The Evolution and Impact of Planning Commissions: Shaping Societies for a Better Future

Introduction:

In the intricate tapestry of a nation’s development, the role of a Planning Commission was akin to that of an architect envisioning and designing the blueprint for progress. The concept of a Planning Commission has been pivotal in the developmental, steering economic growth, social equity, and sustainable development. This blog explores the evolution, functions, and impact of Planning Commissions around the world.

Understanding the Planning Commission:

A Planning Commission was a government agency responsible for formulating and implementing comprehensive plans, policies, and programs to promote the socio-economic development of a nation. The genesis of such institutions can be traced back to the mid-20th century, with India’s Planning Commission being one of the earliest and most prominent examples.

History of Economic Planning in India

The concept of Planning Commissions gained prominence after World War II when countries sought effective ways to rebuild and develop their economies. India established its Planning Commission in 1950, with the vision of fostering a mixed economy and reducing socio-economic disparities. However, over time, several countries, including India, have reevaluated the relevance and efficiency of such centralized planning bodies.

• 1909 – Gandhi’s book (Hind Swaraj)
• 1934 – M. Visvesvaraya Plan
• 1938 – Nehru’s Congress plan
• 1934 – FICCI proposal (Federation of Indian Chambers of Commerce & Industry)
• 1944 – Bombay Plan
• 1944 – Gandhian Plan – Sriman Naryan Agarwal
• 1945 – MN Roy’s People Plan – socialist plan
• 1950 – Sarvodaya Plan – Jayaprakash Naryan

 

Planning Commission – 15 March, 1950

• Pm was the chairman – Jawahar Lal Nehru.
• It will make assessment of the material, Capital and human resource of the country.
• Formulate a plan for the most effective and balanced utilization of the country resources.
• Determination of priorities and focus on economic development
• It even encroached upon the constitutional body like finance commission and not being accountable to the parliament.
• The states were liable for being monitored by the PC concerning their performance regarding targets.
• It was a extra constitutional & non – statutory & advisory body.
• It believed in top – down approach’ to planning.

National Development Council – 6 Aug 1952

 

• All the plans made by the PC have to be approved by National Development Council first.
• It was constituted to build co – operation between the state and PC for economic planning.
• PM is the ex – office chairman of NDC.
• To consider the proposal formulated for plans at all important stages and accept them.
• To secure the active participation and cooperation of the people.

 

Functions of a Planning Commission:

1. Long-term Planning: Planning Commissions are instrumental in formulating long-term plans that outline a country’s economic, social, and environmental goals.
2. Resource Allocation: They play a crucial role in allocating resources efficiently, ensuring optimal utilization for various sectors like education, healthcare, infrastructure, and industry.
3. Poverty Alleviation: Many Planning Commissions focus on poverty reduction and social welfare programs, aiming to uplift marginalized sections of society.
4. Public-Private Partnerships: Facilitating collaboration between the public and private sectors is a common function, fostering economic growth through investments and innovation.
5. Monitoring and Evaluation: Regular assessment of plan implementation and its impact on society is integral to the commission’s

Impact and Criticisms:

1. Some argue that centralized planning can be inflexible and bureaucratic, hindering the adaptability required in a rapidly changing global landscape.
2. The shift in economic ideologies towards more market-oriented approaches has led several countries to dismantle or reform their planning commissions.
3. GDP fell while food inflation & NPA rose during 2008-2013
4. Pc was a toothless body, couldn’t punish any govt org it targets failed
5. Failed to implement land reform, labor laws
6. PC designed Govt schemes with ‘one size fits’ all approach.
7. Pc tried to bypass state Govt by designing schemes states became unenthusiastic about implementing Central schemes

Conclusion:

Planning Commissions, with their noble objectives and ambitious plans, have played a crucial role in shaping the destiny of nations. The ongoing debate surrounding their efficacy highlights the need for adaptable and dynamic approaches to development. As we navigate the complex challenges of the 21st century, the lessons learned from the history and evolution of Planning Commissions can guide us towards more inclusive, sustainable, and resilient models of development.

