NITI Aayog - Polity M.Lakshmikant Summary - UPSC notes

NITI Aayog - Polity M.Lakshmikant Summary

1. Establishment of NITI Aayog

When was it formed?
On January 1, 2015, the NITI Aayog (National Institution for Transforming India) was established.
Before this, India had the Planning Commission, which existed for 65 years but was scrapped on August 13, 2014, by the Modi Government.
How was it created?
Just like the Planning Commission, NITI Aayog was created by an executive resolution of the Union Cabinet.
This means it was formed through a government decision, not by the Constitution or through any law passed in Parliament.
What does this mean?
- It is NOT a constitutional body like the Election Commission.
- It is NOT a statutory body like the National Human Rights Commission.
- It is an extra-constitutional and non-statutory body.

2. What Does NITI Aayog Do?

It acts as the Government’s Think Tank, helping to make important policies.
Provides directional and policy advice to the government.
Designs strategic, long-term policies and programs.
Gives technical advice to both the Centre and State governments.

3. Major Shift from the Planning Commission

Old System (Planning Commission):
- Decisions flowed only from the Centre to the States (a one-way process).
- States had to follow what the Centre planned without much input.
New System (NITI Aayog):
- Focuses on partnership with States—states are treated as equal partners.
- Encourages collaboration instead of control.
- Adopts a ‘bottom-up’ approach where states’ ideas and needs are considered while making national policies.

4. Why Was the Planning Commission Replaced? (Rationale)

The government felt that India had changed a lot in 60 years:
- Politically, Economically, Socially, Technologically, Demographically.
The old Planning Commission was designed for an old system where the economy was more controlled by the government.
But today, India’s economy is more open, diverse, and globally connected.
Therefore, NITI Aayog was created to better meet the aspirations of modern India.

5. Key Features of NITI Aayog

Empowered Role of States:
- States are equal partners in national development.
- Promotes Cooperative Federalism, meaning the Centre and States work together.
Knowledge Hub:
- Acts as a resource center filled with ideas, data, and best practices in governance.
- Serves as a Think Tank, giving expert advice to governments at all levels.
Collaborative Platform:
- Helps with implementation of policies.
- Monitors progress, identifies gaps, and helps different ministries work together to achieve goals.

6. Arun Jaitley’s Statement (Union Finance Minister at the time)

He said that the Planning Commission had become redundant (no longer useful).
It was relevant when India had a command economy (government-controlled), but not anymore.
India’s diversity means that a “one-size-fits-all” approach doesn’t work for all states.
Each state has its own strengths and challenges, so planning must be flexible and dynamic.

7. A “Bharatiya” Approach to Development

The government emphasized that no foreign model can be copied directly into India.
India needs its own development strategy based on its unique needs, culture, and diversity.
NITI Aayog focuses on finding what works best for India—a Bharatiya approach.

Composition of NITI Aayog

This section explains who is part of NITI Aayog and their roles:

(a) Chairperson:

The Prime Minister of India is the head of NITI Aayog.

(b) Governing Council:

It includes:
- Chief Ministers of all States
- Chief Ministers of Union Territories with Legislatures (like Delhi, Puducherry, Jammu & Kashmir)
- Lieutenant Governors of other Union Territories
This council helps in decision-making by involving state leaders directly.

(c) Regional Councils:

Formed to solve specific regional issues that affect multiple states.
They are temporary (formed for a specific time).
Headed by the NITI Aayog Chairperson (PM) or someone nominated by him.
Includes Chief Ministers and Lt. Governors from the concerned region.

(d) Special Invitees:

Experts, specialists, and professionals with deep knowledge in specific areas.
Nominated by the Prime Minister to provide expert advice when needed.

(e) Full-time Organisational Framework:

This is the core team of NITI Aayog, working full-time. It includes:

Vice-Chairperson:
- Appointed by the Prime Minister.
- Holds a rank equivalent to a Cabinet Minister.
Members (Full-time):
- Work full-time on various policy matters.
- Hold the rank of a Minister of State.
Part-time Members:
- Maximum of 2 members from top universities, research organizations, etc.
- They serve in a rotational manner (not permanent).
Ex-Officio Members:
- Up to 4 Union Ministers nominated by the Prime Minister.
- They provide inputs from their respective ministries.
Chief Executive Officer (CEO):
- Appointed by the Prime Minister for a fixed term.
- Holds the rank of a Secretary to the Government of India.
- Manages the day-to-day functioning of NITI Aayog.
Secretariat:
- A support team that handles the administrative work.

