NITI Aayog or National Institution for Transforming India Aayog is a policy think-tank of
Government of India that replaces Planning Commission and aims to involve the states in
economic policy-making in India. It will be providing strategic and technical advice to the
central and the state governments i.e. by adopting bottom-up approach rather than traditional top-
down approach as in planning commission. The Prime Minister heads the Aayog as its
chairperson. While the Planning Commission had no representation for State and Union
territories, the NITI Aayog has.
Union Government of India had announced formation of NITI Aayog on 1 January 2015. The
first meeting of NITI Aayog was held on 8 February 2015.The website of the Aayog has a unique
feature of NITI Blogs, which incorporates articles, field reports, work in progress, and opinions
by NITI officials.
There are a couple of things to be considered here. NITI Aayog would therefore mean:
• A group of people with authority entrusted by the government to formulate/regulate policies
concerning transforming India.
• It is a commission to help government in social and economic issues.
• Also it's an Institute of think tank with experts in it.
India's Finance Minister Arun Jaitley made the following observation on the necessity of creating
NITI Ayog: “The 65-year-old Planning Commission had become a redundant organisation. It was
relevant in a command economy structure, but not any longer. India is a diversified country and
its states are in various phases of economic development along with their own strengths and
weaknesses. In this context, a ‘one size fits all’ approach to economic planning is obsolete. It
cannot make India competitive in today’s global economy”
Difference between NITI Aayog and Planning Commission
Financial clout
NITI Aayog – To be an advisory body, or a think-tank. The powers to allocate fund vested in the
finance ministry.
Planning Commission – Enjoyed the powers to allocate funds to ministries and state
governments
Full-time members
NITI Aayog – Two full-time members.
Planning Commission – had eight full-time members
States' role
NITI Aayog – Includes the Chief Ministers of all States and the Lieutenant Governors of all
Union territories in its Governing Council, devolving more power to the States of the Union.
Planning Commission – States' role was limited to the National Development Council and annual
interaction during Plan meetings
Member secretary
NITI Aayog – To be known as the CEO and to be appointed by the prime minister
Planning Commission – Secretaries or member secretaries were appointed through the usual
process
Part-time members
NITI Aayog – To have a number of part-time members, depending on the need from time to time
Planning Commission – Full Planning Commission had no provision for part-time members
Constitution
Niti Aayog – Governing Council has state chief ministers and lieutenant governors.
Planning Commission- The commission reported to National Development Council that had state
chief ministers and lieutenant governors.
Organization
Niti Aayog – New posts of CEO, of secretary rank, and Vice-Chairperson. Will also have two
full-time members and part-time members as per need. Four cabinet ministers will serve as ex-
officio members.
Planning Commission – Had deputy chairperson, a member secretary and full-time members.
Participation
Niti Aayog- Consulting states while making policy and deciding on funds allocation. Final policy
would be a result of that.
Planning Commission- Policy was formed by the commission and states were then consulted
about allocation of funds.
Allocation
Niti Aayog- No power to allocate funds.
Planning Commission- Had power to decide allocation of government funds for various
programs at national and state levels.
Nature
Niti Aayog- NITI is a think-tank and does not have the power to impose policies.
Planning Commission- Imposed policies on states and tied allocation of funds with projects it
approved.
Aims and Objectives of NITI Ayog
NITI Aayog will seek to provide a critical directional and strategic input into the development
process.
The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission
era, is now sought to be replaced by a genuine and continuing partnership of states.
NITI Aayog will emerge as a "think-tank" that will provide Governments at the central and state
levels with relevant strategic and technical advice across the spectrum of key elements of policy.
The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by
fostering better Inter-Ministry coordination and better Centre-State coordination. It will help
evolve a shared vision of national development priorities, and foster cooperative federalism,
recognizing that strong states make a strong nation.
The NITI Aayog will develop mechanisms to formulate credible plans to the village level and
aggregate these progressively at higher levels of government. It will ensure special attention to
the sections of society that may be at risk of not benefitting adequately from economic progress.
The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through
a collaborative community of national and international experts, practitioners and partners. It will
offer a platform for resolution of inter-sectoral and inter-departmental issues in order to
accelerate the implementation of the development agenda.
In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and
focus on technology upgradation and capacity building.
Through the above, the NITI Aayog will aim to accomplish the following objectives and
opportunities:
An administration paradigm in which the Government is an "enabler" rather than a
"provider of first and last resort."
Progress from "food security" to focus on a mix of agricultural production, as well as
actual returns that farmers get from their produce.
Ensure that India is an active player in the debates and deliberations on the global
commons.
Ensure that the economically vibrant middle-class remains engaged, and its potential is
fully realized.
Leverage India's pool of entrepreneurial, scientific and intellectual human capital.
Incorporate the significant geo-economic and geo-political strength of the Non-Resident
Indian Community.
Use urbanization as an opportunity to create a wholesome and secure habitat through the
use of modern technology.
Use technology to reduce opacity and potential for misadventures in governance.
The NITI Aayog aims to enable India to better face complex challenges, through the following:
Leveraging of India's demographic dividend, and realization of the potential of youth,
men and women, through education, skill development, elimination of gender bias, and
employment
Elimination of poverty, and the chance for every Indian to live a life of dignity and self-
respect
Reddressal of inequalities based on gender bias, caste and economic disparities
Integrate villages institutionally into the development process
Policy support to more than 50 million small businesses, which are a major source of
employment creation.
