Differentiate between the role of erstwhile Planning Commission and present NITI Ayog.

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Differentiating the Roles of the Planning Commission and NITI Aayog

Introduction:

India’s approach to economic planning has undergone a significant transformation with the replacement of the Planning Commission by NITI Aayog in 2015. The Planning Commission, established in 1950, operated under a centralized, top-down model, directing resource allocation and implementing five-year plans. Its role was primarily directive, with states largely acting as implementing agencies. NITI Aayog, on the other hand, adopts a more cooperative, federalist approach, emphasizing collaborative federalism and bottom-up planning. This shift reflects a broader move towards decentralized governance and market-oriented reforms.

Body:

1. Nature of Planning:

  • Planning Commission: Followed a centralized, command-and-control approach. The Commission dictated plans and targets to states, leaving limited scope for state-level variations or initiatives. This often led to a lack of flexibility and responsiveness to regional needs.
  • NITI Aayog: Emphasizes a cooperative federalism model. It facilitates collaborative planning between the central government and states, encouraging states to take ownership of their development agendas. The focus is on fostering a competitive spirit among states and promoting best practices.

2. Role and Functions:

  • Planning Commission: Primarily responsible for formulating five-year plans, allocating resources, and monitoring their implementation. It acted as the primary advisor to the government on economic matters. Its influence extended across various sectors, including infrastructure, agriculture, and industry.
  • NITI Aayog: Acts as a think tank and policy advisor to the government. Its functions include providing strategic and technical advice, fostering cooperation among states, and promoting innovation and entrepreneurship. It focuses on policy research, knowledge dissemination, and capacity building. It also plays a crucial role in monitoring the Sustainable Development Goals (SDGs).

3. Relationship with States:

  • Planning Commission: Maintained a hierarchical relationship with states. States were largely recipients of centrally planned resources and directives. This often resulted in a lack of local ownership and accountability.
  • NITI Aayog: Promotes a collaborative and participatory relationship with states. It encourages states to participate actively in policy formulation and implementation. The establishment of the Governing Council, comprising the Chief Ministers of all states and Union Territories, reflects this emphasis on federalism.

4. Focus and Priorities:

  • Planning Commission: Primarily focused on achieving planned targets and resource allocation based on centrally determined priorities. While acknowledging regional disparities, the focus was on achieving national targets.
  • NITI Aayog: Focuses on achieving sustainable development goals, promoting inclusive growth, and fostering innovation. It emphasizes the importance of addressing regional disparities and promoting good governance. The focus is on achieving outcomes rather than merely adhering to pre-determined targets.

Conclusion:

The shift from the Planning Commission to NITI Aayog represents a significant paradigm shift in India’s approach to economic planning. While the Planning Commission played a crucial role in India’s post-independence development, its centralized and directive approach had limitations. NITI Aayog’s emphasis on cooperative federalism, bottom-up planning, and outcome-oriented approach offers a more flexible and responsive framework for addressing the complex challenges of development in a diverse country like India. The success of NITI Aayog will depend on its ability to effectively foster collaboration among states, promote innovation, and ensure that its recommendations translate into tangible improvements in the lives of citizens. A continued focus on data-driven decision-making, capacity building at the state level, and effective monitoring mechanisms will be crucial for achieving sustainable and inclusive development, upholding constitutional values of federalism and equity.

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