55 Evolution of India's Central Planning Institutions

Establishment of NITI Aayog

In a bold move on 13 August 2014, the Modi government dismantled the 65-year-old Planning Commission—a relic of India's post-independence planning era—and announced its replacement with a more dynamic institution. This paved the way for the launch of NITI Aayog, or the National Institution for Transforming India, on 1 January 2015, positioning it as the Planning Commission's direct successor.

Like its predecessor, NITI Aayog owes its existence to an executive resolution of the Government of India, approved by the Union Cabinet. Consequently, it holds no constitutional mandate under the Indian Constitution, nor does it derive authority from any parliamentary statute. This makes it a non-constitutional and non-statutory body, operating instead as a flexible think tank attuned to the government's evolving priorities.

As the premier policy think tank of the Government of India, NITI Aayog delivers both directional guidance and actionable policy inputs. It crafts strategic, long-term policies and programs for the central government while offering expert technical advice to both the Centre and state governments. This marks a departure from the Planning Commission's top-down, centre-to-state flow of directives, fostering instead a genuine, ongoing partnership with the states.

Embracing a paradigmatic shift, NITI Aayog moves away from the rigid command-and-control model of the past toward a collaborative framework that welcomes diverse perspectives in a non-confrontational environment. True to the spirit of federalism, its policy formulation adopts a bottom-up approach, drawing insights from the grassroots level rather than imposing top-down mandates.

From Planning Commission to NITI Aayog

The Union Government articulated a compelling rationale for replacing the Planning Commission with the NITI Aayog (National Institution for Transforming India), highlighting India's profound transformation over six decades. Politically, economically, socially, technologically, and demographically, the nation had evolved dramatically, prompting a parallel shift in the government's role in national development. To align with these changing realities and better address the aspirations of India's people, the government established NITI Aayog as a dynamic successor to the outdated Planning Commission.

Unlike its predecessor, NITI Aayog serves as a catalyst for development, fostering a holistic enabling environment that extends far beyond the confines of the public sector and central government. It rests on three foundational pillars. First, it empowers states as equal partners in the national development journey, operationalizing the principle of cooperative federalism to ensure collaborative progress. Second, it functions as a premier knowledge hub, drawing on internal and external resources to curate best practices in governance while acting as a think tank that provides strategic expertise and domain knowledge to governments at all levels. Third, it offers a collaborative platform for seamless implementation, monitoring progress, identifying gaps, and uniting central and state ministries in the shared pursuit of developmental objectives.

Echoing this vision, then Union Finance Minister Arun Jaitley described the 65-year-old Planning Commission as a redundant relic of the command economy era. In India's diverse landscape—where states vary widely in their stages of economic development, strengths, and challenges—a rigid "one-size-fits-all" approach to planning had become obsolete. Such top-down centralization hindered India's competitiveness in the global economy, necessitating a more flexible, bottom-up model.

The founding resolution reinforced this shift by emphasizing the need for a distinctly Indian strategy. While drawing positive lessons from global experiences, NITI Aayog rejects the wholesale transplantation of foreign models. Instead, it focuses on solutions tailored to India's unique context—a truly Bharatiya approach to sustainable growth.

Structure and Composition of NITI Aayog

At the helm of the NITI Aayog stands the Prime Minister of India as its Chairperson, providing strategic direction to this premier policy think tank. Supporting this leadership is the Governing Council, which brings together the Chief Ministers of all states, the Chief Ministers of Union Territories with legislatures—namely Delhi, Puducherry, and Jammu & Kashmir—and the Lieutenant Governors of other Union Territories. This inclusive body ensures robust representation from across India's federal structure, promoting collaborative decision-making.

For addressing region-specific challenges or urgent issues spanning multiple states, Regional Councils are constituted on a temporary basis. Convened by the Prime Minister, these councils are chaired by the NITI Aayog Chairperson or their nominee and include the Chief Ministers of relevant states along with Lieutenant Governors of the affected Union Territories. Additionally, the Prime Minister may nominate experts, specialists, and practitioners with domain expertise as special invitees, injecting fresh perspectives into deliberations.

