The NITI Aayog (National Institution for Transforming India) was established on January 1, 2015, to replace the Planning Commission of India, marking a shift from a centralized planning approach to a more decentralized, cooperative, and strategic approach to development. Let’s discuss its role in formulating and implementing India’s development strategies and policies, and evaluate its effectiveness compared to the previous Planning Commission.

Role of NITI Aayog:

1.Formulation of Development Strategies:

• Collaborative Approach: Unlike the Planning Commission’s centralized approach, NITI Aayog fosters cooperative federalism, involving state governments in policy formulation through mechanisms like the Governing Council comprising Chief Ministers.
• Long-term Vision: NITI Aayog focuses on long-term strategic planning and policy-making rather than the annual plans of the Planning Commission.

2.Policy Implementation:

Implementation Support: NITI Aayog acts as a think tank and provides strategic and operational inputs to the government, facilitating the implementation of policies across sectors.
Monitoring and Evaluation: It monitors the progress of key government initiatives and provides feedback for mid-course corrections.

3.Special Initiatives and Programs:

• NITI Aayog has launched various initiatives such as the Atal Innovation Mission, Sustainable Development Goals (SDGs) India Index, Aspirational Districts Programme, etc., aimed at promoting innovation, sustainable development, and balanced regional growth.

Effectiveness Compared to the Planning Commission:

1. Flexibility and Adaptability:

• Adaptive Approach: NITI Aayog’s approach is more flexible and adaptable to changing economic realities and global trends compared to the rigid planning approach of the Planning Commission.
• Responsive to State Needs: By involving states directly in policy-making, NITI Aayog ensures that policies are more responsive to regional and local needs, fostering competitive and cooperative federalism.

2. Focus on Innovation and Technology:

• Promotion of Innovation: Initiatives like the Atal Innovation Mission underline NITI Aayog’s focus on fostering innovation and entrepreneurship, which is crucial for India’s economic growth and global competitiveness.

3. Monitoring and Evaluation:

Improved Monitoring: NITI Aayog’s emphasis on monitoring and evaluation of policies and programs ensures better accountability and efficiency in implementation, compared to the Planning Commission’s focus primarily on plan allocations.

4. Criticism and Challenges:

• Criticism of Effectiveness: Some critics argue that NITI Aayog’s advisory role may not have the same direct influence as the Planning Commission had in resource allocation and prioritization.
• Coordination Challenges: The shift from a centralized planning body to a more decentralized approach has sometimes led to challenges in coordinating between various ministries and stakeholders.

Conclusion:

NITI Aayog has brought a fresh perspective to India’s development strategy by emphasizing innovation, technology, and cooperative federalism. Its role in formulating long-term strategies, promoting sustainable development, and fostering innovation is crucial. While it has shown flexibility and adaptability compared to the Planning Commission, there are ongoing challenges in ensuring effective coordination and translating policy recommendations into concrete actions. Overall, NITI Aayog’s effectiveness lies in its ability to provide strategic direction, foster innovation, and facilitate cooperative governance in India’s development journey.​