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LATEST NEWS UPDATES | Modi does as Singh had done

Modi does as Singh had done

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published Published on Sep 26, 2017   modified Modified on Sep 26, 2017
-The Telegraph

New Delhi: Prime Minister Narendra Modi today constituted an economic advisory council, shedding a three-year policy of relying on loose-knit groups and reviving a formal set-up that had helped Manmohan Singh navigate the global downturn a decade ago.

The "course correction" by Modi is being linked to the grim news on the economic front largely in the wake of demonetisation and teething troubles in the implementation of the GST.

The council will analyse "any issue, economic or otherwise", referred to it by the Prime Minister. Its terms of reference include attending to "any other task as may be desired by the Prime Minister from time to time", a government statement said.

Headed by Niti Aayog member Bibek Debroy, the council includes Niti Aayog's principal adviser Ratan Watal as its member and economists Surjit Bhalla, Rathin Roy and Ashima Goyal as part-time members.

"The five-member council consists of economists of high repute and eminence," said an official statement.

Modi's predecessors had similar councils. The last one, headed by former RBI governor C. Rangarajan, was considered a particularly distinguished gathering of economic talent.

The primary role of the economic advisory council is to give a neutral assessment on economic policy matters. When Rangarajan was at the helm of the council, deft management of the financial markets and fiscal policy was credited with helping India tide over the global financial crisis.

However, during the first three years of his term, Modi had depended largely on the Niti Aayog and the finance ministry for economic advice, besides informally tapping industrialists and party colleagues.

A section of officials in the finance ministry interpreted the formation of the council now as an indirect admission that the process followed for the past three years had not delivered the desired results.

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The Telegraph, 25 September, 2017, https://www.telegraphindia.com/1170926/jsp/frontpage/story_175102.jsp


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