National Development Council

Introduction of National Development Council

• The National Development Council (NDC) was an Extra-Constitutional and Non-Statutory (Extra-Legal) body established to strengthen Centre–State cooperation in the planning process.
• It served as the highest policy-making body for approving and reviewing Five-Year Plans.
• The NDC acted as a bridge between the Union Government, State Governments, and the Planning Commission.

Establishment of National Development Council

• Established: 6 August 1952
• Established by: Resolution of the Union Cabinet
• Nature: Extra-Constitutional and Non-Statutory Body

Objectives of National Development Council

The National Development Council was established to:

• Strengthen Cooperative Federalism.
• Associate States in the formulation of National Plans.
• Promote balanced and coordinated economic development.
• Ensure uniform implementation of development programmes across the country.

Composition of National Development Council

Chairman

• Prime Minister of India

Members

The Council consisted of:

• Prime Minister
• All Union Cabinet Ministers
• Chief Ministers of all States
• Chief Ministers / Administrators / Lieutenant Governors of Union Territories
• Deputy Chairman of the Planning Commission
• Members of the Planning Commission

Functions

Plan Formulation

• Consider and approve Five-Year Plans before implementation.
• Provide overall policy direction for national planning.

Review of Development Programmes

• Review the working and implementation of National Plans.
• Assess the progress of major development programmes.

Policy Coordination

• Promote coordination between:
  
  • Union Government
  • State Governments
  • Planning Commission

Recommendations

• Recommend measures for:
  
  • Achieving national development targets.
  • Improving implementation of development schemes.
  • Balanced regional development.

Cooperative Federalism

• Provide a common platform for discussion between the Centre and the States on matters relating to planning and development.

Meetings of National Development Council

• Meetings were convened by the Prime Minister as and when required.
• Decisions were generally taken through consensus, reflecting the cooperative nature of the institution.

Role of National Development Councilin Five-Year Plans

The NDC played a crucial role by:

• Approving Five-Year Plans.
• Reviewing implementation of Plans.
• Suggesting modifications based on changing economic conditions.
• Facilitating cooperation between the Centre and the States in developmental planning.

Abolition of the National Development Council

Background

• With the abolition of the Planning Commission on 1 January 2015, the National Development Council also ceased to function, as its primary purpose was closely linked to the planning process under the Planning Commission.

Present Status

• The National Development Council is no longer functional.
• It has not been formally abolished by any statute, but has effectively become defunct after the establishment of NITI Aayog.

NDC and NITI Aayog

• The Governing Council of NITI Aayog, chaired by the Prime Minister and comprising Chief Ministers of States and Lieutenant Governors of Union Territories with Legislature, now serves as the principal platform for Centre–State policy coordination.
• However, the Governing Council is not the legal successor to the NDC, and the two bodies differ in their objectives and institutional framework.

National Development Council vs NITI Aayog Governing Council

National Development Council vs Planning Commission

Important Facts

• Established: 6 August 1952
• Chairperson: Prime Minister
• Nature: Extra-Constitutional & Non-Statutory Body
• Planning Commission Members were members of the NDC.
• Main Objective: Promote Cooperative Federalism in national planning.
• Current Status: Defunct since 2015 following the replacement of the Planning Commission by NITI Aayog.