PM MODI’S NEW CRACK TEAM

By reviving the Economic Advisory Council he had disbanded in 2014, Prime Minister Narendra Modi may have signalled that the present troubles of the Indian economy merit his personal attention than just confining it to the finance ministry. It is a powerpacked panel of economists and a bureaucrat, with Bibek Debroy as chairman and Surjit Bhalla, Rathin Roy and Ashima Goyal as members. Former finance secretary Ratan Watal is the member secretary. The council will report directly to the PM on issues of “macro-economic importance”. Both Mr Debroy and Mr Watal will however continue as Niti Aayog members.

There is some reason to believe that this is more than just another cosmetic exercise, though some would say it is coming rather late. The effects of last year’s demonetisation and the haphazard rollout of the Goods and Services Tax have led to really very sluggish growth and a situation where the government is thinking in terms of an economic stimulus. The advice of eminent economists such as Mr Debroy and co. should be welcome in this context. It will be equally if not more interesting to watch the dynamics between the powerful PMO, the newly-revived Economic Advisory Council, the finance ministry and of course the Niti Aayog’s new leadership. Hope it’s eventually going to be more of “all hands on deck” rather than the depressing “too many cooks” scenario.