NITI Aayog: For better or for worse?

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“A major task before the NITI Aayog is to actively monitor and evaluate implementation of programmes and initiatives,” said minister of state for planning Rao Inderjit Singh. This transpires to be the principal target of NITI (National Institute for Transforming India) Aayog, which was recently established as the replacement institution of Planning Commission. The hullabaloo leading to the establishment of NITI surrounded mainly on the issue whether a revamp of planning commission would suffice or a necessity arises to replace it entirely. Despite the uproar of several opposition leaders, PM Modi has declared upfront, in his speech on Independence Day, that planning commission would certainly be replaced. The article dwells on the objectives of the resolution and wonders at the possibility of it.

The recent cabinet resolution setting up NITI Ayog, in place of planning commission, states that the Ayog would serve as a think tank, with concentration on policy-making, providing inputs on schemes to be taken up by the central and state governments and to evaluate the implementation of such schemes. The objectives of NITI strike a contrast from those of the Planning Commission, which stressed upon the necessity of appraising the existing resources and formulating a plan to utilize those resources. The distinct ideal behind the two institutions does render validity to the replacement of the planning commission instead of a mere revamp of it.

Taking the resolution on its face value, a focal shift from building a socialist economy to a capitalist economy can be seen. The government looks forward to being an ‘enabler’ of the market rather than being a ‘player’ in the industrial and service sector. The resolution also addresses the issue of suicide of farmers which has been on the rise in the country. The think tank desires to focus on agricultural production as well as actual returns to the farmers, which is an improvement over the planning commission’s goal of self sustenance even in the 68th year of Independence. It is also heartening that the resolution regards the ever increasing population as an asset and wishes to utilize the human capital through ‘policy initiatives’. The perpetually ignored middle-class citizens can now look forward to being potential human resources in the endless march towards development, as the resolution looks to engage them in its push for change in the country. Although villages are given their due importance as being the ‘bedrock’ of India and the necessity of integrating them in the path of reforms to be undertaken is not overlooked, urbanization is also regarded as an ‘integral part of policy for development’.

The above, however, does not mean the global affairs are neglected. The government would like to extend its cherished opinions on global economics and geo-politics through participation in the ‘debates and deliberations’ on the international platform. Through its forethought to include non-residential Indians in future policies their support is also sought in technological and management matters. Involving the critical parties shows the significance given to good governance of the nation. Transparency, considered as an essential component of good governance, is sought to be achieved through effective use of technology to access information regarding the dealings of the government.

Moreover, NITI expressly states that elimination of poverty to be its key goal, as opposed to alleviation of poverty which was the chief aim of the planning commission. Scheduled Castes and Scheduled Tribes are given their due attention while speaking of equal opportunities, the reason being they are a weaker section even after 67 years of independence. Inequalities, gender as well as the economic, are sought to be ‘redressed’ so as to reach the pinnacle of equality. Employment through development of small scale industries are NITIs response to the doubts cropping up with respect to the method of poverty elimination. India’s vast potential in the small enterprise sector is finally recognized by NITI, which is a welcome step. Another healthy improvement is the significance given to sustainable development and safeguard of environment. Preservation of environmental assets so as to leave some for the future generations is commendable any day.

The fundamental distinction that grabs the spotlight is the inclusion of states in the policy making. The erstwhile planning commission framed policies and submitted it to the states for their approval, effectively imposing its policies on the states. The states are now given a chance to make their own policies rather than implement those made by the planning commission. The ‘one-fit-for-all’ sentiment is done away with by NITI, a stark contrast from the views of planning commission. The planning commission slightly leant toward socialism while NITI seeks a ‘co-operative federalism’, a promising step towards development. The situation of five-year plans is still unclear as the resolution does not mention them. However, the resolution states that a ‘national agenda’ would be created as the framework for the policies to be made. Putting it simply, the goal is self-evident; the method however is left to the choice of the respective states.

The Ayog seeks to accomplish the objectives stated in the resolution through few key personnel and interactions with other national and international thin tanks. The composition at present stands thus :

  • Chairman : Prime Minister Narendra Modi
  • Vice-chairman (PM appointee) : Shri Arvind Panagariya, Economist
  • Full-Time Members: Shri Bibek Debroy, Economist & Dr. V.K. Saraswat, Former Secretary Defence R&D
  • Ex-officio members:

Shri Rajnath Singh, Union Minister

Shri Arun Jaitley, Union Minister

Shri Suresh Prabhu, Union Minister

Shri Radha Mohan Singh, Union Minister

  • Special Invitees:

Shri Nitin Gadkari, Union Minister

Shri Thawar Chand Gehlot, Union Minister

Smt. Smriti Zubin Irani, Union Minister

  • Secretary: Sindhushree Khullar

NITI Aayog is playing an entirely different ball-game than planning commission, which might prove to be fanciful. The government has a herculean task ahead to accomplish all its objectives behind setting up of NITI. The interests of all the demographic population has to be taken into account while formulating future policies, as the resolution suggests NITI would become the policy hub of the nation. NITI assures to be the way to development which has been out-of-reach of India for more than 60 years. The deliverance of its promise remains uncertain and one has to wait and see for oneself whether NITI proves to be better or worse!

About the Author

Akhila ReddyAkhila is pursuing her B.B.A. LL.B. from Symbiosis Law School, Pune. She is passionate about law, policy-making and international relations. Her interests extend to books, dance and travelling. Because of her love for research, she is currently interning with the Model Governance Foundation.

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