Establishment of NITI Aayog

On August 13, 2014, the government led by Prime Minister Modi made an important decision to dissolve the Planning Commission, which had been in place for 65 years. This decision was aimed at modernizing the way India develops its policies and plans. As a result, NITI Aayog (National Institution for Transforming India) was established on January 1, 2015. It replaced the Planning Commission and serves as a central body for planning and policy formulation.

It's essential to understand some key aspects about NITI Aayog. Unlike the Planning Commission, NITI Aayog is not a constitutional entity and was created through an executive resolution. This means it was set up by the Union Cabinet of India rather than through a constitutional provision or a specific law passed by Parliament. Therefore, it is categorized as a non-constitutional body, which means it doesn’t have specific grounding in the Constitution of India, and it is also a non-statutory body since it was not established by an Act of Parliament.

NITI Aayog's primary role is to function as the central think tank of the Indian government. It provides essential policy inputs and directions to ensure effective governance and development. The agency focuses on creating long-term policies and strategic programs that can help both the central and state governments. This assistance includes relevant technical advice, making it a valuable partner for regional governments.

One of the key changes that NITI Aayog introduced was to shift away from the traditional one-way flow of policy-making that was characteristic of the Planning Commission. During the Planning Commission's time, decisions were often made without much input from the states. NITI Aayog, however, aims to encourage a cooperative relationship between the central government and state governments. This new approach fosters a partnership where states can actively engage in the policy-making process.

Moreover, NITI Aayog is committed to federalism, which means it acknowledges and respects the autonomy of states within the Indian Union. Instead of moving from the top down (where the central government dictates policies), NITI Aayog embraces a bottom-up approach. This means that the needs and suggestions of local governments and communities are taken into account, allowing policies to be more responsive and effective.

In the context of constitutional articles, while NITI Aayog does not have a specific article in the Constitution that defines its existence, it operates within the broader framework of cooperative federalism as endorsed by the Constitution. The Constitution of India, through various articles, promotes the idea that both the central government and state governments must work together for the country’s development.

In conclusion, the establishment of NITI Aayog marks a significant evolution in India's approach to planning and policy-making. By fostering collaboration and empowering states to have a voice in the development process, NITI Aayog aims to create more balanced and effective governance that reflects the diverse needs of India's population.

Rationale for Replacing the Planning Commission with NITI Aayog

In recent years, the Government of India recognized that it needed a new approach to development that reflected the significant changes the country has experienced over the past sixty years. Politically, economically, socially, technologically, and demographically, India has undergone a major transformation. To align with these evolving realities, the government decided to replace the old Planning Commission with a new body called NITI Aayog, which stands for the National Institution for Transforming India. This shift aims to better address the needs and aspirations of Indian citizens.

NITI Aayog is intended to be a driving force behind the country’s development initiatives. Unlike the Planning Commission, which mainly focused on the public sector and government, NITI Aayog aims to foster a more comprehensive approach toward development. It recognizes that development cannot be restricted to government actions alone but must involve various stakeholders, including states, organizations, and communities.

One of the core principles of NITI Aayog is to empower Indian states as equal partners in the nation’s development. This aligns with the concept of Cooperative Federalism, where both the center and state governments work together for the benefit of the nation. The organization is set up to act as a knowledge hub, collecting and sharing valuable information regarding good governance practices from within India and around the world. This role positions NITI Aayog as a “Think Tank” that provides expertise and guidance to various levels of government.

Moreover, NITI Aayog functions as a collaborative platform. It helps various ministries at the central and state levels coordinate their efforts toward shared developmental goals. By monitoring progress and identifying areas needing improvement, NITI Aayog ensures that all governmental bodies work together efficiently.

The shift from the Planning Commission to NITI Aayog was also influenced by the views of Arun Jaitley, the then Union Finance Minister. He pointed out that the Planning Commission had become outdated. Originally, it was useful in a command economy but no longer fit for India’s diverse economic landscape. Each state in India is at a different stage of economic development and has unique strengths and weaknesses. Therefore, a uniform approach to economic planning, like a "one-size-fits-all" method, is ineffective in today’s competitive global economy.

Additionally, the government stressed the importance of developing a unique Indian approach to growth. While it is beneficial to learn from other countries, the government asserts that no single model can be applied directly to India. Instead, it is essential to tailor strategies that resonate with India's context.