NITI Aayog

NITI Aayog, or the National Institution for Transforming India, is a policy think tank of the Government of India that was established on January 1, 2015, to replace the Planning Commission. NITI Aayog serves as a platform for formulating and implementing strategies to foster economic development and address various issues facing the country.

CONSTITUTION

NITI Aayog was formed via a resolution of the Union Cabinet on 1 January 2015. It is the premier policy think tank of the Government of India, providing directional and policy inputs. Apart from designing long-term policies and programmes for the Government of India, NITI Aayog also provides relevant strategic and technical advice to the Centre, States, and Union Territories. NITI Aayog acts as the quintessential platform for the Government of India to bring States to act together in national interest and thereby foster cooperative federalism.

 

NITI ayog – National Institution for transforming India

1. Members
2. Chairman – Prime Minister
3. Born – 1 Jan 2015
4. Vice Chairman – Suman Bery….
5. CEO – Parmeswaram Iyer
6. Ministry – MO Planning

Members –

• Governing Council –
• earlier it was NDC ( Co operative federalism)
• Chairman – Prime Minister
• Member – CM of all state & Lt. Gov of UT, CM of Delhi & Pondicherry

 

• Regional Council –
• Whenever required it will be formed by PM
• address specific issues & impacting more than one state or region eg irrigation Canal etc
• It will be jointly headed by one of the group CM & PM or Central Minister nominated by PM

 

(C) Special Invites – It will have experts, specialist Pm can invite other expert whenever needed Eg. Union Minister for transport, social invites

 

(d) Full Time Member –

 

1. Vice Chair Person – appointed by Pm
2. Member – full time Member (3)
3. Part Time Member – 2 ( from leading universities, research organization)  (policy intelligence)
4. Ex – offico Member – 4 (from Union Council of Ministers, Home,  Defense, Finance, Agri
5. Chief executive Officer – Appoint Pm (rank of secretary)

 

Seventh Governing Council Meeting

 

1. The seventh meeting of the Governing Council of NITI Aayog was held under the Chairmanship of the Hon’ble Prime Minister on 7 August 2022 in Rashtrapati Bhavan Cultural Centre, New Delhi.
2. The meeting was attended by 23 Chief Ministers, 3 Lieutenant Governors, and Administrators of 2 UTs.
3. Hon’ble PM appreciated the collective efforts of all the states in the spirit of cooperative federalism as the force that helped India emerge from the COVID pandemic and helped the states leading India to emerge as an example for developing nations to look up to India as a global leader.
4. This year, crop diversification and achieving self-sufficiency in pulses, oilseeds and other agri-commodities; implementation of National Education Policy (NEP) in school and higher education.
5. In addition, there was a presentation on India’s forthcoming G20 Presidency by the Hon’ble Minister for External Affairs.
6. NITI AAYOG: FRAMEWORK 8 Annual Report 2022–23 The Hon’ble PM highlighted the importance of all of the above issues, especially the need for India to focus on modernised agriculture, animal husbandry, and food processing to become self-sufficient and a global leader in the agriculture sector.
7. He advocated for rapid urbanization that can become India’s strength by leveraging technology to ensure ease of living, transparent service delivery, and improvement in the quality of life for every citizen of India.

 

8. The PM also highlighted that India’s G20 presidency in 2023 is a unique opportunity to showcase the diversity of India across States and Union Territories and develop a mass movement around G20.

 

9. In his closing remarks, the Prime Minister emphasized that each state should focus on promoting its 3Ts—Trade, Tourism and Technology—with the help of Indian Missions around the world.

 

10. States must focus on reducing imports, increasing exports, and identifying opportunities for the same. He expressed that ‘Vocal for Local’ is not the agenda of an individual political party but a common goal.

