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States may have NITI Aayog-like Bodies Soon

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    Polity & Governance
  • Published
    14th Sep, 2022


The NITI Aayog is likely to handhold each state to set up similar bodies replacing their planning boards for faster and inclusive economic growth with the vision of becoming a developed nation by 2047.

About the proposal 

  • It aims for 8-10 states to set up such bodies before reaching out to all by 2023.
    • Four states Karnataka, Uttar Pradesh, Madhya Pradesh and Assam have already begun work in this regard while Maharashtra, Odisha, Andhra Pradesh and Gujarat will likely begin work soon.
  • Function of State Institution for Transformation (SIT): It will guide states in policy formulation, take up monitoring and evaluation of government policies and programmes, and suggest better technology or models for delivery of schemes.

Challenges faced by the states currently 

  • Most states so far have done little to rejuvenate their planning departments/ boards, which earlier dealt with the Planning Commission and prepared parallel state five year-plans with the Centre.
  • Planning departments in most of the states with huge manpower are almost defunct and have no clarity what work they will do.

Significance of the move

  • Increasing the role of states in GDP: The move is in recognition of the fact that except for sectors like defence, railways and highways, the national GDP growth is an aggregation of states rates of growth.
    • Health, education and skilling are primarily with the state government.
  • Sustained economic growth: State government’s role is critical to improving ease of doing business, land reforms, infrastructure development, credit flows and urbanisation.
  • State support mission: It will likely extend support to states including experts from IIMs and IITs to fulfil the ambitious target of making India a developed nation by 2047.
    • Lateral entry of professionals will be encouraged in SITs to undertake high-quality analytical work and policy recommendations.

About National Institution for Transforming India (NITI Aayog)

  • NITI Aayog replaced the Planning Commission on 1st January, 2015 with emphasis on the ‘Bottom –Up’ approach to envisage the vision of Maximum Governance, Minimum Government, echoing the spirit of ‘Cooperative Federalism’.
    • NITI Aayog is the apex public policy think tank of the Government of India.
  • It is an Executive Body (acts as a think tank and advisory body).
  • It has two Hubs-
    • Team India Hub acts as an interface between States and Centre.
    • Knowledge and Innovation Hub builds the think-tank acumen of NITI Aayog.
  • The objective of NITI Aayog is to foster the spirit of Cooperative and Competitive federalism through structured support initiatives on a continuous basis.
  • Organizational framework
    • Prime Minister as the Chairperson
    • Vice-Chairperson (appointed by the Prime Minister)
    • Members
      • Full-time
      • Part-time members on a rotational basis: Maximum of 2 members from foremost universities, leading research organizations, and other innovative organizations in an ex-officio capacity.
    • Ex Officio members
      • Maximum of 4 members of the Council of Ministers which is to be nominated by the Prime Minister.
    • Chief Executive Officer
      • The CEO will be appointed by the Prime Minister for a fixed tenure. 
      • He will be in the rank of Secretary to the Government of India.

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