On January 1, 2015, the Planning Commission was replaced by a new institution called NITI Aayog. The change aimed to shift towards a ‘Bottom-Up‘ approach, focusing on the idea of Maximum Governance and Minimum Government, in line with the spirit of ‘Cooperative Federalism.’ This move reflected a desire for a more people-centric and collaborative approach in envisioning a better future.

Objectives Of NITI Aayog

• Encourage active participation of states in line with national objectives, promoting a unified approach.
• Foster cooperative federalism by organizing well-structured assistance programs and procedures that involve collaboration between the central and state governments.
• Develop plans for sustainable development at the village level, then aggregate and implement them across different levels of government.
• Design an economic program that not only addresses economic concerns but also incorporates considerations for national security.
• Give special attention to segments of society that might be at risk of not fully benefiting from economic progress.
• Formulate strategic and long-term policy frameworks, programs, and initiatives, and assess their progress and success.
• Provide guidance and foster collaborations among key stakeholders, both nationally and internationally, including think tanks, educational institutions, and political research organizations.
• Develop a support system for entrepreneurs by leveraging the expertise of a network of professionals, both nationally and internationally.
• Establish a forum to address cross-sectoral and cross-departmental issues, expediting the achievement of the progressive agenda.
• Maintain an up-to-date Resource Centre, serving as a repository for research on governance and best practices in socio-economic development, and disseminate this information to participants.
• Efficiently screen and evaluate project and strategy implementations, identifying the necessary resources to enhance the likelihood of success.
• Prioritize technology advancement and capacity growth to effectively carry out programs and projects.
• Undertake any other necessary actions to execute the public investment schedule and achieve the objectives of NITI Aayog.

Reasons for Creation of NITI Aayog

• The Planning Commission, which has been around for 65 years, has become outdated and no longer serves a meaningful purpose. It was initially relevant in a command economy structure, but times have changed.
• India is a diverse country with states at different stages of economic development, each having its unique strengths and weaknesses.
• Using a ‘one size fits all’ approach to economic planning is no longer effective. This outdated method cannot make India competitive in today’s global economy.

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