Model Answer
0 min readIntroduction
For over six decades, the Planning Commission served as the principal body for formulating India’s Five-Year Plans, guiding the nation’s economic and social development. However, with the onset of economic liberalization in 1991 and the evolving socio-economic landscape, the Commission’s rigid, centralized, and often bureaucratic approach came under scrutiny. Recognizing these limitations, the Government of India replaced the Planning Commission with NITI Aayog (National Institution for Transforming India) in January 2015. This shift marked a fundamental change in India’s planning perspective, aiming for a more inclusive, flexible, and responsive approach to development.
The Pre-NITI Aayog Planning System: The Planning Commission
The Planning Commission, established in 1950, was modeled after the Soviet Union’s central planning system. Its key features included:
- Centralized Planning: Formulation of Five-Year Plans with detailed targets and allocations for various sectors.
- Top-Down Approach: Plans were largely formulated by experts and officials with limited participation from states and local bodies.
- Sectoral Focus: Emphasis on sectoral growth with less attention to inter-sectoral linkages and regional disparities.
- Resource Allocation: Primarily focused on allocating financial resources based on the plans.
- Bureaucratic Structure: A highly bureaucratic and hierarchical structure, often leading to delays and inefficiencies.
However, this system faced several criticisms. The rigid five-year framework struggled to adapt to changing global and domestic conditions. The top-down approach often ignored local needs and priorities. The Commission was also accused of being overly focused on financial planning and neglecting strategic vision.
NITI Aayog: A Paradigm Shift in Planning
NITI Aayog was envisioned as a think tank that would provide strategic direction and policy advice to the government. Its key features represent a significant departure from the Planning Commission:
- Bottom-Up Approach: Emphasis on involving states and local bodies in the planning process through consultations and collaborative frameworks.
- Flexible Planning: Moving away from rigid five-year plans to a more flexible and dynamic planning process, including a focus on medium-term strategies.
- Focus on Sustainable Development Goals (SDGs): Integrating the SDGs into the national development agenda.
- Sectoral Expertise: Establishing specialized councils and groups to provide expertise in various sectors.
- Technology and Innovation: Promoting technology-driven development and innovation.
- Competitive Federalism: Encouraging healthy competition among states to improve governance and attract investment.
Key Changes in Planning Perspective
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Approach | Centralized, Top-Down | Decentralized, Bottom-Up |
| Planning Horizon | Five-Year Plans | Medium-Term Frameworks, Vision Documents |
| Role | Resource Allocation & Planning | Policy Formulation & Strategic Vision |
| State Involvement | Limited | Extensive Consultation & Collaboration |
| Focus | Sectoral Growth | Sustainable & Inclusive Development |
Specific Initiatives of NITI Aayog
- Action Agenda: A five-year vision document outlining key priorities for development.
- Strategy for New India @ 2022: A comprehensive strategy for transforming India into a new India by 2022.
- State Support Programs: Providing support to states in areas such as policy formulation, capacity building, and infrastructure development.
- Atal Innovation Mission (AIM): Promoting innovation and entrepreneurship.
- Index-Based Governance: Developing indices to measure the performance of states and Union Territories in various areas, fostering competitive federalism. (e.g., Health Index, Education Index)
Impact and Challenges
NITI Aayog has facilitated greater state participation in policy-making and promoted a more holistic and integrated approach to development. The focus on competitive federalism has encouraged states to improve their performance. However, NITI Aayog faces challenges such as limited enforcement powers, dependence on the government for implementation, and ensuring effective coordination between various stakeholders. Its advisory role, while valuable, lacks the direct control over resource allocation that the Planning Commission once possessed.
Conclusion
The establishment of NITI Aayog represents a significant shift in India’s planning perspective, moving away from a centralized, rigid system to a more decentralized, flexible, and participatory model. While challenges remain, NITI Aayog has played a crucial role in fostering a more inclusive and sustainable development agenda. Its success hinges on its ability to effectively coordinate with states, leverage technology, and provide strategic guidance that translates into tangible outcomes on the ground. The future of Indian planning will likely be characterized by continuous adaptation and innovation, guided by the principles of cooperative and competitive federalism.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.