10 Years of NITI Aayog

Syllabus: GS2/Governance; Co-operative Federalism

Context

• NITI Aayog has completed 10 years of its establishment.

About NITI Aayog

• Established: NITI Aayog (National Institution for Transforming India) is a government think tank established in 2015. 
• Aim: It replaced the Planning Commission, aiming to focus on more contemporary challenges like sustainable development, policy innovation, and governance reforms. 
• Composition: It is led by the Prime Minister as the Chairperson, with the Vice-Chairperson and CEO leading the executive functions. 
• Governing Council: The Prime Minister of India,
  • It comprises the Chief Ministers of states and Union Territories,
  • The Lieutenant Governors of Union Territories, except Delhi and Puducherry,
  • The Vice Chairman of NITI Aayog,
  • Full-time members of NITI Aayog.

Roles of NITI Aayog:

• Policy Formulation and Strategic Advice: It provides strategic and technical advice to the central and state governments.
• Promote Cooperative Federalism: By encouraging state governments to partner with the central government in decision-making.
• Monitoring and Evaluation: It monitors and evaluates the implementation of policies and programs, ensuring they align with long-term development goals.
• Innovation and Research: It aims to foster innovation, research, and new technologies in critical sectors.
• Promotion of Sustainable Development Goals (SDGs): NITI Aayog plays a role in aligning India’s development programs with the global Sustainable Development Goals (SDGs).

The key differences between the Planning Commission and NITI Aayog are:

Why did the Government replace Planning Commission with NITI Aayog?

• Need for Flexibility: NITI Aayog aims for a more flexible, adaptive approach to development.
• Cooperative Federalism: The Planning Commission was criticized for not adequately involving state governments in decision-making. 
• Focus on Innovation and Research: NITI Aayog focuses on policy innovation, sustainable development, and technology, while the Planning Commission’s focus was primarily on resource allocation and fixed targets.
• Decentralization: NITI Aayog aims to empower states with greater autonomy to design development policies tailored to their unique needs.

Challenges of NITI Aayog

• Limited Authority: NITI Aayog lacks the executive powers to enforce its recommendations, which limit its ability to drive significant change.
• Coordination Between States and Centre: Despite its emphasis on cooperative federalism, achieving effective collaboration between state governments and the central government remains a challenge.
• Data Gaps: NITI Aayog relies heavily on accurate data to guide policies, but inconsistent or incomplete data from states hinder effective policymaking and monitoring.
• Resource Constraints: Limited resources and competing priorities often make it challenging for NITI Aayog to fully implement its plans and initiatives.
• Resistance to Change: Some states and political entities resist NITI Aayog’s initiatives, especially if they feel their autonomy is being undermined or if there is a lack of alignment with local needs.

Vision Plans of NITI Aayog for India 

• Agenda for 2030: Focuses on achieving the Sustainable Development Goals (SDGs) by addressing poverty, education, healthcare, clean energy, and gender equality.
• 15-Year Vision Document: Aimed at creating a roadmap for India’s development from 2020 to 2035, with a focus on economic growth, social equity, and environmental sustainability.
• Focus on Data and Innovation: Promotes digitalization, innovation, and evidence-based policymaking to drive economic development and improve governance.

Source: IE