 

11. The PM reiterated that increased GST collection requires collective action by the Centre and States which is crucial in strengthening our economic position and becoming a USD 5 trillion economy

 

Specialist Wings in the NITI ayag –

• Research Wing – Sectoral Expertise as a think tank

 

• Consultancy Wing – Panel of experts & fund provider, matching Center & state requirement with solution provider, public & private, national & International expert.

 

• Team India Wing (Cooperative Federation) – It will comprise representative from every state and ministry

 

• Established a direct communication channel between the state/ministry and the

 

Major Document of NITi –

• Three year Agenda – (2017-2020) – some scheme require short plan so given 3 year.
• Reduction in Fiscal deficit
• Double farmer income
• Digital Connectivity
• Development of North Eastern Region

 

• 7 year Agenda (2017-2023) –

1. Titled – strategy for New India @ 75
2. aim to make India $ 3.0 trillion economy
3. Focus on Infrastructure, Inclusion, Governance
4. Convert vision into implementable policy

 

 

• 15 year Agenda (2017-2032)

1. Titled – Vision 2035 : Public health surveillance in India
2. Improving health system
3. Improving data – sharing mechanism between centre & state
4. Combines national goals with international sustainable goals.

 

OBJECTIVES AND FEATURES OF NITI AAYOG

 

The NITI Aayog serves as the apex public policy think tank of the Government of India, and the nodal agency tasked with catalyzing economic development, and fostering cooperative federalism through the involvement of State Governments of India in the economic policy-making process using a bottom up approach. The key objectives and features are:

 

1. To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States.
2. To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation
3. To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government
4. To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.
5. To pay special attention to the sections of our society that may be at risk of not benefiting adequately from economic progress.
6. To design strategic and long-term policy and programme frameworks and initiatives, and monitor their progress and their efficacy. The lessons learned through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.
7. To provide advice and encourage partnerships between key stakeholders and national and international like-minded think tanks, as well as educational and policy research institutions.
8. To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
9. To offer a platform for the resolution of inter-sectoral and inter­ departmental issues in order to accelerate the implementation of the development agenda.
10. To maintain a state-of-the-art resource centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders.
11. To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.
12. To focus on technology upgradation and capacity building for implementation of programmes and initiatives
13. To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above.

 

FEATURES

 

NITI Aayog is developing itself as a state-of-the-art resource centre with the necessary knowledge and skills that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues. It is supported by an attached office, Development Monitoring and Evaluation Organisation (DMEO), a flagship initiative, Atal Innovation Mission (AIM) and an autonomous body, National Institute of Labour Economics Research and Development (NILERD).

NITI Aayog’s entire gamut of activities can be divided into four main heads:

1. Policy and Programme Framework
2. Cooperative Federalism
3. Monitoring and Evaluation
4. Think Tank, and Knowledge and Innovation Hub

The different verticals, cells, attached and autonomous bodies of NITI provide the requisite coordination and support framework needed to carry out its mandate. The list of verticals and cells is given below:

Verticals/Cells

1. Administration
2. Agriculture and Allied Sectors
3. Aspirational Districts Programme Cell
4. Communication and Social Media Cell
5. Data Management and Analysis, Frontier Technologies
6. Economics and Finance Cell
7. Education
8. Governance and Research
9. Governing Council Secretariat and Coordination
10. Industry-I
11. Industry-II
12. Infrastructure-Connectivity
13. Infrastructure-Energy
14. Natural Resources and Environment, and Island Development
15. Project Appraisal and Management Division
16. Public-Private Partnership
17. Rural Development
18. Science and Technology
19. Social Justice and Empowerment, and Voluntary Action Cell
20. Social Sector-I (Skill Development, Labour and Employment, Urban Development)
21. Social Sector-II (Health and Nutrition, Women and Child Development)
22. State Finances and Coordination
23. Sustainable Development Goals
24. Water Resources/Pradhan Mantri Krishi Sinchayee Yojana/Land Resources

 

