NITI Aayog replaced the Planning Commission as the new government think tank in India. It will serve as an advisory body to provide strategic and technical advice to central and state governments. Unlike the Planning Commission, NITI Aayog will not allocate funds directly but will instead focus on cooperative federalism, developing a shared national agenda in consultation with states, and monitoring key government programs and policies. It has a smaller full-time staff than the Planning Commission and involves states more in planning.

1. NITI Aayog
Overview, Meaning, Composition, Objectives And Difference

2. Overview
▪ The Planning Commission was an institution formed in
March 15, 1950 by Government of India, which
formulated India's Five-Year Plans, among other functions.
It was established in accordance with article 39 of the
constitution which is a part of directive principles of state
policy.
▪ On 1st January, 2015 Cabinet resolution replaced Planning
Commission to NITI Aayog (National Institution for
Transforming India).
▪ And on February 8, 2015 The first meeting of NITI Aayog
was chaired by Narendra Modi.

3. Meaning
▪ This Aayog will serve as ‘Think-Tank’ that will provide
governments at the central and state levels with the
relevant strategic and technical advice on the key policy
issues.
▪ NITI Aayog will develop a common minimum national
agenda and then provide guidance to states in designing
the state specific agenda in accordance with the national
agenda.
▪ Instead of being in the controlling seat, is going to provide
a direction. It is going to be an ‘enabler’ instead of a
‘provider of first and last resort’.

4. Composition of NITI Aayog
1. Chairperson :- Prime Minister
2. Vice Chairperson :- Presently, Arvind Panagariya
3. Governing Council :- Chief Ministers (States) And Lt.
Governors (Uts)
4. Regional Council :- Formed on Need Basis, Comprising
of CMs and Lt. Governors of the region
5. Full-Time Members :– Two (Presently – Shri Bibek
Debroy and Dr. V.K. Saraswat)

5. Composition of NITI Aayog
6. Part-Time Members :- Maximum two, from leading
universities, research organizations or other relevant
institutions on rotation basis.
7. Ex-Officio Members :- Maximum of 4 members of Union
Council of Ministers nominated by Prime Minister.
8. Special Invitees :- Experts, Specialists, Practitioners with
specific knowledge.
9. Chief Executive Office :- For fixed tenure, person with rank
of Secretary to the Government of India.
10. Secretariat :- As deemed necessary.

6. Objectives
1. Shared National Agenda :- To determine national
development priorities and frame strategies for various
economic sectors, with the active involvement of states.
It will also design a ‘National Agenda’ for the Prime
Minister and Chief Ministers.
2. Cooperative and Competitive Federalism :- Recognizing
that strong states make a strong nation, to engage the
states in planning on a continuous basis and encourage
cooperative federalism.

7. Objectives
3. Decentralized Planning :- To develop mechanism to
formulate plans at the village level and aggregate these
plans progressively at higher levels of government.
4. Collabration :- To monitor the implementation and
evaluation of key projects of government like ‘Make In
India’, ‘Digital India’, ‘Swachh Bharat Programme’, etc in
the collaboration with the state governments.

8. Objectives
5. National Security :- To insure that the interest of
national security is given due importance while making
economic policy.
6. Settlement of Disputes :- To resolve inter-sectoral and
inter-departmental issues in order to accelerate the
implementation of national and regional development
programmes.

9. Objectives
7. Benefit To All Section :- To pay special attention to the
sections of society that are not adequately benefitted
from the economic progress.
8. Encourage Participation :- To encourage participation of
main stakeholders, educational and research institutions,
national and international experts and practitioners.

10. Objectives
9. Long Tem Policies :- To design strategic and long term
policies and programmes and to monitor their progress
regularly. The lessons learnt through monitoring and
feedback will used for making improvement and mid-
term corrections.
10. Technology Upgradation :- To focus on technology
upgradation and capacity building for better
implementation of development programmes.

11. Objectives
11. Knowledge and Innovation :- To establish and maintain
a revealing resource and research centre on ‘Good
Governance and Best Practices’ and help in
dissemination of its ideas/suggestions to various
stakeholders.
12. Other Activities :- To undertake other activities, as may
be necessary for better implementation of national
development programmes and to achieve their
objectives.

12. Difference Between Planning
Commission And NITI Aayog
Basis of
Difference
NITI Aayog Planning Commission
1. Nature of
Work
Will work as an advisory body
or think-tank. It will provide
governments at the Central and
State government. But it will
not have powers to allocate
funds to centre or state
government. This power will be
vested in Finance Ministry.
It enjoyed the power to
allocate funds to center and
state governments. It also
worked as advisory body.
So, the work of Planning
Commission was more
comprehensive.
2. Full-Time
Members
The number of full time
members will e less than
planning commission. It is a
smaller body.
It was comparatively a large
body. Last Planning
Commission had eight full
time members.

13. Difference Between Planning
Commission And NITI Aayog
Basis of
Difference
NITI Aayog Planning Commission
3. Role of
States
States governments will have
more power and freedom in
framing state plans. It will
promote cooperative
federalism.
State governments enjoyed
less powers in designing
state plans. They had to get
approval from Planning
Commission for finalizing
their state plans
4. Part-Time
Members
Maximum two, from leading
universities, research
organizations or other relevant
institutions on rotation basis.
Planning Commission had
no provision for part time
members.
5. Appointm
ent of
Secretary
Will be known as Chief
Executive Officer and will be
appointed by PM.
Members and Member
Secretary were appointed
through usual process.