NITI Aayog

Introduction

• NITI Aayog (National Institution for Transforming India) is the Premier Public Policy Think Tank of the Government of India.
• It was established to replace the Planning Commission with the objective of promoting Cooperative Federalism, Competitive Federalism, and Sustainable Development.
• Unlike the Planning Commission, NITI Aayog is not empowered to allocate financial resources to States.

Planning Commission (Historical)

Establishment

• The Planning Commission was an Extra-Constitutional and Non-Statutory Body.
• It was established by a Resolution of the Union Cabinet on 15 March 1950.
• It was not mentioned in the Constitution.

Objectives

The Planning Commission aimed to:

• Formulate Five-Year Plans.
• Ensure balanced economic and social development.
• Assess the country’s resources.
• Determine development priorities.
• Advise the Central and State Governments on planning.

Composition

The Planning Commission consisted of:

• Prime Minister – Chairman
• Deputy Chairman (Cabinet Rank)
• Full-time Members
• Part-time Members
• Union Ministers as Ex-officio Members

Functions

Planning Functions

• • Formulate Five-Year Plans.
  • Allocate Plan Funds to States.
  • Assess implementation of development programmes.
  • Monitor national development projects.

Advisory Functions

• Advise the Union Government on:
  
  • Economic Planning
  • Resource Allocation
  • Development Policies

Limitations

The Planning Commission was criticised for:

• Centralised Planning
• Excessive Central Control over States.
• Limited participation of States in planning.
• Delay in project approvals.
• Focus on Plan vs Non-Plan Expenditure.

Abolition

• On 15 August 2014, Prime Minister Narendra Modi announced the replacement of the Planning Commission.
• The Planning Commission ceased to function on 1 January 2015.

NITI Aayog

Establishment

• Established: 1 January 2015
• Created by: Resolution of the Union Cabinet
• Nature: Extra-Constitutional and Non-Statutory Body
• Full Form: National Institution for Transforming India (NITI)

Vision

To create a New India by promoting:

• Cooperative Federalism
• Competitive Federalism
• Innovation
• Sustainable Development
• Evidence-based Policy Making
• Inclusive Growth

Objectives

NITI Aayog seeks to:

• Foster Cooperative Federalism through active participation of States.
• Encourage Competitive Federalism by ranking State performance.
• Promote Innovation and Entrepreneurship.
• Prepare Long-term Strategic Policies.
• Improve Governance through Technology.
• Achieve the Sustainable Development Goals (SDGs).

Composition of NITI Aayog

Chairperson

• Prime Minister of India

Governing Council

Consists of:

• Chief Ministers of all States and Union Territories with legislatures (Delhi, Puducherry, and Jammu & Kashmir)
• Lieutenant Governors/Administrators of all other Union Territories (without legislatures)
• Administrators/Lieutenant Governors of other Union Territories, when invited.

Regional Councils

• Constituted to address specific regional issues.
• Established by the Prime Minister whenever required.

Vice-Chairperson

• Appointed by the Prime Minister.

Full-Time Members

• Appointed by the Prime Minister.
• Experts in:
  
  • Economics
  • Agriculture
  • Public Policy
  • Technology
  • Governance

Ex-Officio Members

• Up to Four Union Ministers nominated by the Prime Minister.

Special Invitees

• Experts, Specialists and Professionals nominated by the Prime Minister.

Chief Executive Officer (CEO)

• Appointed by the Prime Minister for a fixed tenure.
• Responsible for the day-to-day administration of NITI Aayog.

Major Functions of NITI Aayog

Policy Formulation

• Prepare Long-term Development Strategies.
• Recommend reforms for:
  
  • Agriculture
  • Infrastructure
  • Manufacturing
  • Health
  • Education
  • Digital Economy

Cooperative Federalism

• Strengthen partnership between:
  
  • Centre and States
  • States themselves

Competitive Federalism

• Publish State Rankings in sectors such as:
  
  • Health
  • Education
  • SDG Index
  • Innovation
  • Export Preparedness
  • School Education

Monitoring & Evaluation

• Evaluate implementation of Government programmes.
• Recommend policy improvements.

Innovation

Promotes innovation through:

• Atal Innovation Mission (AIM)
• Atal Tinkering Labs
• Atal Incubation Centres

Sustainable Development

• Acts as the Nodal Agency for monitoring India’s progress towards the UN Sustainable Development Goals (SDGs).

Public Policy Research

• Conducts research and provides evidence-based policy recommendations.

Major Initiatives of NITI Aayog

• Atal Innovation Mission (AIM)
• Aspirational Districts Programme (ADP)
• National Multidimensional Poverty Index (MPI)
• SDG India Index
• Health Index
• School Education Quality Index (SEQI)
• State Energy & Climate Index (SECI)
• Export Preparedness Index
• India Innovation Index
• Electric Vehicle (EV) Policy Roadmap
• National Data & Analytics Platform (NDAP)

Planning Commission vs NITI Aayog

Planning Commission vs Finance Commission

Important Facts

• First Chairman of Planning Commission: Jawaharlal Nehru
• Last Chairman of Planning Commission: Narendra Modi
• First Meeting of NITI Aayog: 8 February 2015
• Five-Year Plans were discontinued after the Twelfth Five-Year Plan (2012–17).
• NITI Aayog does not possess financial allocation powers, unlike the Planning Commission.

Important Constitutional Linkages

Although NITI Aayog is not a Constitutional Body, its work supports the implementation of constitutional objectives relating to: