NITI Aayog – UPSC Post-Independence Notes

NITI Aayog, short for National Institution for Transforming India, stands as the apex policy think tank of the Government of India, embodying a dynamic approach towards fostering sustainable development and inclusive growth across the nation. Established in 2015, NITI Aayog replaced the erstwhile Planning Commission, heralding a shift from a centralized planning model to one rooted in cooperative federalism and innovation-driven strategies. Tasked with formulating strategic policies and initiatives, NITI Aayog serves as a crucible for ideation, collaboration, and implementation, harnessing the collective wisdom of policymakers, experts, and stakeholders to address the multifaceted challenges confronting India’s socio-economic landscape. Guided by principles of efficiency, equity, and empowerment, NITI Aayog endeavors to catalyze transformative change, propelling India towards its vision of becoming a vibrant, inclusive, and resilient society.

National Institution for Transforming India (NITI Aayog):

• Historical Context: NITI Aayog was established on January 1, 2015, and replaced the Planning Commission, which had been in existence for over six decades. The move was aimed at adopting a more flexible, modern, and responsive approach to economic planning and policy-making.
• Purpose and Mandate: NITI Aayog’s primary objective is to facilitate and promote sustainable economic growth, social inclusion, and transformative policy-making. It serves as a think tank and a policy-making body that provides strategic direction and recommendations across various sectors.
• Chairman: The Prime Minister of India serves as the Chairman of NITI Aayog. This underscores the institution’s importance in driving the country’s development agenda.
• Governing Structure:
  • Vice-Chairman: The Vice-Chairman, currently Shri Suman Bery (since May 1, 2022), is a key figure in NITI Aayog’s leadership, assisting in steering the institution’s vision and policies.
  • Full-Time Members: NITI Aayog has full-time members, each responsible for specific sectors. They work closely with the Vice-Chairman and Chairman to provide expertise and recommendations in their respective domains.
  • Ex-Officio Members: It also includes various Union Ministers and Secretaries to the Government of India, who are ex-officio members. Their involvement ensures coordination between the government and NITI Aayog.
• Functions:
  • Policy Formulation: NITI Aayog plays a crucial role in formulating policies and strategies that address the socio-economic challenges facing India.
  • Promoting Cooperative Federalism: It emphasizes cooperative federalism by actively involving states in the decision-making process, fostering a collaborative approach to development.
  • Monitoring and Evaluation: NITI Aayog is responsible for monitoring and evaluating the implementation of various government programs and initiatives.
  • Research and Analysis: It conducts research, data analysis, and studies to generate insights and recommendations for policy formulation.
  • International Engagement: NITI Aayog engages with international organizations, think tanks, and experts to exchange knowledge, best practices, and innovative solutions.
• Special Initiatives: NITI Aayog spearheads special initiatives and campaigns in critical areas like health, education, water management, digital transformation, and more.
• Public Participation: It encourages public participation and seeks inputs from various stakeholders, including experts, civil society organizations, and citizens, to enrich the policy-making process.

NITI Aayog’s establishment reflects a modern approach to governance and development planning, aligning with India’s dynamic economic landscape and the need for agile, inclusive policies.

Latest News about NITI Aayog:

1. Leadership Changes:
   • Shri Parameswaran Iyer assumed the role of Chief Executive Officer at NITI Aayog on July 10, 2022.
   • Dr. Arvind Virmani joined NITI Aayog as a full-time Member starting on July 16, 2022.
2. ‘One District, One Product Policy’:
   • NITI Aayog’s Governing Council has introduced the ‘One District, One Product Policy’ with the aim of bolstering exports at the district level.
3. Study on Judicial Impact:
   • NITI Aayog plans to commission a study that will analyze select judgements and verdicts from the Supreme Court and National Green Tribunal and assess their impact on India’s economy.
4. National Action Plan for Migrant Workers:
   • NITI Aayog has taken charge of developing the National Action Plan for Migrant Workers, underlining the institution’s role in addressing critical socio-economic issues.
5. Model Act on Conclusive Land Titles:
   • NITI Aayog has formulated a model Act focused on conclusive land titles. The objective is to streamline land-related processes, enable easier access to credit for farmers, reduce litigations, and facilitate transparent real estate transactions and infrastructure development.
6. Expansion of Production-Linked Incentive (PLI) Scheme:
   • The NITI Aayog Vice-Chairman has indicated the government’s intention to introduce the Production-Linked Incentive (PLI) scheme for additional sectors, as part of efforts to boost domestic manufacturing. This scheme aims to incentivize investors to establish globally competitive capacities in various industries.

