2 March 2025
In a significant move, the Former Reserve Bank of India (RBI) Governor Shaktikanta Das has been appointed as Principal Secretary-2 to Prime Minister Narendra Modi. This newly established role signals the administration's recognition of Das's extensive experience and capability in navigating economic complexities. The Appointments Committee of the Cabinet gave the green light, setting the stage for Das to continue until the end of Modi’s current term, unless otherwise directed.
Shaktikanta Das’s Impressive Track Record
An IAS officer from the Tamil Nadu cadre, Shaktikanta Das brings a wealth of experience as part of the 1980 batch. His tenure as RBI Governor was marked by several significant challenges. Starting with the 2016 demonetisation, Das spearheaded efforts to manage economic disruption, aiming to stabilize the situation through thoughtful measures. Later, during the COVID-19 pandemic, he was pivotal in orchestrating monetary policy to support financial markets and alleviate economic stress.
Under his leadership, the RBI focused on maintaining a harmonious relationship with the government. Das played a crucial role in reforming the banking sector, particularly addressing the issue of non-performing assets (NPAs). His efforts to streamline bank operations and reduce NPAs were instrumental in bolstering the financial sector's health. Additionally, his strategies in guiding the monetary policy against the backdrop of inflationary pressures have been noteworthy.
Broader Implications of the Appointment
Das’s ascension to this role reflects a nuanced approach by the Prime Minister’s Office to leverage financial expertise at the top levels of government decision-making. Prior to his stint as RBI Governor, Das made substantial contributions as Economic Affairs and Revenue Secretary. His understanding of fiscal policies and their impacts on the broader economy was shaped during these roles.
With this newly carved-out position, Das will be working alongside PK Mishra, who continues to hold the post of Principal Secretary-1. Mishra's longstanding experience in government, having entered the civil service in 1972, complements Das’s economic acumen, together forming a formidable team supporting Modi's administration. This strategic appointment ensures that the economic and fiscal agendas align seamlessly with government's overarching policies.
This transition for Das reinforces the need for adept management at the intersection of policy implementation and economic prowess, ensuring that the country's economic frontiers remain robust and resilient.
