Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan Dhan Yojana (PMJDY), one of the

biggest financial inclusion initiatives in the world, was
announced by Prime Minister, Shri Narendra Modi on
15th August 2014 from the ramparts of the Red Fort.
While launching the programme on 28th August, the
Prime Minister had described the occasion as a festival
to celebrate the liberation of the poor from a vicious
cycle. Shri Narendra Modi had referred to the ancient
Sanskrit verse: Sukhasya Moolam Dharma, Dharmasya
Moolam Artha, Arthasya Moolam Rajyam – which puts
the onus on the state to involve people in economic
activity. “This Government has accepted this
responsibility,” the Prime Minister said & the Government
has fulfilled its promise in record time.

Pradhan Mantri Jan Dhan Yojana is a National Mission

on Financial Inclusion which has an integrated approach
to bring about comprehensive financial inclusion and
provide banking services to all households in the country.
The scheme ensures access to a range of financial
services like availability of basic savings bank account,
access to need based credit, remittances facility,
insurance and pension.

Guinness World Records has also recognised the

achievements made under the Pradhan Mantri Jan Dhan
Yojana. It has certified that the “Most bank accounts
opened in one week as part of the Financial Inclusion
Campaign is 18,096,130 and was achieved by the
Department of Financial Services, Government of India.”
Against the original target of opening bank accounts for
7.5 crore uncovered households in the country by 26th
January, 2015, banks have already opened 12.54 crore
accounts as on 31st January 2015 after conducting
survey of 21.06 crore households with deposits
exceeding Rs 10,000 crores. The target was set after
conducting a survey of 21.02 crore households in the
country. Today, a coverage of almost 100% has been
achieved. Out of the accounts opened, 60% are in rural
areas and 40% are in urban areas. Share of female
account holders is about 51%.
Pradhan Mantri Jan Dhan Yojana provides a platform for
universal access to banking facilities with at least one
basic banking account for every household, financial
literacy, and access to credit, insurance and pension
facility. It covers both urban and rural areas and those
who open account would get indigenous Debit Card
(RuPay card). Account can be opened in any bank
branch or Business Correspondent (Bank Mitr) outlet at
zero balance. Every bank account is on Core Banking
System (CBS) of banks. Mobile banking using USSD
facility available on even basic feature phones is also
being supported. A facility of call centre and toll free
number is available nationwide.
PMJDY brings about the objective of financial inclusion
for all by providing basic banking accounts with a debit
card with inbuilt accident insurance. The main features of
PMJDY include Rs. 5,000 overdraft facility for Aadhar-
linked accounts and a RuPay debit card with inbuilt Rs. 1
lakh accident insurance cover. In addition, for accounts
opened between 15th August 2014 and 26th January
2015, a Life Insurance cover of Rupees 30,000 is
available to the eligible beneficiaries. One of the salient
features of Pradhan Mantri Jan Dhan Yojana is that after
remaining active for 6 months, the account holder will
become eligible for an overdraft of up to Rs 5,000.

Under the scheme, financial literacy programme which

aims to take financial literacy upto village level is
provided for better understanding of the whole
mechanism. The Mission also envisages extension of
Direct Benefit Transfer (DBT) under various Government
Schemes through bank accounts of the recipients. The
Kisan Credit Cards (KCC) are also being linked with
RuPay platform. Micro insurance to the people, and
unorganised sector Pension schemes like Swavalamban
through the Business Correspondents have also been
included for the second phase of the programme.
The Pradhan Mantri Jan Dhan Yojana has a structured
monitoring mechanism from Central to District level. At
the Centre, Finance Minister is the Mission head along
with a Steering Committee and a Mission Director. The
programme is monitored at State level by a State
Implementation Committee and in the districts by a
District Implementation Committee.
Thus, Pradhan Mantri Jan Dhan Yojana not only serves
as an important example of Governance in Mission Mode
but also demonstrates what a Government can achieve if
it is committed to the welfare of the people.

