Why in News?
NITI Aayog recommended cutting core grant support for State Science and Technology Councils, shifting to project-based funding to boost accountability, citing concerns over imbalanced contributions and limited scientific output from state-administered research institutions.
Description:
- Full form: National Institution for Transforming India.
- Replaced Planning Commission on 1st January 2015.
- Emphasises Bottom–Up approach, “Maximum Governance, Minimum Government”.
- Reflects spirit of Cooperative Federalism.
- Planning Commission followed Top–Down, command-and-control model inspired by USSR.
Composition of NITI Aayog:
- Chairperson: Prime Minister.
- Vice-Chairperson: Appointed by PM.
- Governing Council: Chief Ministers of all States + Lt. Governors of UTs.
- Regional Councils: For specific regional issues, chaired by PM or his nominee.
- Ex-Officio Members: Up to 4 Union Ministers nominated by PM.
- Ad-hoc Members: 2 members from leading research institutions on rotational basis.
- CEO: Appointed by PM, in rank of Secretary to GoI.
- Special Invitees: Experts nominated by PM.
NITI Aayog Hubs:
- Team India Hub: Interface between States and Centre.
- Knowledge and Innovation Hub: Think-tank, policy research.
- Documents planned:
- 3-Year Action Agenda
- 7-Year Strategy Paper
- 15-Year Vision Document
Key Objectives:
- Foster cooperative federalism through continuous support to States.
- Develop village-level planning, aggregating upward.
- Incorporate national security interests in economic strategy.
- Focus on vulnerable sections of society.
- Promote stakeholder partnerships, with think tanks, research bodies.
- Build knowledge, innovation, entrepreneurial ecosystems.
- Resolve inter-sectoral and inter-departmental issues.
- Maintain state-of-the-art Resource Centre and disseminate best practices.
Importance of NITI Aayog:
- Planning Commission was obsolete in market-driven economy.
- India’s states have diverse development stages, making one-size-fits-all planning outdated.
- Aims for competitive, inclusive growth tailored to state needs.
Major Initiatives of NITI Aayog:
- SDG India Index
- Composite Water Management Index
- Atal Innovation Mission
- SATH Project
- Aspirational District Programme
- School Education Quality Index
- District Hospital Index
- Health Index
- Agriculture Marketing and Farmer Friendly Reforms Index
- India Innovation Index
- Women Transforming India Awards
- Good Governance Index
- Women Entrepreneurship Platform (WEP)
- Strategy for New India @75
- Methanol Economy Programme
- e-AMRIT Portal (EV awareness, UK–India Joint Roadmap 2030)
NITI Aayog vs. Planning Commission:
NITI Aayog | Planning Commission |
Advisory Think Tank | Extra-constitutional body |
Draws from wider expertise | Limited expertise |
Cooperative Federalism spirit | States as spectators in plan meetings |
CEO appointed by PM (e.g., Parameswaran Iyer) | Secretaries via usual process |
Bottom–Up approach | Top–Down approach |
No power to impose policies | Imposed policies; tied funds to approved projects |
No fund allocation powers (Finance Ministry handles) | Allocated funds to ministries & states |
Concerns/Challenges:
- Needs to prioritise among many objectives.
- Must build trust better than Planning Commission.
- Requires budgetary freedom, shifting from plan/non-plan to capital/revenue expenditure focus.
- Must overcome bureaucratic inertia and fix accountability.
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