PM Modi Chairs Key EAC-PM Meeting Amid Iran War: Navigating India's Economic Strategy in Global Turmoil
Prime Minister Narendra Modi chaired a high-level meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) on June 6, 2026, to deliberate on measures to sustain and accelerate India's e
What happened
Prime Minister Narendra Modi chaired a high-level meeting of the Economic Advisory Council to the Prime Minister (EAC-PM) on June 6, 2026, to deliberate on measures to sustain and accelerate India's economic growth amid the ongoing Iran war and resultant global economic turbulence. The EAC-PM, a non-constitutional advisory body comprising eminent economists, serves as a key institutional mechanism for providing independent economic analysis and policy recommendations to the Prime Minister. The Iran conflict has triggered significant disruptions in global energy markets, supply chains, and trade routes — particularly in the Persian Gulf — raising concerns about oil price spikes, inflationary pressures, and export slowdowns for emerging economies like India. India imports a substantial share of its crude oil from the Gulf region and maintains significant trade and diaspora linkages with Iran and neighbouring countries, making it especially vulnerable to geopolitical shocks in the region. This meeting underscores the critical role of advisory institutions in crisis-time economic policymaking and is relevant for UPSC aspirants studying governance bodies, macroeconomic resilience, and India's external sector vulnerabilities.
The Economic Advisory Council to the Prime Minister (EAC-PM) is a non-permanent, non-constitutional body reconstituted periodically to advise the PM on economic and related issues.
●It operates under the aegis of the Prime Minister's Office and its recommendations are advisory, not binding.
●The current EAC-PM was reconstituted in 2017 under the chairmanship of Dr.
●Bibek Debroy.
●It differs from the NITI Aayog — while NITI Aayog is a statutory-equivalent policy think tank with a broader mandate including cooperative federalism, EAC-PM is a lean expert advisory group focused specifically on economic counsel to the PM. In the context of the Iran war, key concerns include crude oil import dependency (~85% of India's oil is imported), remittances from Gulf diaspora, and Strait of Hormuz disruptions affecting shipping.
EAC-PM is a non-constitutional advisory body to the PM, distinct from NITI Aayog, and its activation during the Iran war signals India's proactive crisis-time economic governance.
◎ In Simple Words
Imagine India's economy is a big ship sailing through a stormy sea — the storm here is a war near Iran that is making oil prices go up and trade routes risky. PM Modi called a special meeting with top economists, like calling your best advisors before making an important decision, to figure out how to keep India's economy safe and growing. This group of experts, called the EAC-PM, gives the Prime Minister smart ideas about money and the economy. Together, they discussed ways to protect India from the bad effects of this faraway war.
Factual Pointers
Practice · 1 question
With reference to the Economic Advisory Council to the Prime Minister (EAC-PM), which of the following statements is/are correct?
1. It is a constitutional body established under Article 76 of the Indian Constitution.
2. Its recommendations are advisory in nature and not binding on the government.
3. It is chaired by the Prime Minister of India.
Select the correct answer using the codes below: