Model Answer
0 min readIntroduction
The Indian economic planning model underwent a significant transformation with the replacement of the Planning Commission with NITI Aayog (National Institution for Transforming India) in 2015. The Planning Commission, established in 1950, was criticized for its top-down approach, lack of flexibility, and inability to adapt to the rapidly changing economic landscape. NITI Aayog was envisioned as a ‘policy think tank’ and a ‘platform for cooperative federalism’, aiming to foster a more decentralized, inclusive, and dynamic planning process. This reorganization sought to move away from indicative planning to a more facilitative and catalytic role for the central government, focusing on long-term strategic vision and policy formulation.
Evolution of Planning in India & Shortcomings of the Planning Commission
Prior to NITI Aayog, India followed a centralized planning model heavily influenced by the Soviet Union. The Planning Commission was responsible for formulating five-year plans, allocating resources, and setting national priorities. However, this model faced several criticisms:
- Rigidity: The five-year plan framework lacked the flexibility to respond to unforeseen economic shocks or changing global circumstances.
- Top-Down Approach: States had limited involvement in the planning process, leading to a lack of ownership and implementation challenges.
- Lack of Expertise: The Commission was often perceived as lacking the specialized expertise needed to address complex economic issues.
- Bureaucratic Delays: The planning process was often slow and cumbersome, hindering timely decision-making.
NITI Aayog: Structure and Functions
NITI Aayog was established with a fundamentally different approach. Its structure reflects this shift:
- Governing Council: Comprises the Prime Minister, Chief Ministers of all states, and members of NITI Aayog. This ensures state participation in the planning process.
- Prime Minister as Chairperson: Provides political leadership and direction.
- Vice-Chairperson: Responsible for day-to-day operations and policy formulation.
- Members: Experts from various fields who provide specialized knowledge and insights.
- Secretariat: Provides administrative support and coordination.
Key functions of NITI Aayog include:
- Policy Formulation: Developing policies and strategies to address critical economic and social challenges.
- Cooperative Federalism: Fostering collaboration between the Centre and states.
- Monitoring and Evaluation: Tracking the progress of various programs and initiatives.
- Capacity Building: Enhancing the skills and knowledge of government officials.
- Think Tank Role: Providing evidence-based policy recommendations.
NITI Aayog’s Vision for Reorganization of Planning
NITI Aayog envisions a reorganization of planning based on the following principles:
- Bottom-Up Approach: Planning should originate from the grassroots level, with states and local bodies playing a central role.
- Participatory Planning: Involving stakeholders from all sectors of society in the planning process.
- Sector-Specific Strategies: Focusing on developing tailored strategies for different sectors, rather than a one-size-fits-all approach.
- Long-Term Vision: Developing a long-term strategic vision for India’s development, extending beyond five-year plans.
- Flexibility and Adaptability: Creating a planning process that is responsive to changing circumstances.
- Emphasis on Technology and Innovation: Leveraging technology and innovation to drive economic growth and social progress.
Key Initiatives Reflecting the Vision
- Action Agenda for New India (2017): Outlined key priorities for transforming India by 2022.
- Strategy for New India @75 (2018): A comprehensive strategy for India’s development by 2022-23, focusing on economic growth, social justice, and environmental sustainability.
- National Strategy for Artificial Intelligence (#AIforAll): Promoting the development and deployment of AI technologies for societal benefit.
- Atal Innovation Mission (AIM): Fostering innovation and entrepreneurship among young Indians.
Comparison with the Planning Commission
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Approach | Top-down, centralized | Bottom-up, decentralized |
| Role | Formulating five-year plans, resource allocation | Policy think tank, facilitating cooperative federalism |
| State Involvement | Limited | Significant, through Governing Council |
| Flexibility | Low | High |
Conclusion
NITI Aayog represents a paradigm shift in India’s planning process, moving away from a rigid, centralized model to a more flexible, decentralized, and participatory approach. By fostering cooperative federalism and focusing on long-term strategic vision, NITI Aayog aims to accelerate India’s economic and social development. While challenges remain in implementation and ensuring effective coordination between the Centre and states, the vision of NITI Aayog offers a promising pathway towards a more inclusive and sustainable future for India. The success of this reorganization hinges on its ability to translate policy recommendations into tangible outcomes and adapt to the evolving needs of a dynamic nation.
Answer Length
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