Role of NITI Aayog vs Planning Commission

Discuss the role of NITI Aayog in India economic planning. How does it differ from the erstwhile Planning Commission?

Model Answer

Introduction: NITI Aayog (est. January 2015) replaced the Planning Commission (est. 1950) to better suit India's diverse federal needs.

NITI Aayog's Role:

  • Policy think-tank and advisory body (not fund allocator)
  • Promotes cooperative federalism — Chief Ministers in Governing Council
  • Develops 15-Year Vision Document, 7-Year Strategy
  • SDG India Index — monitors state-wise sustainable development

Key Differences:

  • No Five-Year Plans — replaced by action agendas
  • Bottom-up approach vs. top-down planning
  • Advisory vs. directive role

Conclusion: NITI Aayog is better suited for India's federal democracy, though critics argue it lacks the Planning Commission's fiscal authority.