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{{Short description|Body constituted to give economic advice to the Government of India, specifically the Prime Minister}}
{{Distinguish|text=[[Chief Economic Advisor to the Government of India|Chief Economic Advisor]] in Department of Economic Affairs, Ministry of Finance}}
{{Use dmy dates}}
{{Use Indian English}}
{{Politics of India}}

'''Economic Advisory Council''' to the [[Prime Minister of India]] (PMEAC)<ref name="EAC2">{{cite web|url=http://eac.gov.in/index.html |title=Economic Advisory Council Home Page |publisher=Eac.gov.in |access-date=2011-03-07}}</ref> is a non-constitutional, non-permanent and independent body constituted to give economic advice to the [[Government of India]], specifically the Prime Minister.<ref name="PMEAC">{{cite web|url=http://pmindia.nic.in/eacbody.htm |title=Prime Minister of India Official Website |publisher=Pmindia.nic.in |access-date=2011-03-07 |url-status=dead |archive-url=https://web.archive.org/web/20110721172852/http://pmindia.nic.in/eacbody.htm |archive-date=2011-07-21 }}</ref> The council serves to highlight key economic issues facing the country to the government of India from a neutral viewpoint.<ref name="EAC">{{cite web|title=Economic Advisory Council to the Prime Minister of India|url=http://eac.gov.in/aboutus/about.html|publisher=eac.gov.in|access-date=7 March 2011}}</ref> It advises the Prime Minister on economic issues like [[inflation]], [[microfinance]], and industrial output.

==History==
The PMEAC has been constituted several times since the independence of India.

In the latest occurrence, Prime minister Modi revived the body on 25 September 2017. Currently PMEAC chairman post is held by Bibek Debroy.
<ref>{{cite web|url=http://www.livemint.com/Politics/Y1lkOykxBtaJZ8piANx74O/Narendra-Modi-revives-Economic-Advisory-Council-with-Bibek-D.html|title=PM Modi reconstitutes Economic Advisory Council to revive GDP growth |publisher=livemint.com |access-date=2017-10-07}}</ref>

The previous Prime Minister's Economic Advisory Council (PMEAC) Chairman Chakravarthi Rangarajan<ref>{{cite web|url=http://www.thaindian.com/newsportal/business/economic-advisory-council-reconstituted-under-rangarajan_100230958.html |title=Economic Advisory Council reconstituted |publisher=Thaindian.com |access-date=2011-03-07}}</ref> resigned on 19 May 2014. He sent his resignation to the Prime Minister Manmohan Singh.He resigned following the defeat of the Congress-led UPA in the general elections 2014.

Since the term of the PMEAC was parallel to that of the Prime Minister, with the resignation of the PM Manmohan Singh on 17 May 2014, the PMEAC also needed to resign.

The PMEAC headed by C Rangrajan had Saumitra Chaudhuri, V.S. Vyas, Pulin B. Nayak and Dilip M. Nachane as members.

Before this, PMEAC which was constituted on 29 December 2004, headed by [[Suresh Tendulkar]] resigned upon the completion of the then Union government's term on 21 May 2009.<ref>{{cite news|url=http://articles.timesofindia.indiatimes.com/2009-05-21/india/28162780_1_pmeac-resignation-letters-upa-government |archive-url=https://web.archive.org/web/20121104205743/http://articles.timesofindia.indiatimes.com/2009-05-21/india/28162780_1_pmeac-resignation-letters-upa-government |url-status=dead |archive-date=2012-11-04 |title=PM's Economic Advisory Council members resign |work=[[The Times of India]] |access-date=2011-03-07}}</ref>

==Functions==
Terms of reference as defined by the PMEAC are as follows:<ref name="EAC"/>
#Analyzing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon;
#Addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister. This could be either suo-moto or on a reference from the Prime Minister or anyone else:

#Submitting periodic reports to the Prime Minister on macroeconomic developments and issues with implications for economic policy;
#Attending to any other task as may be desired by the Prime Minister from time to time.

