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NITI Aayog- A Critical Appraisal - General Studies (Download PDF)

(July 19, 2016)

The National Institution for Transforming India (NITI Aayog) is a Government of India policy which was established by the
Narendra Modi government to replace the Planning Commission with the aim of creating foster involvement and
participation in the economic policy-making process by the State Governments of India. On 1 January 2015 the Union
Government of India had announced the formation of NITI Aayog, and on 8 February 2015 the first meeting was
arranged.

Structure of NITI Aayog

Structure of NITI Aayog

Structure of NITI Aayog

Current Members of NITI Aayog

Members of NITI Aayog

Members of NITI Aayog

Highlights of Planning Commission and NITI Aayog

Designation Planning Commission NITI Aayog

Established 15 March 1950 1st January 2015

Died August 2014 (After Narendra Modi

become PM)

Chairman Prime Minister Prime Minister

Vice Chairman Montek Singh Ahluwalia a former

Cabinet minister

(Last Vice Chairman)

CEO Ms. Sindhushree Khullar the Member- Ms. Sindhushree Khullar (A secretary
Secretary (IAS)
level bureaucrat with fixed tenure)

Ex-officio Finance Minister and Planning Minister Nominated by PM and current

members
members are:

Home

Finance

Railway

Agriculture

Full time members 4 to 7 members current members are:

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Bibek Debroy the Free

market economist)

Dr. V. K. Saraswat the technocrat, missile scientist and

Ex-DRDO chief.

Special Invitees (Recommended by PM) Current

Union ministers

Transport

HRD

Social Justice

Part-time members Tech exports from research institutes

Governing Council Chairman Prime minister

Chief ministers of all states

Lieutenant governors of all Union territories.

Ad hoc Regional CMs of states are fall in the region

Councils
with specific issue concerning a group

of states

H P C NITI A

Seven Pillars of NITI Aayog

Seven Pillars of NITI Aayog

Seven Pillars of NITI Aayog

Functions of NITI Aayog

1. Think tank for Government policy formulation.

2. Find best practices from other countries, partner with other countries so that they accept India.

3. Cooperative Federalism Involvement of state governments and villages in planning process.

4. Sustainable development Modi’s Zero defect-zero effect manufacturing mantra.

5. Urban Development

6. Participatory Development with support of private sector and citizens

7. Inclusive Development or Antyodaya to ensure SC, ST and Women too enjoy the fruits of Development.

8. Poverty elimination to confirm dignity and self-respect.

9. To generate more employment for weaker sections Focus on 5 crore Small enterprises.

10. Monitoring and feedback.

11. Make policies to reap demographic dividend and social capital.

12. Regional Councils to address “issues” for a group of states.

13. Extract maximum benefit from NRI’s geo-economic and Geo-political strength for India’s Development.

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14. To ensure transparency, accountability and good governance use Social media and ICT tools.

15. Help sorting inter-departmental conflicts.

Functional Comparison: NITI Aayog vs. Planning Commission

Planning Commission NITI Aayog

It Designs FYP-Five year plans It Designs national agenda and cooperative

federalism

Select two “money” matters: It work as a “policy-formulation-hub”.

For centrally sponsored schemes (CSS) how much money to be The Press release is ‘silent’ on money/funding
provided to each state that’s way it will be left to finance ministry
most probably.
How much money to provide to each state’s own state-five-year-
plans. Some specialists have faith in Inter-state
council which decide money allocation to
states, then finance ministry will release the
fund.

States/UT were represented in National Development Council. States/UT represented in Governing council. But
it was not specified that whether they can
Image shows the process
approve/reject/amend NITI Aayog’s proposals?
Image Shows the Process

One size fits all, top-down socialist planning by Armchair Nehruvian Press release talks about participatory planning
economists and IES cadre officers (Indian Economic Service). but not specified details how they do so.

IES officers are hardly invited in Modi’s

meetings.

But Free market economists and Technocrats,

are invited

F C : NITI A .P C

Niti Aayog: Criticism/Anti-Arguments

Like planning commission, it’s also a non-constitutional body which is not responsible to parliament.

Major critic is dismantled planning commission without consulting the states.

Fund allocation to welfare schemes may get affected. For example, there is a 20 % reduction in gender budgeting.

At present, India had more than 60 sponsored schemes. PM Modi wants to combine them into just 10 schemes so that
poor and marginalized communities will suffer.

Planning commission monitor human development in the States, Sub-plans for women, SC and ST where as in Niti
Aayog this is not mentioned at all

Niti Aayog mainly focused on manufacturing sector.

Nehruvian Economists of Planning Commission advocated decentralized planning where as free market economists and
technocrats of NITI Aayog will focus on centralized planning and e-monitoring.

- Published/Last Modified on: July 19, 2016

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