The organization's backbone is its full-time framework, which extends beyond the Chairperson to include a Vice-Chairperson appointed by the Prime Minister and holding the rank of a Cabinet Minister. Full-time Members, also appointed similarly, carry the rank of Ministers of State. Up to two Part-time Members serve in an ex-officio capacity from leading universities, research institutions, or other pertinent bodies, operating on a rotational basis. The Prime Minister nominates a maximum of four Ex-Officio Members from the Union Council of Ministers, while the Chief Executive Officer—appointed for a fixed term—holds the rank of Secretary to the Government of India. A dedicated Secretariat, scaled as required, supports the smooth functioning of these components.

Specialised Wings of NITI Aayog

NITI Aayog nurtures a range of specialised wings that bolster its role as India's premier policy think tank. These units bring focused expertise, foster collaboration, and streamline advisory services for both central and state governments.

The Research Wing serves as an in-house powerhouse, cultivating deep sectoral knowledge through a dedicated team of top domain experts, specialists, and scholars. Functioning like a high-calibre think tank, it generates rigorous, evidence-based insights to guide national policy-making.

Complementing this, the Consultancy Wing operates as a dynamic marketplace, curating vetted panels of experts and funding sources. It connects central and state governments with tailored solution providers—spanning public and private sectors, national and international players. Rather than delivering services directly, NITI Aayog plays the role of an efficient matchmaker. This approach allows it to conserve resources for high-priority areas while offering strategic guidance and ensuring overall quality control.

At the heart of collaborative governance lies the Team India Wing, which includes representatives from every state and central ministry. This body provides a permanent platform for nationwide dialogue and synergy on development issues. Each representative acts as a vital bridge: securing a continuous voice and stake for their state or ministry within NITI Aayog, and establishing direct, dedicated channels for communication on all policy matters.

Overall, NITI Aayog thrives on close cooperation, consultation, and coordination with central ministries and state governments. It offers well-considered recommendations to shape policies, but the ultimate responsibility for decisions and their implementation rests squarely with these governmental bodies.

Objectives of NITI Aayog

The NITI Aayog, established to replace the Planning Commission, pursues a comprehensive set of objectives aimed at fostering collaborative and inclusive national development. At its core, it seeks to craft a shared vision for national priorities, sectors, and strategies through active state involvement. This approach underscores cooperative federalism, providing structured support to states on an ongoing basis with the belief that strong states build a strong nation. It also emphasizes grassroots planning by developing mechanisms to create credible plans at the village level, progressively aggregating them up to higher tiers of government.

Beyond planning, NITI Aayog integrates national security into economic strategies when specifically tasked, while prioritizing marginalized sections of society at risk of being left behind by growth. It designs long-term policy frameworks, monitors their progress, and incorporates feedback for innovative improvements and mid-course corrections. To amplify impact, it advises on partnerships with stakeholders, think tanks, educational institutions, and policy researchers, both domestically and internationally. A collaborative ecosystem of experts and practitioners supports knowledge creation, innovation, and entrepreneurship. Additionally, it serves as a platform to resolve inter-sectoral and inter-departmental bottlenecks, accelerating the development agenda. The organization maintains a cutting-edge resource center as a repository of research on good governance and sustainable practices, disseminating these to stakeholders. It actively monitors program implementation, identifies required resources to enhance success, focuses on technology upgrades and capacity building, and undertakes any necessary activities to advance the national development goals.

Through these efforts, NITI Aayog aspires to broader transformations and opportunities. It envisions an administration where government acts as an enabler rather than the default provider of services. In agriculture, the focus shifts from mere food security to boosting production and farmers' returns. India is positioned as an active participant in global commons discussions, while harnessing the vibrant middle class, entrepreneurial talent, scientific prowess, and intellectual capital. The geo-economic and geopolitical strengths of the Non-Resident Indian community are leveraged, and urbanization is reimagined as a chance to build secure, tech-enabled habitats. Technology further minimizes governance opacity and misconduct.

