S. Mahendra Dev Appointed New Chief of Economic Advisory Council

the government has appointed Dr. S. Mahendra Dev as the new Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM). His appointment marks a new chapter in India’s economic advisory framework, promising to blend academic rigor with practical policy insights at a time when the country faces complex economic challenges.

Who is S. Mahendra Dev?

Dr. S. Mahendra Dev is a renowned economist specializing in development economics, with decades of experience in academia, research, and public policy. A product of some of the country’s most prestigious institutions, he completed his Ph.D. in economics from the Delhi School of Economics, a premier centre for economic studies in India. He also undertook postdoctoral research at Yale University, where he focused on development issues, thereby gaining international exposure to economic thought and policymaking.

Throughout his career, Dr. Dev has been deeply engaged in studying issues related to poverty, inequality, rural development, and human development. His work has often addressed the challenges faced by developing economies like India, with a particular emphasis on inclusive growth and the role of government policies in shaping socio-economic outcomes.

He has held several notable academic and administrative positions, including Director and Vice Chancellor of the Indira Gandhi Institute of Development Research (IGIDR), Mumbai, one of India’s leading economics research institutes. He was also Chairman of the Institute for Development Studies, Andhra Pradesh, where he contributed significantly to regional development research and policy advice.

Besides academia, Dr. Dev has served on several government committees and advisory boards. Notably, he has been an independent director on the boards of prominent banks like Axis Bank and Kotak Mahindra Bank, reflecting his expertise in financial economics and governance.

About the Economic Advisory Council to the Prime Minister (EAC-PM)

The Economic Advisory Council to the Prime Minister is a non-constitutional, non-statutory body created to provide the Prime Minister with advice on economic issues. It is independent of the government machinery and is tasked with analyzing economic developments, evaluating macroeconomic policies, and recommending policy measures aimed at enhancing India’s economic performance.

The EAC-PM typically consists of a chairman, part-time members drawn from academia, research institutions, and industry, as well as full-time members who work closely with the council on a contractual basis. The council’s functions include preparing reports on the economic outlook, assessing policy impacts, and advising on reforms related to growth, inflation, employment, and fiscal management.

Since its inception, the EAC-PM has played an important role in shaping economic discourse in India, offering expert opinions that complement government policies. While advisory in nature, its recommendations are closely watched by policymakers, industry stakeholders, and analysts.

The Transition and Appointment of Dr. Mahendra Dev

Dr. Mahendra Dev takes over as chairman at a crucial juncture. He succeeds NITI Aayog Vice Chairman Suman Bery, who had been holding additional charge after the passing away of Dr. Bibek Debroy, the first chairman of the newly constituted council following the restructuring of India’s economic advisory institutions.

His appointment comes with a two-year tenure and accords him the status and pay equivalent to a Union Minister of State, underlining the importance the government attaches to the role. The council itself has been reconstituted, with the addition of several new part-time members who bring expertise in various fields such as econometrics, finance, agriculture, and macroeconomic policy. These members include Soumya Kanti Ghosh, K.V. Raju, Chetan Ghate, Pami Dua, Pulak Ghosh, and Gourav Vallabh. At the same time, former member Poonam Gupta has stepped down following her appointment as a Deputy Governor of the Reserve Bank of India.

Full-time members who assist the chairman include Sanjeev Sanyal, the Principal Economic Advisor, Sanjay Kumar Mishra, and Shamika Ravi, who bring in diverse perspectives from government policy and research.

Significance of Dr. Dev’s Appointment

Dr. Dev’s appointment signals a renewed emphasis on development economics within the council’s agenda. His background in addressing structural challenges related to poverty, rural development, and inequality positions him uniquely to contribute to policymaking aimed at inclusive growth — a priority for the current government and India’s economic trajectory.

Given his experience at IGIDR and other academic institutions, Dr. Dev brings with him a strong empirical and analytical approach. His research-based insights can be invaluable in designing and evaluating policies related to social welfare, education, health, labor markets, and agricultural reforms — sectors critical to India’s development story.

Furthermore, Dr. Dev’s engagement with financial institutions as a board member adds a practical dimension to his advisory role, allowing him to bridge the gap between theory and practice effectively. His understanding of banking, financial inclusion, and market dynamics will be crucial as India navigates economic challenges including inflation, fiscal deficits, and global economic uncertainties.

Challenges Facing the EAC-PM Under Dr. Dev’s Leadership

India’s economy currently faces several pressing challenges:

1. Inflation and Price Stability: Controlling inflation, especially food and fuel prices, remains a significant concern. The EAC-PM’s advice on balancing growth with price stability will be critical.

2. Employment Generation: Post-pandemic recovery highlights the urgent need for job creation, especially in the informal sector and rural areas. Dr. Dev’s expertise in labor economics and development will be vital in crafting sustainable employment policies.

3. Agricultural Reforms: With millions dependent on agriculture, policy advice on farm reforms, market access, and rural livelihoods will continue to be central.

4. Sustainable Development: Integrating environmental concerns with growth strategies is increasingly important. The council will need to offer innovative solutions balancing economic and ecological priorities.

5. Fiscal Management: With high government expenditure on social schemes, infrastructure, and subsidies, the EAC-PM must recommend prudent fiscal strategies.

6. Global Economic Uncertainty: Geopolitical tensions, trade disruptions, and shifting global supply chains require adaptive economic policies.

Dr. Dev’s leadership will be tested in navigating these complex issues and providing actionable, research-backed advice to the Prime Minister and policymakers.

Broader Implications for India’s Economic Policy

The EAC-PM’s role is not limited to advising the Prime Minister; its influence extends to shaping public discourse and informing the policymaking process. Dr. Dev’s emphasis on development economics and inclusive growth may encourage a focus on reducing inequality, enhancing human capital, and promoting sustainable rural development.

His appointment also reflects the government’s recognition of the need to incorporate diverse economic perspectives, including those rooted in academic research and empirical analysis. This could lead to more evidence-based policymaking, greater transparency, and improved outcomes.

Moreover, the EAC-PM under Dr. Dev may strengthen collaboration between government, academia, and industry — fostering innovation and policy experimentation that addresses India’s unique challenges.

Dr. S. Mahendra Dev’s appointment as chairman of the Economic Advisory Council to the Prime Minister is a timely and strategic choice. With his vast expertise in development economics and policy, he is well-positioned to guide India through a period of economic transition and reform.

As India seeks to balance rapid growth with social equity and sustainability, the EAC-PM’s role in providing independent, informed advice is more important than ever. Dr. Dev’s leadership is expected to invigorate the council’s work, ensuring that economic policies are grounded in robust analysis and aimed at creating a more inclusive and prosperous India.

In the coming years, all eyes will be on the council’s recommendations and their impact on India’s economic trajectory. Dr. Mahendra Dev’s tenure promises to be a crucial chapter in the country’s ongoing economic development story.