Amity Law School Center - II Submitted to Mrs. Tanu SachdevaSubmitted By -Name Harshit Singh A11911113183Name Akansha Singh Chaudhary A11911113161 Name Saurabh Thomas George A11911113139 Semester 5Section C Acknowledgement This project was completed under the, able guidance of Mrs. Tanu Sachdeva. Her continuous eforts and guidance made this project successful. This project helped us in understanding the concepts of Economics in a better way. We thank Maam for allotting us this wonderful project. Contents1.Introduction2.History3.Changes in institution4.Organization5.Functions6.Sectors Involved7.Criticism8.BibliographyIntroductionIndia has undergone a shift over the past six decades - politically, economically,socially, technologically as well as demographically. The role of Government in national development has seen a parallel evolution. Keeping with these changing times, the Government of India has decided to set up NITI Aayog (National Institution for Transforming India), in place of the erstwhile Planning Commission, as a means to better serve the needs and aspirations of the people of India.The new institution will be a catalyst to the developmental process; nurturing an overall enabling environment, through a holistic approach to development going beyond the limited sphere of the Public Sector and Government of India. This will be built on the foundations of: An empowered role of States as equal partners in national development; operating on the principle of Cooperative Federalism. A knowledge hub of internal as well as external resources; serving as a repository of good governance best practices, and a Think Tank ofering domain knowledge as well as strategic expertise to all levels of government. A collaborative platform facilitating Implementation; by monitoring progress, plugging gaps and bringing together the various Ministries at the Centre and in States, in the joint pursuit of developmental goals.HistoryBefore Niti Aayog came into existence was known as Planning Commission of India. On 15, August 2014, Prime Minister Narendra Modi announced scrapping of Planning Commission and was replaced by an Institution named NITI Aayog.1The Planning Commission2 was an institution in the Government of India, which formulated India's Five-Year Plans, among other functions. It is located at Yojana Bhawan, Sansad Marg, and New Delhi. It was established in accordance with article 39 of the constitution which is a part of directive principles of state policy.Rudimentary economic planning, deriving from the sovereign authority of the state, was frst initiated in India in 1938 by Congress President Netaji Subhash Chandra Bose, who had been persuaded by Meghnad Saha to set up a NationalPlanning Committee.3 The British Raj also formally established a planning board that functioned from 1944 to 1946. Industrialists and economists independently formulated at least three development plans in 1944. Some scholars have argued that the introduction of planning as an instrument was intended to transcend the ideological divisions between Gandhi and Nehru.4 Other scholars have argued that the Planning Commission as a centralagency in the context of plural democracy in India needs to carry out more functions than rudimentary economic planning.1 Business Standard. ANI. 15 August 20142 http://economictimes.indiatimes.com/news/economy/policy/planning-commission-renamed-as-neeti-ayog/articleshow/45142!4.cms"Vigyan Prasar Science Portal 4#artha $hatter%ee& 2001 '(e)elopment planning and the Indian state' in *tate and #olitics in IndiaAfter India gained independence, a formal model of planning was adopted, and accordingly the Planning Commission, reporting directly to the Prime Minister of India was established on 15 March 1950, with Prime Minister Jawaharlal Nehru as the Chairman. Authority for creation of the Planning Commission was not derived from the Constitution of India or statute; it is an arm of the central Government of India.The frst Five-Year Plan was launched in 1951, focusing mainly on developmentof the agricultural sector. Two subsequent Five-Year Plans were formulated before 1965, when there was a break because of the Indo-Pakistan confict. Twosuccessive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-Year Plan was started in 1969.The Eighth Plan could not take of in 1990 due to the fast changing political situation at the Center, and the years 199091 and 199192 were treated as Annual Plans. The Eighth Plan was fnally launched in 1992 after the initiationof structural adjustment policies.For the frst eight Plans the emphasis was on a growing public sector with massive investments in basic and heavy industries, but since the launch of the Ninth Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, isthat it should increasingly be of an indicative nature.In 2014, the Central Government led by Prime Minister Narendra Modi decided to wind down the Planning Commission. It was proposed to replace it with a more dynamic organization that is more popular and connected to the times. There have been various perspectives discussed across the spectrum of the Indian intelligentsia about this move. It has been chiefy viewed as a cultivationof Modi's extreme hatredness towards Nehru and his socialism. Prime Minister Modi has launched a discussion board on Twitter to solicit opinions from the people of the country on what should replace the Planning Commission. Changes in the InstitutionThis changing reality and growing mismatch has been recognized for years nowwith experts, including many from within the erstwhile Planning Commission, recommending appropriate changes:The 8th Five Year Plan document - the very frst after the liberalization of 1991 itself categorically stated that, as the role of Government was reviewed and restructured, the role and functions of the Planning Commission too needed to be