The new National Institution for Transforming India (NITI) will act more as a think tank providing advice and recommendations to the Prime Minister, in contrast to the previous Planning Commission which imposed five-year plans and allocated resources. NITI will include leaders from India's 29 states and seven union territories, and will be headed by the Prime Minister. It will focus on decentralized planning, supporting states, knowledge sharing, capacity building, monitoring and evaluation, and coordinating different levels of government. However, some argue it lacks accountability, long-term vision, and mechanisms for overseeing human development.

1. The new National Institution for Transforming India (NITI) will act more like a Think-Tank or forum, say its
supporters, in contrast with the Commission which imposed five-year-plans and allocated resources to hit set
economic targets. NITI will include leaders of India's 29 states and seven union territories. But its full-time staff -
a deputy chairman, Chief Executive Officer and experts - will answer directly to the Prime Minister, who will be
chairman.
KEY HIGHLIGHTS OF NITI AAYOG
1. Decentralized Planning: Restructure the planning process into a bottom-up model, empowering States, and
guiding them to further empower local governments; in developing mechanisms to formulate credible plans at
the village level, which are progressively aggregated up the higher levels of government.
2. State’s Best Friend at the Centre: Support States in addressing their own challenges, as well as building on
strengths and comparative advantages. This will be through various means, such as coordinating with Ministries,
championing their ideas at the centre, providing consultancy support and building capacity
3. Knowledge and Innovation hub: Be an accumulator as well as disseminator of research and best practices on
good governance, through a state-of-the-art Resource Centre which identifies, analyses, shares and facilitates
replication of the same.
4. Capacity building: Enable capacity building and technology up-gradation across government, benchmarking with
latest global trends and providing managerial and technical knowhow.
5. Internal Consultancy: Offer an internal consultancy function to central and state governments on policy and
program design; providing frameworks adhering to basic design principles such as decentralization, flexibility and
a focus on results. This would include specialised skills such as structuring and executing Public Private
Partnerships.
6. Governance: Nurture an open, transparent, accountable, pro-active and purposeful style of governance,
transitioning focus from Outlay to Output to Outcome
7. Monitoring and Evaluation: Monitor the implementation of policies and programmes, and evaluate their impact;
through rigorous tracking of performance metrics and comprehensive program evaluations. This will not only help
identify weaknesses and bottlenecks for necessary course correction, but also enable data-driven policy making;
encouraging greater efficiency as well as effectiveness.
8. Harmonization: Facilitate harmonization of actions across different layers of government, especially when
involving cross-cutting and overlapping issues across multiple sectors; through communication, coordination,
collaboration and convergence amongst all stakeholders. The emphasis will be on bringing all together on an
integrated and holistic approach to development.
9. Network of Expertise: Main-stream external ideas and expertise into government policies and programmes
through a collaborative community of national and international experts, practitioners and other partners. This
would entail being Government’s link to the outside world, roping in academia (universities, think tanks and
research institutions), private sector expertise, and the people at large, for close involvement in the policy making
process. As is said in the Rigveda- let us welcome noble thoughts flowing in from all directions.

2. Merits of Niti Aayog
1. Improving relationship between state and center government
2. More of part time member which will be called at the time of requirement
3. No power to allocate funds and start policy
4. They have a very diversified way of working and committee members represent
different areas.
5. Paying special attention to the backward areas and villages.
6. It has been suggested that allocation of Plan resources could be tasked to the Finance
Commission, which is required to make recommendations regarding the sharing of
Union taxes, principles governing grants-in-aid to states and transfer of resources to
local bodies, and any other issue that has a bearing on Centre-state financial relations.
7. It is flexible and a lean Aayog that works with other specialized think tanks in addressing
India’s policy challenges
8. This will be great help for involving PPP projects in infrastructure which are lacking
behind.
9. . It has to respond to the evolving needs and concerns, especially for a society in
transition. By divorcing the allocative role from the agency’s policy advisory functions
will make that agency a toothless tiger.
10.Its focus on infrastructure development was marred by turf-wars with ministries and
implementation delays. Though it found resources to speed up social sector
development (education) and for social security (NREGA) by expanding centrally-
sponsored schemes, the next round of results are less likely to come from more of the
same approach.

3. Demerits of NITI AAYOG
1. Planning commission used to monitor of human development in the States, Sub-plans for women, SC
and ST. Niti Aayog doesn’t say how they’ll do it.
2. Like PC, NITI Aayog too is a non-Constitutional, non-statutory body formed by a cabinet resolution. It is
not accountable to parliament, and if line-ministries fail to achieve targets, NITI Aayog cannot punish
them.
3. Niti Aayog should have been created through a legal/Constitutional amendment. There should be a
perspective plan spanning for 15 to 20 years. Otherwise, what if another party comes into power and
dismantles this?
4. At present we’ve 60+ centrally sponsored schemes. Modi aims to combine them into just 10 schemes.
Thus, poor and marginalized communities will suffer.
5. It’ll take minimum 6-8 months for Niti Aayog to set things in motion. In between that time,
Development will be halted due to paucity of funds and ideas.
6. Planning commission and NDC decided “special category states” and gave them additional funding to
help the poor and backward regions. With advent of Niti Aayog, will those states lose their ‘status’ and
extra-funding? Uncertainty prevails.
7. Niti Aayog will conflict with Cabinet Secretariat (for inter-ministerial coordination) and constitutional
body Inter State Council (for coordination with states).
8. Planning commission used to monitor of human development in the States, Sub-plans for women, SC
and ST. Niti Aayog doesn’t say how they’ll do it.
9. Modi distributed the planning-Expenditure function to FinMin and subject matters to respective
ministries. This will result in loss of perspective and long-term view. Now State governments will have
to lobby at both type of ministries to get funds released.
10. From union territory only Lieutenant Governors invited. CM of Delhi and Puducherry can’t participate
in Governing council.