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NITI Aayog

NITI Aayog
studybudys NITI Aayog 21 Nov 2025

NITI Aayog: A premier policy think tank for building a developing India

Introduction:

The National Institution for Transforming India (NITI Aayog) is the premier policy-making think tank of the Government of India. It was established on 1st January 2015 as a successor to the Planning Commission, which had been functioning since 1950. As a policy-making think tank of the Government of India, its objective is to involve the states in formulating economic policies in light of the evolving global and economic situation. The state and central governments receive strategic and technical advice from it. In addition, NITI Aayog has released its first 15-year vision for 2017-18. The NITI Aayog board comprises several state ministers, the Chief Ministers of Puducherry and Delhi, and the Lieutenant Governors of all Union Territories. The non-permanent members are drawn from various top-tier universities and research institutions, which are notable. The members include the President, CEO, three part-time members, and four former full members.

Table of contents:

  • Why was NITI Aayog appointed?
  • History
  • Structure
  • Latest Information on NITI Aayog
  • Objectives
  • Key Programs and Initiatives of NITI Aayog
  • Achievements

 

Why was NITI Aayog appointed?

For over sixty years, the Planning Commission played a crucial role in guiding India's economic progress. But several inefficiencies and limitations made it obsolete. Notable reasons behind its replacement include –

  • Centrally formulating strategies without adequate consideration of the diverse needs of different states and regions.
  • With economic liberalization in the 1990s, the increasing participation of the private sector in growth reduced the need for government planning.
  • Policy management without adequate consultation with state governments.
  • Inability to address emerging challenges such as digital transformation, sustainability, and technological advancement.

To overcome these limitations, the Government of India established NITI Aayog, a more collaborative and knowledge-driven institution, to replace the old Planning Commission.

History:

Also, an independent evaluation agency submitted an evaluation report to the Prime Minister on 29 May 2014, requesting the formation of another control committee in place of the Planning Committee. This was significant. On 13 August 2014, the Union Cabinet implemented a modified version of the National Advisory Council and replaced the Planning Committee as per the report. The Cabinet was replaced by the new NITI Aayog, known for its innovative approach. On 1 January 2015, the Government of India implemented an agency called NITI Aayog. Finance Minister Arun Jaitley, who is in charge of NITI Aayog, said that the 65-year-old Planning Commission has become obsolete. It was considered acceptable in a command economy but is no longer needed. Due to the diverse population and the variety of states, India's economic development is characterized by both positive and negative trends. In this situation, the conventional method of economic planning is no longer used. It is not possible to sustain the current global economy in this way to make India a competitive nation.

Structure of NITI Aayog:

NITI Aayog is structured to be inclusive, decentralized and adaptive. Its organizational structure includes—

  • Chairperson: The Prime Minister of India serves as the Chairperson, guiding the overall strategic direction and vision of the institution.
  • Vice-Chairperson: Appointed by the Prime Minister, the Vice-Chairperson is usually an eminent economist or policy expert who leads strategic initiatives and provides insights.
  • Governing Council: The Governing Council comprises all the Chief Ministers and Lieutenant Governors of Union Territories, ensuring that states play an active role in policy formulation.
  • Regional Councils: Formed as required, regional councils address specific regional concerns and enhance inter-state cooperation.
  • Whole-time Members: Experts and eminent professionals from various fields contribute their expertise in policy formulation and analysis.
  • Ex-officio Members: Four Union Ministers appointed by the Prime Minister ensure that the policies of NITI Aayog are in line with the initiatives of the Central Government.
  • Special Invitees: Experts, specialists and key officials are invited to provide insights on specific policy issues as and when required.
  • CEO: A secretary-level officer appointed by the Prime Minister, the CEO oversees the smooth administration and implementation of programmes and policies.

