Shaktikanta Das, previously at the helm of the Reserve Bank of India, has taken on a pivotal role as the second Principal Secretary to Prime Minister Narendra Modi. This strategic appointment comes as India faces a slew of fiscal challenges and underscores an intent to bolster the country's economic policymaking capabilities.
Das's impressive track record speaks volumes. From spearheading the implementation of the Goods and Services Tax (GST) to deftly handling the tumultuous period of demonetisation as the Economic Affairs Secretary, he has consistently proven his mettle in navigating complex economic landscapes. His tenure as RBI Governor was nothing short of eventful, marked by the unprecedented COVID-19 crisis during which he maintained financial stability through a series of liquidity measures and adaptive monetary policies.
The timing of his appointment is crucial. India is grappling with rising fiscal pressures, exemplified by the projected pension expenditure hitting Rs 2.77 lakh crore in the 2025-26 Interim Budget. Global economic uncertainties further compound the situation, exacerbated by ongoing trade wars and a weakening rupee. In this climate, Das's ability to coordinate between the Reserve Bank and the central government becomes invaluable. He has been instrumental in resolving critical issues like surplus fund transfers and has significantly improved communication channels with fluctuating markets.
Joining forces with Principal Secretary-1 PK Mishra, Das's tenure is set to align with that of Prime Minister Modi's. His contributions to the economy are notable, including a remarkable decrease in non-performing assets (NPAs) from 10.8% in 2018 to just 2.8% by 2024. Moreover, representing India at prestigious global platforms such as the G20 and IMF, Das has established himself as a formidable advocate for India’s economic interests on the international stage.
Das's immersion in the present fiscal and monetary landscape equips him uniquely to tackle the present-day challenges with a blend of experience, strategic acumen, and seasoned diplomacy. With his expertise, the Prime Minister's Office is well-positioned to address the evolving economic dynamics and ensure continued financial stability.