Niti Aayog vs Planning Commission: Difference and Comparison

Key Takeaways

1. The National Institution for Transforming India, commonly known as Niti Aayog, is a pivotal policy established on January 1, 1915.
2. The Planning Commission of India was a crucial institution in the country’s landscape for over six decades, from 1950 to 2014.
3. Niti Aayog is a think tank facilitating cooperation between the central government, state government and key stakeholders. At the same time, the Planning Commission was a centralized, top-notch institution that operated under the direct control of the central government.

What is Niti Aayog?

The National Institution for Transforming India, commonly known as Niti Aayog, is a pivotal policy think tank established on January 1, 1915, replacing the erstwhile planning commission. Niti Aayog’s inception marked a significant shift in India’s economic and social planning approach, emphasizing cooperative federalism, innovation and adaptability.

Its primary objective was to facilitate sustainable and inclusive growth across various sectors of the economy. It acts as a platform for collaboration between the central government, state government and key stakeholders.

One of Niti Aayog’s notable initiatives is the ‘Three-Year-Action-Agenda’, which provides a comprehensive roadmap for India’s development. This agenda emphasizes critical areas such as healthcare, education, infrastructure and environmental sustainability.

What is Planning Commission?

The Planning Commission of India was a crucial institution in the country’s policy landscape for over six decades, from 1950 to 2014. Its primary role was formulating and implementing Five-Year Plans to guide India’s economic and social development.

Established under the leadership of Jawaharlal Nehru, the planning commission was tasked with achieving specific economic targets and promoting equitable growth. It operated through a centralized planning approach, allocating resources, setting targets, and monitoring progress across various sectors, including agriculture, industry, and social welfare.

One of the notable achievements of the planning commission was the Green Revolution, which transformed India’s agricultural landscape by introducing high-yielding crop varieties and modern farming techniques.

Difference Between Niti Aayog and Planning Commission

1. Niti Aayog is a think tank facilitating cooperation between the central government, state government and key stakeholders. At the same time, the Planning Commission was a centralized, top-notch institution that operated under the direct control of the central government.
2. Niti Aayog must be able to allocate funds as it focuses on policy formulation and offers recommendations. In contrast, the planning commission can allocate funds for specific projects and programs.
3. Niti Aayog advocated for a more flexible and adaptable planning approach. In contrast, the planning commission followed a centralized planning approach, formulating detailed Five-Year plans covering various economic sectors.
4. Niti Aayog strongly emphasizes fostering innovation and entrepreneurship through initiatives like the Atal Innovation Mission and Startup India. At the same time, the planning commission did not specifically focus on promoting innovation and entrepreneurship.
5. Niti Aayog aligns India’s policies with domestic and global development objectives, including the Sustainable Development Goals, while the planning commission primarily focuses on domestic development goals and targets.

Comparison Between Niti Aayog and Planning Commission

Parameters	Niti Aayog	Planning Commission
Nature and Structure	Facilitates cooperation between central, state government and key stakeholders	A centralized, top-notch institution that works under the direct control of the central government
Allocation of Funds	Does not have the power to allocate funds	Authority to allocate funds for specific projects and programs
Planning Approach	Advocates for a more flexible and adaptable planning approach	Advocates for a centralized planning approach
Innovation and Entrepreneurship	Strong emphasis on fostering innovation and entrepreneurship	Did not have a specific focus on promoting innovation and entrepreneurship
Approach to development goals	Aligns India’s policies with both domestic and global development objectives	It was primarily focused on domestic development goals and targets.

References

1. https://www.jstor.org/stable/24481536
2. https://www.multidisciplinaryjournal.in/assets/archives/2017/vol2issue4/2-4-79-264.pdf