Model Answer
0 min readIntroduction
The Planning Commission, established in 1950, served as the primary body for formulating India’s Five-Year Plans, adopting a top-down, centralized approach to economic development. However, with changing economic realities and the need for greater flexibility and inclusivity, it was replaced by NITI Aayog (National Institution for Transforming India) in 2015. NITI Aayog represents a paradigm shift, moving away from indicative planning to a more collaborative and bottom-up model. This answer will delineate the key differences in principles followed by these two institutions, highlighting the evolution of India’s planning process.
Structural and Functional Differences
The most immediate difference lies in the structure and function. The Planning Commission was a highly centralized body with a Deputy Chairman holding cabinet rank, and a full planning commission. It allocated funds to states based on centrally determined formulas. NITI Aayog, on the other hand, operates as a think tank with a Prime Minister as its ex-officio Chairman, and a Vice-Chairman appointed by the government. It comprises experts and specialists and focuses on policy formulation and providing strategic direction.
Principles of Planning: A Comparative Analysis
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Approach to Planning | Top-down, centralized, indicative planning with Five-Year Plans. | Bottom-up, decentralized, collaborative, focusing on long-term vision and strategic frameworks. |
| Role of States | States were largely recipients of plans and funds determined by the Centre. | States are actively involved in the planning process through Regional Councils and Governing Council, promoting cooperative federalism. |
| Focus | Sectoral growth and resource allocation. | Sustainable development, inclusive growth, and addressing national challenges. |
| Funding | Direct allocation of funds to states and sectors. | Focus on policy advocacy, capacity building, and attracting private investment; no direct fund allocation. |
| Monitoring | Primarily through plan implementation reports. | Emphasis on real-time monitoring, data analysis, and outcome-based evaluation through initiatives like the Aspirational Districts Programme. |
Shift in Underlying Philosophy
The Planning Commission operated under the influence of socialist principles, prioritizing public sector investment and state control. It aimed for self-reliance and import substitution. NITI Aayog, however, embraces a market-friendly approach, promoting privatization, deregulation, and foreign investment. It recognizes the importance of global integration and competitiveness. The focus has shifted from merely increasing GDP to improving the quality of life and ensuring equitable distribution of benefits.
Key Initiatives Reflecting the Change
- Aspirational Districts Programme (2018): Focuses on improving socio-economic indicators in the most underdeveloped districts.
- Atal Innovation Mission (AIM): Promotes innovation and entrepreneurship.
- Model Land Leasing Act: Facilitates agricultural land leasing.
- National Strategy for New India @ 2022: A long-term vision document outlining India’s development path.
Impact on Governance
The transition from the Planning Commission to NITI Aayog signifies a move towards a more agile and responsive governance structure. NITI Aayog’s emphasis on evidence-based policymaking, stakeholder consultation, and cooperative federalism has fostered a more inclusive and participatory approach to development. However, critics argue that the absence of a direct funding mechanism weakens its ability to influence policy implementation effectively.
Conclusion
The shift from the Planning Commission to NITI Aayog represents a fundamental change in India’s approach to economic planning and governance. While the Planning Commission was instrumental in laying the foundation for India’s industrial development, NITI Aayog’s principles of flexibility, inclusivity, and market-orientation are better suited to address the challenges of a rapidly changing global landscape. The success of NITI Aayog hinges on its ability to effectively coordinate with states, leverage data-driven insights, and translate its policy recommendations into tangible outcomes, fostering a ‘New India’ characterized by sustainable and inclusive growth.
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.