Planning Commission vs NITI Aayog: Shift in Development Paradigm

Introduction

The replacement of the Planning Commission with NITI Aayog in 2015 marked a fundamental shift in India's development paradigm. Established in 1950, the Planning Commission embodied the Nehruvian vision of state-led, top-down economic planning. NITI Aayog (National Institution for Transforming India), established on January 1, 2015, represents a move toward decentralized, participatory, and market-oriented development.

The Planning Commission (1950-2014)

Origins and Mandate

• Established by an Executive Resolution in March 1950 (not a constitutional body)
• First Chairperson: Jawaharlal Nehru (Prime Minister served as ex-officio Chair)
• Mandate: Formulate Five-Year Plans, allocate resources, coordinate policies
• Based on the Soviet model of centralized economic planning

Structure

• Chairperson: Prime Minister
• Deputy Chairperson: Full-time planning expert
• Full-time members and part-time members (union ministers)
• State representation was limited to Chief Ministers attending National Development Council (NDC) meetings

Key Contributions

• Guided India's mixed-economy model for over six decades
• Established heavy industries (Iron and Steel, Fertilizers, Energy)
• Built the public sector and infrastructure
• Orchestrated the Green Revolution (Third Plan onwards)
• Designed key poverty alleviation and rural development programs

Criticisms and Limitations

• Top-down approach: Plans were formulated without adequate...