On 13th August 2014, the Modi Government abolished the Planning Commission, a body that had existed for 65 years. This was replaced by a new organization, NITI Aayog (National Institution for Transforming India), officially established on 1st January 2015. However, like its predecessor, NITI Aayog was established by an executive resolution of the Government of India, making it a non-constitutional and non-statutory body. In essence, NITI Aayog serves as the premier policy think tank of the Indian government, focusing on both strategic planning and technical advice for both the central and state governments. NITI Aayog marks a shift from the previous top-down approach of the Planning Commission to a bottom-up model, promoting cooperative federalism by engaging states as equal partners in the policy-making process.
Learning Outcomes:
- Understanding NITI Aayog’s establishment and role.
- The rationale behind replacing the Planning Commission.
- Composition and specialized wings of NITI Aayog.
- Objectives and guiding principles of NITI Aayog.
Rationale for NITI Aayog’s Formation
When replacing the Planning Commission, the government cited significant changes in India’s political, economic, social, technological, and demographic landscapes over the past six decades. The role of government had also evolved alongside these changes. To address the demands of modern India more effectively, NITI Aayog was envisioned as a more dynamic institution, designed to encourage cooperative federalism, provide domain expertise, and offer a platform for collaboration between different levels of government.
Key aspects of the new institution include:
Former Finance Minister Arun Jaitley emphasized that the Planning Commission was outdated and unsuitable for India’s diverse and evolving economic landscape. He argued that a “one-size-fits-all” approach no longer worked in today’s competitive global economy, hence the need for a more adaptive model.
Important Note: The Bharatiya approach to development acknowledges India’s unique challenges, rejecting the notion of transplanting foreign models.
Composition of NITI Aayog
The composition of NITI Aayog is as follows:
Specialized Wings of NITI Aayog
NITI Aayog houses several specialized wings that cater to various governmental needs:
Objectives of NITI Aayog
The broad objectives of NITI Aayog are essential for national development:
NITI Aayog is also tasked with monitoring and evaluating programs, building international partnerships, and creating an innovation support system.
Table: Objectives of NITI Aayog Compared to Planning Commission
NITI Aayog Objectives | Planning Commission Functions |
---|---|
Cooperative federalism | Formulation of national plans |
Bottom-up approach | Top-down planning model |
Strategic, long-term frameworks | Short-term, five-year plans |
Village-level planning | Sectoral development without grassroots engagement |
National security integration | Economic focus without explicit security consideration |
Through these objectives, NITI Aayog aims to transition the government’s role from a provider to an enabler. It also seeks to leverage India’s middle class, entrepreneurial talent, and the Non-Resident Indian (NRI) community for national growth.
Guiding Principles
NITI Aayog is driven by certain guiding principles:
Functions of NITI Aayog
The various functions performed by NITI Aayog fall under four main heads:
Cooperative Federalism
NITI Aayog plays a vital role in advancing cooperative federalism in India by fostering joint collaboration between the Centre and the States. The key features include:
Initiatives like the Development Support Services to States (DSSS) and Sustainable Action for Transforming Human Capital (SATH) are examples of Centre-State partnerships to improve social and economic indicators.
Criticism
Opposition to the formation of NITI Aayog has been significant. Critics argue that the change from Planning Commission to NITI Aayog is merely cosmetic. Political leaders from the opposition assert that the corporate sector will dominate policy-making under the new structure, leading to potential discrimination against states.
For example, Sitaram Yechury referred to NITI Aayog as “no policy and bad policy“, questioning its effectiveness, while Congress leader Manish Tewari argued that it was an unnecessary restructuring based on principle rather than a legitimate need for reform.
Important Note: Criticism surrounds the shift from an established system (Planning Commission) to a newer model, with concerns about centralization and corporate influence.
Functions of NITI Aayog Verticals
The NITI Aayog is divided into various verticals, each responsible for specific areas of national importance. These include:
These verticals ensure a coordinated approach to governance, enabling policy interventions across sectors.
Attached Offices
Two significant offices are attached to NITI Aayog:
MCQ:
NITI Aayog was established in
which year?
a) 1950
b) 2000
c) 2014
d) 2015Correct Answer: d) 2015
In conclusion, NITI Aayog serves as an adaptive, strategic think tank, promoting inclusive development through cooperative federalism and technology-driven governance. Its focus on innovation, collaboration, and long-term planning aims to make India more competitive and resilient in facing the challenges of the 21st century.