1. Establishment and Rationale of NITI Aayog

  • Establishment:
    • Replaced the 65-year-old Planning Commission on January 1, 2015.
    • Created by an executive resolution, making it a non-constitutional and non-statutory body.
  • Rationale:
    • Intended to address the needs of a diverse and changing India, with a focus on cooperative federalism.
    • Shifted from a command-and-control approach to one that includes state partnership and a bottom-up model.
    • Developed to provide a localized, “Bharatiya approach” to development.
  • Key Points:
    • Designed to accommodate political, economic, social, and technological changes over the last six decades.
    • Encourages state involvement, providing strategic expertise, and aiming for a holistic national development.

2. Composition of NITI Aayog

  • Primary Structure:
    • Chairperson: The Prime Minister.
    • Governing Council: Includes Chief Ministers of states and union territories with legislatures.
    • Regional Councils: Formed as needed for specific issues.
    • Special Invitees: Experts in relevant fields appointed by the Prime Minister.
  • Full-Time Framework:
    • Vice-Chairperson: Appointed by the Prime Minister, equivalent to a Cabinet Minister.
    • Members: Full-time and part-time, including experts and four Union Ministers as ex-officio members.
    • CEO: Appointed by the Prime Minister with a tenure rank of Secretary.
  • Significance:
    • Structure reflects cooperative federalism by involving regional representatives and specialists.
    • Designated positions indicate a system of accountability and expertise, facilitating diverse, inclusive policy-making.

3. Objectives of NITI Aayog

  • Core Objectives:
    • Evolve a shared national vision for development.
    • Foster cooperative federalism and state-centric planning.
    • Develop plans that incorporate national security.
    • Special attention to at-risk sections of society.
  • Supporting Objectives:
    • Create frameworks for strategic long-term policies.
    • Establish platforms for inter-sectoral issue resolution.
    • Actively monitor, evaluate, and suggest mid-course corrections for development programs.
  • Implications:
    • Aims to empower states and address localized issues.
    • Emphasizes sustainability and inclusiveness, making policies more adaptable to diverse demographics.

4. Guiding Principles of NITI Aayog

  • Seven Pillars of Effective Governance:
    • Pro-people: Meeting societal and individual aspirations.
    • Pro-active: Responding to citizen needs effectively.
    • Participative: Engaging citizens directly in governance.
    • Inclusive: Focusing on marginalized communities.
    • Empowering: Enhancing opportunities for youth and women.
    • Transparency: Using technology for clear and responsive governance.
    • Sustainability: Emphasizing eco-friendly and sustainable practices.
  • Examples and Applications:
    • Initiatives like the Sustainable Development Goals Index exemplify these principles in action, ensuring both people-focused and environmentally sustainable progress.

5. Functions of NITI Aayog

  • Functional Divisions:
    • Policy and Program Framework: Designs comprehensive policies and support systems.
    • Cooperative and Competitive Federalism: Encourages healthy competition among states through indices and rankings.
    • Monitoring and Evaluation: Evaluates progress and adjusts strategies based on data.
    • Think Tank, Knowledge, and Innovation Hub: Houses a research repository, advising stakeholders across governmental and non-governmental sectors.
  • Examples of Programs:
    • The Aspirational Districts Program aims to uplift districts lagging in development metrics, demonstrating cooperative federalism.
    • State Health Index: A tool to foster competition among states for health sector improvements.

6. Autonomous and Attached Bodies of NITI Aayog

  • National Institute of Labour Economics Research and Development (NILERD):
    • Established to focus on human capital development through research, data collection, and training.
    • Functions as a central body for labour economics under NITI Aayog’s guidance.
  • Development Monitoring and Evaluation Office (DMEO):
    • Merged with the Independent Evaluation Office to provide efficient, independent program evaluations.
    • Plays a role in monitoring and evaluating strategic and policy initiatives, advising states under the principles of cooperative and competitive federalism.
  • Purpose and Impact:
    • Supports NITI Aayog’s mandate by ensuring data-driven, outcome-focused policy adjustments, contributing to NITI Aayog’s strategic objectives.