Introduction
NITI Aayog (National Institution for Transforming India) stands as the premier policy 'think tank' of the Government of India. Established by an executive resolution on January 1, 2015, it marked a profound shift in India's governance philosophy.
It replaced the erstwhile Planning Commission, moving away from a centralized, top-down planning approach to a more cooperative, consultative, and bottom-up model.
NITI Aayog's core mandate is to foster cooperative federalism by involving states in policy formulation, design strategic and long-term policy frameworks, and monitor their implementation, ultimately driving India's sustainable development and inclusive growth through knowledge, innovation, and an entrepreneurial support system.
20.2.1: Establishment
- Mode: Executive resolution of Union Cabinet (Jan 1, 2015).
- Nature: Executive body (non-constitutional, non-statutory).
- Replaced: Planning Commission (also an executive body, existed since 1950).
- Symbolism: Shift from Soviet-era centralized planning.
20.2.2: Rationale
- Cooperative Federalism: Greater State involvement.
- Shift from Centralized: Bottom-up, consultative approach.
- "Team India" Hub: Centre and States working together.
- "Knowledge & Innovation" Hub: Cutting-edge advice, research.
- Policy Think Tank: Strategic & technical advice.
20.2.3: Composition
Chairperson
Prime Minister of India (Ex-officio)
Governing Council (Apex Body)
- Chief Ministers of all States
- CMs of UTs with Legislatures
- LGs of other UTs
Regional Councils
Address specific issues impacting regions. Convened & chaired by PM/nominee.
Full-Time Organisational Framework
- Vice-Chairperson (Cabinet Minister rank)
- Members (Minister of State rank)
- CEO (Secretary rank)
- Part-time Members (Max 2)
- Ex-officio Members (Max 4, Union CoM)
- Special Invitees
20.2.4: Objectives & Functions
Cooperative Federalism
Structured support to States; strong States make a strong nation.
Bottom-up Planning
Formulate credible plans from village level upwards.
Inclusive Growth
Special attention to sections at risk of not benefiting.
Strategic Policy Design
Design long-term policy frameworks and monitor efficacy.
Partnerships & Collaborations
Encourage partnerships with think tanks, research institutions.
Knowledge & Innovation
Create an entrepreneurial support system with experts.
Inter-sectoral Resolution
Platform for resolving inter-departmental issues to accelerate development.
Resource Centre
State-of-the-art repository of research on good governance.
Monitoring & Evaluation
Actively monitor and evaluate program implementation & success likelihood.
Technology & Capacity Building
Focus on technology upgradation and capacity building.
20.2.5: Guiding Principles
Antyodaya
Upliftment of the last person in society.
Inclusion
Ensuring all sections are part of the development process.
Village
Importance of the village as a unit for planning.
Demographic Dividend
Harnessing the potential of India's young population.
People’s Participation
Active involvement of citizens in governance.
Governance
Promoting responsive, transparent, and accountable governance.
Sustainability
Ensuring environmental sustainability alongside growth.
20.2.6: Key Initiatives & Reports
Strategic Planning Documents
Vision & Strategy for India
Three Year Action Agenda (2017-20), Seven Year Strategy Document (2017-24), and 15 Year Vision Document for long-term development goals.
Promoting Competitive Federalism
Various Indices & Dashboards
SDG India Index, Health Index, Innovation Index, Export Preparedness Index, Multidimensional Poverty Index (MPI) – ranking states and UTs based on performance.
Innovation Ecosystem
Atal Innovation Mission (AIM)
Flagship initiative fostering innovation and entrepreneurship through Atal Tinkering Labs (ATLs), Atal Incubation Centres (AICs), and Atal New India Challenges.
Targeting Regional Disparities
Aspirational Districts & Blocks Programmes
ADP (2018) aims to transform 112 underdeveloped districts. ABP (2023) expands this focus to 500 most underdeveloped blocks. Nodal agency for these programs.
Comprehensive Vision
National Strategy for New India (2018)
A comprehensive document outlining India's development path across various sectors.
20.2.7: NITI Aayog vs. Planning Commission
| Feature | Planning Commission (Erstwhile) | NITI Aayog |
|---|---|---|
| Origin | Executive Resolution (1950) | Executive Resolution (2015) |
| Approach/Philosophy | Top-down: Centralized planning, command economy. | Bottom-up: Participative, consultative. 'Think Tank', 'Team India', cooperative federalism. |
| Power to Allocate Funds | Yes, allocated funds to ministries and states. | No, does not possess fund allocation power. |
| Role of States | Limited role; states were recipients, aligned with central plans. | Greater role; actively involved in policy formulation, promotes 'cooperative federalism'. |
| Nature of Decisions | Commanding role; plans often imposed. | Advisory/Recommendatory role; recommendations are influential but not binding. |
| Focus | Macro-economic planning, Five-Year Plans, resource allocation. | Strategic planning, policy research, monitoring, innovation, knowledge dissemination. |
| Relationship with Ministries | Ministries accountable for plan outlays and resource utilization. | Enabler and facilitator, collaborating with ministries, not controlling. |
| Apex Body | National Development Council (NDC) | Governing Council (PM & CMs); functions subsumed by NITI Aayog. |
Quick Notes for Exam Prep
Prelims-ready Notes
Establishment: Executive resolution, Jan 1, 2015. Replaced Planning Commission.