Under the Constitution of India, several articles espouse the values of cooperative federalism and emphasize the importance of state governments in the development process. Article 246, for instance, outlines the distribution of powers between the Union and the states, advocating a collaborative governance model. Similarly, Article 280 establishes the Finance Commission, ensuring that states receive their fair share of financial resources to support their development agendas.

In summary, the establishment of NITI Aayog represents a significant shift in India’s developmental strategy. By fostering collaboration, sharing knowledge, and recognizing the diverse needs of each state, NITI Aayog aims to create a more effective and inclusive approach to national development. With its emphasis on a unique Indian strategy, it seeks to empower citizens and enhance the country's position in the global economy.

Composition of NITI Aayog

NITI Aayog is an important policy think tank in India, and its structure is designed to include a diverse set of members to encourage cooperative federalism. Here’s a breakdown of how NITI Aayog is composed.

First and foremost, the Chairperson of NITI Aayog is the Prime Minister of India. This highlights the importance of NITI Aayog in the larger framework of the Indian government and policy-making.

Governing Council

The Governing Council plays a crucial role in shaping the policies. It includes the Chief Ministers of all the States in India and the Chief Ministers of Union Territories that have their legislatures, which are Delhi, Puducherry, and Jammu and Kashmir. Additionally, the Lieutenant Governors of the other Union Territories are also part of this council. This ensures that the interests of various regions of the country are represented in discussions and decisions.

Regional Councils

To tackle specific problems that affect more than one state or region, Regional Councils are formed. These councils are set up for a defined period and convened by the Prime Minister. They consist of the Chief Ministers of the relevant states and the Lieutenant Governors of the Union Territories in the respective regions. The Chairperson of NITI Aayog, or someone nominated by them, leads these councils. This structure allows for focused discussions on regional issues that require cooperative solutions.

Special Invitees

NITI Aayog also invites Special Invitees, who are experts and specialists known for their knowledge in specific areas. These invitees are nominated by the Prime Minister and bring valuable insights to the table, contributing to the formulation of effective policies.

Full-time Organizational Framework

The full-time structure of NITI Aayog includes:

• Vice-Chairperson: Appointed by the Prime Minister, the Vice-Chairperson holds a rank equivalent to a Cabinet Minister. This position emphasizes the role's significance within the organization.

• Full-time Members: These members also command the rank of Minister of State. They contribute their expertise to the functioning of NITI Aayog.

• Part-time Members: There can be a maximum of two part-time members drawn from prestigious universities, research institutions, and other relevant organizations. Their role is to provide insights on a rotation basis, allowing different perspectives to be considered over time.

• Ex-officio Members: The Prime Minister can nominate up to four members from the Union Council of Ministers to take part in NITI Aayog's workings, ensuring that views from the central government are included.

• Chief Executive Officer (CEO): The CEO is appointed by the Prime Minister for a specified tenure and holds the rank of Secretary to the Government of India. This position is crucial in managing the day-to-day operations of NITI Aayog.

Additionally, a Secretariat is provided as needed, which supports the functioning and organization of the Aayog.

Relevant Constitutional Articles and Laws

While the NITI Aayog does not have specific articles in the Constitution dedicated solely to it, it was established through a Cabinet Resolution on January 1, 2015, and serves as a replacement for the Planning Commission, which was set up in 1950. The government’s move to create NITI Aayog reflects a shift towards a more decentralized form of governance, attempting to incorporate a larger degree of participation from the states.

The NITI Aayog's establishment is aligned with the spirit of Articles 246 and 247 of the Indian Constitution, which outline the distribution of responsibilities between the center and the states, encouraging cooperative efforts in policy-making.

In summary, the composition of NITI Aayog is diverse, involving representatives from the central government, state governments, and experts from various fields, which collectively work towards the goal of sustainable and inclusive development in India. The structure is aimed at fostering collaborative efforts among all levels of government, better aligning with the needs and aspirations of the Indian populace.

Objectives of NITI Aayog

NITI Aayog, which stands for National Institution for Transforming India, has several key goals aimed at promoting development across the country. Understanding these objectives can help clarify how this institution functions and contributes to the advancement of India.

First and foremost, NITI Aayog aims to create a shared vision for national development priorities. This means they want to involve states in discussions about what areas the country should focus on for growth, such as health, education, and infrastructure. By fostering cooperative federalism, NITI Aayog recognizes that strong states lead to a stronger nation. This is essential as it cultivates collaboration and ensures that local needs are addressed effectively.

