Briefly describe about Planning Commission and NITI Aayog.

1. Introduction to Planning Commission and NITI Aayog

The Planning Commission and NITI Aayog are two key institutions in India responsible for formulating and implementing economic and development policies. Both institutions play crucial roles in guiding the country's growth trajectory, promoting inclusive development, and addressing socio-economic challenges. While the Planning Commission was established in the early years of India's independence, NITI Aayog was formed in 2015 to adapt to changing economic realities and governance needs.

2. Planning Commission

The Planning Commission was established in 1950 by a resolution of the Government of India to formulate five-year plans for the country's economic and social development. It served as the apex body responsible for coordinating and monitoring the implementation of development programs and allocating resources across sectors and regions. The Planning Commission played a central role in shaping India's planned development approach, which emphasized state-led interventions, public investment, and centralized planning.

Under the leadership of the Prime Minister, the Planning Commission comprised members representing various ministries, experts, and policymakers. It formulated medium-term and long-term plans, set targets for economic growth, poverty reduction, infrastructure development, and social welfare, and allocated funds to states and union territories based on their developmental needs and priorities. The Planning Commission also played a key role in mobilizing resources through fiscal measures, foreign aid, and public-private partnerships.

3. NITI Aayog

NITI Aayog, or the National Institution for Transforming India, was established in 2015 to replace the Planning Commission and revamp India's approach to economic planning and governance. The formation of NITI Aayog reflected the government's recognition of the need for a more decentralized, participatory, and market-oriented approach to development planning in the context of globalization, liberalization, and rapid technological advancements.

NITI Aayog operates as a think tank and policy advisory body, providing strategic direction, policy inputs, and innovative solutions to address socio-economic challenges facing the country. Unlike the Planning Commission, NITI Aayog does not have a centralized planning function or allocate funds directly to states. Instead, it focuses on policy formulation, program evaluation, and promoting cooperative federalism by fostering collaboration between the central government, state governments, and other stakeholders.

Led by the Prime Minister as its Chairperson, NITI Aayog consists of full-time members, part-time members, and experts from diverse fields. It adopts a bottom-up approach to planning, emphasizing decentralized decision-making, evidence-based policy analysis, and participatory governance. NITI Aayog facilitates dialogue, consultations, and partnerships with state governments, civil society organizations, academia, and the private sector to identify priorities, leverage resources, and implement innovative solutions for sustainable and inclusive development.

4. Comparison between Planning Commission and NITI Aayog

A. Structure and Functioning: The Planning Commission had a centralized structure and played a directive role in planning and resource allocation, while NITI Aayog operates as a more flexible and decentralized institution focused on policy advice, collaboration, and innovation.

B. Planning Approach: The Planning Commission followed a top-down, command-and-control planning approach, whereas NITI Aayog emphasizes participatory, bottom-up planning, and cooperative federalism.

C. Resource Allocation: While the Planning Commission directly allocated funds to states and sectors, NITI Aayog does not have a direct role in resource allocation but provides recommendations and guidance to the central and state governments.

D. Policy Orientation: The Planning Commission focused on state-led development and public sector interventions, while NITI Aayog promotes market-oriented reforms, innovation, and entrepreneurship to drive economic growth and social progress.

5. Conclusion

In conclusion, both the Planning Commission and NITI Aayog have been instrumental in shaping India's development trajectory and addressing its socio-economic challenges. While the Planning Commission played a central role in the era of planned development, NITI Aayog represents a shift towards a more decentralized, participatory, and market-oriented approach to policy formulation and governance. By leveraging their respective strengths and adapting to evolving economic realities and governance needs, both institutions have contributed to advancing India's development agenda and promoting inclusive and sustainable growth.