India has always focused on planning and development to improve the lives of its people. Over the years, the government has created institutions to guide the country’s progress and adapt to changing needs. One such organization has played a significant role in shaping policies and strategies for economic growth, but it underwent a major transformation to better serve the nation’s goals in the modern era.
The old name of NITI Aayog was the Planning Commission. Established in 1950, the Planning Commission was responsible for creating five-year plans and managing India’s economic policies. In 2015, it was replaced by NITI Aayog to focus on modern, inclusive and state-specific development. NITI Aayog follows a “bottom-up” approach, promoting cooperative federalism and addressing the diverse needs of India’s states and regions.
NITI Aayog, short for the National Institution for Transforming India, is the leading policy think tank of the Government of India. Established in 2015, it replaced an earlier organization called the Planning Commission. NITI Aayog plays a key role in shaping India’s development strategies using modern, inclusive and state-focused approaches.
In 2014, Prime Minister Narendra Modi felt that the Planning Commission had become less effective. It worked well during a command economy when the government controlled most economic activities. But as India’s economy grew more dynamic and market-driven, this model was no longer suitable.
Key reasons for replacing the Planning Commission included:
On January 1, 2015, the Union Government officially replaced the Planning Commission with NITI Aayog. The new organization adopted a “bottom-up” approach, focusing on state-specific policies and cooperative federalism.
The first meeting of NITI Aayog was chaired by Prime Minister Narendra Modi on February 8, 2015. Finance Minister Arun Jaitley described the Planning Commission as “redundant” and explained why the country needed a fresh approach to economic planning.
NITI Aayog includes key representatives like:
It also brings in experts from research institutions and universities for advice.
NITI Aayog focuses on:
NITI Aayog aims to transform India with a focus on rapid development rather than gradual change. It works closely with states, promotes innovation, and ensures that policies address the diverse needs of India’s population.
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