Another key objective is to develop systems for creating reliable plans at the village level. This grassroots approach is vital as it gradually aggregates these plans to higher levels of government. By involving local communities, NITI Aayog ensures that the development strategies meet the real needs of the population.

The institution also emphasizes the importance of national security in economic planning. Certain areas of development, particularly those relating to security, must be considered within economic policies. This approach ensures that India's economic strategies promote safety and stability.

Additionally, special attention is given to vulnerable segments of society that might not benefit fully from economic progress. NITI Aayog strives to ensure inclusive growth, making sure that no groups are left behind, thus promoting equity in development.

Furthermore, NITI Aayog designs long-term policies and frameworks while monitoring their progress. By evaluating these initiatives continuously, the organization can learn from experiences and make necessary improvements. This adaptability is crucial for effective governance.

NITI Aayog also plays a role in fostering partnerships. By encouraging collaboration among key stakeholders, including national and international research organizations, they can harness diverse insights and expertise to tackle developmental challenges.

Another important objective is to create a supportive structure for knowledge, innovation, and entrepreneurship. By building a community of experts, practitioners, and collaborators, NITI Aayog aims to stimulate innovative solutions and best practices in various sectors.

The organization serves as a platform for resolving issues that occur between different sectors and departments. This helps to expedite the implementation of developmental agendas by ensuring smoother cooperation.

To support its activities and objectives, NITI Aayog maintains a state-of-the-art resource center. This center collects research on good governance and sustainable development and shares this information with stakeholders to promote informed decision-making.

In terms of monitoring programs, NITI Aayog focuses on evaluating the effectiveness of various initiatives. Through identifying the necessary resources and measuring success, they enhance the chances of successful implementation.

Technology plays a vital role in achieving NITI Aayog's objectives. Thus, they emphasize upgrading technology and building capacity for implementing programs effectively. This focus on modernization ensures that developmental initiatives are efficient and impactful.

Lastly, NITI Aayog may engage in other activities necessary to further the national development agenda. This flexibility enables them to address emerging challenges and adapt to changes in the development landscape.

The objectives of NITI Aayog are rooted in various articles of the Indian Constitution, especially related to social and economic justice, promoting the welfare of the people, and ensuring the proper execution of constitutional mandates. These include Articles 38 and 39, which focus on the promotion of the welfare of the people, and ensuring that the policy shall be aimed at securing a social order for the promotion of the welfare of the people. By adhering to these constitutional principles, NITI Aayog plays a critical role in shaping India's development journey.

Understanding the NITI Aayog and Its Functions

The NITI Aayog is an important organization in India that focuses on planning and implementing government policies. Its activities are mainly organized into two key areas: Team India and Knowledge and Innovation. These two areas are essential for the Aayog to function effectively.

The Team India Hub is dedicated to promoting cooperative federalism. This means that it works to ensure that the central government and state governments collaborate effectively. The hub also designs the framework for various policies and programs. Essentially, it helps coordinate efforts and provides the necessary support to strengthen relations with the states.

On the other hand, the Knowledge and Innovation Hub acts as a center for research and resource management. It collects a wealth of information on good governance and best practices from around the world. This hub also offers advice and encourages partnerships with various stakeholders, such as colleges, universities, think tanks, and non-governmental organizations, both within India and internationally.

The functions performed by NITI Aayog can be categorized into four major areas. The first is the Policy and Programme Framework, which involves creating plans and strategies for national development. The second area is Cooperative and Competitive Federalism, where it enhances collaboration between states and encourages them to compete positively with one another.

The third function is Monitoring and Evaluation, where the Aayog assesses the effectiveness of various government programs to ensure they achieve their intended goals. Finally, the Think-Tank, Knowledge, and Innovation Hub plays a crucial role in driving innovation and providing analytical insights for policy formulation.

NITI Aayog is structurally organized into several verticals or cells. Each of these cells focuses on specific areas essential for national growth and economic development. These verticals include:

• Administration and Support Units: These units manage the logistical and administrative tasks of the Aayog.

• Agriculture and Allied Sectors: Focuses on policies related to agriculture and the industries supporting it.

• Aspirational Districts Programme Cell: This cell works to bring development to districts that are lagging behind in various indicators.

