NITI Aayog: Composition, Objectives, Functions & More - UPSC Notes

NITI Aayog stands for National Institution for Transforming India Aayog. It is a policy think tank of the Government of India. It was set up with the aim of fostering cooperative federalism. It ensures participative and equitable economic development. It provides strategic and technical advice to the Central and State governments. NITI Aayog replaced the Planning Commission on January 1, 2015. It plays a crucial role in designing medium and long-term policies and programmes. It leverages a collaborative approach involving states, ministries, and external experts.

This article on NITI Aayog is one of the most important topics for the UPSC IAS Exam. Many questions are asked from this topic in both the preliminary as well as the mains stage.

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What is NITI Aayog?

NITI Aayog stands for National Institution for Transforming India. It is a policy think tank of the Government of India. It was set up on January 1, 2015, as a replacement for the Planning Commission. NITI Aayog serves as a platform for cooperative federalism. It aims to facilitate and guide the transformation of India's development agenda.

Background of NITI Aayog

Prior to NITI Aayog, the Planning Commission was initiated in March 1950. It was a non-constitutional body. The planning commission was constituted with the functions of framing the five-year plan. It also worked on the distribution of money to states and Ministries. The first five-year plan was framed for the year 1951-56 while the last five-year plan was for the year 2012-17.

The planning commission was later replaced with NITI Aayog. The BJP government in the year 2015 established it with its headquarters in New Delhi. The National Institution for Transforming India (NITI Aayog) gives advice to the government. This is done for different issues related to health, education, and various policies related to them. It follows a bottom-up approach in framing various policies. The plans formed at the Central level provide an opportunity for the state level to have a say in them.

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Composition of NITI Aayog

NITI Aayog is composed of the Prime Minister, Chief Ministers, Lt. Governors & others:

• Chairperson: The Prime Minister of India serves as the NITI Aayog Chairman.
• Vice-Chairperson: The NITI Aayog Vice Chairman is appointed by the Prime Minister.
• Governing Council: The Governing Council consists of all the Chief Ministers of states. It also consists of Lt. Governors from all Union Territories.'
• Regional Council: The Regional Council addresses specific regional issues. It is chaired by the Prime Minister or his nominee. It comprises Chief Ministers and Lt. Governors.
• Adhoc Membership: Two members from leading research institutions serve as ex-officio members. This is done on a rotational basis.
• Ex-Officio Membership: Up to four members from the Union Council of Ministers are nominated by the Prime Minister.
• Chief Executive Officer: The Niti Aayog CEO is appointed by the Prime Minister. He holds the rank of Secretary to the Government of India.
• Special Invitees: Experts and specialists with domain knowledge are nominated by the Prime Minister.

Niti Aayog Hubs

There are two hubs that are considered the heart of NITI AAYOG’s construction. These centres represent Aayog’s two main responsibilities.

The India Knowledge Hub (IKH) is a dynamic web portal run by the NITI Aayog. It serves as a repository for storing and disseminating best practices from around the country.

The Team India Hub coordinates state-to-central government engagement. The Knowledge and Innovation Hub develops NITI’s think-tank skills.

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Objectives of NITI Aayog

NITI Aayog aims to achieve sustainable development goals and encourages cooperative federalism. It fosters competitive federalism. It facilitates states to set and achieve their own growth targets. It acts as a knowledge and innovation hub for policy formulation.

• NITI Aayog aims to promote cooperative federalism. It supports and collaborates with states on a continuous basis.
• It develops mechanisms to formulate credible plans at the village level. It then aggregates them progressively at higher levels of government.
• NITI Aayog ensures that national security interests are incorporated into economic strategy and policy.
• Special attention is given to the sections of society that may be at risk of not benefitting adequately from economic progress.
• NITI Aayog encourages partnerships between key stakeholders, national and international think tanks, educational institutions, and policy research organizations.

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Pillars of Effective Governance

The pillars of effective governance, as envisioned by NITI Aayog, include:

• Pro-People: It is pro-people in that it satisfies the aspirations of both society and individuals.
• Pro-Activity: It focuses on anticipating and responding to the needs of citizens.
• Participation: Participation entails the involvement of the general public.
• Empowering: Empowering people, especially women, in all parts of their lives.
• Inclusion of all: It ensures the inclusion of all people. All people are included regardless of caste, creed, or gender.
• Equality: The main aim is to ensure that all people have equal access to opportunities.
• Transparency: Making the government transparent and responsive is referred to as transparency.

