NITI Aayog
Context:
On August 15, 2014, in his maiden Independence Day speech as Prime Minister, Narendra Modi declared, “We will replace the Planning Commission with a new institution having a new direction, design, and structure—a new body, a new soul, and a new thinking.”
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- This bold statement marked the beginning of a transformation in India’s policy-making approach.
- The Planning Commission, an institution many felt was outdated in an increasingly market-driven economy, was replaced by NITI Aayog on January 1, 2015.
- The NITI Aayog has completed a decade of impactful governance, symbolising India’s growing prominence in the global economy.
Guiding Principles and Achievements
NITI Aayog’s journey has been shaped by certain key principles:
- Decentralisation and Federal Cooperation: NITI Aayog moved away from directly allocating funds to states, unlike the Planning Commission.
- This shift fostered decentralisation, giving states greater autonomy in their development agendas.
- To promote “competitive and cooperative federalism,” the Aayog introduced tools like data-driven indicators and assisted states in establishing state-level ‘Institutions of Transformation’ (SITs).
- Its role as the nodal agency for tracking India’s progress on the UN’s Agenda 2030 led to innovations such as the SDG India Index and the Composite Water Management Index.
- The “Team India” forum transcends political differences to articulate a unified development vision.
- Additionally, structured engagements with state chief secretaries have enhanced the preparation for these meetings, cementing NITI Aayog’s reputation as a politically neutral body.
- Driving Reform and Innovation: NITI Aayog is not directly responsible for implementing Union-level initiatives but focuses on cross-ministry issues, long-term strategies, and fostering debates on transformative ideas.
- Successful initiatives led by NITI Aayog before being handed over to ministries include the e-mobility push, the Production-Linked Incentive Scheme, Mission LiFE, and Green Hydrogen promotion.
- These efforts align with broader frameworks like India’s climate commitments and strategies to reduce out-of-pocket health expenditures.
- Promoting Inclusive Development: NITI Aayog designed the Aspirational Districts Programme in 2018 to address underdeveloped districts through focused interventions in health, education, agriculture, skill development, and infrastructure.
- By tracking district-level performance monthly and offering cash awards for progress, this program has made tangible differences in some of India’s poorest areas.
- Building on this success, the Aspirational Blocks Programme (ABP), launched in 2023, targets 500 underdeveloped blocks.
- NITI Aayog also fosters innovation and entrepreneurship through the Atal Innovation Mission (AIM).
- Initiatives like Atal Tinkering Labs and Atal Incubation Centres have nurtured over one crore school students and countless startups.
- AIM 2.0 aims to expand innovation ecosystems to tribal and hilly regions, promoting inclusivity.
Governance of NITI Aayog
Chairperson: The Prime Minister of India serves as the chairperson of NITI Aayog.
Governing Council: This council includes Chief Ministers of all states and Lieutenant Governors of Union Territories, facilitating discussions on national policies.
Regional Councils: These councils address specific inter-state issues and are chaired by the chairperson or their nominee.
Importance in Governance: NITI Aayog’s establishment marked a shift from a top-down approach of governance to a more inclusive model that recognises the importance of state-level inputs in national policy formulation.
Challenges and Opportunities Ahead
- As India enters its “Amrit Kaal”—an era of unprecedented opportunity, the challenge lies in harnessing technology to create opportunities for a young workforce while respecting planetary boundaries.
- Rising labor productivity is essential for improving incomes.
- Expanding employment opportunities, combined with a growing pool of educated workers, will require faster economic growth.
- The lessons of NITI Aayog’s first decade offer valuable insights into navigating departmental silos, engaging states as partners, and balancing immediate needs with long-term goals.
As a dynamic institution, NITI Aayog is well-positioned to evolve with changing times, ensuring its relevance and effectiveness in driving India’s development agenda.
