What is CCEA?
The Cabinet Committee on Economic Affairs (CCEA) is one of the most important committees in the Government of India. It plays a key role in finalising decisions on infrastructure projects, industrial policies and other major economic initiatives and ensuring that they are in line with the government’s objectives and fiscal policies.
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The CCEA meeting ahead of the Union Budget is crucial to discuss and approve key economic measures. These discussions will influence the budgetary allocations and overall economic direction of Modi Government 3.0.
The CCEA is one of eight Cabinet committees.
What are the various Cabinet committees?
The Federal Government consists of several important committees, each with a specific function. The Prime Minister can set up these committees, whose members are drawn from the Cabinet, and change their number and function as necessary.
The eight Cabinet Committees are:
1. Cabinet Personnel Commission
2. Cabinet Committee on Economic Affairs
3. Cabinet Political Affairs Committee
4. Cabinet Committee on Investment and Growth
5. Cabinet Committee on Security
6. Cabinet Diet Affairs Committee
7. Cabinet Committee on Employment and Skills Development
8. Cabinet Committee on Accommodation
The Prime Minister chairs all committees except the Accommodation Committee and the Parliamentary Affairs Committee, of which he is a member.
The Prime Minister can change the number of committees and alter their functioning. For example, the Cabinet Committee on Investment and Growth was introduced by the Modi government in 2019.
The Manmohan Singh government had 12 Cabinet Committees.
What does CCEA do?
Established on July 14, 1990, the CCEA is responsible for high-level economic decision-making, including:
1. Economic Policy Formulation: Developing and implementing policies affecting agriculture, industry, infrastructure and services.
2. Approval of large-scale projects: ensuring alignment with national priorities.
3. Budget Allocation: Allocating funds according to economic priorities.
4. Supervision of foreign investment: Approval of FDI proposals and international economic cooperation.
5. Policy Reform: Implement reforms to improve economic efficiency and competitiveness.
6. Crisis Management: Developing measures to stabilize the economy during a downturn.
Who are the members of CCEA?
In 2021, the CCEA was chaired by Prime Minister Narendra Modi and was attended by Defence Minister Rajnath Singh, Minister of Home Affairs and Cooperation Amit Shah, Minister of Road Transport and Highways Nitin Jairam Gadkari, Minister of Finance and Corporate Affairs Nirmala Sitharaman, Minister of Agriculture and Farmers Welfare Narendra Singh Tomar, Minister of External Affairs S. Jaishankar, Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution and Textiles Piyush Goyal and Minister of Education, Skill Development and Entrepreneurship Dharmendra Pradhan.
All these ministers are retaining their posts in Prime Minister Narendra Modi’s third term Union Cabinet and are therefore highly likely to remain members of the 2024 CCEA committee.