• Communication and Social Media Cell: Manages communication strategies and the organization's social media presence.

• Data Management and Analysis, and Frontier Technologies: Handles the analysis of data and the use of advanced technology.

• Economics and Finance Cell: This cell looks into financial policies and economic growth strategies.

• Education: Focuses on improving educational policies and systems.

• Governance and Research: Conducts research related to governance practices.

• Industry: This section is split into two cells, focusing on different industrial sectors.

• Infrastructure: Has two components that focus on connectivity and energy infrastructure.

• Micro, Small and Medium Enterprises: Works to support small businesses.

• Natural Resources and Environment: Deals with environmental issues and the management of natural resources.

These verticals also include cells focused on specific areas like Rural Development, Science and Technology, Social Justice, and Sustainable Development Goals.

The establishment and functions of NITI Aayog stem from various articles in the Indian Constitution, primarily Article 280, which led to the formation of the Finance Commission, and Article 246, which discusses the distribution of powers and responsibilities between the central and state governments. Furthermore, laws such as the Planning Commission Act of 1950, which was replaced by the NITI Aayog in 2015, highlight the shift in India's approach to policy-making and planning from a centralized system to one that emphasizes the need for cooperative federalism and greater involvement of states in the planning process.

In summary, NITI Aayog plays a pivotal role in shaping India’s developmental strategies through cooperation with state governments, the collection and dissemination of research, and by acting as a central hub for innovative policy-making. Its well-defined structure and functions allow it to tackle complex issues that affect the nation’s growth and governance.

Guiding Principles of NITI Aayog

NITI Aayog, which stands for the National Institution for Transforming India, is an important part of India’s policy and planning efforts. It works to improve the lives of people across the nation by following several guiding principles that focus on promoting the welfare of everyone, especially those who are disadvantaged. Let’s explore these principles in detail.

1. Antyodaya

The concept of Antyodaya, introduced by Pandit Deendayal Upadhyay, means the upliftment of the poorest and most marginalized individuals in society. NITI Aayog prioritizes their needs to ensure that everyone has the opportunity to lead a better life. This principle emphasizes that development shouldn't leave anyone behind.

2. Inclusion

Inclusion is about making sure that all groups in society are taken into account. This involves addressing inequalities based on different identities such as gender, religion, caste, and region. By empowering these marginalized sections, NITI Aayog aims to create a more just and equal society.

3. Focus on Villages

Recognizing the importance of rural areas, NITI Aayog emphasizes integrating villages into the overall development process. Villages are seen as vital contributors to India's culture and sustenance, and their development is essential for the nation's progress.

4. Demographic Dividend

India has a large and diverse population, which is one of its greatest strengths. NITI Aayog aims to harness this demographic dividend by focusing on education and skill development. This allows people to find good job opportunities, which in turn helps in the overall economic growth of the country.

5. People's Participation

For development to be successful, people need to be involved in the process. NITI Aayog encourages citizen participation, making sure that the public has a voice in decision-making. This approach leads to better governance and ensures that the needs of the citizens are met.

6. Governance

Effective governance is crucial for implementing policies successfully. NITI Aayog advocates for an open, transparent, and accountable style of governance. This means that the focus is not just on how much money is spent (outlay) but also on the actual results or outcomes of government actions.

7. Sustainability

Sustainability is at the heart of NITI Aayog's planning. The organization seeks to balance development with ecological health, drawing from India’s ancient traditions that show respect for nature. This principle is essential for ensuring that future generations also have a good quality of life.

Seven Pillars of Effective Governance

To achieve its mission, NITI Aayog relies on seven key pillars of effective governance:

1. A pro-people approach that meets the aspirations of society and individuals.
2. A proactive stance in anticipating and responding to the needs of citizens.
3. Participation of citizens in the decision-making process.
4. Empowerment of women across all areas of life.
5. Special attention to marginalized groups, including Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and minorities.
6. Ensuring equal opportunities for the youth to succeed.
7. Use of technology to promote transparency and responsiveness of the government.

Conclusion

NITI Aayog is committed to promoting cooperative federalism and enhancing citizen engagement to ensure equitable access to opportunities and effective governance. By incorporating these guiding principles and pillars into its functioning, NITI Aayog aims to provide significant guidance in India's development journey.