Ultimately, NITI Aayog equips India to tackle complex challenges head-on. It aims to capitalize on the demographic dividend by empowering youth—men and women alike—through education, skilling, gender equity, and jobs. Poverty elimination ensures every Indian leads a life of dignity and self-respect, while addressing inequalities rooted in gender, caste, and economic divides. Villages are institutionally woven into the development fabric, with policy support extended to over 50 million small businesses that drive employment. Environmental and ecological assets are safeguarded, promoting equitable and sustainable progress.

Structure and Functions of NITI Aayog

The NITI Aayog performs a wide array of functions, neatly grouped into four primary categories: designing policy and programme frameworks, fostering cooperative federalism, monitoring and evaluation, and serving as a think tank along with a knowledge and innovation hub. This structure enables the Aayog to drive India's developmental agenda with agility and foresight, replacing the more rigid planning approach of its predecessor, the Planning Commission.

At the heart of its operations lies a functional division into specialized Verticals, each tasked with scrutinizing sectoral issues and priorities to spur national development and economic growth. These Verticals are complemented by two pivotal hubs—Team India and Knowledge & Innovation—which streamline the Aayog's activities. The Team India Hub advances cooperative federalism and policy design by facilitating seamless coordination between NITI Aayog and state governments, ensuring states are active partners in national policymaking. Meanwhile, the Knowledge & Innovation Hub acts as a cutting-edge resource center, curating research on best governance practices, disseminating insights to stakeholders, and forging partnerships in critical domains.

A distinctive feature of NITI Aayog is its emphasis on thematic policy interventions that promote convergence among central ministries, state governments, development partners, experts, and professionals. This collaborative governance model amplifies the Aayog's impact across diverse sectors. The Verticals provide the essential coordination and support to execute this mandate, covering an extensive range of areas essential to India's progress. These include:

• Agriculture
• Data Management & Analysis
• Energy
• Financial Resources
• Governance & Research
• Governing Council Secretariat
• Health
• Human Resource Development
• Industry
• Infrastructure Connectivity
• Land & Water Resources
• Managing Urbanisation
• Natural Resources & Environment
• NGO Darpan
• Project Appraisal & Management Division (PAMD)
• Public-Private Partnerships
• Rural Development
• Science & Technology
• Skill Development & Employment
• Social Justice & Empowerment
• State Coordination and Decentralized Planning
• Sustainable Development Goals
• Voluntary Action Cell
• Women & Child Development

Through this integrated framework, NITI Aayog not only strategizes for the future but also ensures real-time adaptability, making it a dynamic force in India's governance landscape.

NITI Aayog Guiding Principles

NITI Aayog operates under a set of guiding principles that shape its approach to India's development agenda. At its heart lies Antyodaya, the philosophy championed by Pandit Deendayal Upadhyaya, which prioritizes uplifting the poorest, most marginalized, and downtrodden sections of society. This commitment extends to fostering inclusion by empowering vulnerable groups and addressing deep-rooted inequalities based on gender, region, religion, caste, or class. Recognizing villages as the bedrock of India's ethos, culture, and sustenance, NITI Aayog integrates rural areas into the broader development process to harness their inherent vitality. It also taps into India's demographic dividend—its greatest asset, the people—through investments in education, skilling, and productive livelihoods that empower citizens. People's participation transforms development into a citizen-driven endeavor, cultivating an awakened populace as the engine of good governance. Governance itself is reimagined as open, transparent, accountable, proactive, and outcome-focused, shifting emphasis from mere outlays to tangible results. Finally, sustainability anchors all planning, drawing on India's ancient reverence for the environment.

These principles find expression in NITI Aayog's seven pillars of effective governance. First, a pro-people agenda that fulfills both societal aspirations and individual dreams. Second, a proactive stance that anticipates and responds swiftly to citizens' needs. Third, participative governance achieved through active citizen involvement. Fourth, empowering women across all spheres of life. Fifth, broad inclusion of all groups, with special focus on Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and minorities. Sixth, ensuring equality of opportunity for the youth. And seventh, transparency enabled by technology, making government operations visible and responsive.

Through its dedication to cooperative federalism, citizen engagement, egalitarian opportunities, adaptive and participative governance, and technology-driven transparency, NITI Aayog provides critical strategic direction to India's development journey. As an incubator of innovative ideas, it fulfills its core mission of steering the nation toward inclusive and sustainable progress.

