Inputs Gathering:
- Central/Union Council of Ministers provide inputs to the Planning Commission.
- Programme advisors collect views from states and Civil Society Institutions.
Plan Approach Paper:
- Inputs are processed to develop a Plan Approach Paper.
- The paper is discussed, improved, and finalized by the Planning Commission's members.
Review by National Development Council (NDC):
- Plan Approach Paper is presented to the NDC for review, recommendations, and approval.
- NDC provides inputs and suggestions based on national priorities and needs.
Approval by Parliament:
- The approved Plan Approach Paper is presented to both houses of Parliament.
- It undergoes discussions, debates, and scrutiny by parliamentary committees.
- Once approved, it legally becomes a blueprint for the Five-Year Plan.
Resource Estimation:
- The Estimates Committee estimates the resources required for the plan.
- States are asked to declare their resources.
- The Financial Resources Steering Committee of the Planning Commission recommends fund allocation based on available resources and priorities.
Fund Allocation and Implementation:
- Funds are allocated from the Finance Ministry after approval by Parliament.
- State and District level Planning Boards receive the plan guidelines and the NDC's mandate.
- State and District Planning Boards implement the plan at their respective levels.
Inputs Gathering:
State Planning Departments receive inputs from various sources:
- State plan committees
- Civil society institutions
- Directorates and departments of the respective state
- District level agencies
Review by the Planning Commission:
- Inputs gathered at the state level are sent to the Planning Commission for review and incorporation into the Central Five-Year Plan.
Plan Approach Paper:
- State Planning Department finalizes the Plan Approach Paper at the state level.
- The paper defines objectives and strategies to achieve them, considering the state's specific needs.
Review and Approval:
- Plan Approach Paper is reviewed and approved by the Chief Minister and the State Planning Board, which includes cabinet ministers.
- Inputs and feedback from stakeholders are considered during the review process.
Approval by State Legislature:
- The approved Plan Approach Paper is presented to the state legislature.
- It undergoes discussions, debates, and scrutiny by legislative committees.
- Once approved, it becomes legally implementable as the state's Five-Year Plan.
It's important to note that the process described above is based on the previous structure of planning in India, which involved the Planning Commission. However, as of the knowledge cutoff in September 2021, the Planning Commission has been replaced by the NITI Aayog, which has a different structure and approach to planning. The new process may have some variations, and it would be beneficial to refer to the latest resources for up-to-date information on the plan formulation process at the Union and state levels.
NITI Aayog, short for the National Institution for Transforming India, is an advisory body established by the BJP government in 2015. It replaced the Planning Commission, which had been functioning since March 1950. The headquarters of NITI Aayog is located in New Delhi. This article provides a comprehensive overview of NITI Aayog, including its historical background, key personnel, objectives and functions, important initiatives, and a comparison with the erstwhile Planning Commission.
Historical Background:
The Planning Commission, a non-constitutional body, was instituted in 1950 to formulate five-year plans and allocate funds to states and ministries. The first five-year plan was developed for the period 1951-56, and the last plan covered 2012-17. However, in 2015, the BJP government replaced the Planning Commission with NITI Aayog to bring about transformative changes. The new institution aimed to provide advice to the government on various issues, such as health, education, and policy matters. Unlike its predecessor, NITI Aayog follows a bottom-up approach, involving states in the policy-making process.
NITI Aayog Hubs:
NITI Aayog operates through two important hubs:
- Knowledge and Innovation Hub: This hub, known as the India Knowledge Hub (IKH), is an interactive web portal that serves as a repository for best practices from across the country. It focuses on sharing knowledge and fostering innovation.
- Team India Hub: The Team India Hub facilitates coordination and engagement between the central government and the states. It acts as a platform for collaboration on policy matters and state-level participation.
Composition of NITI Aayog:
NITI Aayog consists of the following members:
- Chairman: Prime Minister Narendra Modi
- Vice-Chairman: Rajiv Kumar
- CEO: Parameswaran Iyer
- Ex-officio members: Maximum 4
- Part-time members: Maximum 2
- Governing Council: Comprising all Chief Ministers and Legislatures of Union Territories
- Specialist members: From various departments related to education, health, and other sectors
Objectives and Functions:
The key objectives and functions of NITI Aayog are as follows:
- Design and implement long-term policy frameworks and initiatives, tracking their progress and making necessary modifications.
- Foster collaboration between stakeholders, think tanks, and research institutions at the national and international levels.
- Establish a knowledge, innovation, and entrepreneurial support system with the help of experts and partners.
- Provide a platform for resolving inter-sectoral and inter-departmental issues to expedite the implementation of the development agenda.
- Promote cooperative federalism and engage with states to establish shared national development priorities.
- Facilitate the formulation of plans at the grassroots level and gradually aggregate them at higher levels of government.
