Cheat Sheet: NITI Aayog (National Institution for Transforming India) | Indian Economy for UPSC CSE PDF Download

Background

• Established on 1 January 2015, replacing the Planning Commission (1950–2014).
• Aims to promote cooperative and competitive federalism.
• Designed as a policy think tank and not a funding body.
• Emphasizes bottom-up planning, aligning with the changing governance structure.

Composition

Key Objectives

• Develop strategies and long-term policies for India’s socio-economic transformation.
• Strengthen cooperative federalism by promoting active state involvement.
• Serve as a platform for knowledge sharing and policy convergence.
• Provide directional and policy inputs to the Centre and States.

Major Functions

• Policy Formulation: Develop vision, strategy, and action agenda (e.g., Strategy @75).
• Monitoring & Evaluation: Outcomes-based performance tracking of government schemes.
• Innovation Promotion: Through Atal Innovation Mission (AIM).
• Data-Driven Governance: Real-time dashboards, SDG tracking, sector indices.
• Capacity Building: Especially for aspirational and backward regions.

Key Initiatives 

Comparison: NITI Aayog vs Planning Commission

Recent Developments

• Viksit Bharat @2047: Vision plan for a developed India by 2047; state-wise consultations underway.
• G20 Follow-up: Focus on digital public infrastructure, AI regulation, and climate financing.
• Green Growth Models: Partnerships with states on circular economy, renewable energy roadmaps.
• New Thematic Dashboards: On women-led development, climate action, and digital health.
• Greater Role in PLI Monitoring: Tracking the performance of Production Linked Incentive schemes.

Criticism

• Lacks statutory status, reducing its institutional authority.
• No financial devolution power, hence influence is limited to persuasion and advice.
• Some critics argue it reflects central priorities more than state-specific needs.
• Evaluation capacity of flagship schemes needs further institutional strengthening.