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NITI Aayog

Establishment

  • Established on January 1, 2015, replacing the Planning Commission.
  • Created through an executive resolution by the Government of India (Union Cabinet).
  • Neither a constitutional nor a statutory body.

Role and Function

  • Premier policy 'Think Tank' of the Government of India.
  • Provides directional and policy inputs.
  • Designs strategic and long-term policies and programs.
  • Provides technical advice to the Centre and States.
  • Employs a 'bottom-up' approach in policy thinking.

Rationale for Replacement of Planning Commission

  • Paradigm shift politically, economically, socially, technologically, and demographically.
  • To better serve the needs and aspirations of the people of India.
  • To nurture an overall enabling environment through a holistic approach to development.

Foundations

  1. Empowered role of States as equal partners in national development.
  2. Knowledge hub of internal and external resources.
  3. Collaborative platform facilitating implementation.

Composition

  • Chairperson: The Prime Minister of India.
  • Governing Council:
    • Chief Ministers of all States.
    • Chief Ministers of Union Territories with Legislatures (Delhi, Puducherry, and Jammu and Kashmir).
    • Lt. Governors of other Union Territories.
  • Regional Councils:
    • Addresses specific issues and contingencies impacting multiple states/regions.
    • Formed for a specified tenure.
    • Convened by the Prime Minister.
    • Comprises Chief Ministers of States and Lt. Governors of UTs in the region.
    • Chaired by the Chairperson of NITI Aayog or nominee.
  • Special Invitees: Experts, specialists, and practitioners nominated by the Prime Minister.
  • Full-time Organisational Framework:
    • Vice-Chairperson: Appointed by the Prime Minister; enjoys rank of Cabinet Minister.
    • Full-time Members: Enjoy the rank of a Minister of State.
    • Part-time Members: Maximum of 2 from leading universities/research organizations (ex-officio, on rotation).
    • Ex-Officio Members: Maximum of 4 members of the Union Council of Ministers nominated by the Prime Minister.
    • Chief Executive Officer: Appointed by the Prime Minister for a fixed tenure (Secretary to the Government of India).
    • Secretariat: As deemed necessary.

Objectives

  1. Shared vision of national development priorities with State involvement.
  2. Foster cooperative federalism.
  3. Develop credible plans at the village level and aggregate them upwards.
  4. Incorporate national security interests in economic strategy.
  5. Pay attention to at-risk sections of society.
  6. Design strategic, long-term policies and monitor their efficacy.
  7. Encourage partnerships between stakeholders and think tanks.
  8. Create a knowledge, innovation, and entrepreneurial support system.
  9. Offer a platform for inter-sectoral/departmental issue resolution.
  10. Maintain a State-of-the-Art Resource Centre.
  11. Monitor and evaluate implementation of programmes and initiatives.
  12. Focus on technology upgradation and capacity building.
  13. Undertake other activities to further the national development agenda.

Functions

  • Divided into two hubs:

    • Team India Hub: Fosters cooperative federalism and designs policy/programme frameworks.
    • Knowledge and Innovation Hub: Maintains a state-of-the-art resource center and encourages partnerships.
  • Functions divided into four main heads:

    1. Policy and programme framework
    2. Co-operative and competitive federalism
    3. Monitoring and evaluation
    4. Think-tank, Knowledge and Innovation Hub
  • Functionally divided into various verticals/cells responsible for sectoral issues:

    1. Administration and Support Units
    2. Agriculture and Allied Sectors
    3. Aspirational Districts Programme Cell
    4. Communication and Social Media Cell
    5. Data Management and Analysis, and Frontier Technologies
    6. Economics and Finance Cell
    7. Education
    8. Governance and Research
    9. Governing Council Secretariat and Coordination
    10. Industry-I
    11. Industry-II
    12. Infrastructure-Connectivity
    13. Infrastructure-Energy
    14. Micro, Small and Medium Enterprises
    15. Natural Resources and Environment, and Island Development
    16. Project Appraisal and Management Division
    17. Public-Private Partnership
    18. Rural Development
    19. Science and Technology
    20. Social Justice and Empowerment, and Voluntary Action Cell
    21. Social Sector-I (Skill Development, Labour and Employment, and Urban Development)
    22. Social Sector-II (Health and Nutrition, and Women and Child Development)
    23. State Finances and Coordination
    24. Sustainable Development Goals
    25. Water and Land Resources

