The planning commission which has a legacy of 65 years has replaced by NITI Aayog. The utility and significance of the Planning Commission had been questioned for long. The replacement seems to be more relevant and responsive to the present economic needs and scenario in the country.


The NITI Aayog was formed on January 1, 2015. In Sanskrit, the word “NITI” means morality, behavior, guidance, etc

But, in the present context, it means policy and the NITI stand for National Institution for Transforming India. It is country’s premier policy-making institution which is expected to bolster the economic growth of the country. It aims to construct a strong state that will help to create a dynamic and strong nation. This helps India to emerge as a major economy in the world. The NITI Aayog’s creation has two hubs called “Team India Hub” and Knowledge and innovation Hub.

The Team India: It leads the participation of Indian states with the central government.
The Knowledge and innovation hub: it builds institution’s think tank capabilities.
NITI Aayog is additionally creating itself as a State of the Art Resource Center, with the essential resources, knowledge, and skills that will empower it to act with speed, advance research and innovation, bestow crucial policy vision to the government and manage unforeseen issues. The reason for setting up the NITI Aayog is that the people had expectations for growth and development in the administration through their participation. This required institutional changes in administration and active strategy shifts that could seed and foster substantial scale change. The institution has completed one year of its life.


The active participation of States in the light of national objectives and to provide a framework ‘national agenda’

  • The active participation of States in the light of national objectives and to provide a framework ‘national agenda’.
  • To promote cooperative federalism through well-ordered support initiatives and mechanisms with the States on an uninterrupted basis.
  • To construct methods to formulate a reliable strategy at the village level and aggregate these gradually at higher levels of government.
  • Economic policy that incorporates national security interests
  • To pay special consideration to the sections of the society that may be at risk of not profiting satisfactorily from economic progress.
  • To propose strategic and long-term policy and programme frameworks and initiatives, and review their progress and their effectiveness.
  • To grant advice and encourage partnerships between important stakeholders and national- international Think Tanks, as well as educational and policy research institutions.
  • To generate a knowledge, innovation and entrepreneurial support system through a shared community of national and international experts etc
  • To provide a platform for resolution of inter-sectoral and inter-departmental issues in order to speed up the accomplishment of the progress agenda.
  • To preserve a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their distribution to participants.
  • To effectively screen and assess the implementation of programmes and initiatives, including the identification of the needed resources to strengthen the likelihood of success.
  • To pay attention to technology improvement and capacity building for the discharge of programs and initiatives.
  • To undertake other necessary activities in order to the implementation of the national development agenda, and the objectives.

The NITI Aayog is based on the 7 pillars of effective Governance. They are:

  • Pro- People: it fulfills the aspirations of society as well as individuals
  • Pro-activity: in anticipation of and response to citizen needs
  • Participation: involvement of citizenry
  • Empowering: Empowering, especially women in all aspects
  • Inclusion of all: inclusion of all people irrespective of caste, creed, and gender
  • Equality: Providing equal opportunity to all especially for youth
  • Transparency: Making the government visible and responsive


The NITI Aayog will comprise the following:

  • Prime Minister of India is the Chairperson
  • Governing Council consists of the Chief Ministers of all the States and Lt. Governors of Union Territories in India.
  • Regional Councils will be created to address particular issues and possibilities affecting more than one state. These will be formed for a fixed term. It will be summoned by the Prime Minister. It will consist of the Chief Ministers of States and Lt. Governors of Union Territories. These will be chaired by the Chairperson of the NITI Aayog or his nominee.
  • Special invitees: Eminent experts, specialists with relevant domain knowledge, which will be nominated by the Prime Minister.
  • The full-time organizational framework will include, in addition to the Prime Minister as the Chairperson:

– Vice-Chairperson (will be appointed by the Prime Minister)
– Members:

  1. →Full-time
  2. → Part-time members: Maximum of 2 members from foremost universities, leading research organizations and other innovative organizations in an ex-officio capacity. Part-time members will be on a rotational basis.
  • Ex Officio members: Maximum of 4 members of the Council of Ministers which is to be nominated by the Prime Minister.
  • Chief Executive Officer: CEO will be appointed by the Prime Minister for a fixed tenure. He will be in the rank of Secretary to the Government of India.
    The Secretariat as deemed necessary.

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