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Approach

• Explain the vision of NITI Aayog and its key ideas in the introduction.
• Mention the positive role played by NITI Aayog through its schemes and programmes in promoting federalism.
• Mention its criticism and how it undermines the federal nature of Indian polity.
• Conclude by your own analysis about the role it had played.

Intro

NITI Aayog replaced the Planning Commission in order to promote the spirit of competitive cooperative federalism and enhancing participation of states in decision making. It envisaged the spirit of ‘Team India’ to reform the policy architecture to achieve the best outcomes.

Body

The composition of NITI Aayog is aligned with its idea to give voice to the states in decision making. Its Governing Council comprises of Chief Ministers of all states and Lt. Governors of all UTs. It’s one of the objectives is formulation of plans at the village level and aggregation at higher levels. Apart from institutional framework, its functioning is allied with its principles.

Key achievements of NITI Aayog in promoting the spirit of federalism are discussed below:

Positives

• Promoting competitive collaborative federalism- With the vision of ‘Sabka Sath Sabka Vikas’ and to ensure inclusive growth, NITI Aayog conceptualized several government schemes and programs which enhanced State government’s efforts. For example:
  
  • Aspirational Districts Programme with convergence (of Central & State schemes), collaboration (of central, state level officers) and competition among districts driven by a mass movement (Jan Andolan).
  • ‘Ek Bharat Shreshtha Bharat’ (EBSB) to foster national integration by a co-ordinated mutual engagement process between States, Union Territories, and Central Ministries, by means of long-term inter-state engagements through cultural exchanges and educational programmes.
  • Sustainable Action for Transforming Human Capital (SATH) programme to initiate transformation in education and health sectors.

However, its role and functioning has also been criticized in the following terms:

Criticism

• Niti Aayog does not have any financial power and lacks the power of supporting the annual plan of states. Erstwhile Planning Commission had the power to allocate funds for developmental expenditure to address regional imbalances.
• NITI Aayog’s governing council is directly under the control of the Prime Minister and the Prime Minister's Office -giving it in essence a centralized structure. The states could not exert pressure on the centre to accommodate their demands. Representatives of some states have boycotted it’s meetings.
• Cases when NITI Aayog sent direct instructions to District Collectors bypassing state governments undermine the spirit of federalism.

Conclusion

• Inter State Council constituted under Article 263 of the Constitution, with appropriate modifications, can be an appropriate platform to overcome the lacunas left in the governance structure of NITI Aayog. Hence, both the institutions can play a critical role in building a New India by 2022.
• Though criticized as old wine in a new bottle but through its commitment to cooperative federalism, promotion of citizen engagement, participative and adaptive governance and continuously increasing use of developing technology, NITI Aayog definitely provides a critical directional and strategic input into the governance process.