reinforcement in Economic Policy
Das’s era at the RBI was marked by decisive interventions; during demonetization, his policies aimed to restore monetary stability. Likewise, during the pandemic, he introduced measures designed to cushion the economy against shocks, reassure financial markets, and support growth. His leadership is identified with efforts to maintain market stability and foster economic growth despite severe disruptions.
The creation of the Principal Secretary-2 role marks a thoughtful realignment towards more robust economic decision-making capabilities within the PMO. Das is expected to provide profound strategic insights into the financial domain, working closely alongside PK Mishra, who retains his position as Principal Secretary-1. Mishra’s ongoing tenure has built a significant backbone for the PMO since its commencement in 2019, and Das’s collaboration is anticipated to bring a stronger and more cohesive policy framework.
As India stands on the brink of multiple economic crossroads, including inflation concerns, global supply chain perturbations, and digital currency challenges, the inclusion of an economic tactician like Das is seen as pivotal. There’s a clear momentum to elevate strategic planning using Das’s comprehensive governance and financial acumen. His prior experience in the RBI is expected to seamlessly transition into crafting policies that not only address immediate economic concerns but also encompass long-term growth goals.
