Shaktikanta Das, former Governor of the Reserve Bank of India (RBI), has been appointed as the Principal Secretary to the Prime Minister of India, effective February 22, 2025. His appointment signals a significant shift in India’s bureaucratic landscape, as he brings a rare blend of expertise in both monetary and fiscal policy. His role will be pivotal in coordinating efforts across various ministries and advising the Prime Minister on critical economic matters.
A Storied Career in Indian Administration
Shaktikanta Das, an Indian Administrative Service (IAS) officer from the 1980 Tamil Nadu cadre, has had an illustrious career spanning over four decades. A graduate in history from St. Stephen’s College, University of Delhi, he has held numerous key positions in India’s financial and economic governance, including serving as Secretary of Fertilisers and Revenue Secretary in the Ministry of Finance.
His most prominent role came as the 25th Governor of the Reserve Bank of India, a position he held from 2018 to December 2024. His leadership at the central bank proved crucial in navigating major economic challenges over the years.
Steering the RBI Through Critical Times
Das’s six-year tenure as RBI Governor was marked by significant economic developments. He played a central role in managing India’s monetary policy during periods of uncertainty, including:
- The COVID-19 pandemic, implementing liquidity measures and regulatory reforms to stabilize the economy.
- The Russia-Ukraine war’s impact on inflation, ensuring stability through strategic policy interventions.
- The withdrawal of ₹2,000 notes from circulation, enhancing currency management.
- Global promotion of UPI and RuPay, strengthening India’s digital payments ecosystem internationally.
Under his leadership, the RBI strengthened its financial oversight, promoted fintech innovations, and balanced inflation control with economic growth.
A New Role in India’s Bureaucracy
The Principal Secretary to the Prime Minister is a highly influential position, responsible for overseeing the Prime Minister’s Office (PMO). Key responsibilities include:
- Briefing the Prime Minister on economic, administrative, and policy matters.
- Coordinating inter-ministerial communication to ensure seamless governance.
- Advising on economic and financial strategies for national development.
- Managing communications with foreign dignitaries and global economic bodies.
Das will work alongside incumbent Principal Secretary Pramod Kumar Mishra, adding an economic edge to the PMO’s decision-making process.
Legacy of Policy Leadership
Das is widely respected for his pragmatic approach to economic policy. His handling of the 2016 demonetisation process, ensuring banking and financial stability during the transition, was one of his early tests. Later, he played a crucial role in keeping financial markets operational during India’s national lockdown in 2020.
Throughout his career, he has fostered effective collaboration between the RBI and the Finance Ministry, ensuring alignment in India’s economic policies. His ability to balance fiscal prudence with growth-oriented reforms makes him a valuable asset in his new role.
Challenges Ahead
As Principal Secretary to the Prime Minister, Das will face several key challenges, including:
- Managing inflationary pressures amid global economic fluctuations.
- Enhancing India’s economic competitiveness through policy reforms.
- Strengthening financial sector resilience in an evolving digital economy.
- Coordinating policies across ministries to drive economic growth and social development.
With his deep experience in economic governance, Das is well-positioned to navigate these challenges and play a pivotal role in shaping India’s policy direction at the highest level.
His appointment marks a new era of economic-focused leadership in the PMO, reinforcing the government’s commitment to financial stability, economic growth, and administrative efficiency.