The primary role of the PMEAC is to give a neutral viewpoint on economic policy matters that are referred to it by the Prime Minister.<ref name="PMEAC"/> Additionally it prepares a monthly report of economic developments that need to be highlighted to the PM. For this purpose it closely monitors national and international economic developments and trends and develops appropriate policy responses for the PM.
It publishes reports on the annual ''Economic Outlook''<ref name="business1">{{cite web |url=http://business.gov.in/news_analysis.php?bid=463 |title=Economic Outlook 2010-2011 |publisher=Business.gov.in |access-date=2011-03-07 |url-status=dead |archive-url=https://web.archive.org/web/20110721155506/http://business.gov.in/news_analysis.php?bid=463 |archive-date=2011-07-21 }}</ref> and ''Review of the Economy'' of India.

==Organisation==
The PMEAC is chaired by a [[Chairperson]] and consists of eminent economists as members.<ref name="EAC"/> It is supported in its functions by a team of officials and administrators. There is no fixed definition on the exact number of members and staff of the PMEAC. At one point it was even chaired by the then Prime Minister [[Atal Bihari Vajpayee]] himself.

For administrative, logistic, planning and budgeting purposes, the [[NITI Aayog]] serves as the Nodal Agency for the PMEAC.<ref>{{cite web|url=http://planningcommission.nic.in/ |title=Planning Commission of India |publisher=Planningcommission.nic.in }}</ref>

===Chairman===
[[Bibek Debroy]] is the current chairman of the current EAC, appointed in 2017.<ref>{{Cite news|url=https://www.business-standard.com/article/economy-policy/pm-forms-economic-advisory-council-bibek-debroy-appointed-chairman-117092500888_1.html|title=PM forms Economic Advisory Council; Bibek Debroy appointed chairman|last=Team|first=BS Web|work=Business Standard India|access-date=2019-12-06}}</ref>

Dr. [[C. Rangarajan]] was the Chairman of the previous PMEAC. Chairman suggests measures to improve the economic condition.<ref name="EAC"/> He was appointed in August 2009.<ref>{{cite web |url=http://vision.sughosh.in/economic-advisory-council-pm// |title=C. Rangarajan to head PMEAC again |publisher=vision.sughosh.in |access-date=2014-06-26 |archive-url=https://web.archive.org/web/20160306015118/http://vision.sughosh.in/economic-advisory-council-pm/ |archive-date=6 March 2016 |url-status=dead }}</ref> The Chairman had the rank equivalent to a [[Cabinet Minister]] of India.<ref name="PMEAC"/>

===Members===
The following are currently the members of the PMEAC:<ref name="EAC"/><ref>{{Cite web|url=https://eacpm.gov.in/about-us/part-time-members/|title=PM - Economic Advisory Council - Part-time Members}}</ref><ref>{{Cite news|url=https://www.business-standard.com/article/economy-policy/govt-appoints-3-part-time-members-to-eac-pm-119101700406_1.html|title=Govt expands PM's Economic Advisory Council; appoints 3 part-time members|last=Roychoudhury|first=Arup|work=Business Standard India|access-date=2019-12-06}}</ref>

* [[Bibek Debroy]] - chairman of the council, who was a member of NITI Aayog.
*Dr. Shamika Ravi, as a full time member who was also earlier member of the EAC.
*
* [[Sanjeev Sanyal]], as full-time member, who was Principal Economic Advisor of Finance Minister.
* Dr. Sajjid Z. Chinoy, as part-time member, who is Chief India Economist at J.P. Morgan
* Dr. Ashima Goyal, as part-time member, a widely published economist and Indira Gandhi Institute of Development Research professor
* Prof. TT Ram Mohan, as part-time member. Visiting Professor at IIM Ahmedabad.
*Neelkanth Mishra, as part-time member, is a Managing Director, Co-Head of Equity Strategy, Asia Pacific, and India Strategist for Credit Suisse
*Nilesh Shah is currently Managing Director of Kotak Mahindra Asset Management Company Limited
*Dr. Poonam Gupta, as part-time member. Director General of NCAER.

