NITI Aayog & Planning
Economy Advanced · नीति आयोग और नियोजन
📋Quick Overview
India followed a planned economy model from independence using Five Year Plans (1951-2017) through the Planning Commission. The Planning Commission was replaced by NITI Aayog on January 1, 2015 to embrace 'cooperative federalism' and a market-oriented approach. Unlike Planning Commission, NITI Aayog does NOT allocate funds to states — it is a think-tank, not a funding body.
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NITI Aayog full form: National Institution for Transforming India. PM chairs; CEO runs day-to-day operations. It is India's nodal agency for SDGs (17 Sustainable Development Goals, 2015-2030) and publishes SDG India Index annually.
📖Five Year Plans — Key Facts
| Plan | Period | Key Focus / Highlight |
|---|---|---|
| 1st Plan | 1951-56 | Agriculture, dams (Bhakra Nangal, Hirakud); Harrod-Domar model; growth 3.6% |
| 2nd Plan | 1956-61 | Heavy industry (Mahalanobis model); steel plants (Bhilai, Rourkela, Durgapur) |
| 4th Plan | 1969-74 | Bank nationalisation (1969); Green Revolution; PM Indira Gandhi |
| 6th Plan | 1980-85 | Poverty alleviation; TRYSEM, IRDP; growth 5.4% |
| 9th Plan | 1997-2002 | 'Growth with Social Justice'; post-1991 reforms consolidation |
| 11th Plan | 2007-12 | 'Faster and More Inclusive Growth'; 9% target; achieved 7.9% |
| 12th Plan (Last) | 2012-17 | 'Faster, More Inclusive, Sustainable Growth'; last plan before NITI Aayog |
📖Planning Commission vs NITI Aayog
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Established | March 15, 1950 (PM Nehru as first Chairman) | January 1, 2015 (PM Modi dissolved Planning Commission) |
| Fund allocation | Yes — allocated funds to states and ministries (grants) | No — NITI Aayog does NOT allocate funds |
| Approach | Top-down, centralized planning | Bottom-up, cooperative federalism, collaborative |
| Role of states | States were 'recipients' of plan funds | States are 'partners' in development |
| Headed by | PM (Chairman) + Deputy Chairman | PM (Chairperson) + CEO (operational head) |