Planning Commission and NITI Aayog

The Planning Commission and NITI Aayog are two key institutions in India's economic planning history. The transition from the Planning Commission to NITI Aayog marked a shift in India’s approach to development planning and governance.

1. Planning Commission

1. Established in 1950 by a resolution of the Government of India.
2. Aimed to promote a rapid and balanced socio-economic development.
3. Tasked with formulating Five-Year Plans to guide the country’s development.
4. Acted as an advisory body for policy formulation and resource allocation.
5. Focused on a top-down approach to development planning.
6. Headed by the Prime Minister, with a Deputy Chairman and full-time members.
7. Main responsibilities included determining plan priorities, allocating resources, and monitoring progress.
8. Facilitated public sector-driven economic growth.
9. Played a central role in shaping India’s development during the Five-Year Plan era (1951–2017).
10. Criticism included being overly centralized, bureaucratic, and less flexible to regional needs.

2. Transition to NITI Aayog

1. The Planning Commission was replaced by NITI Aayog on January 1, 2015.
2. NITI Aayog stands for National Institution for Transforming India.
3. The change was initiated to make planning more dynamic and inclusive.
4. NITI Aayog adopts a bottom-up approach to development, emphasizing state participation.
5. Focuses on fostering cooperative federalism through partnerships with states.
6. Acts as a policy think tank rather than a resource allocation body.
7. Encourages evidence-based policymaking and innovation in governance.
8. Works towards achieving the goals of Sustainable Development and India’s global commitments.
9. Includes initiatives like the Aspirational Districts Programme to uplift underdeveloped regions.
10. Plays a role in data-driven policymaking and monitoring.

3. Key Features of NITI Aayog

1. Comprises the Prime Minister as Chairperson, with Chief Ministers of states and UTs as members.
2. Has a Governing Council to address regional and national challenges.
3. Introduced the three-year action agenda instead of Five-Year Plans.
4. Focuses on long-term strategic vision for economic growth.
5. Supports initiatives for digital governance and technology-driven growth.
6. Acts as a platform for state collaboration on policy initiatives.
7. Promotes public-private partnerships (PPP) for infrastructure and development projects.
8. Emphasizes research, innovation, and knowledge-sharing.
9. Plays a role in monitoring flagship programs like Make in India and Digital India.

4. Key Differences Between Planning Commission and NITI Aayog

1. The Planning Commission followed a top-down approach, while NITI Aayog uses a bottom-up approach.
2. Planning Commission focused on resource allocation; NITI Aayog focuses on policy advocacy.
3. NITI Aayog emphasizes state participation and cooperative federalism.
4. Planning Commission was centralized, while NITI Aayog promotes decentralized planning.

Key Points

1. The Planning Commission was established in 1950 to promote balanced economic development.
2. It formulated Five-Year Plans to guide India's development strategy.
3. The Planning Commission was criticized for being overly centralized and rigid.
4. NITI Aayog was established on January 1, 2015, replacing the Planning Commission.
5. NITI Aayog adopts a bottom-up approach and emphasizes state participation.
6. It focuses on cooperative federalism and evidence-based policymaking.
7. NITI Aayog promotes innovation, sustainable development, and digital governance.
8. The Governing Council of NITI Aayog includes Chief Ministers and UT administrators.
9. NITI Aayog replaced the Five-Year Plans with a three-year action agenda.
10. The key difference is the shift from resource allocation to policy advocacy.