NITI Aayog

NITI Aayog, short for National Institution for Transforming India Aayog, is a policy think-tank of the Government of India. It was established on January 1, 2015, to replace the Planning Commission of India, which was established in 1950 to formulate and oversee the implementation of the country’s Five-Year Plans.

The primary objective of NITI Aayog is to provide a platform for cooperative federalism, i.e., the participation of states in the decision-making process of the central government. The organization’s mandate includes formulating a long-term vision and strategic plan for India’s development, monitoring and evaluating the implementation of policies and programs, and providing advice and support to the central and state governments.

Structure of NITI Aayog

NITI Aayog is headed by a chairperson, who is appointed by the Prime Minister of India. The current chairperson is Shri Narendra Modi, who is also the Prime Minister of India. The Vice-Chairperson and CEO of NITI Aayog are appointed by the Prime Minister.

NITI Aayog also has a governing council, which includes the Chief Ministers of all the states and Union Territories of India. The governing council is the highest decision-making body of NITI Aayog and is responsible for providing guidance and direction to the organization.

Functions of NITI Aayog

• Formulation of national policies: NITI Aayog is responsible for formulating national policies and programs for sustainable and inclusive growth. It provides inputs for the formulation of Five-Year Plans, as well as other policy documents.
• Coordinating and monitoring implementation: NITI Aayog is responsible for coordinating and monitoring the implementation of policies and programs across the country. It works closely with state governments to ensure effective implementation of policies.
• Providing technical assistance: NITI Aayog provides technical assistance to the central and state governments in policy formulation, program design, and monitoring and evaluation.
• Data analysis and research: NITI Aayog conducts research and data analysis on various aspects of India’s development, including economic growth, social indicators, and governance.
• Promoting innovation and entrepreneurship: NITI Aayog is responsible for promoting innovation and entrepreneurship in India. It works with startups, incubators, and other organizations to create a conducive environment for entrepreneurship.
• International engagement: NITI Aayog engages with international organizations, including the United Nations, World Bank, and Asian Development Bank, to promote India’s interests in the global arena.

Achievements of NITI Aayog

• Atal Innovation Mission: NITI Aayog launched the Atal Innovation Mission in 2016 to promote innovation and entrepreneurship in India. Under this initiative, the organization has set up Atal Tinkering Labs in schools across the country, providing students with access to tools and equipment for innovation and experimentation.
• Digital India: NITI Aayog has played a key role in the Digital India initiative, which aims to transform India into a digitally empowered society and knowledge economy. The organization has launched initiatives such as the National Data and Analytics Platform and the National Health Stack to promote digitalization in various sectors.
• Ease of Doing Business: NITI Aayog has been working closely with the central and state governments to improve the ease of doing business in India. Its efforts have resulted in significant improvements in India’s ranking in the World Bank’s Ease of Doing Business index.
• Aspirational Districts Programme: NITI Aayog launched the Aspirational Districts Programme in 2018 to transform the most backward districts of India. The program focuses on improving key indicators such as health, education and infrastructure in these districts through a participatory approach.
• Sustainable Development Goals: NITI Aayog has been instrumental in India’s efforts to achieve the Sustainable Development Goals (SDGs) set by the United Nations. The organization has developed a dashboard to monitor the progress of various states in achieving the SDGs.
• Agriculture sector reforms: NITI Aayog has played a key role in the recent agricultural sector reforms, including the introduction of the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.

Failures of NITI Aayog

• Limited impact on the ground: Despite its lofty mandate and ambitious goals, NITI Aayog’s impact on the ground has been limited. Many of its initiatives, including the Aspirational Districts Programme and Atal Innovation Mission, have faced implementation challenges.
• Lack of participation of states: One of the primary objectives of NITI Aayog was to promote cooperative federalism by involving the states in the decision-making process. However, many states have criticized the organization for its top-down approach and lack of consultation with the states.
• Inadequate funding: NITI Aayog has faced criticism for its inadequate funding. Unlike the Planning Commission, which had the power to allocate funds to various sectors, NITI Aayog has a limited budget and has to rely on the central and state governments for funding.
• Policy paralysis: NITI Aayog’s predecessor, the Planning Commission, was criticized for its policy paralysis and bureaucratic mindset. However, NITI Aayog has also been accused of being slow and bureaucratic in its decision-making process.