NITI Aayog is New Policy Body

  • On New Year’s Day, the Modi government set up NITI Aayog (National Institution for Transforming India) in place of the Planning Commission.
  • The Prime Minister will head the new institution tasked with the role of formulating policies and direction for the government.
  • Its governing council will comprise the Chief Ministers and the Lieutenant Governors of Union Territories.
  • The Prime Minister will appoint the Aayog’s Vice-Chairperson and Chief Executive Officer.
  • Asian Development Bank’s former Chief Economist Arvind Panagariya is tipped to be the first Vice-Chairperson.
  • The government plans to adopt a “Bharatiya” approach to development.
  • India needs an administration paradigm in which the government is an enabler rather than a provider of first and last resort
  • The Aayog will recommend a national agenda, including strategic and technical advice on elements of policy and economic matters.
  • It will also develop mechanisms for village-level plans and aggregate these progressively at higher levels of government.
  • On the planning process, it says that there is a need to separate the process from the strategy of governance.
  • Transforming India, it further says, will involve changes of two types (i) consequences of market forces (ii) those that would be planned.