Model Answer
0 min readIntroduction
Cooperative federalism, a concept gaining prominence in Indian governance, signifies a horizontal relationship between the Union and States, characterized by mutual trust, consultation, and collaborative action. The erstwhile Planning Commission, often criticized for its top-down approach and centralized decision-making, failed to adequately reflect this spirit. Consequently, NITI Aayog (National Institution for Transforming India) was established in 2015 as a replacement, with the explicit aim of fostering cooperative federalism and promoting a shared vision of development involving both the Union and the States. This institution was envisioned as a think tank and policy platform, rather than a purely directive body.
NITI Aayog and the Pursuit of Cooperative Federalism
NITI Aayog’s structure and functions are designed to promote cooperative federalism in several ways:
1. Institutional Mechanisms for Collaboration
- Governing Council: Composed of the Prime Minister, Chief Ministers of all states, and relevant Union Ministers, the Governing Council serves as the primary platform for inter-state and Centre-State discussions on national development priorities. This ensures states have a direct voice in policy formulation.
- Regional Councils: These councils, grouping states based on geographical proximity, address specific regional issues and promote zonal cooperation.
- Expert Groups & Task Forces: NITI Aayog frequently constitutes expert groups and task forces with representation from both the Centre and States to address specific challenges and formulate policy recommendations.
2. Shift in Planning Paradigm
Unlike the Planning Commission’s five-year plans, NITI Aayog adopts a bottom-up approach. It focuses on:
- State-Specific Strategies: NITI Aayog encourages states to develop their own development strategies aligned with national goals, recognizing their unique strengths and challenges.
- Action Agendas: These are developed in consultation with states, outlining specific actions to be taken in key sectors.
- Performance-Based Incentives: NITI Aayog introduced the ‘State/UT Performance Ranking’ based on various indicators, incentivizing states to improve their performance.
3. Addressing Horizontal Inequalities
NITI Aayog actively works towards reducing disparities between states through:
- Aspirational Districts Programme (ADP): Launched in 2018, this programme aims to rapidly transform 115 most backward districts across the country, focusing on health and nutrition, education, agriculture and water resources, financial inclusion and skill development.
- Model Laws: NITI Aayog promotes the adoption of model laws by states in areas like land leasing, agricultural marketing, and urban local body governance, aiming to create a more uniform and efficient regulatory environment.
4. Promoting Competition and Innovation
NITI Aayog fosters a competitive spirit among states by:
- State Innovation Hubs: Supporting the establishment of state-level innovation hubs to promote entrepreneurship and technological advancements.
- Good Governance Index (GGI): The GGI, released periodically, benchmarks states on various governance indicators, encouraging them to improve their performance.
Limitations and Criticisms
Despite its efforts, NITI Aayog faces criticisms regarding its effectiveness in achieving true cooperative federalism:
- Centralization Concerns: Some argue that NITI Aayog remains largely influenced by the central government, and its recommendations are not always binding on states.
- Lack of Adequate Funding: NITI Aayog’s limited financial resources constrain its ability to effectively implement its initiatives.
- Implementation Gaps: The gap between policy formulation and actual implementation remains a significant challenge.
- Limited State Ownership: States sometimes perceive NITI Aayog’s initiatives as being imposed from the Centre, leading to a lack of genuine ownership.
The ADP, while showing some positive results, has faced challenges related to data collection and monitoring. The GGI, while useful for benchmarking, has been criticized for its methodology and weighting of indicators.
Conclusion
NITI Aayog represents a significant departure from the centralized planning model of the past and has undoubtedly contributed to fostering a more collaborative relationship between the Centre and States. However, achieving true cooperative federalism requires addressing the existing limitations, ensuring greater state ownership, and providing adequate resources for effective implementation. A continued focus on bottom-up planning, performance-based incentives, and addressing horizontal inequalities will be crucial for NITI Aayog to fully realize its potential as a catalyst for inclusive and sustainable development.
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.