Balancing Growth and Stability: PM Modi Reviews Economic Strategy with EAC

Prime Minister Narendra Modi on Saturday chaired a high-level meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) to discuss measures aimed at sustaining India's economic growth and strengthening resilience against mounting global challenges, including the ongoing West Asia conflict , volatile energy markets, and uncertainty in the global economy.

According to official sources, the Prime Minister and members of the EAC-PM deliberated on a range of policy ideas and reforms to further accelerate economic growth while safeguarding India's macroeconomic stability. The council also presented its assessment of the potential impact of the conflict in West Asia on India and the broader global economy.

The meeting comes at a time when India remains one of the world's fastest-growing major economies, supported by strong domestic demand, infrastructure investment, manufacturing expansion, and a resilient services sector. However, policymakers are increasingly focused on external risks that could affect growth momentum in the coming months.

A key concern discussed during the meeting was the impact of rising crude oil prices . India imports nearly 85 percent of its oil requirements, making it vulnerable to disruptions in global energy supplies. Any sustained increase in oil prices could fuel inflation , increase import costs, widen the trade deficit, and put pressure on the Indian rupee . The council also examined the implications of slowing global growth, supply-chain disruptions, and shifting international investment flows on India's economic outlook.

The discussions further focused on reforms to improve ease of living and ease of doing business , reflecting the government's continued efforts to attract investment, boost productivity, and enhance the overall business environment.

The EAC-PM is an independent body that advises the government on economic and related matters. Its mandate includes analysing issues referred to it by the Prime Minister, addressing matters of macroeconomic importance, and recommending policy measures to support long-term growth.

The meeting was attended by Principal Secretaries P.K. Mishra and Shaktikanta Das , along with EAC-PM Chairman S. Mahendra Dev , full-time members Sanjay Kumar Mishra , Sanjeev Sanyal , and Shamika Ravi , besides 11 part-time members drawn from economics, finance, academia, and industry.

The deliberations underscore the government's focus on protecting India's growth trajectory while preparing the economy to navigate an increasingly uncertain global environment marked by geopolitical tensions, inflation risks, and financial market volatility.