- Economic Advisory Council to the Prime Minister (EAC-PM) is a non-constitutional, non-permanent and independent body constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
- The Terms of Reference of EAC-PM include analyzing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon, addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister.
- These could be either suo-motu or on reference from the Prime Minister or anyone else.
- The chairman is appointed from time to time when the body is constituted.
Why in News?
- Economic Advisory Council to the Prime Minister (EAC-PM) has said that the country can become a 20 trillion dollar economy at a sustained growth rate of 7 to 7.5 percent for the next 25 years.
- EAC-PM Chairman Bibek Debroy said that India can become an upper-middle-income country by 2047 at this growth rate. He said, even if India achieves relatively conservative rates of growth of 7 to 7.5 percent, the country will get to a per capita annual income of about 10,000 dollar.
- India, the world’s sixth largest economy with a GDP of 2.7 trillion dollar, is currently classified as a developing nation.
- According to the World Bank’s definition, a country with a per capita annual income of over USD 12,000 is considered a higher-income nation.
- According to the International Monetary Fund, the Indian economy is forecast to expand by 7.4 percent in 2022-23, making it one of the world’s fastest-growing economies.
- A developed country is typically characterised by a relatively high level of economic growth, a general standard of living, and higher per capita income as well as performing well on the Human Development Index (HDI), which includes education, literacy, and health.