What is Pradhan Mantri Jan Dhan Yojana (PMJDY)?

PMJDY is a nationwide scheme launched by the

Government of India to ensure financial inclusion of
every individual who does not have a bank account in
India. This scheme aims at providing access to financial
services, namely, Banking / Savings & Deposit Accounts,
Remittance, Credit, Insurance, and Pension in an
affordable manner to all. This scheme was launched in
August 2014 and according to reports by the Ministry of
Finance, around 4 crore bank accounts have been
opened under this scheme till September 2014.


Who offers this scheme?

An individual can consider opening an account under this

scheme with any bank branch or Business
Correspondent (Bank Mitr) outlet. Further, accounts
opened under PMJDY can be opened with Zero balance.
However, if the account-holder wishes to get a cheque
book, he/she will have to fulfill minimum balance criteria.
The account holders under this scheme will be given a
RuPay debit card which can be used across all ATMs for
cash withdrawal.

What are the documents required to open an account

under PMJDY?

An account under this scheme can be opened by

presenting an officially valid document.

• The passport,
• The driving licence,
• The Permanent Account Number (PAN) Card,
• The Voter’s ID issued by Election Commission of
India,
• The Aadhar Card;
• Any other document as notified by the Central
Government in consultation with the Regulator:
Provided that where simplified measures are applied for
verifying the identity of the clients, the following
documents shall be deemed to be officially valid
documents:—

1. Identity card with applicant’s Photograph issued by

Central/State Government Departments, Statutory/
Regulatory Authorities, Public Sector Undertakings,
Scheduled Commercial Banks, and Public Financial
Institutions;
2. A letter issued by a Gazetted officer, with a duly
attested photograph of the person.
• In case, there is a change in the current address,
you need to submit valid documents to transfer your
account to the new address.
• Two passport size photographs are required.
• In case, a person does not have a valid residential
address, he/she needs to submit a valid identity
proof issued by the government of India.
Important to note that the Reserve Bank of India (RBI)
has clarified in the year 2014 that those persons who do
not have any of the ‘officially valid documents’ can open
“Small Accounts” with banks.

A “Small Account” can be opened by a person on the

basis of a self-attested photograph and putting his/her
signatures or thumb print in the presence of officials of
the bank. For such accounts, the aggregate credits have
been limited to not more than Rs 1 lakh a year and
aggregate withdrawals have been limited to not more
than Rs 10,000 in a month, and balance in the account at
any point of time should not cross Rs 50,000. The validity
of these accounts is 1 year, normally after which such
accounts would be allowed to continue for a further
period of twelve more months if the account-holder
provides a document showing that he/she has applied for
any of the Officially Valid Document within 12 months of
opening the small account.

What are the benefits of the PMJDY Scheme?

• Insurance Benefits
The account holders under this scheme will get an
accidental insurance cover of Rs 1 lakh and a life cover
of Rs 30,000 – payment on the death of the beneficiary
(subject to conditions).

• Loan Benefits
The account holders under this scheme can avail an
overdraft facility upto Rs 5,000. This is available against
one account per household. The quantum of the loan
may look small but definitely is a boon to those below the
poverty line and would enable them to reinvest this in
more profitable avenues

Enabling carrying out transactions through a mobile

phone facilitates such account holders in checking of
balance and also transferring funds with ease across
India.

The other benefits being:

• The account holders would be eligible for interest on

their deposits
• They are not mandated to have a minimum balance
in the account
• The scheme allows Direct Benefit Transfer for
beneficiaries of Government Schemes.
• Account-holders can get easy access to pension and
other insurance products with the PMJDY scheme.
Swachh Bharat Abhiyan

“A clean India would be the best tribute India could pay

to Mahatma Gandhi on his 150 birth anniversary in
2019,” said Shri Narendra Modi as he launched the
Swachh Bharat Mission at Rajpath in New Delhi. On 2nd
October 2014, Swachh Bharat Mission was launched
throughout length and breadth of the country as a
national movement. The campaign aims to achieve the
vision of a ‘Clean India’ by 2nd October 2019.

