Ramesh Singh Test : Planning in India- 3 - UPSC MCQ

The primary objective of the NITI Aayog's Three-Year Action Agenda concerning fiscal deficit reduction is to decrease the fiscal deficit to 3% of GDP and the revenue deficit to 0.9% of GDP by the fiscal year 2019-20. This aim underscores the importance of fiscal discipline and macroeconomic stability within the economic framework.

Statement 1: The NITI Aayog promotes cooperative and competitive federalism by fostering collaboration between states and the center. This statement is correct. One of the primary roles of the NITI Aayog is to encourage states to work together and with the central government, promoting healthy competition and cooperation to achieve national development goals.

Statement 2: The NITI Aayog is responsible for developing a centralized planning system for the Indian economy. This statement is incorrect. The NITI Aayog was established to replace the Planning Commission, moving away from centralized planning to more decentralized and participatory planning processes. It empowers states and local governments in planning and implementation, rather than maintaining a centralized system.

Statement 3: One of the functions of the NITI Aayog is to act as a knowledge and innovation hub, facilitating the replication of best practices. This statement is correct. The NITI Aayog serves as a repository of best practices and innovations from across the country and facilitates their replication to improve governance and development outcomes.

Hence, the correct answer is Option C: 1 and 3 Only.

Statement-I correctly highlights the need for innovative policies to harness India's demographic dividend resulting from population growth and urbanization. This is in line with the changing contours of India discussed in the provided content.

Statement-II correctly reflects Mahatma Gandhi's philosophy of continuous evolution and the avoidance of outdated practices in governance. While this statement is relevant in a broader context, it does not directly explain or relate to the specifics of the demographic shift in India discussed in Statement-I. Therefore, both statements are correct individually, but they do not directly correlate or explain each other in this context, making option (b) the correct choice.

The primary objective behind the establishment of the Independent Evaluation Office (IEO) in India was to strengthen public accountability of important social sector programs. This office was created at an arm's distance from the government with the aim of enhancing transparency and accountability in the implementation of key social sector initiatives, similar to the model of the Independent Evaluation Office of the IMF.

1. Antyodaya : Prioritizing service to the wealthiest - Incorrect. Antyodaya emphasizes prioritizing service to the poorest and most marginalized, echoing Pandit Deendayal Upadhyay's philosophy.

2. Governance : Promoting transparent, accountable, and outcome-driven governance - Correct. This aligns with the principles of good governance promoted by NITI Aayog.

3. Village Integration : Leveraging the cultural and economic vitality of urban areas - Incorrect. Village Integration focuses on leveraging the cultural and economic vitality of rural areas, not urban areas.

4. Demographic Dividend : Investing in education and skilling to harness India's youth potential - Correct. This pair is correctly matched as it reflects the concept of investing in education and skills to benefit from India's youthful population.

Thus, only two pairs are correctly matched (Pairs 2 and 4).

• Statement-I is correct: The Three-Year Action Agenda (2017-18 to 2019-20), prepared by NITI Aayog, emphasized fiscal consolidation with a target of reducing the fiscal deficit to 3% of GDP. It also aimed at doubling farmers’ incomes by 2022, aligning with the government's broader economic goals.

• Statement-II is correct: The Strategy for New India @ 75, released by NITI Aayog, aimed to make India a $5 trillion economy by 2024-25. It focused on economic growth, employment generation, and strengthening the innovation ecosystem, making it a crucial part of India's long-term planning.

• However, Statement-II does not explain Statement-I: The Three-Year Action Agenda was a short-term policy framework, while the Strategy for New India @ 75 was a long-term vision document. Although both aim at economic growth, Statement-II is not an explanation for Statement-I.
  Therefore, Correct Answer - Option A

Each of the given statements accurately reflects the structure and composition of the NITI Aayog.

1. Statement 1: The NITI Aayog's Governing Council indeed comprises the Prime Minister, Chief Ministers, and other members. This is a fundamental aspect of its structure, ensuring representation from various states and union territories.

2. Statement 2: The organizational framework of the NITI Aayog includes both full-time and part-time members. This allows for a diverse range of expertise and perspectives to guide its strategic initiatives.

3. Statement 3: Special invitees, who are domain experts, are nominated by the Prime Minister. This ensures that the council benefits from specialized knowledge in various fields.

All three statements correctly describe different facets of the NITI Aayog's structure, making Option D the correct answer.

Statement-I is correct as it accurately reflects the establishment of the Independent Evaluation Office (IEO) in 2014 to enhance public accountability for significant social sector programs. Statement-II is also correct in stating that the Development Monitoring and Evaluation Office (DMEO) was formed in 2015 by merging the Program Evaluation Office (PEO) and the IEO under the Niti Aayog. However, Statement-II does not directly explain Statement-I; instead, it provides additional information about the DMEO's creation, making Option B the correct choice.

1. Demographic Shift: Embracing technology to enhance transparency and efficiency.

- Incorrect. The demographic shift refers to India's population growth and urbanization, necessitating innovative policies to harness the youth demographic dividend.

2. Economic Shift: Necessitating a recalibration of the government's role from directive to supportive.

- Correct. This matches the economic shift described, moving from a modest GDP to a thriving economy and requiring a change in the government's role.

3. Globalization: Empowering states and local governments in planning and implementation.

- Incorrect. Globalization refers to India's integration into the global economy and the need for agile policies and decentralized decision-making, not specifically empowering states and local governments.

4. Role of States: Recognizing states as drivers of development and advocating for tailored solutions.

- Correct. This accurately reflects the role of states as described, emphasizing the importance of tailored solutions over a one-size-fits-all approach.

Thus, pairs 2 and 4 are correctly matched, making the answer Option B: Only two pairs.

All three statements are correct approaches of NITI Aayog towards planning in India:

1. Bottom-up approach: NITI Aayog emphasizes participatory planning, where states and local bodies play a central role in shaping policies and strategies, ensuring that development is inclusive and meets local needs.

2. Team India: The idea of 'Team India' promotes cooperation among various stakeholders, including central and state governments, in achieving national development goals.

3. Cooperative federalism: NITI Aayog advocates for cooperative federalism, encouraging collaboration between the central and state governments to ensure effective implementation of policies and schemes.

Therefore,Correct Answer- Option C