NITI Aayog: formation, Function and contribution of NITI Aayog

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Introduction to NITI Aayog

NITI Aayog, short for National Institution for Transforming India Aayog, was established on January 1, 2015, to replace the decades-old Planning Commission of India. It represents a significant shift in India's approach to economic planning and policy formulation, emphasizing flexibility, decentralization, and cooperative federalism.

Structure and Governance

  • Leadership:
    • Chairperson: The Prime Minister of India serves as the chairperson of NITI Aayog, providing overarching leadership and direction.
    • Vice Chairperson: Appointed to support the chairperson and oversee the day-to-day operations.
    • CEO (Chief Executive Officer): Appointed by the Prime Minister, typically holding the rank of Secretary to the Government of India, responsible for managing the organization.
  • Governing Council:
    • Includes all Chief Ministers of Indian states and Lt. Governors of Union Territories with legislatures.
    • Facilitates cooperative federalism by involving states in policy formulation and decision-making.
  • Special Invitees and Members:
    • Experts, specialists, and practitioners from various fields are invited to provide domain-specific inputs.
    • Part-time members from universities, research organizations, and relevant institutions contribute on a rotational basis.

Functions and Objectives

  • Policy Formulation:
    • Acts as a think tank providing strategic and technical advice to the Central and State governments.
    • Focuses on economic issues of national and international importance, including sustainable development goals and global economic trends.
  • Cooperative Federalism:
    • Promotes a cooperative federal structure where states and Union Territories collaborate with the Centre in policy planning and implementation.
    • Aims to foster a shared vision of national development priorities while respecting regional diversities and needs.
  • Monitoring and Evaluation:
    • Monitors and evaluates the implementation of government programs and initiatives to ensure effectiveness and efficiency.
    • Enhances transparency and accountability in governance through rigorous evaluation mechanisms.
  • Innovation and Development:
    • Facilitates innovation ecosystems and supports entrepreneurial initiatives to spur economic growth.
    • Integrates technological advancements and best practices to address developmental challenges.

Criticism and Reception

  • Criticism:
    • Some critics view NITI Aayog as similar to the Planning Commission in function, lacking substantial departure in approach.
    • Concerns over the role and effectiveness in policy implementation compared to its advisory functions.
  • Reception:
    • Advocates praise NITI Aayog for decentralizing planning processes and involving a broader spectrum of stakeholders.
    • Recognized for its efforts to modernize policy-making by incorporating diverse perspectives and promoting agile governance.

Conclusion

NITI Aayog represents a pivotal institution in India's governance framework, tasked with navigating complex economic challenges and fostering inclusive growth. By promoting cooperative federalism, innovation, and effective policy implementation, it aims to transform India's developmental landscape in alignment with global standards and sustainable practices.