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NITI AAYOG - Relevance and its role

NITI AAYOG - Relevance and its role


The National Institution for Transforming India, also called NITI Aayog,, which replaced Planning Commission (instituted in 1950), is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs to Government through:

  • Designing Strategic and long term policies and programs
  • Providing technical advice to the centre and states


Constitution of NITI AYOG


NITI Aayog was formed via a resolution of the Union Cabinet on January 1, 2015 and is chaired by Prime Minister of India.

The governing council consists of all state Chief Ministers, chief ministers of Delhi and Puducherry, Lieutenant Governor of Andaman and Nicobar, and vice chairman nominated by the Prime Minister. In addition to full members, there are two part-time members and four ex-official members and a chief executive officer. The temporary members are selected from the leading universities and research institutions.


Objectives of Formation


  • Foster involvement and participation in the economic policy-making process by the State Governments of India.
  • Emphasis on bottom-up approach and move country towards co-operative federalism (co-operative federalism is a concept of federalism in which national, state, and local governments interact and solve issues collectively)


How different it is from Planning Commission


The major differences between NITI Aayog and Planning Commission are:

  • Role of States increased, which was limited in Planning commission
  • Planning Commission followed top-down approach while Niti Aayog is based on Bottom –up approach of policy formation
  • While the Planning Commission used to formulate Government Plans, NITI Aayog is mainly responsible for evaluating the implementation of programmes
  • The Planning Commissions function of allocating funds to States has been scraped in this new arrangement