Model Answer

Introduction

The establishment of NITI Aayog in 2015, replacing the Planning Commission, marked a paradigm shift in India’s development strategy—from a top-down centralized planning model to a bottom-up, participatory governance framework. It functions as an advisory think tank aimed at fostering cooperative and competitive federalism.

Shift in Approach: From Planning Commission to NITI Aayog Decentralization: Unlike the Planning Commission, NITI Aayog promotes a bottom-up approach, incorporating inputs from States. Cooperative Federalism: States are treated as equal partners, with platforms like the Governing Council. Competitive Federalism: Ranking-based indices (SDG Index, Health Index) encourage healthy inter-state competition. Think Tank Role: Focus on policy innovation, research, and strategic inputs rather than fund allocation. Role in India’s Policy-Making Architecture

1. Strategic Policy Formulation

Designs long-term frameworks such as Strategy for New India @75. Aligns national goals with SDGs and global commitments.

2. Knowledge and Innovation Hub

Acts as a repository of best practices. Initiatives like Atal Innovation Mission (AIM) promote entrepreneurship.

3. Monitoring and Evaluation

Tracks performance of schemes like the Aspirational Districts Programme, improving governance outcomes.

4. Promoting Federalism

Facilitates Centre-State collaboration through structured dialogue platforms. Significance of Recent Restructuring

The recent reconstitution of NITI Aayog, with the induction of experts from health, biotechnology, and deep tech, signals a strategic shift:

From economist-heavy to multidisciplinary expertise Focus on R&D, emerging technologies, and innovation ecosystems Supports initiatives like improving the Ease of Doing Research Reflects the need for adaptive and future-ready policymaking

👉 This aligns NITI Aayog with India’s ambitions of becoming a knowledge-driven economy.

Challenges and Limitations Advisory Nature: Lacks statutory backing and cannot enforce policies No Financial Powers: Unlike the Planning Commission, it cannot allocate funds → limits influence Implementation Gap: Relies on ministries and states for execution Politicisation Concerns: Perceived central dominance may affect true federal spirit Overlap with Ministries: Role ambiguity in certain sectors Way Forward Strengthen its institutional autonomy and capacity Enhance data-driven policymaking and evaluation mechanisms Foster deeper state-level engagement and ownership Integrate private sector and global expertise more effectively Conclusion

NITI Aayog has emerged as a key driver of cooperative and competitive federalism, transforming India’s policy ecosystem into a more inclusive and innovation-oriented framework. However, to fully realize its potential, it must evolve into a more empowered, agile, and implementation-linked institution, capable of addressing the complexities of a rapidly changing global and domestic landscape.