The Cabinet Committee on Economic Affairs (CCEA) is a high-level standing committee of the Union Cabinet, functioning as an extra-constitutional body. It is an institution, not an act or a scheme, and is chaired by the Prime Minister of India. The practice of forming such Cabinet Committees dates back to the early years after independence, primarily to reduce the workload of the full Cabinet and allow for more efficient, focused deliberation on complex issues.
The CCEA is formally constituted under the Government of India (Transaction of Business) Rules, 1961, which are themselves framed under Article 77 of the Constitution. This mechanism was established to ensure a consistent and integrated economic policy framework for the country.
The CCEA works as the central authority for major economic decisions, acting as a high-level economic clearing mechanism within the Union executive. Its key functions include reviewing economic trends, directing and coordinating all activities in the economic field, and fixing the prices of agricultural products. Crucially, it considers and approves major investment proposals, specifically those involving an outlay of more than ₹1,000 crore. It also decides on the increase in prices of essential commodities and handles matters related to disinvestment and public sector investment priorities.
The CCEA is one of the eight Cabinet Committees, connecting it directly to the core executive decision-making structure of the Union Government. While its core mandate and legal basis under the 1961 Rules have remained constant, its composition changes with every new government, as the Prime Minister determines its members. The investment threshold for proposals it considers is also revised from time to time.