Model Answer
0 min readIntroduction
NITI Aayog, established on January 1, 2015, replaced the erstwhile Planning Commission with the mandate to serve as the premier policy 'think tank' of the Government of India. It aims to foster cooperative federalism, provide strategic and technical advice to central and state governments, and facilitate a "bottom-up" approach to development. While envisioned to promote dynamic policy shifts and inclusive growth, its effectiveness has been constrained by several structural and functional limitations that hinder its ability to achieve its transformative impact fully.
Reasons for Limited Effectiveness of NITI Aayog
- Advisory-Only Role: Unlike the Planning Commission, NITI Aayog functions purely as an advisory body. Its recommendations are not binding on either the Central or State governments, significantly reducing its influence on policy implementation and practical impact on the ground. This often leads to it being perceived as a "glorified recommendatory body" [2, 5].
- Lack of Budgetary Powers: NITI Aayog does not have the authority to allocate funds to states or ministries, a crucial power that the Planning Commission wielded. This absence of financial leverage limits its capacity to incentivize states to adopt its policy recommendations or implement development programs effectively [2, 8].
- Challenges in Cooperative Federalism: While designed to promote cooperative federalism, NITI Aayog often faces friction with states' autonomy. States, particularly those ruled by opposition parties, have expressed dissatisfaction, perceiving a lack of consultation on financial matters and alleging political favoritism in project allocations [6, 9, 14]. This uneven adoption of suggestions makes it challenging to translate high-level discussions into uniform, actionable strategies across diverse states.
- Structural and Functional Constraints:
- Limited Influence on Investments: NITI Aayog has no direct role in influencing private or public investment decisions, further restricting its ability to drive economic change [5].
- Staffing and Expertise Gaps: Concerns exist regarding perceived gaps in technical expertise across all sectors, which can sometimes limit the quality and comprehensiveness of its advice [6].
- Politicization: There have been concerns about the politicization of the organization, with its recommendations sometimes seen as closely aligned with central government perspectives rather than independent, objective counsel [5, 6].
- Inadequate Resources: NITI Aayog sometimes operates with limited financial and human resources, impacting its ability to conduct comprehensive research, develop innovative policies, and effectively monitor implementation [7, 13].
Conclusion
Despite its progressive mandate to act as a think tank fostering cooperative federalism and bottom-up planning, NITI Aayog's effectiveness remains limited by its advisory nature, lack of financial powers, and occasional friction with state governments. To unlock its full potential, there is a need to empower NITI Aayog with some degree of legislative or financial authority, ensure greater transparency and non-partisanship, and strengthen consultation mechanisms with states. This would enable it to truly drive transformative change and effectively coordinate national development priorities.
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.