Former Reserve Bank of India (RBI) Governor Shaktikanta Das was appointed Principal Secretary-2 to Prime Minister Narendra Modi on Feb. 22, with his term set to end alongside Modi’s, according to the Secretariat of the Appointments Committee of the Cabinet. He will work with Principal Secretary-1 Pramod Kumar Mishra. This is the first time the prime minister (PM) will have two principal secretaries.”
The Principal Secretary is the administrative chief and the most important aide of the PM. His duties include advising the PM on domestic and foreign policy matters, handling official, governmental, and important paperwork in the PM’s Office, and placing critical files of importance for approval and instructions before the PM.
Das is the only bureaucrat in history to hold a position with experience in both monetary and fiscal policy. He is the second RBI governor, after Bimal Jalan, to have a six-year tenure. During his tenure in the finance ministry, he was directly involved in preparing eight union budgets.
Das, a retired Indian Administrative Officer, is known as “Mr. Dependable,” especially under the current government. As a governor of the RBI, he played a crucial role in the PM’s demonetization initiative and Goods and Services Tax rollout. He effectively managed the liquidity crisis of Infrastructure Leasing & Financial Services and was able to build consensus within the government during challenging times.
However, the opposition raised concerns about the motives behind the political appointment. For the Indian government, Das is more than just another bureaucrat; he is a valuable addition. If the government can utilize his 42 years of experience in central and state governments and international institutions, it may help advance Modi’s vision of achieving a $5 trillion Indian economy. At a time when global trade wars are on the horizon, the value of the rupee is declining, and economic growth is slowing, Modi is betting that Das’s expertise will help ensure that the government and the RBI work together effectively to boost India’s economic fortunes.
