1--------------------> NITI AYOG

NITI Aayog or National Institution for Transforming India Aayog is a policy thinktank of government that replaces Planning Commission and aims to involve the states in
economic policy-making in India. It will be providing strategic and technical advice to the
central and the state governments. From Yojana to Niti", entails a sharp break from Soviet
inspired National Development (Five Year) Plans to Niti, that is Policy and Institutional
change for transforming India.
So what is the NITI Aayog supposed to do? The Centre-to-state one-way flow of policy,
that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine
and continuing partnership of states. The NITI Aayog will emerge as a think tank that will
provide governments at the central and state levels with relevant strategic and technical advice
across the spectrum of key elements of policy, said the government release announcing the
creation of the Aayog. Fostering cooperative federalism, making states stronger, expediting
implementation of various schemes, and ensuring better Centre-state coordination are among its
identified goals.

Roles and objectives of NITI AYOG

Its primary/central role is to Serve as a Think Tank for the Government to give
strategic and technical advice across the spectrum of key elements of policy. This
includes matters of national and international import on the economic front,
dissemination of best practices from within the country as well as from other nations,
the infusion of new policy ideas and specific issue-based support.By its bold move to
abolish the Yojana Aayog and set up Niti Aayog, the new government has set the stage
for a wholesale transformation in evolving the central planning agency into a think
tank with a primary emphasis on policy and institutions, rather than on expenditure
programmes and projects.
It's prime objectives are---1. Pro-people-- Fulfills aspiration of individuals and society by effecting policy making
2. pro-activity-- Cooperative federalism in anticipation and response to citizen's needs.
3. participation-- Involving the citizens in nation making ,learning best practices from
foreign nations
4. Empowering-- Women in all aspects
5. Inclusion of all-6. equality of opportunity for youth, ream demographic dividend , skill enhancement of
citizens.
7. Transparency-- making government visible and responsive through monitoring,
giving feedback, sort correction and solve inter-departmental issues

Criticism of planning commission

1.

Achieved >9% GDP growth-rate during 2005-07, thanks to American

boom prior to sub-prime crisi. But almost all nations of world experienced
high growth. So 9% GDP did not come from the planer's magic wand.

2.

Post sub-prime crisis, failed to evoke the animal spirit in Indian

economy. GDP-fell, inflation rose during 2008-13 nonstop.

3.

Reduced poverty by doctoring the BPL-line. Tendulkar line says 27

crore BPL, if we use Rangarajan line then 37 crore BPL. Planning
commission brags reducing poverty line on Tendulkars parameters.

4.

Toothless body, cant hold State/union/ministries/departments

accountable for failing to achieve targets.

5.

Hopes that CAG and Public accounts Committee will take care
accountability part. But PAC too is pretty much toothless.

6.

Failed to implement land reforms. Faulty policies for MSME,

industrialization, Factory-labour law problems.

7.

Designed CSS with One size fits all approach and a few extra crores to
NE/J&K/Hill-states and LWE. But for long, it did not use pilot projects /
sample testing / interaction with states.

8.

Hence, IAY, ICDS etc. programs failed to show tangible result despite
expenditure of crores.

9.

Only in 2013- reforms done like reducing number of Centrally

sponsored schemes (CSS), 10% flexifund to states, direct transfer of
money to state consolidated fun etc. But its too little too late.

Criticism of NITI AYOG

1.

From union territory only Lieutenant Governors invited. CM of Delhi and

Puducherry cant participate in Governing council.

2.

Like PC, NITI Ayog too is a non-Constitutional, non-statutory body

formed by a cabinet resolution. It is not accountable to parliament, and if
line-ministries fail to achieve targets, NITI Ayog cannot punish them.

3.

Niti Ayog should have been created through a legal/Constitutional

amendment. There should be a perspective plan spanning for 15 to 20

years. Otherwise, what if another party comes into power and dismantles
this? Recall Morarji vs Indira gandhi case.
4.