Cooperative Federalism

The NITI Aayog was established to realize the vital goal of cooperative federalism, fostering good governance across India by strengthening states to build a robust nation. In a genuine federal system, national objectives often carry widespread political implications, making it impossible for the central government to succeed without the active collaboration of state governments. Thus, the Centre and states must partner as equals, working hand in hand.

At its core, cooperative federalism rests on two pillars: a joint commitment by the Centre and states to the national development agenda, and the active advocacy of state perspectives within central ministries. Aligning with this vision, NITI Aayog is tasked with crafting a shared roadmap for national priorities, sectors, and strategies, involving states at every step. These priorities must mirror broader national goals while providing states with ongoing, structured support. The body also assists states in creating mechanisms to devise credible plans starting at the village level, progressively scaling them up through higher tiers of government. This marks a shift from the era when the Centre unilaterally dictated development policies to a mature federal model where states are true partners in planning.

This state-centric approach is evident in NITI Aayog's redesigned interaction processes, which position states as equal participants in policymaking and implementation. For instance, during meetings of its Governing Council, the Prime Minister has emphasized NITI Aayog as a vital platform to inspire cooperative federalism. He has underscored the need for seamless Centre-state collaboration to drive development, achieve double-digit growth, and ensure inclusivity.

NITI Aayog continually strives to forge a collective vision of national priorities with states as equal stakeholders. Its Vice-Chairman has pledged to visit every state, creating forums to resolve inter-sectoral and inter-departmental challenges, thereby speeding up the execution of the development agenda. To bolster infrastructure and revive public-private partnerships, NITI Aayog has launched initiatives like the Development Support Services to States (DSSS), a Centre-state partnership model, and the Sustainable Action for Transforming Human Capital (SATH) programme. The latter offers technical assistance to states, helping them enhance social sector outcomes such as health and education.

Addressing regional disparities head-on, NITI Aayog has prioritized areas requiring targeted support, including the North Eastern states, island territories, and Himalayan regions. It has set up dedicated forums like the NITI Forum for North East and initiatives for Sustainable Development in the Indian Himalayan Region. These efforts identify unique constraints, craft tailored policies, and promote sustainable growth while safeguarding natural resources.

In essence, cooperative federalism permeates NITI Aayog's operations through mechanisms such as Governing Council meetings, sub-groups of Chief Ministers on key subjects, task forces for specialized issues, and targeted programs like DSSS and SATH. Together, these elements empower states, ensuring a collaborative path to India's progress.

Opposition Critique of the NITI Aayog Replacement

The opposition parties sharply criticized the government's decision to dissolve the Planning Commission—a longstanding central planning body established in the Nehruvian era—and replace it with the NITI Aayog (National Institution for Transforming India). They dismissed the move as superficial "fluff" and "gimmickry," warning that it would empower corporate interests to dominate policymaking, potentially discriminating against states and undermining federal principles.

CPI(M) leader Sitaram Yechury pithily branded the rechristening as aniti aur durniti—literally "no policy and bad policy." He argued that a mere change in nomenclature served no real purpose and urged the government to clarify its substantive plans for the new entity.

Congress leader Manish Tewari echoed this skepticism, accusing the government of offering "fluff" without substance, especially as a New Year's gesture in 2015. He expressed fears that the Finance Ministry, housed in North Block, would act as the ultimate arbiter in Centre-state relations, sidelining states in the process and fostering discrimination. Tewari questioned the underlying message: if the Planning Commission had formulated policies, what did rebranding it as NITI Aayog truly signal? He framed Congress's opposition as principled, contrasting it with the BJP's earlier rhetoric on safeguarding federalism's "sanctity," which he saw as now abandoned.

Veteran CPI leader Gurudas Dasgupta went further, viewing the abolition not as a simple rename but as a deliberate rejection of planned development. He contended that the government sought an unregulated, fully market-driven economy, which would hinder national progress by failing to control inflation or generate jobs.