rethought. The Planning Commission needed to be reformed to keep up withchanging trends; letting go of old practices and beliefs whose relevance had been lost, and adopting new ones based on the past experiences of India as wellas other nations.The Standing Committee on Finance of the 15th Lok Sabha observed in its 35th Report on Demand for Grants (2011-12) that the Planning Commission "has to come to grips with the emerging social realities to re-invent it to make itmore relevant and efective for aligning the planning process with economic reforms and its consequences, particularly for the poor".Former Prime Minister and noted economist, Dr. Manmohan Singh - in his farewell address to the Commission in April 2014 - also urged refection on What the role of the Planning Commission needs to be in this new world? Are we still using tools and approaches which were designed for a diferent era? What additional roles should the Planning Commission Play? What capacities does it need to build to ensure that it continues to be relevant to the growth process?OrganizationNITI Aayog is a lean organisation, modelled as a network of expertise; focusing on functionality, fexibility and domain knowledge. NITI Aayog comprises of: Chairperson: Prime Minister of India Governing Council: comprising the Chief Ministers of all States and Lt. Governors of Union Territories.Regional Councils: Is formed to address specifc issues and contingencies impacting more than one state or region. Strategy and Planning in the NITI Aayog is anchored from State-level; with Regional Councils convened by the Prime Minister for identifed priority domains, put under the joint leadership ofrelated sub-groups of States (grouped around commonalities which could be geographic, economic, social or otherwise) and Central Ministries. Regional Councils: Have specifed tenures, with the mandate to evolve strategy and oversee implementation. Be jointly headed by one of the group Chief Ministers and a corresponding Central Minister. Include the sectoral Central Ministers and Secretaries concerned, as wellas State Ministers and Secretaries. Be linked with corresponding domain experts and academic institutions. Have a dedicated support cell in the NITI Aayog Secretariat.States are empowered to drive the national agenda. As a consequence, deliberations are more grass-roots informed, and recommendations have more ownership, given their joint formulation.Special Invitees: experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister.Full-time Organizational Framework: comprises of, in addition to the Prime Minister as the Chairperson: Vice-Chairperson: to be appointed by the Prime Minister. Members: full-time. Part-time Members: maximum of 2, from leading universities, research organizations and other relevant institutions in an ex-ofcio capacity. Part time members on a rotational basis. Ex-Ofcio Members: maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister. Chief Executive Ofcer: to be appointed by the Prime Minister for a fxed tenure, in the rank of Secretary to the Government of India. Secretariat: as deemed necessary.Present MembersThe various members of NITI Aayog5 are:1.Chairperson: Prime Minister Narendra Modi2.CEO: Sindhushree Khullar IAS5www.pmindia.gov.in.3.Vice Chairperson: Arvind Panagariya4.Ex-Ofcio Members: Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh5.Special Invitees: Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot6.Full-time Members: Bibek Debroy & V. K. Saraswat7.Governing Council: All Chief Ministers and Lieutenant Governors of States and Union TerritoriesFunctions Cooperative and Competitive Federalism: Be the primary platform for operationalizing Cooperative Federalism; enabling States to have active participation in the formulation of national policy, as well as achieving time-bound implementation of quantitative and qualitative targets through the combined authority of the Prime Minister and Chief Ministers. This is a means of systematic and structured interactions between the Union and State Governments, to better understand developmental issues, as well as forge a consensus on strategies and implementation mechanisms. The above marks the replacement of the one-way fow of policy from centre-to-state, with a genuine and continuing Centre-State partnership. Shared National Agenda: Evolve a shared vision of national development priorities and strategies, with the active involvement of States. This provides the framework national agenda for the Prime Minister and Chief Ministers to implement. States Best Friend at the Centre: Support States in addressing their ownchallenges, as well as building on strengths and comparative advantages.This is through various means, such as coordinating with Ministries, championing their ideas at the centre, providing consultancy support and building capacity. Decentralized Planning: Restructure the planning process into a bottom-up model, empowering States, and guiding them to further empower localgovernments; in developing mechanisms to formulate credible plans at the village level, which are progressively aggregated up the higher levels of government. Vision & Scenario Planning: Design medium and long-term strategic frameworks of the big picture vision of Indias future - across schemes, sectors, regions and time; factoring in all possible alternative assumptions and counterfactuals. They are the drivers of the national reforms agenda, especially focused on identifying critical gaps and harnessing untapped potentialities. The same is intrinsically dynamic with its progress and efcacy constantly monitored for necessary mid-course recalibration; and the overall environment (domestic and global) continuously scanned for incorporating evolving trends and addressing emerging challenges. Domain Strategies: Build a repository of specialized domain expertise, both sectoral and