NITI Aayog (National Institution for Transforming India)
Polity/Economy Notes for APSC, UPSC and state Exams
NITI Aayog is a policy think tank of the Government of India, established on 1st January 2015, with the aim to achieve sustainable development goals with cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom-up approach.
It has replaced the Planning Commission which was started in 1950. Similar to the erstwhile Planning Commission, it also works under the chairmanship of Prime Minister of India. NITI Aayog will seek to provide a critical directional and strategic input into the development process, with emphasis on ‘Bottom –Up’ approach to envisage the vision of Maximum Governance, Minimum Government, echoing the spirit of ‘Cooperative Federalism’.
NITI Aayog Initiatives
Its initiatives include “15-year road map”, “7-year vision, strategy, and action plan”, AMRUT, Digital India, Atal Innovation Mission, Medical Education Reform, agriculture reforms (Model Land Leasing Law, Reforms of the Agricultural Produce Marketing Committee Act, Agricultural Marketing and Farmer Friendly Reforms Index for ranking states), Indices Measuring States’ Performance in Health, Education and Water Management, Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored Schemes, Sub-Group of Chief Ministers on Swachh Bharat Abhiyan, Sub-Group of Chief Ministers on Skill Development, Task Forces on Agriculture and up of Poverty, and Transforming India Lecture Series.
Structure and Composition of NITI Aayog
- The Prime Minister as the Chairperson.
- Governing Council composed of Chief Ministers of all the States and Delhi and Pondicherry and lieutenant governors of Union Territories(except Delhi and Pondicherry)
- Regional Councils composed of Chief Ministers of States and Lt. Governors of Union Territories in the region to address specific issues and contingencies impacting more than one state or a region.
- Full-time organizational framework composed of a Vice-Chairperson, four full-time members, two part-time members (from leading universities, research organizations and other relevant institutions in an ex-officio capacity), four ex-officio members of the Union Council of Ministers, a Chief Executive Officer (with the rank of Secretary to the Government of India) who looks after administration, and a secretariat.
- Experts and specialists in various fields.
Present Incumbents
- Vice Chairperson: Rajiv Kumar
- Ex-Officio Members: Amit Shah, Rajnath Singh, Nirmala Sitaraman and Narendra Singh Tomar
- Special Invitees: Nitin Gadkari, Piyush Goyal, Thawar Chand Gehlot and Rao Inderjit Singh
- Full-time Members: V. K. Saraswat (former DRDO Chief), Ramesh Chand (Agriculture Expert) and Dr. Vinod Paul (Public Health expert)
- Chief Executive Officer (CEO): Amitabh Kant
Idea behind setting up-of NITI Aayog
NITI Aaayog is based on the 7 pillars of effective governance – (1) Pro-People (2) Pro-Activity (3) Participation (4) Empowering (5) Inclusion of all (6) Equality (7) Transparency.
In NITI Aayog, the state governments has an equal role in nation’s development process and NITI Aayog promises the principle of co-operative federalism.
NITI Aayog is planned as a think tank institution which stands not only as a hub for knowledge but also for good governance.
It’s a platform for monitoring and implementation of all government policies by bringing together various ministries at the center and state level.
Priorities include upliftment of the poor, marginalized and downtrodden.
Empower vulnerable and marginalized sections, redressing identity-based inequalities of all kinds – gender, region, religion, caste or class.
NITI Aayog’s Aims
- The NITI Aayog aims to enable India to better face complex challenges, through the following:
- Leveraging of India’s demographic dividend, and realization of the potential of youth, men and women, through education, skill development, elimination of gender bias, and employment.
- Elimination of poverty, and the chance for every Indian to live a life of dignity and self-respect
- Reddressal of inequalities based on gender bias, caste and economic disparities
- Integrate villages institutionally into the development process
Policy support to more than 50 million small businesses, which are a major source of employment creation - Safeguarding of our environmental and ecological assets
NITI Aayog’s Objectives and Opportunities
- An administration paradigm in which the Government is an “enabler” rather than a “provider of first and last resort.”
- Progress from “food security” to focus on a mix of agricultural production, as well as actual returns that farmers get from their produce.
- Ensure that India is an active player in the debates and deliberations on the global commons.
- Ensure that the economically vibrant middle-class remains engaged, and its potential is fully realized.
- Leverage India’s pool of entrepreneurial, scientific and intellectual human capital.
- Incorporate the significant geo-economic and geo-political strength of the Non-Resident Indian Community.
- Use urbanization as an opportunity to create a wholesome and secure habitat through the use of modern technology.
- Use technology to reduce opacity and potential for misadventures in governance.
NITI Aayog specialized Wings
Research Wing – that will develop in-house sectoral expertise as a dedicated think tank of top domain experts, specialists and scholars.
Consultancy Wing – that will provide a marketplace of whetted panels of expertise and funding for Central and State Governments to tap into; matching their requirements with solution providers, public and private, national and international. By playing matchmaker instead of providing the entire service itself, NITI Aayog will be able to focus its resources on priority matters, providing guidance and an overall quality check to the rest.
Team India Wing – comprising representatives from every State and Ministry, will serve as a permanent platform for national collaboration.
Difference between NITI Aayog and Planning Commission
NITI Aayog Hubs
Team India Hub acts as interface between States and Centre.
Knowledge and Innovation Hub is the think-tank component of the NITI Aayog.
Niti Aayog planned to come out with three documents i.e. 3-year action agenda, 7-year medium-term strategy paper and 15-year vision document.
NITI Aayog v/s Planning Commission
- Planning commission goes for top-down planning for government with public sector resources. NITI Aayog formulate national development strategy in a market economy integrated with the globalized world.
- The planning commission was a central government institution and no representation of state government. There was no structural mechanism for interaction with states.
- NITI Aayog provides a partnership with state governments to promote co-operative federalism. It provides a platform for structured and regular interaction with states.
Finance - The role of Finance Commission was greatly reduced with the formation of Planning Commission. Allocation of funds were decided by the Planning Commission. NITI ayog don’t any role in fund allocation.
- NITI Aayog serves as an advisory Think Tank whereas Planning Commission served as extra-constitutional body.
- Compared to Planning Commission, Niti Aayog draws membership from a wider expertise.