The Swachh Bharat Abhiyan is the most significant

cleanliness campaign by the Government of India. Shri
Narendra Modi led a cleanliness pledge at India Gate,
which about thirty lakh government employees across
the country joined. He also flagged off a walkathon at
Rajpath and surprised people by joining in not just for a
token few steps, but marching with the participants for a
long way.

While leading the mass movement for cleanliness, the

Prime Minister exhorted people to fulfil Mahatma
Gandhi’s dream of a clean and hygienic India. Shri
Narendra Modi himself initiated the cleanliness drive at
Mandir Marg Police Station. Picking up the broom to
clean the dirt, making Swachh Bharat Abhiyan a mass
movement across the nation, the Prime Minister said
people should neither litter, nor let others litter. He gave
the mantra of ‘Na gandagi karenge, Na karne denge.’
Shri Narendra Modi also invited nine people to join the
cleanliness drive and requested each of them to draw
nine more into the initiative.

By inviting people to participate in the drive, the

Swachhta Abhiyan has turned into a National Movement.
A sense of responsibility has been evoked among the
people through the Clean India Movement. With citizens
now becoming active participants in cleanliness activities
across the nation, the dream of a ‘Clean India’ once seen
by Mahatma Gandhi has begun to get a shape.
The Prime Minister has helped spread the message of
Swachh Bharat by urging people through his words &
action. He carried out a cleanliness drive in Varanasi as
well. He wielded a spade near River Ganga at Assi Ghat
in Varanasi under the Clean India Mission. He was joined
by a large group of local people who cooperated in the
Swachhta Abhiyan. Understanding the significance of
sanitation, Prime Minister, Shri Narendra Modi has
simultaneously addressed the health problems that
roughly half of the Indians families have to deal with due
to lack of proper toilets in their homes.

People from different sections of the society have come

forward and joined this mass movement of cleanliness.
From government officials to jawans, bollywood actors to
the sportspersons, industrialists to spiritual leaders, all
have lined up for the noble work. Millions of people
across the country have been day after day joining the
cleanliness initiatives of the government departments,
NGOs and local community centres to make India clean.
Organising frequent cleanliness campaigns to spreading
awareness about hygiene through plays and music is
also being widely carried out across the nation.

Prime Minister himself has praised the efforts by people

and various departments and organisations for taking
part in the Swachh Bharat Mission and contributing
toward a cleaner India. Shri Narendra Modi has always
openly lauded the participation of people via social
media. The ‘#MyCleanIndia’ was also launched
simultaneously as a part of the Swachh Bharat drive to
highlight the cleanliness work carried out by citizens
across the nation.

Swachh Bharat Abhiyan has become a ‘Jan Andolan’

receiving tremendous support from the people. Citizens
too have turned out in large numbers and pledged for a
neat and cleaner India. Taking the broom to sweep the
streets, cleaning up the garbage, focussing on sanitation
and maintaining a hygienic environment have become a
practice after the launch of the Swachh Bharat Abhiyan.
People have started to take part and are helping spread
the message of ‘Cleanliness is next to Godliness.’
Make In India

Since years policy-makers have been debating how to

give an impetus to manufacturing in India and make India
a Global Manufacturing Hub. But it is Narendra Modi,
who within a matter of months, launched the ‘Make in
India’ campaign to facilitate investment, foster innovation,
enhance skill development, protect intellectual property &
build best in class manufacturing infrastructure.

The “Make in India” initiative is based on four pillars,

which have been identified to give boost to
entrepreneurship in India, not only in manufacturing but
also other sectors.
New Processes: ‘Make in India’ recognizes ‘ease of
doing business’ as the single most important factor to
promote entrepreneurship. A number of initiatives have
already been undertaken to ease business environment.
The aim is to de-license and de-regulate the industry
during the entire life cycle of a business.