The previous EAC had, in addition to Dr C Rangarajan, the following members:<ref>{{Cite web|url=https://scroll.in/latest/938551/economic-advisory-council-reconstituted-members-who-raised-concerns-about-economy-dropped|title=Members who raised concerns about economy dropped from prime minister's advisory council|author=Scroll Staff|website=Scroll.in|language=en-US|access-date=2019-12-06}}</ref>

* Dr. M Govinda Rao (Director-General, National Institute of Public Finance & Policy)
* Dr. Saumitra Chaudhury (Economic Adviser, ICRA (Information and [[credit rating]] services), India)
* Dr. Vijay Shankar Vyas (President, Asian Society of Agricultural Economists)
* Dr. Dilip M. Nachane ( Professor Emeritus, Indira Gandhi Institute of Development Research, Mumbai)
*Economist Surjit Bhalla
*National Institute of Public Finance and Policy director Dr. Rathin Roy
*Brookings Institution member Shamika Ravi

In the previous PMEAC, the members of the council were given the rank of [[Minister of State]].<ref name="PMEAC"/> At one time even the former Prime Minister [[Manmohan Singh]] was a member of the PMEAC<ref>[http://india.gov.in/govt/rajyasabhampbiodata.php?mpcode=2 ManMohan Singh's Profile] {{webarchive |url=https://web.archive.org/web/20111207031001/http://india.gov.in/govt/rajyasabhampbiodata.php?mpcode=2 }}</ref>

===Officials===

The previous EAC had the following officials:
* Dr. Alok Sheel - Secretary
* Tapasya Obhroi Nair - Deputy Secretary
* Sh. Vibeesh E M - Senior Research Officer

==Impact==
The periodic reports of the PMEAC - the annual ''Economic Outlook''<ref name="business1"/> and ''Review of the Economy'' - are the most widely followed. Additionally the remarks and opinions of the Chairman and members of the PMEAC get widespread media coverage and are influential in formulation of the policies of other economic agencies, financial institutions and businesses.<ref>{{cite web|url=http://www.dnaindia.com/money/report_prime-minister-s-economic-advisory-council-recommends-hike-in-interest-rates_1413785 |title=PMEAC news |publisher=Dnaindia.com |access-date=2011-03-07}}</ref> Many financial periodicals publish interviews and speeches of PMEAC Chairman<ref name = "IC">{{cite web|url=http://www.business-standard.com/india/news/qa-c-rangarajan-chairman-economic-advisory-council/412371/ |title=Interview with C.Rangrajan |publisher=Business-standard.com |access-date=2011-03-07}}</ref> to understand the most critical economic woes facing the country like [[inflation]], [[Monetary policy|monetary measures]],<ref>{{cite news|url=http://economictimes.indiatimes.com/news/economy/indicators/rbi-may-go-for-further-monetary-tightening-measures-pmeac/articleshow/7493800.cms |title=RBI may go for tightening |publisher=Economictimes.indiatimes.com |access-date=2011-03-07}}</ref> etc. Views of the PMEAC are also sought after to better understand the prospects of economic performance of India like its growth rates<ref name = "IC"/><ref>{{cite news|url=http://timesofindia.indiatimes.com/business/india-business/PMEAC-pegs-growth-at-8-in-10-11/articleshow/5403313.cms |title=Growth Rate of india TOI |work=The Times of India |access-date=2011-03-07}}</ref> as well as on policy matters like ''autonomy of regulators''<ref>{{cite news| url=http://economictimes.indiatimes.com/news/economy/policy/pmeac-chairman-backs-regulators-autonomy/articleshow/6267980.cms | work=The Times of India | title=PMEAC chairman backs regulators' autonomy | date=2010-08-07}}</ref> and cotton export policy.<ref>{{cite web|url=http://www.business-standard.com/india/news/pmeac-finds-flaws-in-cotton-export-policy/102621/on |title=Cotton Export Policy Business standard article |publisher=Business-standard.com |access-date=2011-03-07}}</ref> In February 2011, PMEAC recommended to the [[Government of India|government]] to initiate the process of fiscal consolidation given that the [[Financial crisis of 2007–2008|international financial crisis]] has started to ease and the [[Government of India|government]] had to re-initiate its commitment to the [[Fiscal Responsibility and Budget Management Act]].<ref>{{cite news
| title = PMEAC asks govt to withdraw a few tax exemptions in Budget
| url = http://www.business-standard.com/india/news/pmeac-asks-govt-to-withdrawfew-tax-exemptions-in-budget/426102/
| work = Business Standard
| date = 22 February 2011
| access-date = 22 February 2011
}}</ref>

