Major Economic Committees in India: Roles and Recommendations
UPSC Prelims GS Paper 1 and Mains GS Paper 3 (Economics – Economic Development & Government Policies).
Economic committees serve as key advisory bodies established by the government to examine, review, and recommend policies for India’s economic development. These committees often set the agenda for reforms across sectors including banking, taxation, infrastructure, industry, and social welfare.
Key Committees and Their Areas of Focus
- Rangarajan Committee: Focused on disinvestment, it laid down guidelines for privatization and public sector reforms.
- Narasimham Committee: Known for comprehensive reforms in the financial sector, including deregulation of interest rates, restructuring banks, and asset reconstruction measures.
- Kelkar Committee: Recommended reforms in taxation, including GST implementation and direct tax simplification.
- Malhotra Committee: Focused on insurance sector reforms to promote market growth and public insurance penetration.
- Abid Hussain Committee: Examined the development of small-scale and cottage industries.
- Basel Committee: Developed international banking supervision standards adopted by Indian regulators.
- Chakravarty Committee: Suggested measures to improve monetary policy effectiveness to promote growth.
- Deepak Parekh Committee: Worked on reviving financial institutions like UTI and increasing investor confidence.
Other notable committees have contributed to infrastructure financing, food policies, capital market reforms, labour reforms, and corporate governance.
Impact of Economic Committees
The recommendations of these committees have played a vital role in shaping India’s economic liberalization, financial stability, tax reforms, and industrial growth. Many suggestions have been implemented in union budgets and policy frameworks, directly affecting GDP growth, foreign investment, and MSME support.
