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

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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.

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