NITI Aayog and Planning Commission: An Overview NITI Aayog

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Aakriti sharma

24-10-2025

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NITI Aayog and Planning Commission: An Overview

NITI Aayog (National Institution for Transforming India) is a think tank of the Government of India that provides policy advice, research, and evaluation support to the government.
It was established on 1st January 2015, replacing the Planning Commission.



🧭 Main Objectives
1. Promote cooperation between the central and state governments in preparing policies and development plans.
2. Give states more autonomy to design plans according to their specific needs.
3. Formulate long-term policies for the economic, social, and technological development of the country.
4. Provide policy suggestions based on data and research.
5. Assist in achieving Sustainable Development Goals (SDGs).



🏛️ Structure
• Chairperson: Prime Minister of India
• Vice-Chairperson: Appointed by the Prime Minister
• Members: Full-time and part-time members
• Chief Executive Officer (CEO): Appointed by the central government
• Governing Council: Chief Ministers of all states and Union Territories



⚙️ Key Functions
1. Provide policy advice to the government.
2. Promote cooperative federalism.
3. Formulate new programs and initiatives, such as:
• Atmanirbhar Bharat (Self-Reliant India)
• Digital India
• Make in India
4. Promote innovation, e.g., Atal Innovation Mission (AIM).
5. Monitor and evaluate the progress of various programs.



🧩 NITI Aayog vs Planning Commission

Aspect Planning Commission NITI Aayog
Year of Establishment 1950 2015
Purpose Create Five-Year Plans and allocate funds Policy formulation, innovation, and state cooperation
Nature Centralized (Top-down) Cooperative (Bottom-up)
Chairperson Prime Minister Prime Minister
Role of States Limited Active, with mandatory participation
Key Function Allocate funds and plans Policy-making, evaluation, and promoting innovation
Fund Allocation Distributed by the Commission Does not allocate funds, only advises
Structure Permanent members and Deputy Chairman Vice-Chairperson, full-time/part-time members, CEO
Approach Top-down Bottom-up
Focus Economic planning Policy, innovation, and development guidance




📘 Summary
• Planning Commission: A centralized body responsible for fund allocation and plan creation.
• NITI Aayog: A policy advisory, cooperative, and innovation-driven think tank.
• Planning Commission followed a top-down approach, while NITI Aayog follows a bottom-up, cooperative approach.
• Both are headed by the Prime Minister.

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