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mandate. The list of Verticals is as follows:
1. Agriculture
2. Data Management & Analysis
3. Energy
4. Financial Resources
5. Governance & Research
8. Human Resource Development
9. Industry
10. Infrastructure Connectivity
11. Land & Water Resources
12. Managing Urbanisation
13. Natural Resources & Environment
14. NGO Darpan
15. Project Appraisal & Management Division (PAMD)
16. Public-Private Partnerships
17. Rural Development
18. Science & Technology
19. Skill Development & Employment
20. Social Justice & Empowerment
21. State Coordination and Decentralized Planning
22. Sustainable Development Goals
GUIDING PRINCIPLES
In carrying out the above functions, the NITI Aayog is guided by the
following principles8 :
1. Antyodaya: Prioritise service and uplift of the poor,
marginalised and downtrodden, as enunciated in Pandit
Deendayal Upadhyay’s idea of ‘Antyodaya’.
2. Inclusion: Empower vulnerable and marginalised sections,
redressing identitybased inequalities of all kinds–gender,
region, religion, caste or class.
3. Village: Integrate our villages into the development process, to
draw on the vitality and energy of the bedrock of our ethos,
culture and sustenance.
4. Demographic dividend: Harness our greatest asset, the people
of India; by focussing on their development, through education
and skilling, and their empowerment, through productive
livelihood opportunities.
5. People’s Participation: Transform the developmental process
into a people-driven one, making an awakened and
participative citizenry–the driver of good governance.
6. Governance: Nurture an open, transparent, accountable, pro-
active and purposeful style of governance, transitioning focus
from Outlay to Output to Outcome.
7. Sustainability: Maintain sustainability at the core of our
planning and developmental process, building on our ancient
tradition of respect for the environment.
Therefore, the NITI Aayog is based on the following seven pillars
of effective governance:
(i) Pro-people agenda that fulfils the aspirations of the society as
well as individuals.
(ii) Pro-active in anticipating and responding to citizen needs.
(iii) Participative, by involvement of citizens.
(iv) Empowering women in all aspects.
(v) Inclusion of all groups with special attention to the SCs, STs,
OBCs and minorities.
(vi) Equality of opportunity for the youth.
(vii) Transparency through the use of technology to make
Through its commitment to a cooperative federalism, promotion of
citizen engagement, egalitarian access to opportunity, participative
and adaptive governance and increasing use of technology, the NITI
Aayog seeks to provide a critical directional and strategic input into
the development process. This, along with being the incubator of
ideas for development, is the core mission of NITI Aayog.
COOPERATIVE FEDERALISM
The NITI Aayog has been constituted to actualize the important goal
of cooperative federalism and to enable good governance in India, to
build strong states that will make a strong nation. In a truly federal
state, several objectives that ought to be achieved may carry political
ramifications throughout the country. It is impossible for any federal
government to achieve the national objectives without active
cooperation from state governments. It is, therefore, crucial that the
Centre and State governments work together as equals8a.
The two key features or aspects of Cooperative Federalism are:
(i) Joint focus on the National Development Agenda by the Centr
and the States; and
(ii) Advocacy of State perspectives with Central Ministries8b.
In keeping with this, the NITI Aayog has been mandated the task
of evolving a shared vision of national development priorities, sectors
and strategies with the active involvement of States. These priorities
ought to reflect the national objectives and foster cooperative
federalism through structured support to States on a continuous
basis. The NITI Aayog ought also to help states develop
mechanisms to formulate credible plans at the village level and
aggregate these progressively at higher levels of government. The
aim is to progress from a stage when the Centre decided
development policies to a truly federal government wherein States
are equal stakeholders in the planning process8c.
The policy of the Government to involve State governments is
reflected in changes in the interaction processes of the NITI Aayog.
Consistent with its mandate, the NITI Aayog has undertaken several
crucial initiatives to ensure that States are equal partners in the
policy making and implementing process8d.
At the meetings of the Governing Council of NITI Aayog, the
Prime Minister highlighted the importance of NITI Aayog as a
platform to inspite cooperative federalism, stressing on the need for
effective center-state cooperation to advance development
outcomes and achieve double-digit and inclusive growth for India.
It is the constant endeavor of NITI Aayog to evolve a shared
vision of national priorities, sectors, and strategies with the active
planning process as well. In keeping with this, the Vice-Chairman of
NITI Aayog committed himself to visit all States, to develop and offer
a platform for resolution of inter-sectoral and inter-departmental
issues in order to accelerate the implementation of the development
agenda.
