Shaktikanta Das, known for his adept handling of economic policies and reforms, has been appointed as the second Principal Secretary to Prime Minister Narendra Modi. This marks a significant shift in the Prime Minister's Office (PMO) structure, introducing a second position for Principal Secretary. Das, who notably served as the Reserve Bank of India (RBI) Governor until December 2024, brings a wealth of experience and a track record of effective crisis management to the role.

The creation of this new position, with Das accompanying the existing Principal Secretary, PK Mishra, is seen as a strategic move by Modi to strengthen his administration's economic policy apparatus. In a time where global trade dynamics are increasingly challenging, having a seasoned expert like Das in close advisory capacity could prove invaluable to the Modi government.

An Influential Career in Economic Policy

Das has been a prominent figure in India's economic landscape long before his tenure as the RBI Governor. As the Economic Affairs Secretary, he was instrumental in the implementation of the Goods and Services Tax (GST) and played a critical role in managing the controversial 2016 demonetisation drive. These initiatives were part of larger efforts to streamline economic operations and curb black money in India.

During the COVID-19 pandemic, Das's leadership at the RBI was pivotal. He spearheaded liquidity measures to ensure economic stability, undertaking bank reforms and safeguarding financial institutions at a time when economic activities were largely disrupted. His efforts extended beyond national borders, as he was India's voice at influential global forums including the International Monetary Fund (IMF), G-20, and BRICS.

Trusted Bureaucrat and Able Crisis Manager

Das's role as a trusted lieutenant in India's bureaucratic machinery is hard to overstate. With a master's degree in public administration from the University of Birmingham, his career started as an IAS officer from the 1980 batch out of Tamil Nadu. Over the years, Das has earned a reputation for being an unflinching crisis manager, occasionally referred to as 'Mr. Dependable' within the corridors of power. His ability to navigate complex economic policy negotiations, like India's 1991 IMF bailout, has solidified his status as a key policymaker.

The decision to appoint Shaktikanta Das highlights Prime Minister Modi's reliance on bureaucrats with proven credentials and integrity. It underscores the administration's commitment to effectively address India's economic challenges amid a globally volatile trade environment. As the tenure of Prime Minister Modi progresses, the expectations from this new governance arrangement are high, with both Das and Mishra at the helm, poised to guide India's economic strategy.