NITI Aayog Latest Update:

On 10 July 2022, Shri Parameswaran Aiyar joined NITI Aayog as the Chief Executive Officer. Dr. Arvind Veermani also joined the institution as a full-time member on 16 July 2022. It is noteworthy that “NITI Aayog has formulated a model law on final land tenure,” which has been adapted and “implemented” by the states. Its objective is to facilitate convenient access to credit for farmers and “reduce the large number of land-related conflicts and enable easy real estate transactions”. NITI Aayog establishes itself as an advanced resource centre, equipped with the necessary resources, knowledge, and expertise to act quickly, encourage research and innovation, express its vision, etc. The objective of establishing NITI Aayog was to increase government participation and development expectations. Both institutional changes and positive strategic changes in governance are needed more closely that initiate and manage large-scale change.

Objectives of NITI Aayog:

  1. Active involvement of nations in achieving their national goals and setting a framework for implementing the agenda.
  2. Establish cooperative federalism through regular and systematic initiatives and provide support mechanisms with the states.
  3. Create authentic strategies at the local level and gradually introduce them to higher levels of governance.
  4. An economic measure that integrates national security interests. Specifically, pay attention to those segments of society that may not profit from economic advancement.
  5. Establish strategic and long-term policy/program frameworks, and review their progress and effectiveness.
  6. Offer guidance and foster collaborations with key stakeholders, national and international academic institutions, and policy research groups.
  7. Developing an infrastructure for knowledge-based assistance, innovation, and entrepreneurship through a collective network of national and international experts.
  8. Offers a platform for intersectoral and multidisciplinary thinking to accelerate the progress of the progressive agenda.
  9. Conserve a state-of-the-art resource centre that offers education on sustainable and equitable development and good governance, and aids in its provision to participants.

 

Key Programmes and Initiatives of NITI Aayog:

NITI Aayog's success is based on its innovative programmes that address various aspects of India's development, such as health, education, infrastructure and technology—

 

  • Aspirational District Programme (ADP): Focuses on key areas such as education, health, infrastructure and financial inclusion.
  • Atal Innovation Mission (AIM): AIM encourages innovation and entrepreneurship in India.
  • Atal Tinkering Lab: Promotes STEM education in schools and underprivileged areas.
  • Atal Incubation Centre: To support startups through mentorship, funding and networking opportunities.
  • Utthan: Promotes research and innovation in small and medium enterprises (SMEs) through technology.
  • National Digital Health Mission (NDHM): To ensure availability of quality healthcare services through nationwide digital health records, telemedicine and other technological solutions.
  • Ayushman Bharat: India's largest health insurance scheme, to ensure access to health coverage, affordable and quality healthcare services to the economically weaker sections of the society.
  • Energy and Sustainability Initiatives: Promoting solar and wind power, electric vehicles, and green technologies for India's clean and sustainable energy transition.
  • National Mission for Quantum Technology and Applications (NM-QTA): Applying emerging technologies like quantum computing to revolutionize various industries.

 

Achievements:

NITI Aayog organised a WhatsApp summit on national level related to the agricultural vertical on April 25 2022 which was an integral part of Azadi ka Amrit Mahotsav. More than 1250 participants from the state government, From February 7 to 28, 2022. NITI Aayog planned and executed a virtual fintech summit called “Fintech Open” for three weeks. The Fintech Open is a gathering of fintech regulators, experts, enthusiasts, industry leaders, developer, and startup communities to engage in discussions and exchange ideas and innovations.Central ministries and farmers joined this workshop and it was also streamlined live on YouTube. 

FAQs:

  • When was NITI Aayog established?
  • On January 1, 2015, NITI Aayog came into being.
  • What is the full form of NITI Aayog?
  • “NITI Aayog stands for National Institution for Transforming India Aayog.”
  • Which body was replaced by “NITI Aayog?”
  • NITI Aayog replaced the Planning Commission of India.
  • Who is the current CEO of NITI Aayog?
  • “The current CEO of NITI Aayog” is Shri. BVR Subramaniyam.