NITI Aayog- A Critical Appraisal - General Studies [ ]

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The National Institution for Transforming India (NITI Aayog) is a Government of India policy which was established by the Narendra Modi government to replace the Planning Commission with the aim of creating foster involvement and participation in the economic policy-making process by the State Governments of India. On 1 January 2015 the Union Government of India had announced the formation of NITI Aayog, and on 8 February 2015 the first meeting was arranged.

Structure of NITI Aayog

Structure of NITI Aayog

Structure of NITI Aayog

Structure of NITI Aayog

Current Members of NITI Aayog

Members of NITI Aayog

Members of NITI Aayog

Members of NITI Aayog

Highlights of Planning Commission and NITI Aayog

Highlights of Planning Commission and NITI Aayog

Highlights of Planning Commission and NITI Aayog

Designation

Planning Commission

NITI Aayog

Established

15 March 1950

1st January 2015

Died

August 2014 (After Narendra Modi become PM)

Chairman

Prime Minister

Prime Minister

Vice Chairman

Montek Singh Ahluwalia a former Cabinet minister

(Last Vice Chairman)

CEO

Ms. Sindhushree Khullar the Member-Secretary (IAS)

Ms. Sindhushree Khullar (A secretary

level bureaucrat with fixed tenure)

Ex-officio members

Finance Minister and Planning Minister

Nominated by PM and current

members are:

Home

Finance

Railway

Agriculture

Full time members

4 to 7 members

current members are:

Bibek Debroy the Free

market economist)

Dr. V. K. Saraswat the technocrat, missile scientist and Ex-DRDO chief.

Special Invitees

(Recommended by PM) Current

Union ministers

Transport

HRD

Social Justice

Part-time members

Tech exports from research institutes

Governing Council

Chairman Prime minister

Chief ministers of all states

Lieutenant governors of all Union territories.

Ad hoc Regional Councils

CMs of states are fall in the region

with specific issue concerning a group

of states

Seven Pillars of NITI Aayog

Seven Pillars of NITI Aayog

Seven Pillars of NITI Aayog

Seven Pillars of NITI Aayog

Functions of NITI Aayog

  1. Think tank for Government policy formulation.
  2. Find best practices from other countries, partner with other countries so that they accept India.
  3. Cooperative Federalism Involvement of state governments and villages in planning process.
  4. Sustainable development Modi’s Zero defect-zero effect manufacturing mantra.
  5. Urban Development
  6. Participatory Development with support of private sector and citizens
  7. Inclusive Development or Antyodaya to ensure SC, ST and Women too enjoy the fruits of Development.
  8. Poverty elimination to confirm dignity and self-respect.
  9. To generate more employment for weaker sections Focus on 5 crore Small enterprises.
  10. Monitoring and feedback.
  11. Make policies to reap demographic dividend and social capital.
  12. Regional Councils to address “issues” for a group of states.
  13. Extract maximum benefit from NRI’s geo-economic and Geo-political strength for India’s Development.
  14. To ensure transparency, accountability and good governance use Social media and ICT tools.
  15. Help sorting inter-departmental conflicts.

Functional Comparison: NITI Aayog vs. Planning Commission

Functional Comparison: NITI Aayog vs. Planning Commission

Functional Comparison: NITI Aayog vs. Planning Commission

NITI Aayog

Planning Commission

It Designs FYP-Five year plans

It Designs national agenda and cooperative federalism

Select two “money” matters:

  • For centrally sponsored schemes (CSS) how much money to be provided to each state
  • How much money to provide to each state’s own state-five-year-plans.

  • It work as a “policy-formulation-hub”.
  • The Press release is ‘silent’ on money/funding that’s way it will be left to finance ministry most probably.
  • Some specialists have faith in Inter-state council which decide money allocation to states, then finance ministry will release the fund.

States/UT were represented in National Development Council.

Image shows the process

Image shows the process

showing image of process

States/UT represented in Governing council. But it was not specified that whether they can approve/reject/amend NITI Aayog’s proposals?

One size fits all, top-down socialist planning by Armchair Nehruvian economists and IES cadre officers (Indian Economic Service).

Press release talks about participatory planning but not specified details how they do so.

IES officers are hardly invited in Modi’s meetings.

But Free market economists and Technocrats, are invited

Niti Aayog: Criticism/Anti-Arguments

  • Like planning commission, it’s also a non-constitutional body which is not responsible to parliament.
  • Major critic is dismantled planning commission without consulting the states.
  • Fund allocation to welfare schemes may get affected. For example, there is a 20 % reduction in gender budgeting.
  • At present, India had more than 60 sponsored schemes. PM Modi wants to combine them into just 10 schemes so that poor and marginalized communities will suffer.
  • Planning commission monitor human development in the States, Sub-plans for women, SC and ST where as in Niti Aayog this is not mentioned at all
  • Niti Aayog mainly focused on manufacturing sector.
  • Nehruvian Economists of Planning Commission advocated decentralized planning where as free market economists and technocrats of NITI Aayog will focus on centralized planning and e-monitoring.

- Published/Last Modified on: July 19, 2016