These updates reflect NITI Aayog’s active involvement in shaping policies and initiatives across diverse sectors, aiming to drive economic growth, inclusive development, and technological advancement in India.

Evolution of NITI Aayog

NITI Aayog, established on January 1, 2015, plays a pivotal role in shaping India’s economic policies and fostering its growth. The term “NITI” originates from Sanskrit and encompasses meanings like morality, guidance, and policy. In the current context, it stands for “National Institution for Transforming India”.

The institution’s primary objective is to facilitate the economic progress of India, ultimately contributing to the nation’s emergence as a global economic powerhouse. NITI Aayog is instrumental in constructing a robust state, which, in turn, forms the foundation of a vibrant and resilient nation.

To achieve its goals, NITI Aayog operates through two main hubs:

1. Team India Hub: This hub emphasizes the collaboration and participation of Indian states in conjunction with the central government.
2. Knowledge and Innovation Hub: This hub is dedicated to enhancing the institution’s think tank capabilities, ensuring it remains at the forefront of policy development.

Furthermore, NITI Aayog is actively establishing itself as a cutting-edge Resource Center, equipped with the necessary resources, knowledge, and skills. This allows the institution to act swiftly, engage in advanced research and innovation, offer essential policy insights to the government, and adeptly address unforeseen challenges.

The establishment of NITI Aayog was driven by the aspirations of the people for progress and development through active participation in governance. This necessitated institutional reforms and strategic shifts, which would catalyze large-scale transformation in various spheres of administration.

Objectives of NITI Aayog

1. Active State Participation: Foster the active engagement of states in line with national objectives and establish a framework for a unified “national agenda.”
2. Promote Cooperative Federalism: Facilitate cooperative federalism through structured support initiatives and mechanisms with states on an ongoing basis.
3. Local Strategy Formulation: Develop methods to formulate robust strategies at the village level and progressively aggregate them at higher levels of government.
4. Incorporate National Security Interests: Formulate economic policies that take into account national security interests.
5. Inclusive Growth: Give special attention to sections of society that may be at risk of not adequately benefiting from economic progress.
6. Policy and Programme Frameworks: Propose strategic, long-term policy and programme frameworks and initiatives, and monitor their progress and effectiveness.
7. Partnerships and Collaboration: Provide advice and encourage partnerships between key stakeholders, both nationally and internationally, as well as with educational and policy research institutions.
8. Knowledge Generation: Foster knowledge, innovation, and entrepreneurial support systems through a collaborative network of national and international experts.
9. Issue Resolution Platform: Serve as a platform for resolving inter-sectoral and inter-departmental issues to accelerate the achievement of the progressive agenda.
10. Resource Centre: Maintain a state-of-the-art Resource Centre, serving as a repository of research on good governance and best practices in sustainable and equitable development, and facilitate their dissemination to stakeholders.
11. Programme Implementation Monitoring: Effectively monitor and assess the implementation of programmes and initiatives, including identifying the necessary resources to enhance the likelihood of success.
12. Technology and Capacity Building: Focus on technology improvement and capacity building to facilitate the execution of programs and initiatives.
13. Undertake Necessary Activities: Undertake any other necessary activities for the implementation of the national development agenda and objectives.

7 Pillars of Effective Governance Envisaged by NITI Aayog:

1. Pro-People: Aimed at fulfilling the aspirations of society and individuals.
2. Pro-Activity: Anticipating and responding to citizen needs.
3. Participation: Involving the citizenry in decision-making processes.
4. Empowering: Especially focused on empowering women in all aspects.
5. Inclusion of All: Ensuring the inclusion of all people, regardless of caste, creed, or gender.
6. Equality: Providing equal opportunities to all, particularly the youth.
7. Transparency: Making the government visible, responsive, and accountable.

