NITI Aayog, short for the National Institution for Transforming India, is a policy think tank of the Government of India, established to foster cooperative federalism through a bottom-up approach to economic planning. It was formed on January 1, 2015, replacing the Planning Commission, to better serve the needs and aspirations of the people of India. NITI Aayog aims to involve the states in the economic policy-making process and to promote sustainable development, innovation, and entrepreneurship across the country. The institution plays a pivotal role in formulating strategic and long-term policies and programs, providing relevant technical advice to the central and state governments, and facilitating inter-departmental and inter-ministerial coordination.

NITI Aayog, the National Institution for Transforming India, was established on January 1, 2015, replacing the Planning Commission. The need for a new institution arose as India's economy evolved, and it became clear that a more flexible and inclusive approach to policy formulation was required. The Planning Commission's centralized and rigid five-year plans were no longer seen as effective for addressing India's diverse and dynamic economic landscape.

Key Points

Reason for Establishment

The Planning Commission's centralized approach was criticized for being inflexible and not catering to the diverse needs of India's states.

Prime Minister Narendra Modi, in August 2014, announced the intention to create a new institution focused on policy innovation and cooperative federalism.

Formation