Setting up the EAC was not a knee-jerk reaction: Sanjeev Sanyal, Principal Economic Advisor

Talking to ET Now, Sanjeev Sanyal , Principal Economic Advisor, says Setting up the Economic Advisory Council is a considered move. It has existed in the past in a different form but it has been revived with bringing new names on board.

Edited excerpts:


Prime Minister Narendra Modi on Monday reconstituted the Economic Advisory Council (EAC). What is your view?

Certainly, it is a very good move. We have some very experienced and well known economists with a long and distinguished track records on board and so of course I totally welcome this.

The council is going to suggest to the prime minister on things that are asked, it will also give suo moto advice. Is there also a recognition and an acceptance of the fact that the economy needs opinions from all quarters right now. The growth has slowed down to 5.7%.

This is not a knee-jerk reaction to any particular data point that we have. It is a considered move that is creating an institution which has existed in the past by the way in a different form but it has been revived with bringing new names on board. Mr Debroy was already in the Niti Aayog. He is not an outsider but the other names are also very welcome. This is a good move.

The structural reforms 2.0 that everybody keeps talking about in India and the need to have a fiscal stimulus, I am sure will be one of the things that this panel will be discussing?

Yes, of course they will be discussing an overall economic policy and I am sure they will shortly come up with their recommendations. I am not in a position to comment on what they or will not be saying.

What are you views on the fiscal stimulus?

As I said these are matters that will be discussed and announced at the appropriate time.