2. Specialised Wings of NITI Aayog

NITI Aayog has three key specialized wings that handle different types of work:

(1) Research Wing:

Acts as an in-house think tank.
Consists of domain experts, specialists, and scholars who do research in different sectors.
Helps in creating new policies based on research and data.

(2) Consultancy Wing:

Works like a match-maker between:
- Governments (Central & State) needing solutions and,
- Experts/Organizations that can provide those solutions.
Instead of doing all the work themselves, they connect the right experts to the right government departments.
This allows NITI Aayog to focus on important matters and ensure quality control.

(3) Team India Wing:

Represents every State and every Ministry of the Government.
Works as a permanent platform for collaboration between:
- Central Government
- State Governments
Key Roles:

Ensures that all states have a say in NITI Aayog’s decisions.
Acts as a direct communication link between NITI Aayog and states/ministries for development issues.

"Team India Wing" in NITI Aayog:

Represents All States and Ministries: This wing includes representatives from every state and each ministry of the government.
Permanent Collaboration Platform: It serves as a continuous platform for cooperation between the Central Government and State Governments.
Key Roles:
- Ensures that all states have a voice in the decisions made by NITI Aayog.
- Acts as a direct communication channel between NITI Aayog and the states/ministries to address development issues.

In summary, the Team India Wing ensures that both the central and state governments work together and that every state has a say in the decisions made by NITI Aayog.

3. How Does NITI Aayog Work?

It works closely with Central Ministries and State Governments.
NITI Aayog can only give recommendations.
The final decision-making and implementation are done by the Central and State Governments.

Here’s a simplified version of the Objectives and Functions of NITI Aayog to help with quick understanding:

Objectives of NITI Aayog

The main aim of NITI Aayog is to promote sustainable development, ensure inclusive growth, and strengthen cooperative federalism in India. Its objectives are:

🌟 Key Objectives:

Shared Vision: Create a common vision for national development involving both the Central and State Governments.
Cooperative Federalism: Promote strong cooperation between Centre and States to build a strong nation.
Village-Level Planning: Develop mechanisms to prepare credible plans starting from villages, which can be scaled up to national levels.
National Security: Ensure that economic strategies also safeguard national security interests.
Inclusive Growth: Focus on marginalized sections of society to ensure no one is left behind in economic progress.
Policy Design & Monitoring: Design long-term policies and programs, monitor their implementation, and make improvements when needed.
Partnerships: Encourage collaboration between governments, think tanks, educational institutions, and international organizations.
Knowledge & Innovation Hub: Build a system that promotes innovation, entrepreneurship, and a strong knowledge-sharing community.
Conflict Resolution: Act as a platform to resolve issues between different government departments.
Resource Centre: Maintain a repository of best practices in governance and development for reference and learning.
Monitoring & Evaluation: Continuously track and evaluate government programs to improve their effectiveness.
Technology & Capacity Building: Focus on upgrading technology and enhancing the skills of government officials for better implementation.
Support Development Agenda: Undertake any other activity needed to support the national development goals.

🎯 Broader National Goals through NITI Aayog:

Shift from being just a “provider” to an “enabler” of development.
Move from focusing on just “food security” to ensuring better income for farmers.
Ensure India plays an active role in global discussions on key issues.
Engage the middle class to maximize their contribution to the economy.
Leverage the talent pool of scientists, entrepreneurs, and intellectuals.
Tap into the potential of the Non-Resident Indian (NRI) community.
Use urbanization as an opportunity for sustainable, tech-driven growth.
Use technology to improve governance and reduce corruption.

🌍 Key Social and Economic Focus Areas:

Harnessing Demographic Dividend: Focus on youth development through education, skill-building, and jobs.
Poverty Elimination: Ensure every Indian can live a life of dignity.
Addressing Inequalities: Fight against gender bias, caste discrimination, and economic inequality.
Village Development: Integrate villages into the mainstream development process.
Support for Small Businesses: Provide policy support to over 50 million small enterprises to boost employment.
Environmental Protection: Promote sustainable development while protecting natural resources.

