Introduction
- NITI Aayog (National Institution for Transforming India) is the policy think tank of the Government of India, established in 2015 to replace the Planning Commission (1950–2014).
- It provides strategic, directional, and technical policy inputs to the Centre and States.
- Not a Constitutional or Statutory body—established by Executive Resolution.
Composition
- Chairperson: Prime Minister
- Vice-Chairperson: Appointed by the PM (rank of Cabinet Minister)
- Full-Time Members: Max 5
- Part-Time Members: Max 2 (from academia/research, on rotation)
- Ex-Officio Members: Max 4 Union Ministers
- CEO: Appointed by PM (rank of Secretary)
- Secretariat: Support staff for execution
Governing & Regional Councils
- Governing Council: All CMs + Lt. Governors of UTs with legislature
- Regional Councils: Issue-specific, chaired by PM or nominee
Objectives
- Foster Cooperative Federalism
- Promote Competitive Federalism
- Strategize for long-term policy vision
- Serve as a Knowledge & Innovation Hub
- Promote bottom-up planning (village to national)
Functional Framework
- Team India Hub: Coordinates with States
- Knowledge & Innovation Hub: Research, data, best practices
- Verticals/Cells: Thematic units (agriculture, education, health, etc.)
Key Functions
- Develop policy & programme framework
- Monitor and evaluate implementation
- Capacity building and knowledge exchange
- Promote innovation, entrepreneurship
- Design indicators (e.g., SDG Index, Innovation Index)
Cooperative Federalism
Mechanism:
- Regular meetings with CMs
- Sub-groups on national issues
- Aspirational Districts Programme
- Model laws (land leasing, agri-marketing)
Competitive Federalism
Mechanism:
- State performance indices (SDG, SEQI, etc.)
- Capacity building of lagging states
- Encourages healthy competition for reforms
NITI vs Planning Commission
| Parameter | NITI Aayog | Planning Commission |
| Nature | Executive Body | Executive Body |
| Role | Think Tank | Fund allocator |
| Approach | Bottom-up | Top-down |
| Federalism | Cooperative & Competitive | Centralised |
| Fund Allocation | No role | Allocated funds |
| Expertise | Multi-disciplinary | Bureaucratic-heavy |
Key Subsidiary Bodies
Development Monitoring and Evaluation Office (DMEO)
- Set up in 2015
- Merged Programme Evaluation Organization + Independent Evaluation Office
- Tracks program performance and feedback
NILERD (National Institute of Labour Economics Research and Development)
- Formerly IAMR
- Focus: Human capital, labour market research, evaluation & training
NITI’s Guiding Principles
- Antyodaya – Focus on poorest
- People’s Participation – Bottom-up planning
- Inclusion – All identities & regions
- Sustainability – Environmental consciousness
- Outcome Orientation – Shift from outlays to outcomes
- Governance Reform – Transparency and accountability
Significance for India
- Shift from central planning to policy facilitation
- Promotes state-driven reforms
- Enables evidence-based governance
- Encourages multi-stakeholder collaboration
