The objectives, approaches and organisational arrangements for decision-making of the NITI Aayog aim at restoring the federal character of the Indian polity. Explain.

Historical Context: Centre-State Relations & the Planning Commission

Prior to NITI Aayog, Centre-State relations were often characterized by fiscal imbalances, with the Centre controlling a significant portion of revenue resources. The Planning Commission, while instrumental in formulating Five-Year Plans, operated largely as an extension of the central government. States had limited say in plan formulation and resource allocation. This led to accusations of the Commission being a ‘centralizing force’ and hindering the development of states based on their specific needs and priorities.

Objectives of NITI Aayog & Federalism

NITI Aayog’s core objectives directly address the shortcomings of the previous system:

• Cooperative Federalism: NITI Aayog aims to move away from a ‘one-size-fits-all’ approach to planning and development, recognizing the diverse needs and strengths of different states. It emphasizes collaboration and partnership between the Centre and states.
• Bottom-Up Planning: Unlike the top-down approach of the Planning Commission, NITI Aayog advocates for a bottom-up approach, where states and local bodies are actively involved in identifying priorities and formulating plans.
• Promoting Competition: NITI Aayog introduces the concept of ‘competitive federalism’ through initiatives like the State Performance Index, encouraging states to benchmark themselves against each other and strive for better performance.
• Addressing Regional Disparities: NITI Aayog focuses on reducing regional disparities by promoting inclusive growth and ensuring that the benefits of development reach all sections of society.

Approaches of NITI Aayog & Federalism

NITI Aayog employs several approaches to achieve its objectives and strengthen federalism:

• Participatory Governance: NITI Aayog encourages stakeholder consultations, including state governments, experts, and civil society organizations, in the policy-making process.
• Knowledge Sharing & Capacity Building: NITI Aayog facilitates knowledge sharing and capacity building among states, enabling them to learn from each other’s best practices.
• Policy & Program Design: NITI Aayog provides policy and program design support to states, helping them to develop innovative solutions to their specific challenges.
• Monitoring & Evaluation: NITI Aayog monitors the progress of states in achieving their development goals and provides feedback for improvement.

Organizational Arrangements & Federalism

The organizational structure of NITI Aayog is designed to promote greater state participation and ownership:

• Governing Council: Composed of the Prime Minister, Chief Ministers of all states, and Lieutenant Governors of Union Territories. This is the apex body of NITI Aayog and provides a platform for regular dialogue and collaboration between the Centre and states.
• National Advisory Council: Includes eminent experts and scholars, providing valuable insights and guidance to NITI Aayog.
• Special Invitee Members: Representatives from various ministries and departments, ensuring inter-ministerial coordination.
• Secretariat: Provides administrative support to NITI Aayog and facilitates its operations.

The Governing Council, in particular, is a significant departure from the Planning Commission’s structure. It ensures that states have a direct voice in shaping national policies and priorities. The emphasis on state representation and participation in decision-making processes is a key element in restoring the federal character of the Indian polity.

Comparative Analysis: Planning Commission vs. NITI Aayog

Feature	Planning Commission	NITI Aayog
Approach	Top-down, Centrally Controlled	Bottom-up, Cooperative & Competitive
State Involvement	Limited	Significant, through Governing Council
Focus	Five-Year Plans	Long-term strategic vision, policy formulation
Structure	Deputy Chairman led	Prime Minister led