⚡ Functions of NITI Aayog

NITI Aayog performs several functions to fulfill its objectives, which can be categorized under four main heads:

🔑 1. Designing Policy & Programme Frameworks:

Formulate strategic plans and policies for national development.
Provide recommendations to the government on key policy issues.

🤝 2. Fostering Cooperative Federalism:

Strengthen the partnership between Centre and States through continuous engagement.
Ensure equal participation of States in national decision-making.

📊 3. Monitoring & Evaluation:

Track and evaluate government programs to assess their performance.
Suggest improvements based on feedback and real-time data.

🧠 4. Think Tank & Knowledge Hub:

Act as a think tank, providing expertise on key development issues.
Serve as a knowledge and innovation hub, promoting best practices and new ideas.

🏢 Organizational Structure: Verticals of NITI Aayog

NITI Aayog is divided into different verticals, each focusing on specific sectors:

Agriculture
Data Management & Analysis
Energy
Financial Resources
Governance & Research
Governing Council Secretariat
Health
Human Resource Development
Industry
Infrastructure Connectivity
Land & Water Resources
Managing Urbanisation
Natural Resources & Environment
NGO Darpan
Project Appraisal & Management Division (PAMD)
Public-Private Partnerships (PPP)
Rural Development
Science & Technology
Skill Development & Employment
Social Justice & Empowerment
State Coordination & Decentralized Planning
Sustainable Development Goals (SDGs)
Voluntary Action Cell
Women & Child Development

🗝️ Core Hubs of NITI Aayog:

Team India Hub:
- Focuses on Cooperative Federalism.
- Supports policy design and coordination with states.
Knowledge & Innovation Hub:
- Focuses on research, best practices, and partnerships.
- Acts as a repository of knowledge and innovation center.

Guiding Principles of NITI Aayog

In carrying out its functions, NITI Aayog is guided by the following principles:

Antyodaya: Prioritizes the service and upliftment of the poor, marginalized, and downtrodden, as envisioned in Pandit Deendayal Upadhyay’s idea of 'Antyodaya'.
Inclusion: Empowers vulnerable and marginalized sections, addressing identity-based inequalities related to gender, region, religion, caste, or class.
Village Integration: Integrates villages into the development process, leveraging their vitality and cultural significance.
Demographic Dividend: Harnesses the potential of India's population through education, skill development, and livelihood opportunities.
People’s Participation: Transforms development into a people-driven process, encouraging active citizen participation in governance.
Governance: Promotes open, transparent, accountable, and proactive governance, focusing on outcomes rather than just outlays.
Sustainability: Embeds sustainability at the core of planning and development, drawing from India's traditional respect for the environment.

Seven Pillars of Effective Governance:

Pro-people Agenda:
The government should focus on making policies that directly benefit the people, fulfilling both personal dreams and the needs of society. It’s all about improving the quality of life for everyone.
Pro-active Approach:
Instead of waiting for problems to happen, the government should identify issues early and take quick actions to prevent them. This helps in faster solutions and better public service.
Participative Governance:
Good governance means involving people in decision-making. Citizens’ opinions, feedback, and suggestions should be considered while making laws and policies.
Empowerment of Women:
Women should have equal rights, opportunities, and participation in every field—whether it's education, jobs, politics, or leadership roles—to build a balanced society.
Inclusion:
No one should feel left out. The government must ensure equal support for all communities, especially Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and minorities.
Equality of Opportunity:
Everyone, especially the youth, should get equal chances to succeed, regardless of their background. This includes access to quality education, jobs, and skill development programs.
Transparency:
The government should work openly, sharing information with the public. Using technology like apps, websites, and e-governance tools helps people track government activities, ensuring accountability.

NITI Aayog's commitment to cooperative federalism, citizen engagement, egalitarian access to opportunities, adaptive governance, and technology integration forms the core of its mission to drive national development.

Cooperative Federalism

NITI Aayog is pivotal in realizing cooperative federalism and fostering good governance across India. Strong state participation is essential for achieving national objectives, necessitating collaboration between the Centre and State governments.

Key Features of Cooperative Federalism:

Joint National Development Agenda: Collaboration between the Centre and States on national priorities.
Advocacy of State Perspectives: Ensures state interests are represented in central policy-making.

