Cabinet Committee on Economic Affairs (CCEA)

Here’s a short note on the Cabinet Committee on Economic Affairs (CCEA):

Overview

• Purpose: The CCEA is one of the most significant Cabinet Committees in India, responsible for making decisions on major economic policies and investments.
• Established: Operates under the Transaction of Business Rules, 1961, which govern the functioning of Cabinet Committees.
• Chairperson: The Prime Minister of India.

Composition

• Chairperson: Prime Minister of India.
• Key Members: Includes senior ministers such as:
• Minister of Finance and Corporate Affairs.
• Minister of Home Affairs.
• Minister of Commerce and Industry.
• Minister of Agriculture and Farmers Welfare.
• Minister of Petroleum and Natural Gas.
• Minister of Railways.
• Other relevant ministers depending on the agenda.
• Special Invitees: Experts or officials may be invited for specific discussions.

Functions

1. Economic Policy Formulation: Approves and oversees major economic policies and strategies.
2. Investment Approvals: Clears investment proposals, particularly those involving large financial outlays or significant economic implications.
3. Public-Private Partnerships (PPP): Promotes PPPs and encourages private sector participation in key economic sectors.
4. Coordination Across Ministries: Ensures coherence and effectiveness in economic policy across different ministries.
5. Disinvestment Decisions: Approves proposals for disinvestment of government equity in public sector undertakings (PSUs).
6. FDI Proposals: Reviews and approves Foreign Direct Investment (FDI) proposals exceeding a certain financial threshold.

Key Initiatives and Achievements

• Production Linked Incentive (PLI) Scheme: Approved for various sectors like electronics, pharmaceuticals, and automobiles to boost domestic manufacturing.
• National Education Policy (NEP) 2020: Approved to transform India’s education system and promote lifelong learning.
• Infrastructure Development: Cleared major projects in roads, railways, and energy sectors.
• Disinvestment: Approved strategic disinvestment in PSUs like Air India and Bharat Petroleum Corporation Limited (BPCL).

Recent Developments

• 2025 Updates:
• Approved a ₹1.2 lakh crore investment in renewable energy projects to achieve India’s net-zero target by 2070.
• Cleared the National Logistics Policy to improve supply chain efficiency and reduce logistics costs.
• Reviewed the performance of the PLI scheme and proposed its extension to additional sectors.

Statistics and Figures

• FDI Threshold: Approves FDI proposals exceeding ₹5,000 crore.
• Investment Approvals: Cleared projects worth over ₹10 lakh crore in the last five years.
• PLI Scheme Allocation: Allocated ₹1.97 lakh crore for 13 sectors under the PLI scheme.

Academic Relevance

• Case Studies: The role of CCEA in approving landmark projects like the PLI scheme and NEP 2020.
• Policy Analysis: Understanding the impact of CCEA decisions on India’s economic growth.
• Comparative Studies: Comparing India’s economic policy framework with global standards.

Personalities

• Prime Minister Narendra Modi: Chairperson of the CCEA.
• Nirmala Sitharaman: Minister of Finance and Corporate Affairs, a key member of the committee.
• Piyush Goyal: Minister of Commerce and Industry, often involved in discussions on trade and investment policies.