New Infrastructure: Availability of modern and

facilitating infrastructure is a very important requirement
for the growth of industry. Government intends to
develop industrial corridors and smart cities to provide
infrastructure based on state-of-the-art technology with
modern high-speed communication and integrated
logistic arrangements. Existing infrastructure to be
strengthened through upgradation of infrastructure in
industrial clusters. Innovation and research activities are
supported through fast paced registration system and
accordingly infrastructure of Intellectual Property Rights
registration set-up has been upgraded. The requirement
of skills for industry are to be identified and accordingly
development of workforce to be taken up.

New Sectors: ‘Make in India’ has identified 25 sectors in

manufacturing, infrastructure and service activities and
detailed information is being shared through interactive
web-portal and professionally developed brochures. FDI
has been opened up in Defence Production,
Construction and Railway infrastructure in a big way.
New Mindset: Industry is accustomed to see Government
as a regulator. ‘Make in India’ intends to change this by
bringing a paradigm shift in how Government interacts
with industry. The Government will partner industry in
economic development of the country. The approach will
be that of a facilitator and not regulator.

The Make in India program has been built on layers of

collaborative effort. There has been from Union
Ministers, Secretaries to the Government of India, state
governments, industry leaders, and various knowledge
partners. A National Workshop on sector specific
industries in December 2014 brought Secretaries to the
Government of India and industry leaders together to
debate and formulate an action plan for the next three
years, aimed at raising the contribution of the
manufacturing sector to 25% of the GDP in the coming
years.

These exercises resulted in a road map for the single

largest manufacturing initiative undertaken by a nation in
r e c e n t h i s t o r y. T h e y a l s o d e m o n s t r a t e d t h e
transformational power of public-private partnership, and
have become a hallmark of the Make in India program.
This collaborative model has also been successfully
extended to include India’s global partners, as evidenced
by the recent in-depth interactions between India and the
United States of America.
In a short space of time, the obsolete and obstructive
frameworks of the past have been dismantled and
replaced with a transparent and user-friendly system that
is helping drive investment, foster innovation, develop
skills, protect IP and build best-in-class manufacturing
infrastructure. The most striking indicator of progress is
the unprecedented opening up of key sectors – including
Railways, Defence, Insurance and Medical Devices – to
dramatically higher levels of Foreign Direct Investment.

An array of measures focused on the ease of doing

business in India have also been launched under the
Make India program. Brand new, IT-driven application
and tracking processes are replacing files and red tape.
A number of new initiatives have been launched in order
to streamline and rationalise licensing rules at the state
government level, aligning them with global best
practices.

From amendments in Labour law to online filing of
returns & from rationalization of the regulatory
environment to increasing the validity of industrial
licenses, a lot of changes have been ushered in to make
‘Make in India’ a reality.

Today, India’s credibility is stronger than ever. There is

visible momentum, energy and optimism. Make in India
is opening investment doors. Multiple enterprises are
adopting its mantra. The world’s largest democracy is
well on its way to becoming the world’s most powerful
economy.
NITI Aayog: Transforming India’s Development
Agenda

Reflecting the spirit and the changed dynamics of the

new India, the institutions of governance and policy have
to adapt to new challenges and must be built on the
founding principles of the Constitution of India, the wealth
of knowledge from our civilizational history and the
present-day socio-cultural-economic contexts. The
aspirations of India and its citizens require institutional
reforms in governance and dynamic policy shifts that can
seed and nurture unprecedented change.

In keeping with these changing times, the Government of

India has decided to set up NITI Aayog (National
Institution for Transforming India), in place of the
erstwhile Planning Commission, as a means to better
serve the needs and aspirations of the people of India. A
wide consultation was held prior to the formation of NITI
Aayog, with Chief Ministers, Experts, Economists &
general public through MyGov.
We are on a journey to achieve an India that not only
fulfills the aspirations of the people, but also stands
proudly on the world stage. The people of India have
great expectations for progress and improvement in
governance, through their participation. In the course of
this transformation, while some changes are anticipated
and planned, many are a consequence of market forces
and larger global shifts. The evolution and maturing of
our institutions and polity also entail diminished role of
centralised planning, which itself needs to be redefined.

