The Government of India has established NITI Aayog to replace the
Contents12
- AHuman Rights Commission
- BFinance Commission
- CLaw Commission
- DPlanning Commission
Show answer
Answer: (D) Planning Commission
NITI Aayog (National Institution for Transforming India) was established on January 1, 2015 by the Narendra Modi government to replace the Planning Commission, which had been in existence since 1950.
Why was the change made?
The Planning Commission was a centralized body that prepared Five Year Plans and allocated resources to states in a top-down manner. Critics argued it was outdated, overly centralized, and treated states as subordinates rather than partners.
NITI Aayog was designed as a think tank that works with states as equal partners in a 'cooperative federalism' model, providing policy inputs and fostering innovation rather than allocating funds.
Key differences:
- Planning Commission allocated funds to states and ministries;
- NITI Aayog does not have fund-allocation powers.
- The PM chairs NITI Aayog (as he did the Planning Commission).
- NITI Aayog has a Governing Council with all Chief Ministers, emphasizing cooperative federalism.
The other three options are clearly wrong:
- The Human Rights Commission (NHRC) deals with human rights violations,
- The Finance Commission (a constitutional body under Article 280) recommends tax devolution to states,
- The Law Commission recommends legal reforms — all three continue to exist independently.
NITI Aayog replaced the Planning Commission on January 1, 2015, ending 65 years of centralized Five Year Planning that began in 1950.
The change happened because Modi government wanted cooperative federalism instead of the top-down approach where Planning Commission allocated funds to states as subordinates.
Unlike Planning Commission which had fund allocation powers, NITI Aayog works only as a policy think tank and does not control state finances.
NITI Aayog Establishment & Mandate
Indian Economy NITI Aayog National Institution for Transforming India
NITI Aayog: India's Premier Policy Think Tank
Established January 1, 2015 to replace Planning Commission
Prime Minister is the Chairperson
Works on cooperative federalism model with states
Does not allocate funds - only provides policy inputs
What is NITI Aayog
NITI Aayog (National Institution for Transforming India) is India's premier policy think tank established by the Modi government. Unlike its predecessor, it focuses on cooperative federalism - treating states as equal partners rather than subordinates in development planning.
NITI Aayog Structure
Position | Who | Role |
|---|---|---|
Chairperson | Prime Minister | Provides overall direction |
Vice-Chairperson | Appointed by PM | Day-to-day operations |
Governing Council | All Chief Ministers + Lt. Governors | Platform for cooperative federalism |
Full-time Members | Maximum 2 | Sectoral expertise |
Part-time Members | Maximum 2 | Domain knowledge |
Ex-officio Members | Union Ministers | As nominated by PM |
CEO | Appointed by PM | Administrative head |
Key Functions
Strategy & Policy: Long-term vision, strategic plans for government
Cooperative Federalism: Platform for Centre-State collaboration
Innovation & Technology: Promote tech adoption and innovation
Monitoring & Evaluation: Track progress of government schemes
Research & Advocacy: Policy research and evidence-based recommendations
Trap: NITI Aayog cannot allocate funds - Planning Commission could
Trap: All Chief Ministers are members of Governing Council automatically
Trap: PM is Chairperson (not President or a separate appointee)
Trap: Established 2015 under Modi, not UPA government
Planning Commission Legacy
Indian Economy Planning Commission
Planning Commission: India's First Planning Body (1950-2015)
Established March 15, 1950 by Cabinet Resolution
Prepared 12 Five Year Plans from 1951-2017
Had fund allocation powers to states and ministries
Abolished on January 1, 2015 and replaced by NITI Aayog
Historical Context
The Planning Commission was India's apex planning body for 65 years. Inspired by Soviet-style centralized planning, it aimed to promote rapid economic growth through systematic resource allocation and Five Year Plans.
Planning Commission vs NITI Aayog
Aspect | Planning Commission | NITI Aayog |
|---|---|---|
Establishment | 1950 (Cabinet Resolution) | 2015 (Cabinet Resolution) |
Nature | Constitutional body | Policy think tank |
Fund Allocation | Yes - allocated to states | No - only advisory |
Centre-State Relations | Top-down approach | Cooperative federalism |
Five Year Plans | Prepared and monitored | Replaced with Strategy documents |
State Participation | Limited consultation | All CMs in Governing Council |
Focus | Resource allocation | Policy innovation & strategy |
Why Planning Commission was Replaced
Over-centralization: Treated states as subordinates, not partners
Outdated Model: Soviet-style planning unsuitable for modern economy
Limited Innovation: Focus on allocation, not policy innovation
Federal Imbalance: Insufficient state participation in planning process
Changed Economic Reality: Market economy needed different approach
Trap: Planning Commission was not a constitutional body - created by Cabinet Resolution
Trap: 12th Five Year Plan (2012-17) was the last under Planning Commission
Trap: Planning Commission allocated funds - NITI Aayog does not
Trap: Both had PM as Chairperson - structure similarity often confuses
Constitutional Commissions of India
Indian Polity Human Rights Commission Finance Commission Law Commission
Constitutional & Statutory Commissions: Key Bodies in Indian Governance
Finance Commission is constitutional body under Article 280
NHRC established under Protection of Human Rights Act, 1993
All three continue to exist alongside NITI Aayog
Law Commission is statutory body for legal reforms
Major Commissions Comparison
Commission | Constitutional Status | Key Function | Appointment Authority |
|---|---|---|---|
Finance Commission | Constitutional (Article 280) | Tax devolution to states | President every 5 years |
NHRC | Statutory (PHRA 1993) | Human rights protection | President on PM's advice |
Law Commission | Statutory | Legal reforms & law review | Government of India |
Election Commission | Constitutional (Article 324) | Free & fair elections | President |
UPSC | Constitutional (Article 315) | Civil services recruitment | President |
Finance Commission Specifics
15th Finance Commission (2020-26) headed by N.K. Singh
Recommends tax sharing formula between Centre and States
Suggests grants-in-aid for states in need
5-year tenure with specific terms of reference
Constitutional mandate - cannot be abolished
NHRC Key Features
Chairperson must be retired Chief Justice of India
Investigates human rights violations by public servants
Can summon officials and visit jails
5-year tenure for Chairperson and Members
Has state-level counterparts (SHRCs)
Trap: Finance Commission recommends tax devolution - does not allocate funds directly
Trap: NHRC Chairperson must be retired CJI - not serving judge
Trap: Law Commission is not permanent - reconstituted periodically
Trap: Only Finance & Election Commission have constitutional status among the options