NITI Aayog

At a Glance

• What it is Premier policy think tank of the Government of India
• Established 1 January 2015, replacing the Planning Commission
• Nature Neither constitutional nor statutory; executive resolution
• Chairperson Prime Minister
• Exam link UPSC Prelims, Polity: Non-Constitutional Bodies

Where Does It Fit?

This is the first topic of the category on Non-Constitutional Bodies. On 13 August 2014 the government scrapped the 65-year-old Planning Commission and, on 1 January 2015, the NITI Aayog (National Institution for Transforming India) was established as its successor. Like the Planning Commission, it was created by an executive resolution of the Union Cabinet.

Nature and Rationale

The NITI Aayog is neither a constitutional nor a statutory body: it is not created by the Constitution nor by an Act of Parliament. It is the premier policy think tank of the Government of India, giving directional and policy inputs, and technical advice to the Centre and the states. The centre-to-state one-way flow of policy that marked the Planning Commission era is meant to be replaced by a continuing partnership of the states, with a bottom-up approach instead of a top-down model.

The government explained the replacement by saying that India had undergone a paradigm shift over six decades, and that the new institution would be built on three foundations: an empowered role of states as equal partners, operationalising cooperative federalism; a knowledge hub and think tank with domain knowledge and strategic expertise for all levels of government; and a collaborative platform for implementation, monitoring progress and bringing together ministries at the Centre and in the states. The then Finance Minister Arun Jaitley said that a one-size-fits-all approach to planning had become obsolete. The founding resolution also said that no single model can be transplanted from outside and that the institution must find a Bharatiya approach to development.

Composition

Objectives and Functions

Its objectives include evolving a shared vision of national development priorities with active involvement of states; fostering cooperative federalism on the premise that strong states make a strong nation; developing mechanisms to formulate credible plans at the village level and aggregate them at higher levels; ensuring that interests of national security are incorporated in economic strategy on areas referred to it; paying special attention to sections of society at risk of not benefitting adequately from economic progress; designing long-term policy frameworks and monitoring them with mid-course corrections; building partnerships with think tanks and research institutions; creating a knowledge, innovation and entrepreneurial support system; offering a platform to resolve inter-sectoral and inter-departmental issues; maintaining a state-of-the-art resource centre; and focusing on technology upgradation and capacity building.

Its activities are divided into two hubs, Team India (cooperative federalism and policy frameworks, and coordination with states) and Knowledge and Innovation (resource centre, research repository and partnerships). Functionally they fall under four heads: policy and programme framework; cooperative and competitive federalism; monitoring and evaluation; and think-tank, knowledge and innovation hub.

Seven Pillars and Federalism

NITI Aayog is based on seven pillars of effective governance: pro-people agenda, pro-activity, participation, empowering women, inclusion of all groups with special attention to SCs, STs, OBCs and minorities, equality of opportunity for youth, and transparency through technology. For cooperative federalism, it holds meetings between the Prime Minister and all Chief Ministers, forms subgroups of Chief Ministers on subjects of national importance, shares best practices, supports capacity development of state functionaries, runs the Aspirational Districts Programme for backward districts, frames model laws for land leasing and agriculture marketing reforms, and undertakes area-specific interventions for the North-Eastern and Himalayan states and islands. It also uses the Development Support Services to States and Union Territories (DSSS) and the Sustainable Action for Transforming Human Capital (SATH) programme.

For competitive federalism, it encourages healthy competition among states through transparent rankings in sectors, with a hand-holding approach. Indices it has launched include the School Education Quality Index, State Health Index, Composite Water Management Index, Sustainable Development Goals Index, India Innovation Index and Export Competitiveness Index, and it releases monthly delta rankings of Aspirational Districts.

Attached and Autonomous Bodies

NITI Aayog is supported by an autonomous body, the National Institute of Labour Economics Research and Development (NILERD), formerly the Institute of Applied Manpower Research (IAMR), established in 1962 under the Societies Registration Act of 1860 and renamed in 2014, and an attached office, the Development Monitoring and Evaluation Office (DMEO), established in 2015 by merging the Programme Evaluation Organization (1952) and the Independent Evaluation Office (2010). The DMEO monitors and evaluates programmes and also gives technical advice to states. Till 2017 it had 15 regional offices, which were closed in 2017 with staff transferred to the New Delhi headquarters.

Planning Commission Compared

The First Administrative Reforms Commission said the Planning Commission had earned a reputation as a parallel cabinet and sometimes a super cabinet. K. Santhanam said that planning had superseded the federation. The National Development Council, set up in August 1952 by an executive resolution, held its 57th and last meeting on 27 December 2012 to approve the Twelfth Plan.

Why Is This Topic Important?

• Current relevance Frequently linked to cooperative federalism questions
• Replaced body Planning Commission details are asked
• Status Non-constitutional, non-statutory

What Came Next?

The next topic covers the National Human Rights Commission.

Key People and Terms

• Think tank Policy research and advice body
• Governing Council Chief Ministers and Lieutenant Governors
• Cooperative federalism Centre-state partnership
• Competitive federalism State rankings
• DMEO Monitoring and evaluation office

Exam Corner

Mains Angle

Questions on this topic usually ask about NITI Aayog and federalism. Use these points to add depth.

• Role change From plan allocation to think tank
• Federalism Cooperative and competitive
• Limitations Non-statutory body
• Rankings State indices