Planning commission and NDC decided special category states and

gave them additional funding to help the poor and backward regions.
With advent of Niti Ayog, will those states lose their status and extrafunding? Uncertainty prevails.

5.

Niti Ayog will conflict with Cabinet Secretariat (for inter-ministerial

coordination) and constitutional body Inter State Council (for
coordination with states).

6.

Planning commission used to monitor of human development in the

States, Sub-plans for women, SC and ST. Niti Ayog doesnt say how theyll
do it.

7.

Niti Ayogs mandate repeatedly says theyll focus on manufacturing

sector. RBI Governor said says Just because China succeeded on
manufacturing focus, doesnt automatically guarantee that same
Cinderella story will repeat here".

Comparision of NITI AYOG and PLANNING COMMISSION

STRUCTURAL COMPARISON
PARAMETER

PLANNING COMMISSION NITI AYOG

STARTED

1950

2014

CHAIRMAN

PM

PM

VC

NOMINATED BY PM
OF CABINET MINISTER
RANK

NOMINATED BY PM

CEO

MEMBER SECRETARY

A SECRETARY
RANK BUREAUCRAT
OF FIXED TENURE

EX OFFICIO
MEMBER

FINANCE MIN
PLANNING MIN

4 MINISTERS NOMINATED
BY PM

FULL TIME
MEMBER

4-7 OF MINISTER OF STATE 2 FT MEMBERS

RANK

SPECIAL INVITEE

NA

INVITED BY PM(MAX 5)

PART TIME
MEMBERS

NA

EXPERTS FROM RESEARCH

INSTITUTES
ROTATIONAL BASIS

AD HOC
REGIONAL
COUNCIL

NA

CM, LT GOVERNOR OF THE

REGION
DEALING WITH SPECIFIC ISSUES

GOVERNING
COUNCIL

NA

PM,CM OF STATES,
LT GOV OF UT

FUNCTIONAL COMPARISON

PARAMETER

PLANNING COMMISSION NITI AYOG

PLANS

5 YEAR PLANS

DESIGN NATIONAL
AGENDA
COOPERATIVE FEDERALI
SM

MONEY MATTERS a, ALLOTTING TO CSS

TO STATES
b. ALLOTTING FOR 5
YEAR PLANS

PRESS RELEASE IS
SILENT
ON MONEY ALLOCATION

REPRESENTATION REPRESENTED
OF STATES/UT
NATIONAL
DEVELOPMENT
COUNCIL

REPRESENTING
GOVERNING BODY

BASIC
FUNCTIONALITY

PARTICIPATORY
PLANNING

TOP-DOWN SOCIALIST
APPROACH

NITI AYOG AND CHINESE NDRC

1. Structurally, there are substantive differences. The NITI Aayog is

chaired by the prime minister and would be run by an appointed vicechairperson.

The NDRC is structured differently. The Chinese premier does not
head it. But it reports to the Chinese State Councilthe most powerful
agency in the Chinese governmentheaded by the Chinese premier.
But premier Li Keqiang is not the last word on the NDRC, given the
large and varied composition of the State Council.

2. The second important structural difference is in the composition of the

Aayog. The NDRC is a much larger body with several vice-chairmen,
secretary general and deputy secretary generals. Around eight vicechairmen, five of who are minister-level appointees, support the
current chairman, Xu Shaoshi. Xu Shaoshi is a senior Chinese

Communist Party (CCP) functionary with fairly extensive ministerial

experience. Most of the other members have similar political
backgrounds and administrative experiences.The NITI Aayog limits
itself to four Cabinet ministers as ex-officio members with three other
Cabinet ministers inducted as special invitees.

3. Beyond structure, the NDRC does not have as much focus on

cooperative federalism as the NITI
Aayog has. The proposed bottom-up aggregative approach to national
economic policies expecte
from the NITI Aayog hardly resonates in the NDRC. The latter is much
more top-down.
4. NDRC makes macro -economics policy. In India ,FM construct the fiscal
policy RBI,monetary policy
5. NDRC Makes oil and Energy policy.In India separate ministry is there for
oil and energy.