Additionally, various constitutional articles support these principles. For instance, Article 46 of the Indian Constitution promotes the educational and economic interests of Scheduled Castes and tribes. The Twenty-Second Amendment in 1976 added the directive principles of state policy, which stress the need for the state to direct its policy towards securing that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.

Overall, the work of NITI Aayog is vital for steering India towards a more inclusive and sustainable future.

Cooperative Federalism in India

Cooperative federalism is a concept where both the central government and the state governments work together to achieve common goals for the country. In India, the NITI Aayog was created to promote this kind of governance, which aims to ensure that the benefits of development are shared widely across different regions.

The idea behind cooperative federalism is simple: if states are strong and effective, then the whole nation will be strong. NITI Aayog serves as a platform where the Government of India can connect with various states, forming a united team often referred to as "Team India." This collaboration helps in pushing forward the national development agenda.

To support cooperative federalism, NITI Aayog has taken several important steps. These include organizing meetings where the Prime Minister and other central ministers engage directly with the Chief Ministers of all states. Such meetings are significant in fostering cooperation and addressing the needs of the states.

Additionally, NITI Aayog has formed subgroups comprising Chief Ministers who focus on specific national issues, allowing for targeted discussions and solutions. The sharing of best practices among the states encourages learning from one another’s successes and challenges.

NITI Aayog also provides policy support, helping to build the capacity of various state and union territory officials. This means that they work to improve the skills and knowledge of those who run state governments, which ultimately leads to better governance.

One of the notable initiatives under NITI Aayog is the Aspirational Districts Programme. This program focuses on improving the conditions in underdeveloped districts, aiming to elevate them through various developmental measures.

Furthermore, NITI Aayog emphasizes theme-based engagements across different sectors. This targeted approach ensures that the specific needs of each sector are addressed effectively. For instance, they work on drafting model laws related to land leasing and agricultural marketing reforms. Such model laws can guide states in formulating their own legislation that supports farmers and promotes agricultural development.

To address unique challenges faced by the North-Eastern and Himalayan states along with islands, NITI Aayog has devised area-specific interventions. This ensures that the diverse geographical and cultural contexts of these regions are considered in policymaking.

In offering technical advice, NITI Aayog plays an important role in guiding both the central and state governments as well as union territories. It attempts to establish effective public-private partnerships to boost infrastructure development throughout the country. Programs like the Development Support Services to States and Union Territories (DSSS) and Sustainable Action for Transforming Human Capital (SATH) are designed to strengthen these partnerships and develop infrastructure and human resources.

From a constitutional perspective, the framework for cooperative federalism in India is primarily governed by Articles 246 and 254 of the Constitution, which delineates the powers and responsibilities of the Centre and the states. Moreover, the principles of cooperative federalism are also reflected through various laws and policies aimed at regional development, such as the Panchayati Raj Act for local self-governance and the Planning Commission's original mandates, which have now been succeeded by NITI Aayog.

In summary, NITI Aayog plays a crucial role in promoting cooperative federalism in India. By bringing together different levels of government, sharing resources, and providing targeted assistance, it aims to create a more balanced and equitable development landscape for all states and union territories in the nation.

Competitive Federalism in India

Competitive federalism refers to the idea that states and union territories (UTs) in India can improve their governance and policies by competing with each other. The NITI Aayog, which is a policy think tank of the Indian government, plays a vital role in promoting this concept by encouraging states to perform better. It does this by establishing rankings and indices that assess various sectors, thereby creating a healthy competitive environment.

Through these rankings, states can see how they compare with others in different areas such as education, health, and sustainable development. This transparent method of measuring performance helps foster a spirit of competition among states. For instance, some of the indices launched by NITI Aayog include the School Education Quality Index, which evaluates the quality of education across states, and the State Health Index, which assesses healthcare systems. Other notable indices include the Composite Water Management Index, Sustainable Development Goals Index, India Innovation Index, and Export Competitiveness Index.

In addition to these indices, NITI Aayog also provides what it calls "delta rankings" for certain "Aspirational Districts" every month. These districts are identified as underdeveloped and are given special focus to enhance their development. Delta rankings are essentially progress markers that allow for ongoing measurement of how well these districts are improving over time.

The ranking system is based on objective criteria that are quantifiable, meaning they rely on specific data and statistics. This method encourages states and districts not just to compete but also to strive for improvement in their respective areas. For example, if a state learns that its education system ranks lower than its neighbors, it may initiate new policies to enhance school quality and teacher training.