NITI Aayog Composition:

• Chairperson: Prime Minister of India.
• Governing Council: Comprising Chief Ministers of all states and Lt. Governors of Union Territories in India.
• Regional Councils: Formed for a fixed term to address specific issues affecting multiple states, consisting of Chief Ministers and Lt. Governors. Chaired by the Chairperson of NITI Aayog or a nominee.
• Special Invitees: Eminent experts and specialists with relevant domain knowledge, nominated by the Prime Minister.
• Full-Time Organizational Framework:
  • Vice-Chairperson (appointed by the Prime Minister)
  • Full-time Members
  • Part-Time Members: Up to 2 members from leading universities, research organizations, and innovative entities, serving in an ex-officio capacity on a rotational basis.
  • Ex Officio Members: Up to 4 members of the Council of Ministers nominated by the Prime Minister.
  • Chief Executive Officer (CEO): Appointed by the Prime Minister for a fixed tenure, holding the rank of Secretary to the Government of India.

Achievements of NITI Aayog:

2022-23:

1. Innovative Agriculture Workshop: NITI Aayog’s Agriculture Vertical organized a national-level workshop on “Innovative Agriculture” as part of Azadi ka Amrit Mahotsav. Over 1,250 participants from various sectors attended, including Central Ministries, State Governments, industry, farmers, academic institutions, and more.
2. Fintech Open Summit: NITI Aayog conducted a virtual fintech summit called ‘Fintech Open’ over three weeks, bringing together regulators, fintech professionals, industry leaders, and the startup community for collaboration and innovation.

2019-20:

1. Monitoring and Analysing Food and Agricultural Policies (MAFAP) Programme: A collaborative research project between NITI Aayog and the United Nations’ Food and Agriculture Organization (FAO) aimed at monitoring, analyzing, and reforming food and agricultural policies.
2. National Agriculture Price Policy and National Food Security Policy: Implemented for selected agricultural product marketing committees and districts respectively.
3. Zero Budget Natural Farming (ZBNF): Promoted by the NITI Aayog Governing Council.
4. Bhartiya Prakritik Krishi Paddhati: Promoted as part of the Paramparagat Krishi Vikas Yojana (PKVY), focusing on natural farming.
5. Village Storage Scheme: Conceptualized to enhance agricultural storage capabilities.
6. Dhaanya Lakshmi Village Storage Scheme: Proposed in the Union Budget 2021 (yet to be implemented).

Documents Published by NITI Aayog:

NITI Aayog has published the following documents:

1. Fifteen-Year Vision
2. Seven-Year Strategy
3. Three-Year Action Agenda

As of now, the documents containing the Fifteen-Year Vision and Seven-Year Strategy are under preparation at NITI Aayog.

NITI Aayog Three-Year Action Agenda (2017-18 to 2019-20):

• The Three-Year Action Agenda covers the period from 2017-18 to 2019-20. It is a document aimed at recommending policy changes and action programs for this period.
• This document is an integral part of the process leading to the Vision and Strategy document. It was fast-tracked and released early, considering its immediate relevance for policy implementation from the fiscal year 2016-17.
• The Three-Year Action Agenda proposes ambitious policy changes within a relatively short period.

FAQs

1. What is NITI Aayog?

A: NITI Aayog, or the National Institution for Transforming India, is a policy think tank of the Government of India, established to replace the Planning Commission. It functions as a platform for developing strategies and providing directions for achieving sustainable development goals and fostering cooperative federalism.

2. What are the primary objectives of NITI Aayog?

A: NITI Aayog aims to foster cooperative federalism by involving states in the economic policy-making process. It also focuses on promoting the spirit of competitive and cooperative federalism among states, ensuring the involvement of stakeholders in policy formulation, and fostering innovation and entrepreneurship to spur economic growth.

3. How does NITI Aayog differ from the Planning Commission?

A: Unlike the Planning Commission, which primarily focused on centralized economic planning, NITI Aayog emphasizes a more decentralized approach to policy formulation. It fosters collaboration between the center and states, with a greater focus on flexibility, innovation, and outcome-oriented strategies rather than rigid planning targets.

4. What are some key initiatives undertaken by NITI Aayog?

A: NITI Aayog has launched several initiatives to address various developmental challenges, such as Atal Innovation Mission (AIM) to promote innovation and entrepreneurship, Aspirational Districts Programme to uplift the most backward districts, and Health Index to measure and improve healthcare access and quality, among others.

5. How does NITI Aayog contribute to India’s development?

A: NITI Aayog plays a crucial role in formulating medium and long-term strategic policies for sustainable and inclusive growth. By engaging with stakeholders, fostering innovation, and promoting cooperative federalism, NITI Aayog strives to catalyze economic transformation, improve social indicators, and address developmental disparities across regions in India

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