Our demographic dividend has to be leveraged fruitfully

over the next few decades. The potential of our youth
has to be realized through education, skill development,
elimination of gender bias, and employment. We have to
strive to provide our youth productive opportunities to
work on the frontiers of science, technology and
knowledge economy.
The role of the government in achieving ‘national
objectives’ may change with time, but it will always
remain significant. Government will continue to set
policies that anticipate and reflect the country’s
requirements and execute them in a just manner for the
benefit of the citizens. The continuing integration with the
world politically and economically has to be incorporated
into policy making as well as functioning of the
government.

In essence, effective governance in India will rest on

following ‘pillars’:
– Pro-people agenda that fulfils the aspirations of the
society as well as individual,

– Pro-active in anticipating and responding to their
needs,

– Participative, by involvement of citizenry,

– Inclusion of all groups,

– Equality of opportunity to our country’s youth,

– Sustainable development, by protecting environment,
and

– Transparency that uses technology to make
government visible and responsive.

Improvement of governance is a pre-requisite for

improving the quality of life of the people. At the same
time, it can only be achieved by a creative, synergistic
and constantly evolving partnership between
stakeholders across the public, private sectors as well as
civil society. Delivery of services has to improve through
people’s participation at all levels.
The institutional framework of government has changed
over the years. What is needed today is development of
domain expertise which allows us the chance to increase
the specificity of functions given to institutions. Specific to
the planning process, there is a need to separate as well
as energize the distinct ‘process’ of governance from
‘strategy’ of governance.

In the context of governance structures, the changed

requirements of our country, point to the need for setting
up an institution that serves as a Think Tank of the
government – a directional and policy dynamo. NITI
Aayog aims to do exactly serve this purpose. It will
provide governments at the central and state levels with
relevant strategic and technical advice across the
spectrum of key elements of policy. This includes matters
of national and international import on the economic
front, dissemination of best practices from within the
country as well as from other nations, the infusion of new
policy ideas and specific inputs based on various issues.

An important evolutionary change from the past will be

replacing a Union-to-State one-way flow of policy by a
genuine and continuing partnership with the states. NITI
Aayog will act with speed, to provide the strategic policy
vision for the government as well as deal with contingent
issues.
While incorporating positive influences from the world, no
single model can be transplanted into the Indian
scenario. We need to find our own strategy for growth &
this is where NITI Aayog will play a major role.
7 pillars of effective governance envisaged by NITI
Aayog

The NITI Aayog is based on the 7 pillars of effective

Governance. They are:

1. Pro-people: it fulfills the aspirations of society as well

as individuals
2. Pro-activity: in anticipation of and response to citizen
needs
3. Participation: involvement of citizenry
4. Empowering: Empowering, especially women in all
aspects
5. Inclusion of all: inclusion of all people irrespective of
caste, creed, and gender
6. Equality: Providing equal opportunity to all especially
for youth
7. Transparency: Making the government visible and
responsive
NITI Aayog Composition

The NITI Aayog will comprise the following:

1. Prime Minister of India is the Chairperson

2. Governing Council consists of the Chief Ministers
of all the States and Lt. Governors of Union
Territories in India.
3. Regional Councils will be created to address
particular issues and possibilities affecting more than
one state. These will be formed for a fixed term. It
will be summoned by the Prime Minister. It will
consist of the Chief Ministers of States and Lt.
Governors of Union Territories. These will be chaired
by the Chairperson of the NITI Aayog or his
nominee.
4. Special invitees: Eminent experts, specialists with
relevant domain knowledge, which will be nominated
by the Prime Minister.
5. The full-time organizational framework will include, in
addition to the Prime Minister as the Chairperson:
1. Vice-Chairperson (appointed by the Prime
Minister)
2. Members:
 ▪ Full-time

▪ Part-time members: Maximum of 2

members from foremost universities, leading
research organizations and other innovative
organizations in an ex-officio capacity. Part-
time members will be on a rotational basis.