The NITI Aayog has also established models and programmes for
development of infrastructure and to reignite and establish Private-
Public Partnership, such as the Centre-State partnership model:
Development Support Services to States (DSSS); and the
Sustainable Action For Transforming Human Capital (SATH)
programme which is designed to help States improve their social
sector indicators by providing them technical support.
Further, with the aim of correcting regional development
imbalance, the NITI Aayog has taken special steps for regions
needing special attention and support, like the North Eastern States,
Island States and hilly Himayalan States by constituting special
forums to identify their specific constraints, formulating special
policies to ensure sustainable development takes place in these
regions while also protecting their abundant natural resources.
From the above discussion, we can summarise the various
manifestions of Cooperative Federalism in the working of the NITI
Aayog:
1. Meetings of Governing Council
2. Sub-groups of Chief Ministers on different subjects
3. Task Forces on specific subjects
4. NITI Forum for North East
5. Sustainable Development in the Indian Himayalan Region
CRITICISM
Hitting out at the government for its decision to restructure the
Planning Commission and rechristen it as “NITI Aayog”, the
Opposition said the move is just a “fluff” and mere “gimmickry”. They
also expressed their apprehension that the new body will pave the
way for discrimination, as “corporates will call the shots” in policy-
making in the country.
CPI(M) leader Sitaram Yechury termed the renaming of the
Planning Commission as aniti aur durniti (no policy and bad policy).
Mr. Yechury said, “just a change of nomenclature and gimmickry
does not serve any purpose. Let us see what the government plans
to do with it”.
“If the government wants to greet people with fluff and not
substance on the first day of 2015, then there is nothing more that
can be said... If the North Block or the Finance Ministry has a very
short-term view of both fiscal and monetary objective and is going to
be the final arbiter between the states and the Centre... it being the
stakeholder in the process... I am afraid, is going to discriminate
against the states,” Congress leader Manish Tewari said.
“After all, what was the Planning Commission doing? It used to
plan policy. So by changing the nomenclature from Planning
Commission to NITI Aayog what is the message this government is
trying to send,” Mr. Tewari said, adding that Congress’ opposition to
restructuring of the Planning Commission was based on “principles”.
“It’s not a question of fighting a war, it’s a matter of principle. The
Opposition Bharatiya Janata Party used to go extra lengths talking
about federalism and how the sanctity and sacrosanct of federalism
has to be maintained. And now they are going exactly the reverse,”
the Congress leader said.
Veteran CPI leader Gurudas Dasgupta said that dismantling of the
Planning Commission and bringing in a new body in its place will
lead to an unregulated economy. “It is not a change of name. The
Planning Commission is being abolished because they (government)
don’t believe in planning,” he said.
“The government would like to have a fullmarket economy (which
is) totally unregulated,” Mr. Dasgupta said adding. “If this becomes
inflation and create job opportunities, it will not be good for the
country”.9
“Mere change of name from Yojana Aayog to NITI is not
objectionable if it is coupled with real reform. Otherwise, it will be
purely cosmetic like earlier naming ceremonies,” Congress
spokesperson Abhishek Manu Singhvi said. He said the Congress
would have supported constructive reform of the Planning
Commission. But the “alteration of identity and basic structure”, he
said, “is being done because of anti-Nehruvianism and anti-
Congression.”10
CPI(M) central committee member Md Selim, MP, said no
meaningful purpose would be served by just renaming the Planning
Commission. Alleging that the BJP government had decided to
dissolve the planning commission “to dilute the planning process”, he
said the government should have given more teeth to the National
ATTACHED OFFICES
There are two offices attached to the NITI Aayog. They are
explained below:
1. National Institute of Labour Economics Research and
Development
The National Institute of Labour Economics Research and
Development (NILERD) was formerly known as the Institute of
Applied Manpower Research (IAMR). It is a central autonomous
organization attached to the NITI Aayog. Its primary objectives are
research, data collection, education and training in all aspects of
human capital planning, human resource development, and
monitoring and evaluation.
The IAMR was established in 1962 under the Societies
Registration Act of 1860 as an institution that would function as a
clearinghouse of ideas and undertake policy research on human
capital development to inform perspective planning and promote
policy integration. The main object of the Institute is to advance
knowledge about the nature, characteristics and utilisation of human
resources through research, education and training, consultancy,
etc.
The IAMR has been renamed as NILERD in 2014. The NILERD is
mainly funded by grants-in-aid from the NITI Aayog (formerly
Planning Commission), and supplemented by its own revenue from
contracted research projects, and education and training activities.
