ECONOMIC ADVISORY COUNCIL TO THE PM (Syllabus: GS Paper 2 – Polity)

Context: The Chairman of the Economic Advisory Council to the Prime Minister highlighted the urgency for establishing a new poverty line during a data user conference hosted by the Ministry of Statistics and Programme Implementation.

Economic Advisory Council to the Prime Minister

• About: EAC-PM was established in 2017 as an independent body tasked with advising the Government of India, specifically the Prime Minister, on economic matters.
• Terms of Reference: It encompass analyzing economic and other pertinent issues referred by the Prime Minister, offering advice, and addressing macroeconomic concerns of national significance.

oIt operates both on suo-motu basis and upon request from the Prime Minister or others, attending to diverse tasks as directed.

• Monthly Economic Reports: A significant function of the EAC-PM involves preparing monthly reports on economic developments, both domestic and global, for the Prime Minister's consideration.

oIt monitors economic trends regularly and recommends suitable policy responses based on emerging developments.

• Engagement and Communication: The council maintains regular interaction with stakeholders and the public, disseminating its findings and recommendations through comprehensive reports, presentations, and public engagements.
• Composition: Headed by a Chairman, the EAC-PM comprises a blend of economists and experts drawn from academia, research institutions, and the private sector.

oThe council's membership structure is flexible, with varying compositions over time, often featuring internationally recognized economists.

• Administrative Framework: For administrative, logistical, and budgetary purposes, the NITI Aayog serves as the coordinating agency for the EAC-PM, ensuring efficient planning and support.
• Functions: 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.