The NITI Aayog has been generally welcomed. The Planning Commission was truly outmoded and misaligned with India’s contemporary challenges. It is indeed surprising that it was not replaced earlier. The functions of the Planning Commission as outlined on March 15, 1950, obligated it to access material, capital and human resources, formulate a plan for its effective utilisation, settle priorities in allocation of resources and determine the inter se allocation of resources. Thus, apart from allocation of planned resources, it also approved annual plan of states and evolved a Five Year Plan with a mid-term review.
The functions of the NITI Aayog are qualitatively different. It recognises India’s new challenges and opportunities. States have an important role to play in shaping national policies. Besides, the private sector has achieved maturity, capability and vibrancy. Thus “the NITI Aayog will seek to provide a critical directional and strategic input into the development process. This, along with being the incubator of ideas for development, will be...

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