Shaktikanta Das, the former Governor of the Reserve Bank of India (RBI), has been officially appointed as Principal Secretary-2 to Prime Minister Narendra Modi as of February 22, 2025. This appointment, confirmed by the Appointments Committee of the Cabinet, indicates the Prime Minister's commitment to enhancing financial management within his administration.
Das's role as Principal Secretary is set to be co-terminus with the term of Prime Minister Modi or until any subsequent orders are issued. This move places Das alongside P.K. Mishra, the current Principal Secretary-1, who has served since September 11, 2019. With this leadership structure, the PMO is expected to benefit from Das’s vast experience and financial acumen.
Shaktikanta Das, aged 67, is not new to the high-stakes environment of Indian governance. After assuming office as the 25th RBI Governor on December 12, 2018, he served until December 2023, marking him as one of the longest-serving governors of the central bank. His tenure was characterized by his strategic responses to various economic challenges, including the global pandemic which significantly impacted the economy.
Before his tenure at the RBI, Das held several prominent roles, including Secretary of the Department of Revenue and the Department of Economic Affairs. His diverse career also included significant involvement with international financial institutions, where he represented India on platforms such as the G20 and SAARC.
Das is also noted for his leadership during the introduction of the Goods and Services Tax (GST) and managing significant financial reforms. His expertise is seen as particularly valuable during these turbulent economic times, as the government navigates uncertainties heightened by global economic shifts.
The official notification detailed, "The Appointments Committee of the Cabinet has approved the appointment of Shri Shaktikanta Das, IAS (Retired), as Principal Secretary-2 to Prime Minister with effect from the date he assumes the office. His appointment will be co-terminus with the term of the Prime Minister or until..." This highlights the provisional aspect of his appointment and sets the stage for his immediate contributions to governance.
Observers note this as part of PM Modi's continuing efforts to fortify the PMO’s financial knowledge, which includes appointing experienced officials capable of responding to complex economic landscapes. With Das’s experience, including policy decisions during the COVID-19 pandemic, many experts express optimism about his ability to streamline financial strategies and respond efficiently to fiscal challenges.
Throughout his tenure at the RBI, Das was recognized for his decisive actions, particularly during economic upheavals. Under his guidance, India's foreign exchange reserves reached record highs, showcasing his ability to steer the financial system effectively. The leadership provided by Das during the pandemic, where he implemented policy measures to keep the economy afloat, cemented his reputation within the government.
His appointment is also significant considering the rarity of changes at this level within the PMO under Modi's leadership. For comparison, the previous Principal Secretary-in-charge, Nripendra Misra, completed his full term from 2014 to 2019 without any changes. This consistency has led to speculation about the strategic intentions behind adding Das to the leadership team.
Das's appointment is likely to have immediate relevance as India continues to adapt to the consequences of the pandemic and the geopolitical tensions brought about by global events. His breadth of experience will undoubtedly be tested as he collaborates with Mishra and the rest of the PMO team.
Looking forward, Das's financial insights are anticipated to play a pivotal role as the Indian economy seeks recovery and sustainable growth amid international pressures. Observers and analysts will closely watch how he aligns his strategies with the PM's vision for economic stability and growth.
The faces of Indian governance are ever-changing, and with Shaktikanta Das now stepping up to this influential role, the intersection of finance and politics will be more closely observed than ever before.