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EconomyPremium

NITI Aayog: Structure, Functions, and Role in Policy

July 19, 2026
5 min read

TOPIC CLASSIFICATION

Subject: Indian Economy - Policy Institutions
Sub-topic: NITI Aayog (National Institution for Transforming India)
Mains GS Paper-III: Indian economy - planning, resource mobilization, growth, development, and employment; government policies and interventions.


EXAMINER REASONING

NITI Aayog replaced the Planning Commission (1950-2014) - this transition is a perennial exam topic. Prelims tests: composition, governing council, CEO role, specific indices published (SDG Index, Health Index, Export Preparedness Index, School Education Quality Index). Mains demands: (a) comparison with Planning Commission - top-down vs. bottom-up approach, (b) critical evaluation of role in cooperative federalism, (c) specific policy contributions (Aspirational Districts Programme, Atal Innovation Mission). The cooperative federalism angle is the examiner's favorite framing.


Core Concept

Establishment: January 1, 2015 - replaced 64-year-old Planning Commission via an executive resolution (not a statute).

Structure:

PositionRole
ChairpersonPrime Minister
Governing CouncilAll Chief Ministers + LG of UTs + Lieutenant Governors
Regional CouncilsAddress specific regional issues
Vice-ChairpersonAppointed by PM - CEO of Aayog
Full-time membersExperts/economists (2-5)
Part-time members

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