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Functions of NITI Aayog

NITI Aayog's functions include:

• NITI Aayog formulates strategic and long-term policies and programs for various sectors of the economy.
• It monitors the implementation of policies and programs. It also evaluates their effectiveness, making necessary recommendations for course correction.
• NITI Aayog facilitates capacity building and knowledge sharing among states and stakeholders. This promotes best practices and learning.
• It conducts data analysis, research, and evidence-based studies. This helps guide policy formulation and decision-making.
• NITI Aayog promotes international cooperation and partnerships. This helps leverage global expertise, resources, and best practices for India's development.

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Major Initiatives of NITI Aayog

Major initiatives by NITI Aayog include the following:

Atal Innovation Mission (AIM)

The Atal Innovation Mission (AIM) is a flagship initiative set up by NITI Aayog. It promotes a culture of innovation and entrepreneurship across India. AIM aims to create an ecosystem that fosters innovation across different sectors. This particularly focuses on technology-driven solutions. Through programs like Atal Tinkering Labs (ATL) and Atal Incubation Centers (AIC), AIM supports startups and innovative projects. It facilitates their journey from ideation to execution and scaling.

National Nutrition Mission (NNM)

The National Nutrition Mission (NNM)is also known as Poshan Abhiyaan. It is a comprehensive strategy launched to tackle malnutrition in India. It focuses on reducing levels of stunting, wasting, and anemia among young children, adolescent girls, and women. NNM employs a multi-pronged approach to ensure better service delivery. This includes converging various nutrition-related schemes and promoting behavioral change. This is done through community-based events and digital platforms like the Poshan App.

Aspirational Districts Programme

The Aspirational Districts Programme targets 112 of India’s most developmentally challenged districts. The program aims to improve socio-economic indicators in these districts. It focuses on key areas such as health, education, agriculture, and infrastructure. It uses a data-driven and outcome-oriented approach. It encourages healthy competition among districts through a ranking mechanism. Best practices and innovative ideas are shared to drive overall improvement.

Digital India

Digital India is a transformative program aimed at bridging the digital divide. It ensures that government services are available to citizens electronically. This is spearheaded by the Ministry of Electronics and Information Technology. It aims to enhance digital literacy, improve online infrastructure, and increase internet connectivity, particularly in rural areas. Key components include Digital Locker, e-Hospital, and the BharatNet project. These enhance accessibility and efficiency of services.

Transformative Energy Access

Transformative Energy Access initiatives by NITI Aayog focus on providing modern, sustainable, and affordable energy solutions. This is given to all segments of society, especially underserved communities. Programs under this umbrella aim to reduce dependency on traditional fuels. They increase the use of renewables and promote energy efficiency. Key projects include:

• expanding solar power infrastructure,
• enhancing the grid's reliability, and
• incentivizing innovation in clean energy technologies.

Health Systems for a New India

NITI Aayog's "Health Systems for a New India" report outlines a vision for transforming India's healthcare system to be more inclusive, accessible, and efficient. It emphasizes a holistic approach to health. It integrates public and private healthcare delivery systems. The initiative seeks to strengthen primary healthcare and improve health infrastructure. It promotes digital health technology like telemedicine to bridge gaps in service delivery.

Sustainable Development Goals (SDGs)

NITI Aayog leads India’s efforts towards achieving the United Nations' Sustainable Development Goals (SDGs). Through the SDG India Index, it monitors and evaluates the progress across various states and union territories. The index helps in identifying gaps and facilitating targeted interventions. NITI Aayog also coordinates with ministries, states, and other stakeholders. This helps align their policies and programs with the SDG framework. It ensures a cohesive approach towards sustainable development.

Ease of Doing Business (EoDB)

The ease of doing business initiative aims to simplify the regulatory environment. They enhance the business climate in India. NITI Aayog works on reducing bureaucracy, streamlining approval processes, and improving transparency. Efforts include digitizing procedures and reducing the number of permits required. It also enhances infrastructure to attract both domestic and foreign investments. This thereby boosts economic growth.

Skill Development and Employment Generation

The Skill India Mission enhances skill development and create employment opportunities. It addresses the needs of a young and rapidly growing workforce. Programs are designed to align with industry requirements. They also include vocational training, apprenticeship models, and digital literacy initiatives. Collaborations with the private sector and educational institutions aim to enhance employability. They support entrepreneurship, driving economic diversification and growth.

Agriculture Reforms

Agriculture reforms spearheaded by NITI Aayog focus on improving productivity. They ensure fair pricing and enhance market access for farmers. Initiatives include:

• the promotion of contract farming,
• digital platforms for market linkage, and
• modernization of infrastructure such as cold storages and warehousing.

These reforms aim to build a more resilient and efficient agricultural sector. They ensure better income security for farmers and contribute to food security in India. This is achieved through measures like the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and the National Agriculture Market (eNAM).