Mandate and Initiatives:

Shared Vision: Develops national priorities, sectors, and strategies with active state involvement.
Village-Level Planning: Assists states in formulating credible plans from the grassroots level upwards.
Equal Stakeholder Model: Encourages states to be equal partners in the planning process.

Platforms and Programs Promoting Cooperative Federalism:

Meetings of the Governing Council: Facilitates Centre-State dialogue on development issues.
Sub-groups of Chief Ministers: Focuses on specific subjects to address regional challenges.
Task Forces: Tackles critical issues with targeted strategies.
NITI Forum for North East: Addresses development needs of the North Eastern region.
Sustainable Development in the Indian Himalayan Region: Focuses on balanced growth in ecologically sensitive areas.
Development Support Services to States (DSSS): Provides technical assistance for state development projects.
Sustainable Action for Transforming Human Capital (SATH): Enhances state capabilities in improving social sector indicators.

Special Focus Areas:

NITI Aayog also prioritizes regions requiring additional support, such as the North Eastern States, Island States, and Himalayan regions. Special forums identify regional constraints, and tailored policies ensure sustainable development while preserving natural resources.

Through these efforts, NITI Aayog strengthens cooperative federalism, fosters inclusive growth, and drives India’s development agenda effectively.

Criticism of NITI Aayog:

Just a Name Change: Critics say that changing the name from Planning Commission to NITI Aayog is only for show, without any real change in how things work.
Favors Big Businesses: Some fear that NITI Aayog will listen more to big companies, which could lead to unfair policies that don’t help common people.
Less Power for States: There’s a worry that NITI Aayog gives more power to the central government, reducing the role of state governments in making important decisions.
No Focus on Planning: Earlier, the Planning Commission focused on long-term plans for the country’s growth. Critics feel that NITI Aayog doesn’t do this properly, which could lead to poor economic management.
Political Reasons: Some believe the change was made just to move away from the ideas of earlier leaders like Nehru, not because it was really needed.
Risk to Jobs and Development: People are worried that without proper planning, it will be harder to control inflation, create jobs, and ensure equal development in all parts of India.

Attached offices of NITI Aayog:

1. National Institute of Labour Economics Research and Development (NILERD)

Earlier Name: It was known as the Institute of Applied Manpower Research (IAMR) before 2014.
Purpose: Focuses on research, data collection, education, and training related to human resource (HR) planning and development.
History: Established in 1962 to help with policy-making on human capital development.
Funding: Mainly funded by NITI Aayog, with some income from research projects and training programs.
Key Activities:
- Research on HR development
- Training programs (national & international)
- Monitoring government policies and programs
Location: Has its own campus in Narela, Delhi since 2002.

2. Development Monitoring and Evaluation Office (DMEO)

Established: In 2015 by merging two old bodies—Programme Evaluation Organization (1952) and Independent Evaluation Office.
Purpose: To monitor and evaluate the implementation of government schemes and policies.
Key Functions:
1. Track progress of government programs
2. Help ministries design evaluation studies
3. Monitor Sustainable Development Goals (SDGs)
4. Promote cooperation between the central and state governments
5. Evaluate government programs for effectiveness
Structure:
- Led by a Director General (equivalent to Additional Secretary level)
- Supported by Deputy Director Generals and administrative staff
Location: Headquarters at NITI Aayog, New Delhi
Regional Offices: Earlier had 15 regional offices for field surveys, but they were closed in 2017, and staff were moved to the Delhi HQ.

Erstwhile Planning Commission

Established: March 1950
How: Created by a government order (not mentioned in the Constitution or any law).
Recommendation: Formed based on the advice of the Advisory Planning Board (1946), chaired by K.C. Neogi.
Role: The top body responsible for planning India’s social and economic development.

Functions of the Planning Commission

Assess Resources: Identify the country’s material, capital, and human resources and explore ways to enhance them.
Create Plans: Develop effective strategies to utilize resources efficiently.
Set Priorities: Decide which sectors/projects need immediate focus and how plans should progress in stages.
Identify Barriers: Pinpoint obstacles to economic growth.
Implementation Strategy: Recommend the necessary administrative machinery for executing plans effectively.
Monitor Progress: Regularly review the implementation of plans and suggest adjustments.
Advisory Role: Provide recommendations when consulted by the Central or State Governments.