Congress spokesperson Abhishek Manu Singhvi adopted a more nuanced stance, conceding that renaming from "Yojana Aayog" to NITI Aayog was unobjectionable if paired with genuine reforms. Without them, however, it remained purely cosmetic, akin to past superficial ceremonies. He noted that Congress would have backed constructive overhaul of the Planning Commission, but lamented the change as driven by "anti-Nehruvianism and anti-Congress" motives that altered its core identity and structure.

CPI(M) MP Md. Selim reinforced the view that renaming alone achieved nothing meaningful, alleging the BJP aimed to dilute the planning process entirely. Instead, he suggested bolstering the National Development Council to give it greater authority.

Collectively, these critiques highlighted deep concerns over the shift from structured planning to a ostensibly more flexible but potentially less accountable framework, raising questions about India's economic trajectory and federal balance.

Attached Offices of NITI Aayog

The NITI Aayog, India's apex public policy institution, is supported by two specialized attached offices that bolster its functions in policy formulation and implementation. These offices are detailed below.

History and Profile of NILERD

The National Institute of Labour Economics Research and Development (NILERD) traces its roots to the Institute of Applied Manpower Research (IAMR), established in 1962 under the Societies Registration Act of 1860. As a central autonomous organization attached to NITI Aayog, it began as a vital clearinghouse for ideas, conducting policy research on human capital development to support perspective planning and foster policy integration. Over time, its core mission has evolved to advance knowledge on the nature, characteristics, and utilization of human resources through rigorous research, data collection, education, training, and consultancy.

Renamed NILERD in 2014, the institute receives primary funding through grants-in-aid from NITI Aayog (formerly the Planning Commission), supplemented by revenues from contracted research, educational programs, and training initiatives. At its heart lies the ambition to build a robust institutional framework for systematic, applied research in human resource planning—a goal it has pursued with unwavering focus since inception.

Over the decades, NILERD has achieved notable academic excellence, expanding beyond human resource planning and development into the monitoring and evaluation of public policies and programs. In recent years, it has shown remarkable adaptability, tackling national priorities with dynamism. The institute has also emerged as a pioneer in delivering specialized academic training on human resource planning to both international and domestic participants.

In 2002, NILERD relocated to its own campus in Narela, a burgeoning urban and institutional hub in the National Capital Region, designated as a special economic zone for knowledge industries.

Development Monitoring and Evaluation Office

India's planners and policymakers recognized the critical need for an efficient, independent evaluation mechanism from the outset of the country's planned development era. In 1952, this led to the establishment of the Programme Evaluation Organization (PEO) by the Government of India, tasked with conducting objective impact assessments of centrally funded programs.

Building on this foundation, the Development Monitoring and Evaluation Office (DMEO) was created in 2015 as an attached office of NITI Aayog. It emerged from the merger of the PEO and the Independent Evaluation Office (IEO), ensuring a more robust framework for oversight. Headed by a Director General—equivalent in rank to an Additional Secretary to the Government of India—the DMEO operates with full functional autonomy, backed by dedicated budgetary provisions and dedicated manpower. This structure safeguards its independence while enabling effective performance.

The DMEO's core mandate is to monitor and evaluate the implementation of Government of India programs and initiatives. It identifies critical resource needs to enhance their success and delivery scope. Key functions include tracking program implementation, assisting ministries in crafting Terms of Reference (TORs) for evaluation studies, monitoring progress toward the Sustainable Development Goals (SDGs), fostering cooperative federalism through state-level engagement, and conducting comprehensive evaluations of government schemes.

At NITI Aayog, these activities fall under the Vice-Chairman's overall guidance. Supporting the Director General are four Deputy Director Generals at the Senior Administrative Grade (SAG) level, who manage core operations, along with a Joint Secretary handling administration and finance. The headquarters is located in NITI Aayog, New Delhi.

Initially, the DMEO operated 15 Regional Development Monitoring and Evaluation Offices (RDMEOs), each led by a Director-level officer. These units conducted vital field surveys, gathered data for evaluation studies, and strengthened cooperative federalism via direct interactions with state and Union Territory administrations. However, adapting to evolving functional needs, the RDMEOs were closed in 2017, with their staff redeployed to the DMEO headquarters in New Delhi.