The prime objective of NILERD has been to develop an institutional
framework capable of sustaining and steering a systematic applied
human resource planning research process.
Since its inception, the Institute has carved out its own trajectory
to achieve academic heights, and in the process, developed a range
of academic activities not only in the field of human resource
planning and development, but also in monitoring and evaluation of
public policies and programmes. During the past few years, the
Institute has exhibited remarkable dynamism in addressing the
issues of national priorities. The Institute has emerged as a
pioneering institute in providing academic training on human
resource planning and development for both international and
The Institute moved to its own campus at Narela in 2002. Narela
is a developing urban and institutional hub declared as a special
economic zone for knowledge in the National Capital Region.
2. Development Monitoring and Evaluation Office:
The need for an efficient and independent evaluation mechanism in
India was recognized by the planners and policy-makers right from
the introduction of planning process in the country and resultantly,
the Programme Evaluation Organization was established by the
Government in 1952 to carry out independent and objective impact
evaluation of the Central Government funded programmes.
The Development Monitoring and Evaluation Office (DMEO) was
established by the Government in 2015 as an attached office of the
NITI Aayog by merging the erstwhile Programme Evaluation
Organization and the Independent Evaluation Office. The DMEO is
headed by the Director General who is equivalent to an Additional
Secretary to the Government of India. To ensure that DMEO is able
to function independently and effectively, it has been provided with
separate budgetary allocations and manpower in addition to
complete functional autonomy.
The DMEO has been mandated to actively monitor and evaluate
the implementation of the programmes and initiatives of the
Government of India, including the identification of the needed
resources so as to strengthen the probability of the success and
scope of delivery.
The functions of DMEO are:
1. Monitor the implementation of Government programmes
2. Help Ministries in designing TORs for evaluation studies
3. Monitor the implementation and progress of SDGs
4. Promote the spirit of Cooperative Federalism
5. Conduct evaluation of the Government programmes
At the NITI Aayog level, the programme evaluation work is being
looked after under the overall guidance of the Vice-Chairman, NITI
Aayog. In addition to the Director General, the DMEO has been
provided with 4 Deputy Director Generals (SAG level) to look after
the functional mandate in addition to the Joint Secretary (Adm. &
Fin.) who is to provide administrative and logistics support. The
Headquarter of DMEO is in NITI Aayog, New Delhi.
The DMEO had 15 Regional Offices known as Regional
Development Monitoring and Evaluation Offices (RDMEOs). Each
RDMEO was headed by a Director level officer. The RDMEOs
conducted field surveys and data/ information collection work for
evaluation studies, and they also played an important role in
promoting cooperative federalism by their interaction with the States
and UT administrations. However, keeping in view the changed
functional requirements, they were closed in 2017 and the staff were
ERSTWHILE PLANNING COMMISSION
The erstwhile Planning Commission was established in March 1950
by an executive resolution of the Government of India, (i.e., the
Union Cabinet) on the recommendation of the Advisory Planning
Board constituted in
1946, under the chairmanship of K.C. Neogi. Thus, the erstwhile
Planning Commission was neither a constitutional body nor a
statutory body. In India, it was the supreme organ of planning for
social and economic development.
Functions
The functions of the erstwhile Planning Commission included the
following:
1. To make an assessment of material, capital and human
resources of the country, and investigate the possibilities of
augmenting them.
2. To formulate a plan for the most effective and balanced
utilisation of the country’s resources.
3. To determine priorities and to define the stages in which the
plan should be carried out.
4. To indicate the factors that retard economic development.
5. To determine the nature of the machinery required for
successful implementation of the plan in each stage.
6. To appraise, from time to time, the progress achieved in
execution of the plan and to recommend necessary
adjustments.
7. To make appropriate recommendations for facilitating the
discharge of its duties, or on a matter referred to it for advice by
Central or state governments.
The Allocation of Business Rules had assigned the following
matters (in addition to the above) to the erstwhile Planning
Commission:
1. Public Co-operation in National Development
2. Specific programmes for area development notified from time
to time
3. Perspective Planning
4. Institute of Applied Manpower Research
6. All matters relating to National Rainfed Area Authority (NRAA)
Earlier, the National Informatics Centre was also under the
erstwhile Planning Commission. Later, it was brought under the
Ministry of Information Technology.
It should be noted that the erstwhile Planning Commission was
only a staff agency–an advisory body and had no executive