NITI AAYOG
India is changing. We see visible
changes in multitude of factors, societal, economic, cultural and political.
The country has made significant progress after freedom and we have achieved
huge economic growth, increased living standard. There is a consumerist middle
class thriving.
Now! India is
counted in developing countries; it runs by only superb policies, scheme and
best body of members. The ‘Planning Commission’ is very important among all of
them. It set up in 15 March, 1915, by Late Pt Jawaharlal Nehru. In that time 12
Five-Year Plans and 6 Annual Plans were involving fund outlays of over Rs 200
lakh crore. It is said that at the time of setting up a commission for planning
purpose the Late Pt Jawaharlal Nehru had to face a lot of resistance and in
that case the commission was needed, because resources of country had to be
exploited well, as Nehru had explained. At last, Nehru tried and he succeeded
in his achievement.
The first
Five-Year Plan launched in 1951 with a total outlays of a little over Rs 2000
crore. The second and third Five-Year Plans that drought and devaluation of
currency rise in price and erosion of resources. As we can see no planning
could be possible between 1966 and 1969. After three Five-Year plan, the forth
was started in 1969. And between 1966 and 1969, the three Annual Plans were
formulated. Again, between 1990 and 1992 no Five-Year Plan could be possible
due to fast- changing situation at the centre and only two annual plans could
be possible. In its 65 years, it gave us 12 Five-Year Plans and 6 annual plans,
since the Planning Commission was the brainchild of Late Pt Jawaharlal Nehru,
doing away with the Planning Commission may be called the demise of Nehru era.
Now, the country has been stuck to the same
economic policy. Ever since a nerd was felt that the planning commission should
go. It was nothing more than, a ‘White Elephant’ in the later stage (even the
senior congress leaders thought so) if it has been replaced with “the NITI
Aayog”, it has been done. Out of necessity the factors that hider the growth.
On the first day of the New Year, Modi
government set up NITI Aayog in place of planning commission. The Prime
Minister would head the new institute tasked with the role of formulating policies
and direction for government. Its governing council will comprise state, Chief Ministers
and Governors of Union Territories.
The Prime Minister will
appoint the Aayog’s Vice-chairperson and CEO. Asian development Bank’s former
chief economist Arvind Panagariya is tipped to be first
Vice-chairperson. Transforming India, it further states, would involve changes
of two types- consequences of market forces and those that would be planned. “The
maturing of our institutions and polity also entails a diminished root for
centralized planning, which itself needs to be redefined.
Enabling
legislation
The role of Government as a player in industrial and service
sectors is proposed to be reduced “instead, Government has to focus on enabling
legislation, policy making and regulation”. India’s middle class, including the
neo-middle class, is unique in term of its size and purchasing power, our
continuing challenge is to ensure that this economically vibrant group remains
engaged and its potential is fully realised. Policy-making must focus on
providing necessary support to the more than 50 million small businesses, which
are major source of employment creation, in term of skill and knowledge.
India’s
Planning Commission will be renamed ‘NITI Aayog’ as part of a restructuring
plan announced by Prime Minister Narendra Modi in his Independence Day speech.
NITI is an acronym for ‘National Institution for Transforming India’. The new
plan body will have up to five full time members and four union ministers. The
permanent members are expected to be experts from various fields. The change
comes almost 65 years after India’s first Prime Minister Jawaharlal Nehru, a
socialist who admired Joseph Stalin’s drive to industrialize the Soviet Union,
set up and chaired the comission to map
out a development part for India’s agrarian economy. The Prime Minister, who
was its chairman earlier this month he held discussion with chief ministers on
replacing the body with a “Team India” concept that would give states a greater
role in developing Asia’s third largest economy.
Prime Minister is taking
keen interest in functioning of the Aayog, which will help the government in
taking several policy initiatives in near future. It will also give inputs for
the forthcoming budgets. The Aayog next month would provide a road map for
country’s social and economic development. The Aayog plans to draw the basis of
long-term social and econimic policies after consulting stakeholders. These
policies will not be imported from developed countries, but will reflect
India’s ground reality.
For example, the Aayog will frame an integrated
energy policy soon, which will cover all related aspects including climate
change issues. Before framing a long-term vision and action plan for the
country energy security, the Aayog will float a discussion paper, which will
help it in wider consolation on the matter. Similarly, the Aayog will help in
framing comprehensive policies related to health, education and agriculture.
The meaning of ‘NITI Aayog’ in (Hindi: नीति) means policy, and Aayog
(Hindi: आयोग) means Commission.
present Members
the various members of NITI Aayog are:
1.
Chairperson: Prime Minister Narendra Modi
2.
CEO: Sindhushree khullar
3.
Vice
chairperson: Arvind Panagaria
4.
Ex-Officio
Members: Rajnath Singh, Arun Jaitely,
Suresh Prabhu and Radha Mohan Singh.
5.
Special
invitees: Nitin Gadkari, Smirti
Zubin Irani and Thawar Chand Gehlot.
6.
Full-time
Members: Bibek Debroy and V.K Saraswat
7.
Governing
Council: All Chief Ministers and
Lieutenant Governors of Union Territories.
Difference between NITI Aayog and Planning Commission
Financial clout
NITI Aayog - To be an advisory body, or a think-tank. The
powers to allocate funds might be vested in the finance ministry
Planning Commission - Enjoyed the powers to allocate funds
to ministries and state governments
Full-time members
NITI Aayog - The number of full-time members could be fewer
than Planning Commission
Planning Commission - The last Commission had eight
full-time members
States' role
NITI Aayog - State governments are expected to play a more
significant role than they did in the Planning Commission
Planning Commission - States' role was limited to the
National Development Council and annual interaction during Plan meetings
Member secretary
NITI Aayog - To be known at the CEO and to be appointed by
the prime minister
Planning Commission - Secretaries or member secretaries
were appointment through the usual process
Part-time members
NITI Aayog - To have a number of part-time members,
depending on the need from time to time
Planning Commission - Full Planning Commission had no
provision for part-time members
Constitution
NITI Aayog - Governing Council has state chief ministers
and lieutenant governors.
Planning Commission- The commission reported to National
Development Council that had state chief ministers and lieutenant governors.
Organization
NITI Aayog - New posts of CEO, of secretary rank, and
Vice-Chairperson. Will also have five full-time members and two part-time
members. Four cabinet ministers will serve as ex-officio members.
Planning Commission - Had deputy chairperson, a member
secretary and full-time members.
Participation
NITI Analog- Consulting states while making policy and
deciding on funds allocation. Final policy would be a result of that.
Planning Commission- Policy was formed by the commission
and states were then consulted about allocation of funds.
Allocation
NITI Aayog- No power to allocate funds
Planning Commission- Had power to decide allocation of
government funds for various programmes at national and state levels.
Nature
NITI Aayog- NITI is a think-tank and does not have the
power to impose policies.
Planning Commission- Imposed policies on states and tied
allocation of funds with projects it approved.
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