NITI Aayog- A Think Tank Replaces the Planning Commission: A Review

A newly formed nation, freshly out of the adverse conditions created by the struggles of independence, partition and the World War II, with scarce resources and the responsibility to build a strong economy, had a difficult growth path ahead. It immediately needed formulation of a strong strategy to deal with its socio-economic issues and the planning commission was constituted by late Prime Minister Jawaharlal Lal Nehru. For 65 years, the Planning Commission served India via its five year plans and laid the foundation of a strong mixed economy. However, the concept of planning changed from directive planning towards indicative planning after economic reforms of 1991. The world economy too changed drastically and in this scenario, the planning commission began running out of course. Realizing the need of the hour - to step up the pace of development and meet the sustainable development goals - The NITI Aayog (National Institution for Transforming India) was formed to replace the planning commission.

This study reviews the major achievements of the planning commission. It highlights the reasons for replacing the planning commission with NITI Aayog. The major differences in the policy approach of the two have been highlighted. It is a study of the objectives of the NITI Aayog and its achievements since inception in light of the arguments on the basis of which it was constituted.