Erstwhile Planning Commission

In the early years after independence, India sought a structured approach to its social and economic development. To this end, the Planning Commission was established in March 1950 through a simple executive resolution of the Government of India—essentially a decision by the Union Cabinet. This move stemmed directly from the recommendations of the Advisory Planning Board, set up in 1946 under the chairmanship of K.C. Neogi.

Unlike many key institutions, the Planning Commission held no constitutional or statutory backing; it derived its authority solely from that executive order. Nevertheless, it emerged as India's supreme body for formulating and guiding national plans, steering the country's path toward balanced growth and welfare.

Advisory Functions of the Planning Commission

The erstwhile Planning Commission served as a pivotal advisory body in India's economic planning framework, with a core mandate outlined in its foundational charter. Its primary functions encompassed assessing the nation's material, capital, and human resources while exploring ways to enhance them; formulating comprehensive plans for the optimal and balanced utilization of these resources; setting clear priorities and staging the implementation process; identifying obstacles to economic growth; outlining the administrative machinery needed for effective execution at each phase; periodically evaluating progress and suggesting adjustments; and offering recommendations to central or state governments on matters within its purview or referred to it for advice.

Beyond these, the Allocation of Business Rules entrusted the Commission with additional responsibilities, including fostering public cooperation in national development, overseeing specific area development programs as notified periodically, shaping perspective planning for long-term goals, managing the Institute of Applied Manpower Research, supervising the Unique Identification Authority of India (UIDAI), and handling all affairs related to the National Rainfed Area Authority (NRAA). Notably, the National Informatics Centre (NIC) was initially under its umbrella but was later transferred to the Ministry of Electronics and Information Technology.

It is crucial to understand that the Planning Commission functioned solely as a staff agency—an advisory think tank without any executive authority. It neither took decisions nor oversaw their implementation; those duties rested squarely with the central and state governments.

Composition of the Erstwhile Planning Commission

The Planning Commission, established in 1950 as India's premier economic planning body, featured a carefully structured membership that underscored its central government orientation. At its helm was the Prime Minister of India, who served as the chairperson and presided over all commission meetings, providing strategic direction and political oversight.

The commission's day-to-day operations were led by a Deputy Chairman, who functioned as its de facto executive head and full-time functional leader. This key appointee, selected by the Central Cabinet for a fixed tenure, bore the rank of a Cabinet Minister—though not a formal Cabinet member—and attended all Cabinet meetings as an invitee without voting rights. The Deputy Chairman's primary responsibility was to prepare and submit draft Five-Year Plans for Cabinet approval, ensuring the commission's plans aligned with national priorities.

Complementing this leadership were part-time members drawn from Central Ministers, with the Finance Minister and Planning Minister serving as ex-officio members by virtue of their offices. Additionally, the commission included four to seven full-time expert members, each holding the rank of a Minister of State. These specialists brought technical depth to policy formulation.

Administrative efficiency was maintained by a Member-Secretary, typically a senior Indian Administrative Service (IAS) officer. Notably, state governments had no direct representation, reinforcing the Planning Commission's identity as an entirely Centre-constituted entity with no federal character in its composition.

Critical Evaluation of the Erstwhile Planning Commission

Originally set up as a staff agency with a purely advisory role, the erstwhile Planning Commission gradually evolved into a formidable and directive authority. Over time, its recommendations came to hold sway over both the Union and state governments, prompting critics to brand it a Super Cabinet, an Economic Cabinet, a Parallel Cabinet, or even the Fifth Wheel of the Coach—terms that underscored its perceived overreach.

This domineering influence drew sharp scrutiny from key observers. The Administrative Reforms Commission (ARC) of India, for instance, noted with concern that under the Constitution, ministers at the Centre and in the states remain the ultimate executive authorities. Yet, the Planning Commission had acquired a reputation as a Parallel Cabinet—and at times, a Super Cabinet—usurping their primacy in vital policy domains.

