To meet the modern economic needs of the country the NITI Aayog or National Institute for transforming India as established on the first day of the year 2015 replacing the erstwhile planning commission. Since the development of NITI Aayog as the chief policy planning body of the Government of India, the organization intends to implement agenda of cooperative federalism where states are included in the formulation of economic policies, that offers policy and expertise guidance in several fields, fosters innovation and creation with the help of the programs like Atal Innovation Mission, and also helps to track the proper execution of government schemes for better governance and inclusiveness.
The Planning Commission’s replacement was suggested in the May 2014 report jointly released by the Independent Evaluation Office. On the 13th of August, 2014 after the Union Cabinet sanctioned its formation on January 1st, 2015 it came into effect.
NITI Aayog is the newly-formed government of India’s top public policy institution that is tasked with building the concept of cooperative federalism through participation of state governments in determining the country’s economic policies using bottom up approach. The corporation offers policy advisory within segments like power, coal, renewable energy and infrastructure to the central and state governments.
Planning commission
The Planning Commission of India was started from March 15, 1950, following a resolution of the Government of India. It was established with the basic purpose to supervise the economic as well as social transformation of the country majorly in terms of formulating Five-Year Plans.
A glance on Planning Commission:
- Pre-Independence Efforts:In India History of the Planning commission can be traced back in the year 1938 when the INC established National planning committee and Nehru ji was appointed as the chairman of that commission.Before independence, during the British regime in 1944, there was the Advisory Planning Board which lasted till 1946.
- Post-Independence Formation:As it has been mentioned earlier after the Independent India was formed there was a necessity of elaborated economic policy. Under the chairman ship of the Pt. Nehru fulfilling the demand of the time planning commission was established in 1950.It was expected to appraise the country’s resources, prepare recommendations for their efficient use and establish priorities.
- Five-Year Plans:The first Five-Year Plan was started in 1951 particularly to lay emphasize on agricultural sector.The Planning Commission over the years has drawn several Five-Year Plans wherein the focal areas varied with the plans that were formulated like industrial development, eradication of poverty, and development of infrastructure among others.
- Challenges and Criticisms:The some of the challenges that pulled down the Planning Commission are economic crises, wars and other political changes.It was commonly pointed out that is over-centralized and did not take into consideration the requirements of the states.
- Transition to NITI Aayog:On the 13th of August, 2014 after the Union Cabinet sanctioned its formation on January 1st, 2015 it came into effect and erstwhile planning commission was converted into NITI Aayog.
The Planning Commission was one of the most significant institutions that formulated India’s economic policies and the developmental strategies for over six decades.
Functions of NITI Aayog :-
For effective implementation of the set goal and agenda for developmental change in India, several functions are performed by NITI Aayog,which includes:
- Policy Formulation:Enables that necessary policy frameworks and programs required for the government to be developed and designed in the long-term.
- Cooperative Federalism:to bring a balance between the State governments and the Union government.
- Monitoring and Evaluation:it has the responsibility to monitor work of the governments and providing evaluation and reports on it.
- Advisory Role:Provides advice and consultancy services to central and state ministry in some policy matters.
- Innovation and Research:Acts as a library and knowledge hub working towards the progress of research and urgent affairs and flagship projects such as AIM.
- Resource Centre:Serves as a modern database that stores reference sources concerning good governance and practices.
- Public-Private Partnerships (PPP):Coordinates the multilateral relations of private players and government in infrastructure development projects and raising the standards of service delivery.
- Sustainable Development Goals (SDGs):it participates in the monitoring and evaluation of the results of governments of states and union governments’ work in relation to the sustainable development goals issued by the United Nations and providing support to them to attain the SDG goals.
- Resolution of Inter-Sectorial Issues:Functions as a venue for addressing the sector and departmental issues so as to enhance the flow of the development agenda.
- Capacity Building:Stresses one on the dimensions of technical improvement and general conditioning of capabilities for programs and schemes implementation.
These roles make NITI Aayog very central in the modern India as it undertake the responsibility of policy mentoring to India and co-ordinating sustainability as well as inclusive growth.
Cooperative Federalism and NITI Aayog :-
Cooperative federalism is a system where State governments and Central government work together with harmony to develop the country. It is a cooperative association rather than a subordinate relationship of the local government with state and federal authorities.
The NITI Aayog is promoter of Cooperative Federalism in the country and plays a role by the following:
- Platform for Collaboration:NITI Aayog also functions as an interface for the central as well as the state governments with regard to policy matters. It unites states as the ‘Team India’ to figure out the development agenda of the country.
- Policy Support and Capacity Building:it provides the assistance to the state governments and the union government to formulate the policy and enhancing the infrastructure for the policy formulation. This ranges from exchanging ideas on what has been found to work and providing technical assistance to members.
- Sub-Groups of Chief Ministers:Establishes other formations of the Chief Ministers on sectors of national concern with a view of harmonizing on contentious issues.
- Model Laws and Reforms:it has done worked very well on formulating the modern laws. One can understand it through the examples like Model Agricultural Land Leasing Act and the APMC Act. Both Acts worked as a catalyst to the farmer’s income and provided supported to their finances.
- Thematic Engagements:Organizes and participates in theme-based extensive interactions in other sectors in which different states and union territories are put at the centre of the policy development process.
- Development Support Services:The organization offers developmental support services to all the states and union territories in India, that include SATH (Sustainable Action for Transforming Human) programme.
- Monitoring and Evaluation:supervises the functioning of the government programs and plans, and its interventions that is assessing with the indicators of the program as to whether they are functioning well and can be maintained, or if they need to be modified.
- Competitive Federalism:Encourages competitive federalism by preparing rank lists of states against parameters like health, education, water etc.
- Technical Advice:Advises the Union government, government of States and UTs regarding the technology and provides assistance to make them tech compatible.
7 pillars of Aayog :-
NITI Aayog on the 7 principles of effective governance. These pillars are, as it is meant to deliver comprehensible and all-round development in different sectors. Here are the 7 pillars:
- Pro-People:Plans and measures are implemented to help the people and solve problems for the people.
- Pro-Activity:Fosters early intervention in cases of emerging issues with the aim of exercising preventative management.
- Participation:It compels all stakeholders, or in this cases the citizens, to participate in the formulation of the policies.
- Empowering:Majorly highlight self-help strategies for individuals and communities particularly the vulnerable members in the society to be active players in the developmental processes.
- Inclusion of All:Assures that sections of society, be it the male and female, those in developed or underdeveloped regions, any religion , any cast, or any class, participate in developmental procedures.
- Equality:Work to minimize differences and inequalities for people with a focus on equality for everyone.
- Transparency:Fosters openness and quality delivery in governance to win the people’s confidence in government and its policies.
These integrated pillars define NITI Aayog’s framework for policy formulation and execution, so that the development attained is sustainable and inclusive, with minimal disparities.