Niti Aayog (Policy Commission) of India

Planning Commission of India

NITI Aayog ( नीति आयोग) or National Institution for Transforming India Aayog, , lit. "Policy Commission," replaces Planning Commission and aims to involve the states in economic policy-making in India. NITI Aayog will seek to provide a critical directional and strategic input into the development process. The Prime Minister heads the Aayog as its chairperson. NITI Aayog was formed on 1 January 2015 by Prime Minister Narendra Modi.

The Finance Commission of India came into existence in November 1951. It was formed to define the financial relations between the centre and the state. The Constitution requires the President to constitute a fresh panel every fifth year or earlier. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.

The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is sought to be replaced by a genuine and continuing partnership of states. NITI Aayog will emerge as a “think-tank” that will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.

The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong Nation.

The NITI Aayog will develop mechanisms to formulate credible plans to the village level and aggregate these progressively at higher levels of government.

In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and focus on technology upgradation and capacity building.

The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and partners.

Members of the NITI Aayog:

  • Prime Minister of India as the Chairperson;
  • Governing Council comprising the Chief Ministers of all the States and union territories with legislature and lieutenant governors of other Union Territories;
  • Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will be consist of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee;
  • Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister;
  • Full-time organizational framework (in addition to Prime Minister as the Chairperson) comprising -
    1. Vice-Chairperson;
    2. Two Full-time Members;
    3. Maximum of two  part-time members from leading universities research organizations and other relevant institutions in an ex-officio capacity;
    4. Ex Officio members, maximum of four members of the Union Council of Ministers to be nominated by the Prime Minister;
    5. Chief Executive Officer too be appointed by the Prime Minister for a fixed tenure;
    6. Secretariat as deemed necessary