NITI Aayog & Planning — Set 1

Correct Answer: A. January 1, 1950

The Planning Commission of India was established on January 1, 1950 by a Resolution of the Government of India. It was a non-constitutional, non-statutory advisory body. The Prime Minister served as its ex-officio Chairman. Jawaharlal Nehru was its first de facto Chairman.

Correct Answer: B. Gulzarilal Nanda

Gulzarilal Nanda was the first Deputy Chairman of the Planning Commission of India. He served in this role from 1950 to 1963. The Deputy Chairman held Cabinet rank and was the effective head of day-to-day operations. The Prime Minister, being the Chairman, did not attend routine meetings.

Correct Answer: B. January 1, 2015

NITI Aayog (National Institution for Transforming India) replaced the Planning Commission on January 1, 2015. Prime Minister Narendra Modi announced this decision on December 31, 2014 in his Mann Ki Baat radio address. The Planning Commission had been in existence for 65 years. This marked a major shift from centralized planning to cooperative federalism.

Correct Answer: A. National Institution for Transforming India

NITI stands for National Institution for Transforming India. The full name is NITI Aayog — National Institution for Transforming India Aayog (council). It was established to foster cooperative federalism between the Union and State governments. NITI Aayog serves as a think tank for the government rather than a fund-allocating body.

Correct Answer: C. Prime Minister of India

The Prime Minister of India is the ex-officio Chairperson of NITI Aayog. This continues the tradition from the Planning Commission where the PM was also the Chairman. Currently Prime Minister Narendra Modi chairs NITI Aayog. The Vice-Chairperson is the effective day-to-day head appointed by the Prime Minister.

Correct Answer: C. Suman Bery

Suman Bery was appointed as the Vice-Chairperson of NITI Aayog in May 2022, succeeding Rajiv Kumar. He is a veteran economist who previously served at the World Bank and NCAER. Before Suman Bery, Arvind Panagariya was the first VC (2015–2017), followed by Rajiv Kumar (2017–2022). The VC holds Cabinet Minister rank.

Correct Answer: C. B.V.R. Subrahmanyam

B.V.R. Subrahmanyam was appointed CEO of NITI Aayog in January 2023. He is a 1987-batch IAS officer of the Chhattisgarh cadre who earlier served as Union Commerce Secretary. Before him, Parameswaran Iyer served as CEO. The CEO of NITI Aayog is of Secretary rank in the Government of India.

Correct Answer: C. Twelve

The Planning Commission formulated twelve Five Year Plans in total. The First Plan covered 1951-56 and the Twelfth Plan covered 2012-17. However, several Annual Plans were also prepared when Five Year Plans were interrupted. After NITI Aayog replaced the Planning Commission in 2015, the concept of Five Year Plans was discontinued.

Correct Answer: B. Harrod-Domar Model

The First Five Year Plan (1951-56) was based on the Harrod-Domar Model of economic growth. This model emphasized that the growth rate depends on the savings rate and the incremental capital-output ratio (ICOR). The plan focused on agriculture, irrigation, and power. It was drafted by K.N. Raj and largely exceeded its targets.

Correct Answer: C. Mahalanobis Model

The Second Five Year Plan (1956-61) was based on the Mahalanobis Model, developed by Professor P.C. Mahalanobis. This model emphasized rapid industrialization through heavy capital goods industries. It proposed allocating a larger share of investment to the capital goods sector to achieve self-reliance. Mahalanobis was the chief architect of Indian planning and founder of the Indian Statistical Institute (ISI).