Shaktikanta Das's New Role and His Extensive Experience
Shaktikanta Das, who previously held the prestigious position of Governor of the Reserve Bank of India (RBI), is now stepping into a newly crafted role as Principal Secretary-2 to Prime Minister Narendra Modi. This strategic appointment, sanctioned by the Appointments Committee of the Cabinet on February 22, 2025, signals a fresh direction in policymaking within the Prime Minister's Office (PMO). The role, which is set to last as long as Modi remains in office or until new directions are given, reflects the importance of seasoned leadership during challenging economic times.
Das, an Indian Administrative Service officer from the 1980 Tamil Nadu cadre, brings with him over 40 years of governmental and economic experience. During his time as RBI Governor from 2018 to 2024, he proved instrumental in navigating pivotal challenges such as demonetization in 2016, the onset of the COVID-19 pandemic, and ongoing geopolitical tensions. His adept management of the economic landscape during the pandemic included maintaining liquidity during nationwide lockdowns and enacting significant changes in monetary policy.
Challenges Ahead for India’s Economy
His extensive experience came at a crucial time for the nation. During his tenure, he executed a reduction of the RBI's key policy rate by 125 basis points to adapt to the economic strains induced by the pandemic. Before his tenure as RBI Governor, he had already made an impact as Economic Affairs Secretary, where he played a significant role in managing post-demonetization economic recovery efforts.
This new role of Principal Secretary-2 to Modi comes at a time when the country is grappling with several economic complexities such as rupee volatility, trade disagreements, and slowing economic growth. Das's deep understanding of both fiscal and monetary policies is expected to lend robust support to the economic directives of the PMO. His previous work on meeting fiscal deficits, inflation, and managing liquidity aligns him well to tackle these pressing issues.
Meanwhile, PK Mishra, a veteran from the 1972 Gujarat cadre IAS, continues to serve as the primary Principal Secretary to Modi, ensuring seasoned officials guide the key decisions within the PMO. With both Mishra and Das working in concert, the office is poised to address the economic challenges head-on, fostering strategies for economic resilience and growth amid today's complex global landscape.