==Reports==
Among the widely read periodic reports of the PMEAC - the annual ''Economic Outlook''<ref name="business1"/> and ''Review of the Economy'', the following are the latest editions.
#Review of the Economy 2010-11<ref name=2010report>{{cite web|title=Review of Economy 2010-11|url=http://eac.gov.in/reports/revieweconomic_201011.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Economic Outlook for 2010-11<ref name=EO2010>{{cite web|title=Economic Outlook for 2010-11|url=http://eac.gov.in/reports/ecoout_1011.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Review of the Economy 2009-10<ref name=2009report>{{cite web|title=Review of the Economy 2009-10|url=http://eac.gov.in/reports/eac_rv0910.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Economic Outlook for 2009-10<ref name=EO2009>{{cite web|title=Economic Outlook for 2009-10|url=http://eac.gov.in/reports/eo09_10.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Review of the Economy 2008-09<ref name=2008report>{{cite web|title=Review of the Economy 2008-09|url=http://eac.gov.in/reports/eac_rv0809.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Economic Outlook 2008-09<ref name=2008EO>{{cite web|title=Economic Outlook 2008-09|url=http://eac.gov.in/reports/ecout0809.pdf|access-date=7 March 2011}}</ref>
#Review of the Economy 2007-08<ref name=2007report>{{cite web|title=Review of the Economy 2007-08|url=http://eac.gov.in/reports/rev_eco0708.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Economic Outlook for 2007-08<ref name=EO2007>{{cite web|title=Economic Outlook for 2007-08|url=http://eac.gov.in/reports/ecout0708.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>
#Economic Outlook 2006-07<ref name=EO2006>{{cite web|title=Economic Outlook 2006-07|url=http://eac.gov.in/reports/eac0607.pdf|publisher=PMEAC|access-date=7 March 2011}}</ref>

==Latest assessment 2010–11==
[[File:PMEAC-Review-of-Economy-2010-11.pdf|thumb|PMEAC Review of Economy 2010-11 Full Document]]
Based on the latest assessment of the Economy of India for the financial year 2010–11, the EAC has highlighted the following:<ref name=2010report/>
* Economic growth projected at 8.6% for FY2010-11 and 9% for FY2011-12
* Inflation estimated to be at 7% by March-end
* Agriculture sector projected to grow 5.4% in 2010-11
* Industry sector to expand at 8.1% and services sector at 9.6%
* Fiscal deficit to come down to 5.2% in FY11
* Exports estimated to increase to $230 billion in FY2010-11
* Current account deficit to be 3% of GDP
* Budgeted fiscal and revenue deficit beyond comfort zone
* Capital inflows projected at $64.6 billion this fiscal
* Investment rate expected to be 37%
* Domestic savings rate expected to be 34%

==See also==

== References==
{{reflist}}

{{Economy of India topics}}

==External links==
* [http://eac.gov.in/ Economic Advisory Council to the Prime Minister Homepage]

[[Category:Government agencies of India]]
[[Category:Economy of India]]
[[Category:Councils of India]]

Economic Advisory Council - Revision history

CleanupBot II at 22:18, 13 August 2023