By Prachi Mishra
Former Governor of the Reserve Bank of India, Shaktikanta Das, has been appointed Principal Secretary to Prime Minister Narendra Modi-a decision made public in an official government notification, which further stated that the period of service would coincide with that of the Prime Minister or until further notice.
With over 40 years of expertise in various government positions, Das began his term at the RBI in December 2018. He has occupied varied significant positions both at the state and federal level, especially in finance, taxation, infrastructure, and industry. His leadership was characterized by instituting strategic initiatives that would carry the economy and the finance sector through the recent challenges of COVID-19.
The Central Bank, which had Das as its head, undertook several old and new measures to keep the financial sector stabilized. This ranged from monetary policy adjustments and liquidity support to regulatory measures, sometimes historic in nature, which noticeably alleviated the economic fallout of the pandemic. Another key aspect of his tenure was the digital transformation of banking and payment systems alongside inflation control.
The government has also approved the extension of the period of the BVR Subrahmanyam term as Chief Executive Officer of the NITI Aayog for another year. The retired IAS officer originally appointed on a two-year period in February 2023 will now see the extension to February 24, 2025.
Such announcements indicate that the government intends to keep experienced leaders at major policymaking and advisory positions. Economic and governance know-how from Das can be expected to have a significant impact at the highest level on important policy-level decisions that come into effect, strengthening India’s financial and administrative structure. His appointment has, therefore, been viewed as a strategic measure to ensure continuity in policies and somewhat of an anchor to maintain economic stability in the face of global challenges, which inversely would strengthen confidence in India’s governance architecture.