Guiding Principles

  1. Antyodaya: Uplift the poor and marginalised.
  2. Inclusion: Empower vulnerable sections.
  3. Village: Integrate villages into the development process.
  4. Demographic dividend: Harness the people of India through education, skilling, and empowerment.
  5. People's Participation: Transform development into a people-driven process.
  6. Governance: Open, transparent, accountable, proactive governance.
  7. Sustainability: Maintain sustainability in planning.

Seven Pillars of Effective Governance

  1. Pro-people agenda.
  2. Pro-active in anticipating and responding to citizen needs.
  3. Participative, by involvement of citizens.
  4. Empowering women.
  5. Inclusion of all groups (SCs, STs, OBCs, minorities).
  6. Equality of opportunity for the youth.
  7. Transparency using technology.

Cooperative Federalism

  • NITI Aayog acts as a platform to bring states together as 'Team India'.

  • Steps taken to foster cooperative federalism:

    1. Meetings between PM/Cabinet Ministers and all Chief Ministers.
    2. Subgroups of Chief Ministers on subjects of national importance.
    3. Sharing of best practices.
    4. Policy support and capacity development of State/UT functionaries.
    5. Launching of the Aspirational Districts Programme.
    6. Theme-based extensive engagements.
    7. Framing model laws for land leasing and agriculture marketing reforms.
    8. Area-specific interventions for NE, Himalayan, and island states.

Competitive Federalism

  • Promotes improved performance of States/UTs.
  • Encourages healthy competition via transparent rankings.
  • Indices launched:
    • School Education Quality Index.
    • State Health Index.
    • Composite Water Management Index.
    • Sustainable Development Goals Index.
    • India Innovation Index.
    • Export Competitiveness Index.
    • Delta rankings for Aspirational Districts.

Autonomous and Attached Bodies

  1. National Institute of Labour Economics Research and Development (NILERD):
    • Central autonomous organization under the NITI Aayog.
    • Formerly known as Institute of Applied Manpower Research (IAMR).
    • Objectives: research, data collection, education, and training in human capital planning.
  2. Development Monitoring and Evaluation Office (DMEO):
    • Attached office of the NITI Aayog.
    • Established in 2015 by merging Programme Evaluation Organization and Independent Evaluation Office.
    • Supports government to achieve the national development agenda.
    • Mandate:
      • Monitoring progress and efficacy of strategic policies.
      • Actively monitoring and evaluating implementation of programmes.
      • Technical advisory to States.

Erstwhile Planning Commission

  • Established in March 1950 via executive resolution.
  • Neither a constitutional nor a statutory body.
  • Supreme organ of planning for social and economic development.
  • Functions included assessment of resources, plan formulation, determining priorities, indicating factors retarding economic development, determining machinery for implementation.
  • Only a staff agency and advisory body without executive responsibility.
  • Composition: Prime Minister (Chairman), Deputy Chairman (de facto executive head), Central Ministers (part-time members), full-time expert members, member-secretary.
  • Critical evaluation: Emerged as powerful and directive authority; described as a 'Super Cabinet', etc.

National Development Council (NDC)

  • Established in August 1952 via executive resolution.
  • Neither a constitutional nor a statutory body.
  • Reportedly to be abolished and powers transferred to the NITI Aayog Governing Council (no resolution passed yet).
  • Last meeting in December 2012.
  • Composition: Prime Minister (Chairman), Union Cabinet Ministers, Chief Ministers of all states, Chief Ministers/administrators of all UTs, members of the Planning Commission (now NITI Aayog).
  • Objectives: secure cooperation of states, strengthen and mobilize resources, promote common economic policies, ensure balanced and rapid development.
  • Functions: prescribe guidelines for plan preparation, consider national plan, assess resources, consider important questions of social/economic policy, review plan working, recommend measures for achieving aims.