cross-sectoral; to assist Ministries of the Central and State governments in their respective development planning as well problem solving needs. This enables the imbibing of good governance best practices, both national as well as international; especially with regards to structural reform. Sounding Board: Be an in-house sounding board whetting and refning government positions, through objective criticisms and comprehensive counter-views. Network of Expertise: Main-stream external ideas and expertise into government policies and programmes through a collaborative communityof national and international experts, practitioners and other partners. This entails Governments link to the outside world, roping in academia (universities, think tanks and research institutions), private sector expertise, and the people at large, for close involvement in the policy making process. Knowledge and Innovation hub: Be an accumulator as well as disseminator of research and best practices on good governance, througha state-of-the-art Resource Centre which identifes, analyses, shares and facilitates replication of the same. Harmonization: Facilitate harmonization of actions across diferent layersof government, especially when involving cross-cutting and overlapping issues across multiple sectors; through communication, coordination, collaboration and convergence amongst all stakeholders. The emphasis ison bringing all together on an integrated and holistic approach to development. Confict Resolution: Provides a platform for mutual resolution of inter-sectoral, inter-departmental, inter-state as well as centre-state issues; facilitating consensus acceptable and benefcial to all, to bring about clarity and speed in execution. Coordinating interface with the World: Be the nodal point for strategicallyharnessing global expertise and resources coming in from across nations, multi-lateral institutions and other international organizations, in Indias developmental process. Internal Consultancy: Ofer an internal consultancy function to central and state governments on policy and program design; providing frameworks adhering to basic design principles such as decentralization, fexibility and a focus on results. This would include specialized skills such as structuring and executing Public Private Partnerships. Capacity building: Enable capacity building and technology up-gradationacross government, benchmarking with latest global trends and providing managerial and technical knowhow. Monitoring and Evaluation: Monitor the implementation of policies and programmes, and evaluate their impact; through rigorous tracking of performance metrics and comprehensive program evaluations. Sectors Involved Agricultural Communication Information and Information Technology Division Educational Employment Environment & Forests Health Industry Minerals Infrastructure Power and Energy Rural Development Science & Technology Social Justice Urban Afairs Women Empowerment Water ResourcesCriticismMany political parties and their spokesperson criticized this change and gave following views.The government's move to replace the Planning Commission with a new institution called 'NITI Aayog was criticized by opposition parties of India. The Congress sought to know whether the reform introduced by the BJP-led government was premised on any meaningful programme or if the move was simply born out of political opposition to the party that ran the Planning Commission for over 60 years. "The real issue is do you (the government) have asubstantive meaningful programme to reform the Planning Commission?" Congress spokesperson Abhishek Manu Singhvi said. "If you (the BJP government) simply want to abolish it (the commission), because it is something which (Jawaharlal) Nehru created for this country and you don't likeNehru or simply because it was run by the Congress for 60 years and you don'tlike the Congress, that is pitiable," he said.The Communist Party of India-Marxist said a mere change in the name would not yield the desired results. "Mere changing this nomenclature and this sort ofgimmickry is not going to serve the purpose. Let us wait and see what the government is eventually planning," CPI-M leader Sitaram Yechury said.The Planning Commission used to plan policy. I don't know what the government is trying to do by merely changing the nomenclature from PlanningCommission to Neeti Ayog," said Congress spokesman Manish Tewari.However, Commerce and Industry Minister Nirmala Sitharaman of BJP accusedthe critics of being ignorant of facts.With the new set of changes, the state governments no longer need to have a begging attitude and instead take independent steps for development, said Sitharaman. With this the NDA government is fulflling one more of its key promises of robust federalism."The idea to create an institution where states' leaders will be part and parcel ofthe collective thinking with the Centre and other stakeholders in formulating a vision for the development of the country is right on as compared with the previous structure, where a handful of people formulated the vision and then presented it to the National Development Council (NDC). This was not entirely absorbed and adopted by the latter," said former Planning Commission memberArun Maira.In fact, a recent survey of expert opinions in the magazine "Business World" shows that either a very clear distinction of roles of NDC, Governing Council and Inter State Council or a merger of one or two with a vibrant and functional ISC can serve the two key goals of such forums: policy development and confict resolution.6+ NI,I-s (estiny and the .ederal /uestion& 0usiness 1orld. ! April& 2015BibliographyPrinted Sources1.Development planning and the Indian state by Partha Chatterjee2.Business World MagazineWebsites1.www.pmindia.gov.in.2.www.economictimes.indiatimes.com3.www.vigyanprasar.gov.in