LUCID MAINS CURRENT AFFAIRS 2019

5. RELEVANCE OF NITI AAYOG

EXAM POINT OF VIEW
• GS 2 – Indian Polity – issues and challenges pertaining to the federal structure.
GS 3 – Economic Development – Indian Economy and issues related to planning.
• Previous year question – How are the principles followed by the NITI AAYOG
different from those followed by the erstwhile Planning Commission in India?
(2018 )
WHAT IS NITI AAYOG?
• It acts as a think tank.
Think tank – A body of experts providing advice and ideas on specific political or
economic problems.
• India set up NITI AAYOG on January 2015 replacing
Planning Commission.

PLANNING COMMISSION
• Established on 15 march, 1950.
• An advisory institution to form 5 year plans.
• Formed total 12 five year plans.
WHY SCRAPPED PLANNING COMMISSION?
• At present, more important is for federalism.
• Rising population and expanding economy gives more importance for states.
• Planning Commission was more centralized in nature giving less space for
states.
• Planning Commission’s one size fits for approach failed to give results.
• Planning Commission was unable to make states answerable for not meeting
their target.
• Planning Commission was filled with generalist, but what we need now is
experts.
FUNCTIONS OF NITI AAYOG
• Provide strategic and technical advice on policy matters.
• Mainstream external ideas and expertise into government policies and
programs.
• Fosters cooperative federalism.
• Decentralized planning.
• Responsible for village level plans and aggregation of this at higher level.
• To achieve sustainable development goals.
• Will monitor the activities and will give feedback and corrections.

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FIVE PILLARS OF NITI AAYOG

HOW NITI AAYOG IS DIFFERENT FROM PLANNING COMMISSION?

NITI AAYOG Planning Commission
1. Bottom top approach Top down approach
2. No power to distribute fund Had powers to distribute fund

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 3. Decision taken at local Decision taken at center
level.
4. Tailor plans based on One size fits for all approach
needs.
5. It included experts in It was filled with generalist bureaucrats
subjects.
6. States government are States role was limited during its plan
expected to play more role. meeting.
7. Accountable to parliament Planning Commission was not accountable
to Parliament.
ARGUMENTS IN SUPPORT
• It collects fresh ideas from various sources like industry, academia, civil society,
foreign specialists and shares that with central and state government.
Examples – Ayushman Bharat, Artificial Intelligence, Water Conservation
Measures.
• NITI AAYOG is best placed to achieve the convergence between various
ministries and central government and state government, whenever it is required.
• Brings greater level of accountability in the system.
• NITI AAYOG has established Development and Evaluation Office, which collect
data on performance of various ministries on a real time basis.
 Will have significant impact on improving efficiency of governance.
• Its performance based ranking of states fosters competitive federalism and
enables to identify the best practices in different states in various sectors and can
emulate them to other states.
• It acts as a representative of the states to central government.
• It has also been promoting innovation in India.
Example – Atal innovation mission.
 Atal Tinkering Lab under Atal Innovation Mission has been set up in schools
.which is work place for young minds to give shape to their ideas.
 They will be provided with tools and equipment to develop their ideas in labs.
 Hence, NITI AAYOG has been doing a commendable job in encouraging young
innovators and start – ups.
ARGUMENTS AGAINST
• It does not have the power to criticize government.
• It is not transparent enough, people are not getting opportunity to know what NITI
AAYOG is doing.
• Though it’s intention was to have decentralized actions critics says that their
action are centralized in nature
• Couldn’t attract more participation and attendance from states during meeting
called by NITI AAYOG. It says that reason is, it don’t have money for devolution.
 Earlier planning commission had the power for devolution of money.
 Hence had more power.
 Now this power has been transferred to finance ministry.
• It says that, it had no role in influencing the policy making with long term
consequence.
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  As it was not involved in policy making like demonetization, GST etc.

WAY FORWARD
• Planning is essential for a country in the medium run, but in India, Planning
Commission did not fulfill its function adequately.
 While Planning Commission in some countries like Latin American countries
and Sub-Saharan Africa failed, in other countries like China, East Asian and
South East Asian countries it was a success. This was mainly because it had
support from strong industrial policy.
 India need strong industrial policy.
 NITI AAYOG will need to evolve into a much stronger organization than
planning commission.
• India lacks strategy in planning ,if NITI AAYOG is to implement such strategy
1. Must decentralize planning.
2. Bureaucracy will need to change from generalist to specialist.
3. Outcome based accountability rather than input / fund spent based
accountability.
• More autonomy and power must be given to NITI AAYOG.
• As its name suggests, it is for transforming India, hence need more teeth to
ensure transformation.
• Make NITI AAYOG apolitical.
It says that a think tank must keep a distance from the government .but it is seen
that, NITI AAYOG has always been defending government.
• Constructive criticism must be allowed for NITI AAYOG ,as it will be good for
Healthy democracy.
• Make it more transparent by letting people to know about its plan, activities and
outcome etc.
• NITI AAYOG also must focus on areas like employment generation, gender
inequality, environmental sustainability, social justice etc.

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