Function of NITI Ayag –

• Cooperative Federation – It helps to empower states so that they play equal role in national development
• A knowledge hub – helps in good governance, best practice think tank offering domain knowledge as well as strategy expertise to all level of the govt
• Implementation – by monitoring progress, plugging gaps
• Center – state coordination
• Inter Ministerial Coordination
• Decentralized Planning – bottom up approach
• Vision and Scenario Planning – Focus on identifying critical gaps and harnessing untapped potential, assist Center & State in their development plans.
• Network of Expertise
• Innovation Hub – Atal innovation mission to permote innovation & entrepreneurship

(10) Harmonization – helps in cross – cutting & overlapping issues

• Conflict Resolution – to provide platform for intersectoral, inter – departmental, inter-state, center-state resolution
• Coordinating with the world – use of global expertise
• It does not believe in one fits all approach

 

Achievements –

• Digital Payment System
• Atal Innovation Mission – establish 500 ATL labs in schools
• Indian Measuring states performance in health, edu & water management
• Reforms in APMC act ( Agricultural Produce Marketing Committee)
• Darpan Portal – NGO have to register & get a unique id and them apply for grants
• Aspirational District – transform 115 backward regions of different state on 49 parameter.
• Strategic disinvestment – sell the loss making PSU eg Air India, Pawanhans helicopter
• SDG India – to monitor progress in 17 SDG goals

 

What Major Initiatives have been taken by NITI Aayog?

1. SDG India Index
2. Composite Water Management Index
3. Atal Innovation Mission
4. Aspirational District Programme
5. School Education Quality Index
6. Health Index
7. India Innovation Index
8. Good Governance Index
9. Women Entrepreneurship Platform (WEP)
10. Strategy for New India at 75

 

 

Program and there progress of niti ayog

 

Aspirational Districts Program:

• Objective: To transform districts with low socio-economic indicators.
• Progress: NITI Aayog identifies and monitors the progress of 112 aspirational districts across various development parameters.

 

National Health Stack (NHS):

• Objective: To create a unified healthcare system by leveraging technology.
• Progress: NITI Aayog has been working on developing a digital infrastructure for healthcare data management and services.

 

Atal Innovation Mission (AIM):

• Objective: To promote a culture of innovation and entrepreneurship among students.
• Progress: AIM includes programs like Atal Tinkering Labs, Atal Incubation Centers, and Atal New India Challenges to nurture innovation.

 

Smart Cities Mission:

• Objective: To promote sustainable and inclusive urban development.
• Progress: NITI Aayog is involved in the implementation and monitoring of the Smart Cities Mission, which aims to transform cities into vibrant and efficient urban centers.

 

Digital Payments:

• Objective: To promote digital transactions and reduce the dependence on cash.
• Progress: NITI Aayog has been actively involved in advocating for and promoting digital payments, especially after the demonetization in 2016.

 

National Nutrition Mission (Poshan Abhiyan):

• Objective: To address malnutrition among children and mothers.
• Progress: NITI Aayog plays a role in coordinating and monitoring the implementation of the National Nutrition Mission.

 

Ease of Doing Business:

• Objective: To improve the business environment in India.
• Progress: NITI Aayog has been working on various measures to enhance the ease of doing business, collaborating with states to implement reforms.

 

Transformative Mobility Solutions:

• Objective: To promote sustainable and efficient mobility solutions.
• Progress: NITI Aayog is involved in policy formulation and coordination for the adoption of electric vehicles and other green mobility options.

 

Champion Sectors in Services:

• Objective: To boost the growth of select service sectors.
• Progress: NITI Aayog has identified and focused on champion sectors such as tourism and information technology for targeted interventions.

 

Doubling Farmers’ Income:

• Objective: To enhance farmers’ income through various measures.
• Progress: NITI Aayog is actively engaged in developing strategies and initiatives to double farmers’ income by 2022.

 

Conclusion –

To faster cooperative federalism through structured support imitative and mechanism with the states on a continuous basic, recognize that strong states make a strong nation