In a move that underscores the growing convergence between monetary policy expertise and executive governance, former Reserve Bank of India (RBI) Governor Shaktikanta Das has been appointed Principal Secretary II to Prime Minister Narendra Modi. The decision signals not only the Prime Minister’s reliance on seasoned financial minds but also a strategic bolstering of economic management at the highest level of administration.
Das, who helmed the RBI from 2018 to 2023, is no stranger to navigating economic turbulence. His tenure as RBI Governor was marked by a series of crises—the IL&FS debacle, the Covid-19 shock, and persistent inflationary pressures. He maintained an iron grip on monetary policy, balancing growth concerns with inflation control while ensuring financial stability. His leadership style, often described as pragmatic rather than ideological, made him a reliable steward of India’s financial system.
Before his RBI stint, Das had already demonstrated his deep alignment with the Modi government’s economic vision. As Economic Affairs Secretary during the post-demonetisation period, he was one of the key bureaucrats entrusted with managing the economic fallout of the unprecedented currency ban. He was also instrumental in shaping the implementation of the Goods and Services Tax (GST), further cementing his reputation as a trusted economic troubleshooter.
His return to the nerve centre of policymaking—the Prime Minister’s Office (PMO)—comes at a crucial time. Global economic uncertainty, financial market volatility, and shifting geopolitical equations have put India’s macroeconomic stability in sharp focus. With Das now in a key advisory role, the PMO is ensuring that its financial management strategy is both technically sound and politically aligned.
The appointment also raises questions about the evolving role of the RBI alumni club in governance. Unlike his predecessor Urjit Patel, who often found himself at odds with the government, Das maintained a far more collaborative relationship with North Block, leading to perceptions that his transition from Governor to PMO insider was a matter of when, not if. His ability to bridge the gap between central banking independence and executive priorities may have made him the ideal pick for the job.
What remains to be seen is how much influence Das will wield within the PMO’s power structure. With a Principal Secretary already in place, the creation of a second role at this level suggests either an increasing workload in economic decision-making or a deliberate effort to bring a financial heavyweight closer to the levers of power. Either way, Das’s appointment signals that, in Modi’s third term, economic governance will be driven as much by technocratic precision as by political imperatives.