IAS Gyan

Daily News Analysis

Economic Advisory Council to the Prime Minister (PMEAC)

4th September, 2020 Economy

Context: Economic Advisory Council of the 15th Finance Commission to meet Tomorrow


  • Economic Advisory Council to the Prime Minister (PMEAC) is a non-constitutional, non-permanent and independent body constituted to give economic advice to the Government of India, specifically the Prime Minister.
  • The council serves to highlight key economic issues facing the country to the government of India from a neutral viewpoint.
  • It advises the Prime Minister on economic issues like inflation, microfinance, and industrial output.

Terms of reference as defined by the PMEAC are as follows:

  • 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. This could be either suo-moto or on a reference from the Prime Minister or anyone else:
  • Submitting periodic reports to the Prime Minister on macroeconomic developments and issues with implications for economic policy;
  • Attending to any other task as may be desired by the Prime Minister from time to time.
  • The primary role of the PMEAC is to give a neutral viewpoint on economic policy matters that are referred to it by the Prime Minister. Additionally it prepares a monthly report of economic developments that need to be highlighted to the PM. For this purpose, it closely monitors national and international economic developments and trends and develops appropriate policy responses for the PM.
  • It publishes reports on the annual Economic Outlook and Review of the Economy of India.