3. Ex Officio members: Maximum of 4 members of

the Council of Ministers which is to be
nominated by the Prime Minister.
4. Chief Executive Officer: CEO will be appointed
by the Prime Minister for a fixed tenure. He will
be in the rank of Secretary to the Government of
India.
NITI Aayog will work towards the following
objectives:

– To evolve a shared vision of national development
priorities, sectors and strategies with the active
involvement of the states in the light of national
objectives. The vision of the NITI Aayog will then provide
a framework for ‘national agenda’ for the Prime Minister
and the Chief Ministers to provide impetus to.

– To foster collaborative federalism through structured
support initiatives and mechanisms with the states on a
continuous basis, recognizing that strong states make a
strong nation.

– To develop mechanisms to formulate credible plans at
the village level and aggregate these progressively at
higher levels.

– To ensure, on areas that are specifically referred to it,
that the interests of national security are incorporated in
economic strategy and policy.

– To pay special attention to the sections of our society
that may be at risk of not benefitting adequately from
economic progress,

– To design strategic and long term policy and
programme frameworks and initiatives, and monitor their
progress and their efficacy. The lessons learnt through
monitoring and feedback will be used for making
innovative improvements, including necessary mid-
course corrections.

– To provide advice and encourage partnerships
between the key stake-holders and national and
international Think Tanks, as well as educational and
policy research institutions.

– To create a knowledge, innovation and entrepreneurial
support system through a collaborative community of
national and international experts, practitioners and other
partners.

– To offer a platform for resolution of inter-sector and
inter-departmental issues in order to accelerate the
implementation of the development agenda.

– To maintain a state-of-the-art Resource Centre, be a
repository of research on good governance and best
practices in sustainable and equitable development as
well as help their dissemination to stake-holders.

– To actively monitor and evaluate the implementation of
programmes and initiatives, including the identification of
the needed resources so as to strengthen the probability
of success and scope of delivery.

– To focus on technology upgradation and capacity
building for implementation of programmes and
initiatives.

– To undertake other activities as may be necessary in
order to further the execution of the national
development agenda, and the objectives mentioned
above.

Through its commitment to a cooperative federalism,

promotion of citizen engagement, egalitarian access to
opportunity, participative and adaptive governance and
continuously increasing use of developing technology,
the NITI Aayog will seek to provide a critical directional
and strategic input into the governance process.
NITI AAYOG VS. PLANNING COMMISSION

The NITI Aayog, established in 2015, is one of Indian

democracy’s youngest institutions. It has been entrusted
with the mandate of re-imagining the development
agenda by dismantling old-style central planning. As the
Indian economy rapidly integrated with the global
economy contradictions arose between central planning
and increasing private capital flows. The NITI Aayog was
mandated to foster cooperative federalism, evolve a
national consensus on developmental goals, redefine the
reforms agenda, act as a platform for resolution of cross-
sectoral issues between Center and State Governments,
capacity building and to act as a Knowledge and
Innovation hub. It represented a huge mandate for a
nascent organization.

The NITI Aayog’s precursor, the Planning Commission

was established in March 1950 by a Government of India
resolution with Prime Minister as Chairperson. The initial
mandate was to establish heavy industries through public
investment as a means for achieving rapid
industrialization. The functions assigned to the Planning
Commission were to assess and allocate plan resources,
formulate plans and programs for area development,
determine implementation methodology, identify resource
constraints and appraise & adjust implementation.

