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Genesis of NITI Aayog

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Genesis of NITI Aayog

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The National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is the premier policy 'Think Tank' of the Government of India, providing both directional and policy inputs.

Here are the steps that led to the genesis of NITI Aayog:

  1. Dissolution of Planning Commission: The first step towards the formation of NITI Aayog was the dissolution of the Planning Commission. The Planning Commission, established in 1950, was a centralised system that formulated five-year plans for the country. However, it was criticised for its top-down approach and lack of ground-level understanding.

  2. Announcement in Independence Day Speech: On 15th August 2014, Prime Minister Narendra Modi announced in his Independence Day speech that the Planning Commission would be replaced by a new body.

  3. Consultation with States: Following the announcement, the central government consulted with states to discuss the structure of the new institution. This was done to ensure cooperative federalism where the centre and states would collaborate on policy-making.

  4. Formation of NITI Aayog: On January 1, 2015, the Union Cabinet passed a resolution to replace the Planning Commission with NITI Aayog. The new institution was designed to be a think-tank that provides strategic and technical advice on economic matters.

  5. Role and Functioning: NITI Aayog's role is to formulate credible plans at the village level and aggregate these progressively at higher levels of government. It also focuses on technology upgradation and capacity building for the implementation of programs and initiatives.

  6. Governance: NITI Aayog is governed by a Governing Council with the Prime Minister as its Chairperson. It also includes a Vice Chairperson, full-time members, part-time members, ex-officio members, and a Chief Executive Officer.

In conclusion, the genesis of NITI Aayog was a result of the need for a more inclusive and participatory approach to policy-making in India. It was formed to replace the Planning Commission, which was seen as outdated and not in tune with the realities of a rapidly changing economy.

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