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Is it just a renaming process or is there something more to it? How NITI Aayog is different from planning commission? Is it one more announcement? An effort is made here to find the differences.
Have you heard about Five Year Plans? These Five Year Plans were done by Planning Commission. It was established in 1950 under the Chairmanship of the Late Prime Minister Sri Jawaharlal Nehru. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources and determining priorities.
During initial years (say, for 40 years) the emphasis was on developing Public Sector Undertakings (PSU) in basic and heavy industries.
Have you noticed any new PSU being setup in the recent past? After the liberalization of the economy in 1991, the focus of planning commission shifted from setting up PSU or spending in Public Sector to building long term strategic vision of the future.
The Planning Commission used to play a role of facilitator to allocate the resources between states and the Centre.
In short, the Planning Commission was more about one way flow of policy from Centre to States. The Press Release of the Government said “The States of the Union do not want to be mere appendages of the Centre. They seek a decisive say in determining the architecture of economic growth and development. The one-size-fits-all approach, often inherent in central planning, has the potential of creating needless tensions and undermining the harmony needed for national effort”
Indian economy is transforming and the forces of this transformation are many and include –
- Indian industry and service sectors are operating globally. The government has to act as a facilitator and enabler than a ‘player’ in the business.
- Urbanisation is an irreversible trend. Rather than viewing it as an evil, we have to make it an integral part of our policy for development.
In this changed scenario, the Government of India has felt the need for setting up an institution that serves as a Think Tank of the government. Thus you have now NITI Aayog (National Institution for Transforming India)
- The proposed institution has to provide governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy
- This includes matters of national and international import on the economic front, dissemination of best practices from within the country as well as from other nations, the infusion of new policy ideas and specific issue-based support
How is it different from Planning Commission?
- An important evolutionary change from the past will be replacing a centre-to-state one-way flow of policy by a genuine and continuing partnership with the states
- The Deputy Chairman of the Planning Commission was at the centre stage. Now under NITI Aayog, you will have a Vice Chairperson (VC) and CEO.
- Instead of controlling and allocating resources among the states as it was under Planning Commission, NITI will act as a catalyst and provide a platform for the States and the Centre to come together.
- NITI is participative in nature wherein the governing council will comprise of all the chief ministers and Lieutenant Governors. Instead of implementing the plans made by the Planning Commission, the State Governments will be able to actively participate in the planning stage itself.
- Formulate plans at village level, aggregation at higher levels.
The Press Release said that NITI will have a Bharatiya Approach to development.
Thought for the day
Planning is bringing the future into the present, so that you can do something about it now.
