What is it?
- 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?
- Mr. Nilesh Shah, a part-time member of the Economic Advisory Council to the Prime Minister, said that the economic growth will come into positive territory only by March or June quarter 2021, but India will have to turn the crisis into an opportunity by introducing reforms.
- India’s GDP contracted 23.9% year-on-year (y-o-y) in the June 2020 quarter, which saw COVID-19 lockdowns, making the country one of the worst performers across the world during the pandemic.
- He added that companies wanted to shift out of China and that India ought to roll out the red carpet for them while also cutting red tape.
- The cost of logistics, which makes Indian goods uncompetitive at the global level, has to be reduced. Besides, the cost of power has to go down as subsidised supply to farmers makes it expensive for industry to get electricity.