The Economic Advisory Council to the Prime Minister (EAC-PM) is a non-constitutional, non-statutory, and independent body that functions as a key advisory institution. It is also considered a non-permanent body, often reconstituted with changes in government.
The EAC-PM's origins trace back to the early 1980s under Prime Minister Indira Gandhi, with the first chairman being Prof. Sukhamoy Chakravarty in 1982–83. It was established to provide independent advice on economic policy amid a difficult economic situation, including high inflation and fiscal strains. The council has been constituted multiple times since independence, with the most recent reconstitution occurring on September 25, 2017, by Prime Minister Modi.
The council's primary mechanism is to provide advice on economic and related issues directly to the Prime Minister. Its role is strictly advisory and is not binding on the Government. Its functions include analysing any issue, economic or otherwise, referred to it by the Prime Minister, and addressing issues of macroeconomic importance, such as inflation and industrial output, either suo-motu or on reference. The EAC-PM is headed by a Chairperson and consists of eminent economists as members.
The EAC-PM connects directly to the NITI Aayog, which serves as the Nodal Agency for the council for administrative, logistic, planning, and budgeting purposes. The Chairman of the EAC-PM is entitled to the status of a Union Minister.
The council was recently reconstituted, approved by the Prime Minister on June 4 (2025), with S. Mahendra Dev appointed as the new Chairman, succeeding Bibek Debroy. This reconstitution involved the appointment of new members like Soumya Kanti Ghosh and Pulak Ghosh.