- Incorporate national security objectives into economic strategies and policies.
- Ensure inclusive growth and address the needs of vulnerable sections of society.
- Maintain a resource center for research on good governance and sustainable development, disseminating findings to stakeholders.
- Monitor program implementation, analyze outcomes, and focus on technology upgrades and capacity building.
7 Pillars of Effective Governance:
NITI Aayog operates based on the following 7 pillars of effective governance:
- Pro-People: Prioritizing the aspirations of both society and individuals.
- Pro-Activity: Anticipating and responding to the needs of citizens.
- Participation: Involving the general public in decision-making processes.
- Empowering: Empowering people, especially women, in all aspects of their lives.
- Inclusion: Ensuring the inclusion of all individuals, irrespective of caste, creed, or gender.
- Equality: Promoting equal access to opportunities for all citizens.
- Transparency: Ensuring a transparent and responsive government.
Important Schemes and Initiatives:
NITI Aayog has launched several significant schemes and initiatives, including:
- Atal Innovation Mission (AIM): Launched in December 2017, AIM focuses on fostering innovation and entrepreneurship through Atal Tinkering Labs (ATLs).
- Lucky Grahak Yojana and Digi Dhan Vyapar Yojana: These initiatives promote digital payments in India.
- Judicial Performance Index: Introduced to expedite the resolution of pending cases.
- Women Entrepreneurship Program: Launched in 2018 to encourage women's participation in entrepreneurship.
- Partnerships with Google and IBM: NITI Aayog has collaborated with Google to develop AI-based solutions for productivity enhancement and with IBM to create a crop yield prediction model for farmers.
- Collaboration with FICCI: NITI Aayog and FICCI jointly conduct a five-year entrepreneurial program.
- Sustainable Action for Transforming Human Capital: NITI Aayog focuses on transforming the health and education sectors.
Achievements and Initiatives:
NITI Aayog has achieved the following milestones and undertaken noteworthy initiatives:
- Global Entrepreneurship Summit 2017: The summit, themed "Women First: Prosperity for All," emphasized women's entrepreneurship.
- Village Storage Scheme: NITI Aayog conceptualized a scheme to improve storage facilities in rural areas, which was proposed in the Union Budget 2021.
- Adoption of Cutting-Edge Technologies: NITI Aayog promotes the utilization of advanced technologies like artificial intelligence, blockchain, and the methanol economy.
- Atal Innovation Mission: NITI Aayog's Atal Tinkering Labs have significantly contributed to enhancing India's innovation ecosystem.
- Zero Budget Natural Farming: The Governing Council of NITI Aayog endorsed this approach, focusing on sustainable farming practices.
- Explore in India Campaign: NITI Aayog has revamped mineral exploration and licensing policies to attract investment.
- Aspirational Districts: NITI Aayog has identified 117 aspirational districts based on composite parameters for focused development efforts.
Challenges of NITI Aayog:
While NITI Aayog has made progress, it faces several challenges:
- Declining Women's Labor Force Participation: Despite neighboring countries witnessing an increase in female labor force participation, India has seen a decline.
- Slow Pace of Reforms: NITI Aayog needs to accelerate its efforts to meet the nation's needs promptly.
- Bridging the Gap with States: NITI Aayog should enhance its ability to address state demands and meet their requirements effectively.
- Addressing Inequality: NITI Aayog needs to focus on reducing socio-economic disparities and ensuring equitable development across regions and communities.
- Data and Research: NITI Aayog requires access to robust and accurate data to inform its policy recommendations and monitor the impact of initiatives. Improving data collection and analysis capabilities is essential.
- Implementation Challenges: Translating policy recommendations into effective implementation on the ground can be a complex task. NITI Aayog must work closely with various stakeholders to overcome implementation challenges and ensure successful execution of initiatives.
- Balancing Economic Growth and Environmental Sustainability: NITI Aayog needs to strike a balance between promoting economic growth and ensuring environmental sustainability. It should advocate for sustainable development practices and encourage the adoption of green technologies.
- Stakeholder Engagement: Engaging with stakeholders, including state governments, civil society organizations, and private sector entities, is crucial for effective policy formulation and implementation. NITI Aayog should strengthen its collaboration and consultation mechanisms.
- Monitoring and Evaluation: NITI Aayog should establish robust monitoring and evaluation frameworks to assess the impact of policies and initiatives. Regular evaluation will help identify areas of improvement and enable evidence-based decision-making.
In summary, NITI Aayog plays a vital role in providing policy advice and promoting transformative initiatives for India's socio-economic development. With its focus on inclusive growth, innovation, and collaborative governance, NITI Aayog aims to address the country's developmental challenges and drive sustainable progress. However, it also faces various challenges that require concerted efforts to overcome and achieve its objectives effectively.