Other Responsibilities Assigned:

Promoting public participation in national development.
Handling area-specific development programs.
Perspective Planning (long-term vision plans).
Supervising the Institute of Applied Manpower Research.
Overseeing the Unique Identification Authority of India (UIDAI) (initially under it).
Managing the National Rainfed Area Authority (NRAA).

(Note: The National Informatics Centre was once under the Planning Commission but was later moved to the Ministry of IT.)

Composition (Structure) of the Planning Commission

Chairman: The Prime Minister of India.
Deputy Chairman: The real executive head responsible for drafting Five-Year Plans. (Appointed by the government, held Cabinet Minister rank.)
Part-Time Members: Usually Central Ministers like the Finance Minister and Planning Minister.
Full-Time Experts: 4 to 7 members with expertise in various fields (held the rank of Minister of State).
Member-Secretary: A senior IAS officer who managed administrative tasks.

(States had no representation—it was a fully central body.)

Criticism of the Planning Commission

While it was meant to be an advisory body, over time, it became very powerful, influencing both Union and State decisions. Critics gave it names like:

“Super Cabinet”
“Economic Cabinet”
“Parallel Cabinet”
“Fifth Wheel of the Coach” (implying redundancy)

Key Criticisms:

Administrative Reforms Commission (ARC):
- Stated that the Planning Commission acted like a parallel or super cabinet, undermining the authority of actual ministers.
K. Santhanam (Constitutional Expert):
- Claimed that planning made India function more like a unitary system, reducing federalism.
P.V. Rajamannar (Chairman of the 4th Finance Commission):
- Pointed out overlapping roles between the Planning Commission and the Finance Commission, causing confusion in financial matters.

National Development Council (NDC)

Established: August 1952
How: Created through a government order (not part of the Constitution or any law).
Purpose: To discuss and guide India’s economic and social development plans.
Current Status: After 2012, no meetings were held. In 2016, there was talk of abolishing it and transferring its powers to the Governing Council of NITI Aayog, but this hasn’t officially happened yet.

Composition (Members of NDC)

Prime Minister of India (Chairperson)
All Union Cabinet Ministers (added since 1967)
Chief Ministers of all States
Chief Ministers/Administrators of Union Territories
Members of the Planning Commission (now NITI Aayog)

(The Secretary of NITI Aayog serves as the Secretary of NDC.)

Objectives of the NDC

Cooperation: Ensure that states actively participate in executing national plans.
Resource Mobilization: Strengthen and gather national resources for effective planning.
Common Policies: Promote uniform economic policies across the country.
Balanced Development: Ensure rapid growth in all regions of India.

Functions of the NDC

Set Guidelines: Create guidelines for preparing the national development plans.
Review Plans: Examine the national plans prepared by NITI Aayog.
Resource Assessment: Check what resources are needed for implementing plans and suggest ways to improve them.
Policy Discussions: Discuss important economic and social policies that impact national development.
Monitor Progress: Review how well national plans are working over time.
Recommend Measures: Suggest ways to achieve the goals set in the national plans.

How Plans Are Approved:

Draft Plan: Prepared by the Planning Commission (now NITI Aayog).
Union Cabinet Approval: First approved by the Union Cabinet.
NDC Review: Sent to the NDC for final review and recommendations.
Parliament Approval: Presented to Parliament, and after approval, it becomes an official plan published in the Official Gazette.

(Note: The NDC is an advisory body, meaning its recommendations are not legally binding but are highly influential.)

Critical Evaluation of NDC

Strengths:

Acts as a bridge between the Central Government, State Governments, and NITI Aayog for better coordination.
Provides a platform for Centre-State discussions on important national issues.
Helps in sharing responsibilities between the Centre and States in the federal system.

Criticisms:

"Super Cabinet": Some critics feel its powerful composition makes it look like a parallel government body, even though its role is advisory.
"Rubber Stamp": Others argue it simply approves decisions already made by the Union Government without real influence, especially during the long rule of the Congress party.

However, as regional parties gained power in many states, the NDC began to reflect more federal values, giving states a stronger voice in national planning.

Go to Link

Labels

NITI Aayog - Polity M.Lakshmikant Summary - UPSC notes