The Planning Commission, established in 1950, focused on centralized planning, allocating resources, and formulating Five-Year Plans. It emphasized top-down approaches, often sidelining state inputs. In contrast, Niti Aayog, formed in 2015, promotes decentralized planning, encouraging state participation and cooperative federalism. It emphasizes sustainable development and innovation, fostering a more inclusive approach.

Niti Aayog’s collaborative framework strengthens Indian federalism by empowering states in decision-making and policy implementation, allowing for diverse regional needs. This shift from a centralized model to a more participatory one enhances state autonomy and aligns development goals with local aspirations, thereby reinforcing the federal structure.