NITI Aayog

The National Institution for Transforming India (NITI Aayog), was formed via some resolution of the Union Cabinet on January 1, in the year of 2015. It has emerged as the premier policy ‘Think Tank’ of   the Government of India fostering the spirit of cooperative federalism.

Aim of the NITI Aayog

  • To foster involvement and participation in the economic policy-making process by state governments of India, a “bottom-up” approach in contrast to the Planning Commission’s tradition of “top-down” decision-making. 

The NITI Aayog comprises the following

  • Prime Minister of India as the Chairperson
  • Governing Council comprising the Chief Ministers of all the States and also Lt. Governors of the Union Territories
  • Regional Councils will be formed to the address specific issues and also contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. Moreover, these will be chaired by the Chairperson of the NITI Aayog or his nominee.
  • However, experts, specialists and also practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister 

Significance of NITI Aayog

  • State governments have been given prominence in the functioning of NITI Aayog and it has also expedited the resolution of issues between the central ministries and state and UTs. Thus it aids in Cooperative federalism.
  • States are competing to perform better in various developmental indices. This aids the Competitive aspect of the federalism.
  • It helps in balanced regional development by supporting the backward regions of the country.  E.g. focus on areas such as the North East.
  • It started a special initiative focusing on the transformation of 115 aspirational districts. It is also the nodal body for monitoring implementation of Sustainable Development Goals. Thus it furthers the concept of inclusive development.
  • It focuses on policy formulation based on adequate data such as it brought out three-year action agenda, development of composite water management index, promotion of GIS-based planning etc.