The idea is that through friendly competition, states will be motivated to innovate and work harder to provide better services to their citizens. Moreover, this can lead to sharing best practices among states, where one state’s successful initiatives can inspire others to replicate and implement similar strategies.

From a legal standpoint, the Indian Constitution allows for this kind of federal structure. Articles like Article 246 detail the distribution of powers between the center and the states. States have their own legislatures and can formulate policies in areas listed under the State List, while the Concurrent List allows for shared responsibility. The Competition Act, 2002, also plays a role here, fostering healthy competition in various sectors, including those managed by state governments.

In summary, competitive federalism promoted by NITI Aayog acts as a catalyst for development across Indian states. By focusing on transparent performance metrics and rankings, it encourages a system where states continuously strive for improvement, which ultimately benefits the citizens. With the foundation laid by the Constitution and supportive legislation, this model of competitive federalism aims to uplift all regions of India and reduce disparities in development.

The NITI Aayog plays a significant role in improving India's development by working closely with various stakeholders. This includes state governments, different ministries, and various departments to create frameworks that measure progress and help build capacity in implementing policies and programs effectively.

Within the NITI Aayog, there are two key organizations that assist in these efforts: the National Institute of Labour Economics Research and Development (NILERD) and the Development Monitoring and Evaluation Office (DMEO).

The NILERD, previously called the Institute of Applied Manpower Research (IAMR), is an independent organization that focuses on research and education related to labor economics. Established in 1962 under the Societies Registration Act of 1860, its main goal is to collect data and conduct research aimed at enhancing human resource development and planning. In 2014, IAMR was renamed to NILERD to better reflect its focus on labor economics in a changing world. NILERD receives funding mainly through grants from the NITI Aayog, as well as revenue from its own research projects and training programs. The organization moved to its own campus in Narela in 2002, which is now a developing hub within the National Capital Region of India.

On the other hand, the DMEO was created in 2015 to provide an independent evaluation of government programs. This office was formed by merging two previous organizations: the Programme Evaluation Organization, established in 1952, and the Independent Evaluation Office established in 2010. The DMEO plays a crucial role in ensuring that government policies and programs effectively support national development goals. Its work is centered on monitoring the implementation and effectiveness of these programs, helping the government make data-driven decisions that can lead to better outcomes for citizens.

The DMEO’s responsibilities include assessing the progress of long-term policies, identifying areas that need improvement, and ensuring the right resources are in place to increase the likelihood of successful program delivery. They also provide technical advice to states based on the principles of cooperative and competitive federalism as envisioned in India's Constitution. This means they aim to support the various states while encouraging a healthy competitive environment to improve governance.

The DMEO is based in New Delhi and, until 2017, had 15 Regional Development Monitoring and Evaluation Offices (RDMEOs) scattered throughout the country. These offices conducted important field surveys to collect data needed for evaluation studies, fostering a more cooperative relationship between the central government and state administrations. However, in 2017, these regional offices were closed due to shifting operational needs, and the staff were moved to the headquarters in New Delhi.

Understanding the impact of organizations like NILERD and DMEO is crucial in the context of India’s constitutional framework. The Constitution emphasizes the importance of education, labor, and economic development in various articles, such as Article 45, which mandates the state to provide for early childhood care and education for all children until they complete the age of six years. Moreover, Article 39 of the Constitution outlines that the State shall direct its policy towards securing the right to an adequate means of livelihood for all citizens.

Integrating the work done by NITI Aayog, NILERD, and DMEO with these constitutional mandates reinforces the commitment to improving human capital and ensuring effective governance for sustainable development in India.

The Planning Commission of India

The Planning Commission of India was created in March 1950 by an official decision from the Government of India, following advice from the Advisory Planning Board set up in 1946. It is important to understand that the Planning Commission was not established by the Constitution of India, nor was it a statutory body, meaning it did not have legal backing like some other governmental bodies. Instead, it served as an important organization for planning the country’s social and economic growth.

Functions of the Planning Commission

The Planning Commission had several key responsibilities:

Firstly, it assessed the resources available in the country, including materials, capital (money and assets), and human resources (the workforce). The Commission evaluated how to improve these resources to better serve the country's needs.

Secondly, it was responsible for creating effective plans to utilize the country’s resources in a balanced way. This means determining the best way to use what the nation has to promote growth and development.

