Question :Explain any two reasons for the formation of the NITI Aayog in place of the Planning Commission by the Union Government.
The correct answer is -The Planning Commission was replaced by the National Institution for Transforming India (NITI) Aayog in 2015. Here are two reasons for this change:
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Shift from central planning to cooperative federalism: The Planning Commission was established in 1950 to formulate and implement five-year plans for the country’s development. However, over time, the role of the Planning Commission became less relevant as the Indian economy transitioned from a centrally planned system to a more market-oriented one. Moreover, the Planning Commission was criticized for its top-down approach, which did not involve states in the planning process. The NITI Aayog was established with the aim of promoting cooperative federalism and involving states in the planning process. The NITI Aayog is a platform for the central government and states to work together to achieve sustainable and inclusive growth.
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Emphasis on outcomes and innovation: The Planning Commission was criticized for its focus on inputs rather than outcomes. The NITI Aayog, on the other hand, has a greater emphasis on outcomes and innovation. The NITI Aayog is responsible for monitoring and evaluating the implementation of policies and programs and recommending innovative solutions to address the country’s development challenges. It also promotes entrepreneurship and innovation in various sectors of the economy. The NITI Aayog’s approach is more flexible and adaptable to the changing needs of the country’s development.