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NITI Aayog
NITI Aayog or National Institution for Transforming India Aayog is the replacement of Planning
Commission of India, marking the end of the Nehruvian institution that pioneered Indias five-year
planned development approach.
The primary job of the new bodydescribed as a Think-Tankwill be to advise the government on
social and economic issues. Unlike the Nehruvian plan panel, the new body will not have the power
to disburse funds to central ministries and state governments.
National Institution for Transforming India (NITI) Aayog has been created in accordance to the
announcement made by the Prime Minister Narendra Modi on 15 August 2014. On the
Independence Day, he announced that the government will replace the Planning Commission which
was established on 15 March 1950 through a Cabinet Resolution.
Further to revamp the Planning Commission, the Prime Minister met with Chief Ministers and
Governors of various States on 7 December 2014 and discussed their opinions on the same to
separate the process of governance from the strategy of governance.
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PM will head the body and its governing council will include all chief ministers and lieutenant
governors, in line with the PM's thrust on cooperative federalism that advocates involving states in
the Centres decision making
Arvind Panagariya is an Indian-American economist and Professor of Economics at Columbia
University and an ex-Chief Economist at the Asian Development Bank.
Functions
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Objectives
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CONCLUSION
Congress-ruled states, however, had reservations about dismantling an institution which was set up
by the first Prime Minister Jawaharlal Nehru and they suggested restructuring of the existing body,
rather than a complete replacement.
Incidentally, Nehru himself is said to have faced resistance to the idea of setting up of the Planning
Commission, but it went on to become a major platform for successive governments to formulate
and push forward economic policies and other development plans.
Finance Minister had then said that a principle of 'cooperative federalism' is being followed in
setting up the new body in place of Planning Commission.
"Our government stands by the principle of cooperative federalism, empowering states, least
number of central schemes and more state schemes," Jaitley said while replying to a debate in the
Lok Sabha.
The Planning Commission was set up by a simple government resolution in March 1950 and has
withstood many political and economic upheavals, as also some occasional controversies, including
those related to its poverty estimates as also about a huge toilet renovation bill and foreign tour
expenses of its last Deputy Chairman.
The plan panel has commissioned 12 five-year plans and six annual plans involving fund outlays of
over Rs 200 lakh crore in its 65-year-history.