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Former Reserve Bank of India (RBI) Governor Shaktikanta Das (Retd IAS: 1980: TN) has been appointed as Principal Secretary-2 to the Prime Minister of India. His tenure will be co-terminus with that of the Prime Minister or until further orders, whichever comes earlier. According to the Appointments Committee of the Cabinet (ACC), Das will serve alongside Dr. P K Mishra, who holds the position of Principal Secretary to Prime Minister-1.
A Distinguished Career in Economic Policy
Shaktikanta Das, the 25th Governor of the RBI, has had a long and influential career in Indian economic policy. He assumed the governorship on December 11, 2018, succeeding Urjit Patel. Before this, he served as the Economic Affairs Secretary and India’s Sherpa to the G20 between November 27, 2017, and December 11, 2018. Throughout his career, Das has represented India at major global forums such as the International Monetary Fund (IMF), the G20, and BRICS.
Born in 1957 in Odisha, Das has an impressive academic background. He earned both his bachelor’s and master’s degrees in History from St. Stephen’s College at the University of Delhi. Additionally, he holds a postgraduate degree in Public Administration from the University of Birmingham, UK.
Shaktikanta Das Career
Joining the Indian Administrative Service (IAS) in 1980, Das was assigned to the Tamil Nadu cadre. He served in various key positions within the state government, including Commissioner of Commercial Taxes and Principal Secretary of Industries, before moving to the central government. At the national level, he held the position of Joint Secretary in the Ministry of Finance, where he was instrumental in shaping economic policy.
Das has been at the forefront of some of India’s most significant economic reforms. He played a crucial role in the implementation of demonetisation and the Goods and Services Tax (GST).
Appointed Economic Affairs Secretary in May 2017, Das was responsible for overseeing the government’s economic policies. His tenure saw the introduction of major reforms such as the Insolvency and Bankruptcy Code (IBC) and the recapitalization and merger of public sector banks (PSBs).
Shaktikanta Das Undertook Major Reforms
His involvement in the controversial demonetisation move in November 2016 was significant. The government’s decision to withdraw high-value currency notes aimed to curb black money, corruption, and terrorism financing. While demonetisation faced criticism from various quarters, Das defended the move, asserting that it was essential for tackling illicit financial activities.
Another major reform under his leadership was the rollout of the GST on July 1, 2017. The new tax regime replaced multiple indirect taxes with a unified system, aimed at simplifying taxation and enhancing compliance. Das played a key role in coordinating with state governments to ensure a smooth transition.
In addition to domestic economic reforms, Das has represented India on various international platforms. He was involved in negotiations for the $22 billion IMF bailout package for India in 1991 and served as India’s Sherpa at G20 meetings in Hamburg and Buenos Aires.
Leadership as RBI Governor
As RBI Governor, Das focused on financial stability and economic growth. He implemented measures to address the liquidity crunch in the non-banking financial sector and worked towards strengthening the regulatory framework for banks and non-banking financial companies.
During his tenure, the RBI played a crucial role in mitigating the economic fallout of the Covid-19 pandemic. The central bank introduced regulatory relaxations and financial support measures to help sustain the economy during the crisis.
With a career spanning decades and marked by significant contributions to India’s economic landscape, Das brings extensive experience to his new role as Principal Secretary-2 to the Prime Minister.
Also Read: Shaktikanta Das Appointed Principal Secretary to PM
