NITI Aayog: Transforming India’s Developmental Paradigm
NITI Aayog (National Institution for Transforming India), established on January 1, 2015, replaced the Planning Commission to align India’s governance with contemporary economic challenges and cooperative federalism. Here’s an in-depth analysis of its structure, objectives, initiatives, and recent contributions:
Overview and Composition
- Establishment: Created via a Union Cabinet resolution as a non-constitutional, non-statutory advisory body .
- Leadership:
- Chairperson: Prime Minister of India (ex-officio).
- Governing Council: Includes CMs of all states, Lt. Governors of UTs, and domain experts .
- CEO: Appointed by the PM, overseeing implementation (e.g., BVR Subrahmanyam) .
🖇️Also read : Concept of Growth and development
Key Objectives
- Cooperative Federalism: Promote collaboration between Centre and states through data-driven indices like the SDG India Index and Composite Water Management Index .
- Policy Innovation: Shift from centralized planning to strategic advisory roles, focusing on long-term structural reforms .
- Sustainable Development: Align national goals with the UN’s Sustainable Development Goals (SDGs) .
Major Initiatives
1. Aspirational Districts/Blocks Programme: Targets 500 underdeveloped blocks to ensure 100% coverage of welfare schemes.
2. Atal Innovation Mission (AIM): Trained over 1 crore students via Atal Tinkering Labs and incubation centers.
3. Women Entrepreneurship Platform: Supports women-led businesses through mentorship and funding.
4. Fiscal Health Index (FHI): Annual report assessing states’ fiscal performance (e.g., Odisha tops 2025 rankings with 67.8/100) .
5. Methanol Economy Programme: Reduces oil imports by converting coal and waste into methanol.
6. Digital India & e-Mobility: Promotes tech-driven governance and green energy transitions.
Ads Start
Ads End
Recent Contributions (2024–2025)
- Fiscal Health Index 2025: Launched with the 16th Finance Commission, ranking states on revenue mobilization, debt sustainability, and expenditure quality. Odisha, Chhattisgarh, and Goa lead, while Punjab and Kerala lag .
- Budget 2025 Analysis: Praised for balancing consumption boosts (e.g., ₹12 lakh income tax exemption) with supply-side growth and fiscal discipline (4.4% deficit target) .
- State-Specific Interventions: Advised Maharashtra to prioritize AI, biotech, and quantum computing while accelerating infrastructure projects .
- Macroeconomic Advisory: Member Arvind Virmani emphasized monitoring the INR-Yuan exchange rate amid global volatility .
Challenges and Criticisms
- Regional Disparities: Fiscal Health Index highlights gaps between top-performing (Odisha) and struggling states (Punjab) .
- Implementation Bottlenecks: States often face delays in executing centrally designed schemes .
- Coordination Complexity: Balancing fiscal and monetary policies during economic shocks remains contentious .
Vision for the Future
NITI Aayog aims to drive India toward Viksit Bharat @2047 by:
- Strengthening state-level fiscal governance .
- Expanding innovation ecosystems to regional languages and tribal areas .
- Promoting green technologies like Green Hydrogen .
Conclusion
NITI Aayog has redefined India’s policy landscape through data-driven governance, fostering competitive federalism, and aligning regional growth with national objectives. While challenges like fiscal disparities persist, its initiatives in innovation, sustainability, and state empowerment position India for inclusive, long-term growth. For deeper insights, refer to the [Fiscal Health Index 2025 report(https://www.niti.gov.in/sites/default/files/2025-01/Fiscal_Health_Index_24012025_Final.pdf) .
0 Comments