NITI AAYOG

INTRODUCTION
• NITI Aayog (National Institution for Transforming India) was established on 1 January 2015 by a Union Cabinet resolution, replacing the Planning Commission.
• It acts as the premier policy think-tank of the Government of India, promoting cooperative and competitive federalism.
• It is a non-constitutional and non-statutory body—created neither by the Constitution nor by an Act of Parliament.
• NITI Aayog aims to provide strategic and technical advice to the Central and State Governments.

WHY NITI AAYOG WAS CREATED
• To move away from the rigid top-down planning model of the Planning Commission.
• To incorporate States as equal partners in planning and development.
• To adapt planning to the rapidly changing economic environment.
• To promote innovation, technology, and evidence-based policymaking.

KEY STRUCTURE OF NITI AAYOG
1. Chairperson  
   – Prime Minister of India.

2. Governing Council  
   – Includes Chief Ministers of all States and Lt. Governors of Union Territories.  
   – A platform for intergovernmental policy coordination.

3. Regional Councils  
   – Formed to address specific regional issues.  
   – Chaired by the Prime Minister or his nominee.

4. Full-Time Organisation  
   – Vice-Chairperson (appointed by PM; Cabinet Rank)  
   – Full-time Members  
   – Part-time Members (academicians/practitioners)  
   – Ex-officio Members (Union Ministers)  
   – CEO (Appointed by PM; Secretary Rank)  
   – Secretariat (Support staff and departments)

5. Special Invitees  
   – Experts nominated by the Prime Minister.

NITI AAYOG’S THREE HUBS (FUNCTIONAL DIVISIONS)
1. Team India Hub  
   – Coordinates with States and UTs.  
   – Facilitates cooperative federalism.

2. Knowledge & Innovation Hub  
   – Builds NITI’s internal think-tank capacity.  
   – Conducts research and knowledge dissemination.

3. Administration & HR Hub  
   – Supports staffing, budgeting, and organisational functions.

OBJECTIVES OF NITI AAYOG
• Develop shared vision aligned with national development priorities.  
• Promote cooperative federalism through structured support and communication.  
• Encourage bottom-up planning, starting from village to national level.  
• Ensure integration of national security in economic planning.  
• Focus on inclusive development—especially for SCs, STs, minorities, women, and vulnerable groups.  
• Develop long-term policies and monitor program implementation.  
• Act as a platform for the resolution of inter-sectoral and inter-departmental issues.  
• Strengthen innovation, entrepreneurship, and technology-driven governance.

FUNCTIONS OF NITI AAYOG
A. Policy Design  
• Formulates strategic and long-term policies.  
• Provides directional and policy inputs to the government.

B. Cooperative Federalism  
• Acts as a bridge between Centre and States.  
• Organises meetings of Chief Ministers and working groups.  
• Encourages competitive federalism through indices and rankings.

C. Monitoring & Evaluation  
• Tracks progress of government schemes and national development agendas.  
• DMEO (Development Monitoring & Evaluation Office) evaluates the implementation status.

D. Think-Tank Role  
• Knowledge and innovation hub for evidence-based decision making.  
• Conducts studies, publishes policy documents, and collaborates with global organisations.

KEY INITIATIVES OF NITI AAYOG
1. Aspirational Districts Programme  
   – Targets districts with low socio-economic indicators.  
   – Focus on health, education, agriculture, financial inclusion, and infrastructure.

2. SATH (Sustainable Action for Transforming Human Capital)  
   – Focus on health and education sectors.  
   – Improves governance capacity in selected States.

3. Atal Innovation Mission (AIM)  
   – Promotes innovation and entrepreneurship.  
   – Atal Tinkering Labs in schools, Atal Incubation Centres.

4. SDG India Index  
   – Tracks India’s progress towards Sustainable Development Goals.  
   – Encourages states to achieve global development targets.

5. Composite Water Management Index  
   – Assesses water-related performance of states.

6. India Innovation Index  
   – Measures innovation capacity and ecosystem efficiency of states.

7. Strategy for New India @75  
   – Roadmap for India’s development till 2022-23 focusing on economic, social, and governance reforms.

8. National Nutrition Strategy  
   – Focused on tackling malnutrition through POSHAN Abhiyaan.

DIFFERENCE BETWEEN NITI AAYOG & PLANNING COMMISSION

PLANNING COMMISSION  
• Created in 1950 by executive resolution.  
• Followed top-down approach.  
• Had power to allocate funds to States.  
• Centralised planning model.  
• No representation of States.  
• Prepared Five-Year Plans.

NITI AAYOG  
• Formed in 2015 by Cabinet resolution.  
• Bottom-up planning approach.  
• Does NOT allocate funds (Finance Ministry does).  
• Cooperative & competitive federalism.  
• States are equal partners.  
• Focus on long-term strategies instead of 5-year plans.

NATIONAL DEVELOPMENT COUNCIL (NDC) – NOW DEFUNCT
• Created in 1952 by executive order.  
• Included PM, Union Ministers, Chief Ministers, Administrators of UTs.  
• Advised Planning Commission on planning matters.  
• Abolished in 2016 after the creation of NITI Aayog.  
• Its functions were transferred to the Governing Council of NITI Aayog.

ATTACHED / ASSOCIATED OFFICES
• National Institute of Labour Economics Research and Development (NILERD)  
• Development Monitoring & Evaluation Office (DMEO)

CRITICISM OF NITI AAYOG
• No financial powers unlike Planning Commission.  
• Limited authority in inter-state disputes.  
• Critics claim it may reflect Central preferences over State needs.  
• Some argue it increases dependence on Union ministries for funds.  
• Perception that corporate sector influences policymaking.

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Subject: Polity

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