ALTERNATIVE MECHANISM: NITI AAYOG

NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs. While designing strategic and long-term policies and programmes for the Government of India, NITI Aayog also provides relevant technical advice to the Centre and States. Theme of the NITI Aayog was the change in focus from central planning to cooperative federalism.    

The states had little direct say in policy planning, which was the purview of the Planning Commission. Involvement of the states was indirect through the National Development Council; it will not be repeated in the NITI Aayog. NITI Aayog acts as the best platform of the Government of India to bring States to act together in national interest, and thereby fosters Cooperative Federalism.

Establishment of NITI (National Institution for Transforming India) Aayog (2014)

Planning in India was carried by the Planning Commission (1950 – 2014) and the NITI (National Institution for Transforming India) Aayog (2014 – 2017).

With the Prime Minister as the ex-officio Chairman, the commission has a nominated Deputy Chairman, who holds the rank of a cabinet minister.

Montek Singh Ahluwalia is the last Deputy Chairman of the Commission, resigned on 26 May 2014. The Eleventh Plan completed its term in March 2012 and the Twelfth Plan is currently underway. Prior to the Fourth Plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption of the Gadgil Formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans.

The new government led by Prime Minister Narendra 12 Modi, elected in 2014, has announced the dissolution of the Planning Commission, and its replacement by a think tank called the NITI Aayog.

Objectives

• To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States.
• To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation.
• To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.
• To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.
• To pay special attention to the sections of our society that may be at risk of not benefiting adequately from economic progress.
• To design strategic and long-term policy and programme frameworks and initiatives and monitor their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.
• To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think tanks, as well as educational and policy research institutions.
• To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
• To offer a platform for resolution of inter-sectoral and inter­ departmental issues in order to accelerate the implementation of the development agenda.
• To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders.
• To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.
• To focus on technology up gradation and capacity building for implementation of programmes and initiatives.
• To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above.