Nature: Non-constitutional, non-statutory think tank.
Rationale: Cooperative federalism, bottom-up, 'Team India' Hub, 'Knowledge & Innovation' Hub.
Composition: Chairperson (PM ex-officio), Governing Council (CMs, LGs), Regional Councils, VC (Cabinet rank), Members (MoS rank), CEO (Secretary rank), Part-time, Ex-officio, Special Invitees.
Objectives: Foster cooperative federalism, bottom-up planning, inclusive growth, long-term policy design, partnerships, knowledge hub, inter-sectoral resolution, monitoring/evaluation, technology/capacity building.
Guiding Principles: Antyodaya, Inclusion, Village, Demographic Dividend, People’s Participation, Governance, Sustainability.
Key Initiatives/Reports: Three Year Action Agenda, Seven Year Strategy, 15 Year Vision, various indices (SDG, Health, Innovation, Export, MPI), Atal Innovation Mission (AIM), Aspirational Districts Programme (ADP), Aspirational Blocks Programme (ABP).
NITI vs. PC: NITI Aayog (Advisory, No fund allocation, Bottom-up, Greater state role); Planning Commission (Allocating power, Top-down, Limited state role, Imposed policies).
Mains-ready Analytical Notes
Major Debates/Discussions: Effectiveness as Think Tank, Lack of Fund Allocation Power, Overlapping Mandates with ministries, "Super-Cabinet" vs. "Policy Partner" debate, Composition and Objectivity concerns.
Historical/Long-term Trends: Reflects decentralization of governance, shift from socialism to market economy, data-driven governance trend, outcome-oriented approach.
Contemporary Relevance/Significance/Impact: Drives Cooperative and Competitive Federalism (Governing Council, Indices), Policy Innovation (reforms across sectors), Capacity Building for states, Nodal role in SDGs, Promotes Inclusive Growth (ADP), Global Recognition for best practices.
Real-world/Data-backed Examples: ADP Success (improved outcomes in districts), MPI reports (tracking poverty reduction), Strategic Policy Papers (EVs, DPI, green growth), Role in G20 Dialogues.
Current Affairs & Recent Developments (Last Year)
Aspirational Blocks Programme (ABP) Launch (Jan 2023): Expands focus to 500 underdeveloped blocks in 329 districts, building on ADP's success.
Release of New Indices and Dashboards: Continual updates to SDG India Index, Health Index, Export Preparedness Index, MPI; launch of new real-time dashboards for state performance.
Role in National Logistics Policy Implementation: Actively involved in enhancing efficiency, reducing costs, and leveraging technology in the logistics sector (NLP 2022).
India@100 Vision and Roadmap: Ongoing work and release of aspects of its long-term vision for India's development towards 2047.
Discussions on Digital Public Infrastructure (DPI): Key proponent of India's DPI approach (Aadhaar, UPI, DigiLocker), advocating for its use and global sharing.
UPSC Previous Year Questions
Prelims MCQ: UPSC CSE 2017
Which of the following is not a feature of NITI Aayog?
- (a) It is a statutory body.
- (b) It is a think-tank of the Government of India.
- (c) It fosters cooperative federalism.
- (d) The Prime Minister is its Chairperson.
Explanation: NITI Aayog is an executive body, established by a resolution, not a statutory body.
Prelims MCQ: UPSC CSE 2015
NITI Aayog is formed by an executive resolution. It does not derive its powers from the Constitution of India. Which of the following constitutional provisions empowers the Union government to form such a body?
- (a) Article 280
- (b) Article 282
- (c) Article 292
- (d) Article 355
Explanation: Article 282 allows the Union or a State to make grants for any public purpose, even if outside their legislative domain, enabling executive bodies like NITI Aayog.
Mains PYQ: UPSC CSE 2023, GS Paper II
"NITI Aayog is viewed as a unique platform for cooperative federalism, fostering both competition and collaboration among states. Critically evaluate this statement, providing examples." (250 words)
Direction/Value Points:
- Introduction: Define NITI Aayog and its mandate (cooperative federalism).
- Fostering Cooperation: Governing Council (forum for CMs/LGs), Regional Councils (inter-state issues), Knowledge Sharing, Joint Policy Formulation.
- Fostering Competition: Indices and Rankings (Health, SDG, Innovation, Export Preparedness), Aspirational Districts/Blocks Programme, Peer Learning.
- Critical Evaluation (Challenges/Limitations): Lack of Financial Powers (advisory nature), PM as Chairman (central dominance perception), potential for Overlapping with ministries.
- Conclusion: NITI Aayog's unique role in balancing cooperation/competition, its effectiveness relies on overcoming limitations and maintaining consultative spirit.