Similarly, the eminent constitutional expert K. Santhanam argued that planning had effectively superseded India's federal structure, rendering the country unitary in several respects. This view highlighted how the Commission's centralized approach eroded the autonomy of states.

Further criticism came from P.V. Rajamannar, Chairman of the Fourth Finance Commission, who pointed to the problematic overlap between the Planning Commission and the Finance Commission in managing federal fiscal transfers. Such duplication not only blurred lines of accountability but also complicated the delicate balance of Centre-state financial relations.

National Development Council

The National Development Council (NDC) stands as a key institution in India's planning history, established in August 1952 through an executive resolution of the Government of India. This move followed recommendations in the draft outline of the First Five Year Plan, aiming to foster cooperative federalism by bringing together central and state leaders to shape national development strategies. Like its counterpart, the erstwhile Planning Commission, the NDC held no constitutional or statutory status, relying instead on administrative authority.

The Council's most recent activity came during its 57th meeting on 27 December 2012, when it formally approved the Twelfth Five Year Plan (2012-2017). Since then, it has remained dormant. In January 2016, reports emerged that the Modi government planned to abolish the NDC entirely, transferring its functions to the Governing Council of the NITI Aayog. As of October 2019, however, no such resolution had been passed, leaving the NDC's formal dissolution unresolved.

Composition of National Development Council

The National Development Council (NDC) brings together key policymakers from across India's federal structure. Chaired by the Prime Minister, its membership includes all Union Cabinet Ministers—a practice formalized since 1967—along with the Chief Ministers of every state and the Chief Ministers or Administrators of all Union Territories. It also incorporates members from the erstwhile Planning Commission, which has since evolved into NITI Aayog.

To support its operations, the Secretary of the Planning Commission (now NITI Aayog) serves as the NDC's Secretary, while the body receives essential administrative and other assistance from the same institution. This composition ensures coordinated deliberation on national development priorities.

Objectives of the National Development Council

The National Development Council (NDC) was established to pursue a set of focused objectives that underscored cooperative federalism in India's economic planning. At its core, it aimed to secure the active cooperation of states in executing the national Plan, while strengthening and mobilizing the collective efforts and resources of the nation to support it. Beyond coordination, the NDC worked to foster common economic policies across all vital sectors, ultimately ensuring balanced and rapid development across every part of the country.

National Development Council: Functions and Role

To achieve its core objectives, the National Development Council (NDC) performs several key functions. It prescribes guidelines for drafting the national plan, reviews the plan as prepared by the Planning Commission (now NITI Aayog), and assesses the resources needed for its implementation while suggesting ways to mobilize additional funds. The NDC also deliberates on critical social and economic policy issues impacting national development, periodically evaluates the plan's progress, and recommends steps to meet its targets.

The planning process underscores the NDC's pivotal role. The draft Five-Year Plan, prepared by the Planning Commission (now NITI Aayog), is first submitted to the Union Cabinet for approval. Once endorsed, it goes to the NDC for its consideration and acceptance. Finally, the plan is tabled in Parliament; upon parliamentary approval, it becomes the official national plan and is published in the official gazette.

Positioned just below Parliament, the NDC stands as the supreme deliberative body on planning matters for social and economic development. Officially an advisory forum to the Planning Commission (now NITI Aayog), its recommendations—though not legally binding—are extended to both central and state governments and carry significant weight. The council is expected to convene at least twice a year.

A critical evaluation reveals the NDC's strengths and limitations. At its heart, it serves as a vital bridge between the central government, state governments, and the Planning Commission (now NITI Aayog), fostering coordination in policy and plan implementation—a role in which it has largely succeeded. It has also emerged as a key platform for Centre-state discussions on national priorities and a mechanism for sharing responsibilities within India's federal framework. Yet, opinions on its efficacy diverge sharply. Some view it as a 'Super Cabinet' owing to its influential composition of top leaders, whose advisory recommendations, backed by a national mandate, are difficult to disregard. Others dismiss it as a mere 'rubber stamp' for decisions already finalized by the Union government, a perception fueled by prolonged Congress dominance at both levels. With the rise of regional parties in states, however, the NDC is gradually evolving into a truly federal institution, empowering states with greater influence over national planning.