Thirdly, the Commission established priorities. It identified which projects or programs should be focused on first and outlined the steps needed to carry out the plans.

Additionally, the Commission identified factors that hindered economic development, suggesting ways to overcome these obstacles. It also determined what kind of systems and structures were necessary to implement these plans successfully at different stages.

Moreover, the Planning Commission regularly reviewed the progress of plan execution, providing recommendations for adjustments as needed. Lastly, it offered advice to both Central and State Governments on various matters related to planning and development.

Despite these significant responsibilities, it is essential to note that the Planning Commission was primarily an advisory body with no executive power. This means it could provide recommendations but did not make decisions or implement policies. That responsibility belonged to the Central and State Governments.

Composition of the Planning Commission

The structure of the Planning Commission included several key positions:

The Prime Minister of India served as the chairman, presiding over its meetings. There was also a deputy chairman, who acted as the main executive head of the Commission. In addition, some Central Ministers were appointed as part-time members. The Commission usually included four to seven full-time expert members, as well as a member-secretary.

Notably, the Planning Commission did not include any representation from State Governments, making it a body that was fully created and controlled by the Central Government.

Critical Evaluation

In its early days, the Planning Commission was seen as an advisory agency. However, over the years, it gained considerable influence and became known for its powerful role in shaping national planning. Critics often likened it to a "Super Cabinet" or "Economic Cabinet," suggesting that its recommendations held substantial weight in both Central and state decision-making.

The first Administrative Reforms Commission (ARC) of India pointed out that while the Constitution states that ministers are the final executive authorities, the Planning Commission had sometimes acted like a Parallel Cabinet. Constitutional expert K. Santhanam remarked that planning had overshadowed the federal structure and that India's operations resembled a unitary system in many ways. Furthermore, P.V. Rajamannar, who served as the Chairman of the Fourth Finance Commission, observed an overlap in roles and responsibilities between the Planning Commission and the Finance Commission, particularly regarding fiscal transfers between the Central and State Governments.

In summary, the Planning Commission of India played a crucial role in shaping the nation’s strategic plans for development, but its growth in authority led to debates about its position within India's federal structure.

National Development Council (NDC)

The National Development Council (NDC) is an important organization in India focused on planning and development. It was formed in August 1952 by an executive action of the Government of India, following suggestions from the First Five-Year Plan. The NDC is not a constitutional body, which means it was not created by the Constitution. It also does not have the status of a statutory body, like a law passed by Parliament.

In recent news, there was talk that the government led by Prime Minister Modi might dissolve the NDC and shift its responsibilities to the Governing Council of the NITI Aayog, an organization that replaced the Planning Commission. However, as of now, no decision has been made, and the NDC remains active.

The last meeting of the NDC, which was the 57th meeting, took place on December 27, 2012. This meeting was held to approve the 12th Five-Year Plan, which covered the period from 2012 to 2017.

The National Development Council is made up of several key members, including:

• The Prime Minister of India, who serves as the chairman.
• Union Cabinet Ministers from various departments.
• Chief Ministers from all Indian states.
• Chief Ministers or administrators from Union Territories.
• Members of the NITI Aayog.

The NDC has several important goals or objectives. These include:

• To ensure that states cooperate in carrying out the national development plans.
• To strengthen and mobilize national resources to support the planning process.
• To promote common economic policies across different regions of the country.
• To ensure that all areas of the country develop equally and at a good pace.

To achieve these objectives, the NDC has specific responsibilities or functions. These include:

• Setting guidelines for creating the national development plan.
• Reviewing the national plan developed by the NITI Aayog.
• Evaluating the resources needed to implement the national plan and suggesting ways to increase them.
• Discussing important social and economic issues that impact national development.
• Regularly reviewing the effectiveness of the national plan.
• Recommending actions to help achieve the goals and targets set in the national plan.

The establishment and functions of the NDC align with several articles in the Indian Constitution, particularly Articles 40, 45, and 47, which discuss the role of the state in promoting the welfare and development of its citizens. Even though the NDC itself is not mentioned in the Constitution, its purpose aligns with national development and cooperative federalism, which are crucial in India's planning and implementation strategies.

In conclusion, the National Development Council plays an important role in the planning and development framework of India. It brings together various leaders from different levels of government to discuss and decide on important development issues, ensuring that the entire country moves forward together.