Why this matters now
NITI Aayog is examined for what it is and is not (think tank, not a funding body), how it differs from the Planning Commission, and its flagship work — the Aspirational Districts Programme, national indices, and policy blueprints. It anchors the GS-2 theme of institutions and federalism.
Composition
- Chairperson — the Prime Minister;
- Governing Council — all state Chief Ministers and Lieutenant Governors of UTs (the engine of cooperative federalism);
- Vice-Chairperson, full-time and part-time members, ex-officio members and special invitees;
- CEO — appointed by the PM, of Secretary rank.
Functions
- Acts as the government’s think tank, providing strategic and technical advice;
- Fosters cooperative federalism (states as equal partners) and competitive federalism (ranking states/districts to spur reform);
- Designs long-term strategy and vision documents;
- Runs the Aspirational Districts & Blocks Programmes and publishes indices (SDG India Index, Health, Composite Water, School Education, etc.);
- Monitors and evaluates programmes.
NITI Aayog vs Planning Commission
| NITI Aayog (2015) | Planning Commission (1950-2014) |
|---|---|
| Think tank; advisory | Allocated funds and approved state plans |
| Bottom-up, cooperative federalism | Top-down, centralised planning |
| No power to allocate funds | Controlled plan transfers to states |
| States are equal partners (Governing Council) | States had limited say |
UPSC angle
The exam loves the NITI Aayog vs Planning Commission contrast — especially that NITI Aayog has no fund-allocation power and works through cooperative/competitive federalism. Remember it is neither constitutional nor statutory.
Frequently asked questions
What is NITI Aayog?
The National Institution for Transforming India (2015) — an executive policy think tank that replaced the Planning Commission, advising government and promoting cooperative and competitive federalism.
How is NITI Aayog different from the Planning Commission?
NITI Aayog is advisory with no power to allocate funds and works bottom-up with states as partners; the Planning Commission allocated funds and approved state plans top-down.
Is NITI Aayog a constitutional body?
No — it is neither constitutional nor statutory; it was created by an executive resolution of the Union Cabinet.
Who heads NITI Aayog?
The Prime Minister is its Chairperson; it has a Vice-Chairperson, members and a CEO, and a Governing Council of all CMs and UT Lieutenant Governors.