PM Modi, EAC-PM Discuss Economic Growth, Global Challenges

Prime Minister Narendra Modi recently convened a pivotal meeting with the members of the Economic Advisory Council to the Prime Minister (EAC-PM) on Saturday, June 6, 2026, to deliberate on strategies for sustaining and accelerating India's economic growth. The high-level gathering, also attended by key officials including the Prime Minister's Principal Secretaries P.K. Mishra and Shaktikanta Das, focused on a wide array of economic issues pertinent to India's transformation and long-term development priorities. The primary agenda of the meeting revolved around discussing ideas and policy measures to strengthen India's economic momentum amidst a challenging global environment marked by significant uncertainties. A crucial part of the discussions involved assessing the potential impact of the ongoing conflict in West Asia on both India and the global economies. This included considerations of its implications for energy markets, trade routes, supply chains, and broader economic stability, as prolonged tensions in the region continue to raise uncertainty across global markets. Prime Minister Modi, in a post on X (formerly Twitter), affirmed that the meeting deliberated on a wide range of issues relating to India's economic transformation and long-term development priorities. He also emphasized the importance of adding more momentum to the reforms journey to ensure 'Ease of Living' for citizens and 'Ease of Doing Business' for enterprises. This reiterates the government's ongoing commitment to structural reforms aimed at improving governance efficiency, reducing compliance burdens, and fostering a more conducive environment for investment and entrepreneurship in the country. The EAC-PM, an independent body tasked with advising the Prime Minister on economic and related issues, provided its expert insights during the deliberations. The council is currently chaired by S. Mahendra Dev, with full-time members including Sanjay Kumar Mishra, Sanjeev Sanyal, and Shamika Ravi, alongside eleven part-time members drawn from diverse fields such as academia, finance, and public policy. Their collective expertise contributes significantly to shaping the government's economic policy framework. The discussions also touched upon specific reform measures to ease doing business, boost consumption, and provide relief to the populace. The meeting came against the backdrop of official data showing that India's economy grew by a robust 7.7% for the full financial year 2025-26, with the fourth quarter (January-March 2026) registering 7.8% growth, driven by strong performances in the agriculture, construction, and services sectors. This strong domestic growth story provides a solid foundation even as global headwinds persist. Despite India's strong fundamentals, policymakers acknowledge the need to strengthen economic resilience. The Reserve Bank of India (RBI) had also recently kept its policy repo rate unchanged at 5.25% amidst geopolitical tensions, inflation concerns, and supply chain disruptions, emphasizing the need for policymakers to use disruptions as an opportunity to further strengthen economic resilience. The government has also unveiled measures to widen investment options for foreign investors in Indian equities and made government bonds more attractive with tax concessions, alongside monetary measures from the RBI to boost foreign exchange inflows. Overall, the meeting underscored the government's proactive approach to navigating global economic challenges while maintaining focus on domestic growth drivers and long-term developmental goals. The emphasis on self-reliance, strategic investments in energy infrastructure, nuclear power, and domestic manufacturing was also highlighted in related discussions. The Prime Minister reiterated the need for long-term measures to strengthen the economy's fundamentals, ensuring resilience against future global shocks and crises. The consensus from the meeting was a renewed commitment to sustained reforms and vigilant monitoring of the global economic landscape to safeguard India's progress and ensure continued prosperity for its citizens.

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