Urban Development and Smart Cities

NITI Aayog's urban development agenda includes the Smart Cities Mission. It aims to promote sustainable and inclusive city growth. The initiative focuses on using technology and data to improve urban infrastructure. They also enhance service delivery and ensure efficient management of resources. Key components include digital governance, intelligent transport systems, and green buildings. These aim to create urban spaces that are livable, sustainable, and economically viable.

Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission)

Atmanirbhar Bharat Abhiyan, or the Self-Reliant India Mission, is aimed at boosting India’s economy. It promotes self-sufficiency and reduces dependency on imports. It was launched in response to the COVID-19 pandemic. It focuses on enhancing local manufacturing, strengthening supply chains, and encouraging innovations. The initiative covers various sectors, including MSMEs, agriculture, defense, and pharmaceuticals. It provides financial support and policy reforms to drive growth and resilience.

Water Management and Conservation

NITI Aayog emphasizes efficient water management and conservation. This is achieved through initiatives that address the critical issues of water scarcity and quality. Programs like the Composite Water Management Index evaluate state performance on water resources management, encouraging best practices. Efforts include promoting rainwater harvesting, efficient irrigation techniques, and rejuvenation of water bodies. These initiatives aim to ensure sustainable water use and availability for future generations.

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Significance of NITI Aayog

NITI Aayog plays a crucial role in reshaping India's economic and social landscape:

• NITI Aayog promotes cooperative federalism by involving states in the decision-making process. It ensures their active participation in policy formulation and implementation.
• It emphasizes a bottom-up approach. This encourages the involvement of local communities, villages, and states in the planning and development process.
• NITI Aayog provides a platform for flexibility and innovation. It encourages experiments, pilots new ideas, and promotes adaptive governance practices.
• It serves as a dynamic policy think tank. It brings together experts, stakeholders, and policymakers to generate innovative ideas and solutions for India's development challenges.
• NITI Aayog focuses on inclusive development. It addresses the specific needs and concerns of marginalized sections of society. It ensures their participation in the development process.

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Challenges Faced by NITI Aayog

NITI Aayog faces the below mentioned challenges:

• NITI Aayog does not have financial allocation powers. It functions primarily as an advisory body without the authority to implement policies directly.
• Effective implementation of policies often requires the collaboration of state governments. Variations in political alignment and administrative efficiency among states can hinder policy coherence and execution.
• India's diverse socio-economic landscape poses a challenge in devising uniform policies suitable for all regions. Tailoring policies to address local needs while maintaining national coherence is complex.
• Translating policy recommendations into actionable plans and ensuring their execution remains a significant challenge. Bureaucratic inertia and resistance to change can impede progress.
• Formulating effective policies requires robust data. Inconsistencies and gaps in data collection processes can lead to less informed decision-making.
• Limited financial and human resources can affect the capacity of NITI Aayog to conduct comprehensive research & develop innovative policies.
• NITI Aayog addresses immediate socio-economic issues. It also needs to focus on long-term strategic planning. However, this can sometimes lead to conflicting priorities.

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Difference Between NITI Aayog and Planning Commission of India

Get a better understanding of the NITI Aayog and Planning Commission differences from the table below:

Difference Between NITI Aayog and Planning Commission of India
Aspect	Planning Commission	NITI Aayog
Constitutional Status	Non-constitutional body	Non-constitutional advisory body
Role	Focused on centralized planning	Serves as an advisory body
Expertise	Limited expertise in decision-making	Wider expertise for better decision-making
Approach	Top-down approach to planning	Bottom-up approach to planning
Policy Imposition	Imposed policies on States	Does not mandatorily impose policies
Power to Allocate Funds	Had the power to allocate funds to States and Ministries	Does not have the power to allocate funds

Key Takeaways for UPSC Aspirants It was set up on January 1, 2015, replacing the Planning Commission. NITI Aayog aims to foster cooperative federalism. It provides strategic and technical advice to the Central and State governments. It is chaired by the Prime Minister. It includes a Governing Council of Chief Ministers and Lt. Governors. It also has various task forces and committees for focused activities. It promotes inclusive growth and designs medium and long-term policies. It also ensures social and economic development tailored to India's needs. Its notable programs include the: Aspirational Districts Programme, Atal Innovation Mission (AIM), and National Nutrition Mission. It functions as a think-tank, embracing innovative policy-making through rigorous data analysis. It collaborates with experts, research institutions, and academia. Crucial in formulating and implementing national development policies, ensuring stakeholder involvement. Employs a data-driven approach to monitor and evaluate government programs. It recommends measures for improved effectiveness. It engages with global think-tanks and research organizations to exchange knowledge. It aligns India's development agenda with sustainable development goals (SDGs).

NITI Aayog UPSC Previous Year Questions

How are the principles followed by the NITI Aayog different from those followed by the erstwhile Planning Commission in India? (UPSC CSE 2018 – GS III)

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