The Planning Commission from 1950 to 2014 formulated

twelve five year plans. The 1st and 2nd plans aimed at
raising public resources for investments in public sector,
the 3rd plan focused on increased emphasis on exports
and the 4th Plan formulated at a difficult period of balance
of payments crisis focused on agricultural development.
The 5th Plan provided enhanced allocations for social
sector spending. The 6 th and 7 th Plans were
infrastructure plans focusing on raising plan resources
for infrastructure spending. The 8th Plan formulated in the
midst of economic reforms achieved 6.7 percent growth.
The 9th Plan period witnessed a sharp decline in
economic growth to 2.4 percent. The 10th and 11th Plans
implemented in the 2004-2014 period witnessed
economic growth trajectory of above 9 percent.
An internal evaluation in Government revealed that
Planning Commission was witnessing policy fatigue
necessitating structural changes in central planning
process. The assessment identified that the collapse of
public investment in the face of rising subsidies, huge
demands on public resources from the Right to
Education Act, the National Rural Employment
Guarantee Act and a poorly targeted Public Distribution
System. Further rigid labor laws were impeding progress,
and there were difficulties in releasing land for public
housing and other public projects. A new Institutional
framework was needed.

As the Prime Minister announced the closure of the

Planning Commission from the ramparts of Red Fort on
August 15, 2014, a renowned economic journal said that
not many will shed tears for the demise of the Planning
Commission. The planning exercise that was followed
hardly had any relevance for the market economy. It did
very little to plan and implement public sector
investments and its role in public–private partnerships
was restrictive. The proliferation of Centrally Sponsored
Schemes contributed to severe distortions in public
spending.

The NITI Aayog has done enormous amount of work in a

short period of 3 years. It started designing strategic
policies, fostering cooperative federalism, provided
knowledge and innovation support and undertook
evaluation/ monitoring of major investments. The NITI
Aayog formulated the Make in India Strategy for
Electronics Industry, a Model Land Leasing Law, laid
down a National Energy Policy, prepared a Roadmap for
Revitalizing Agriculture, designed a Developmental
Strategy for North East and Hilly areas and undertook an
appraisal of the 12th Five Year Plan. Further the NITI
Aayog recommended closure of sick PSUs, strategic
disinvestment of other CPSUs and pushed for reforms in
Medical Council of India and the University Grants
Commission. The two standout initiatives of the NITI
Aayog were the model law on land leasing and the
framework of priorities for disinvestment.
An over-arching theme of the NITI Aayog was the
change in focus from central planning to cooperative
federalism. The Prime Minister said that “Through the
NITI Aayog, India will move away from the one size fits
all approach and forge a better match between schemes
and needs of States”. The Governing Council of NITI
Aayog met very often, 3 sub-groups of Chief Ministers
were worked on centrally sponsored schemes (CSS),
skill development and Swach Bharat. Based on their
recommendations, the new CSS sharing system was
notified and a transparent formula based allocation of
resources was reached. The Swach Bharat cess was
levied on all services. To promote skill development
initiatives, the involvement of States in the Pradhan
Mantri Kaushal Vikas Yojana was ensured. The Atal
Innovation Mission was launched to seed innovations to
teach young minds new skills.

The NITI Aayog made serious efforts for Transforming

India’s developmental agenda. It sought proposals from
all Central Ministries for Accelerated Growth and
Inclusion Strategy, Employment Generation, Energy
Conservation and Efficiency, Good Governance and
Swach Bharat. In April 2017, the NITI Aayog Governing
Council approved the 3 Year Action Plan agenda aimed
at shifting the composition of expenditure by allocating a
larger proportion of additional resources to high priority
sectors, namely education, health, agriculture, rural
development, defence, railways and roads. An
agricultural transformation was envisaged with the
objective of doubling farmer’s income by 2022. This was
to be achieved through a model land leasing law, reform
of agriculture produce marketing committees, a legal
framework for contract farming and policies to overcome
distortions caused by the MSP scheme. Further the NITI
Aayog, monitored the implementation of the Sustainable
Developmental Goals.

To conclude it can be said that the NITI Aayog has

undertaken path breaking work in its first 3 years and the
Nation can look forward to the Institution imparting a new
dynamism to India’s developmental process in the
coming years.