9th Governing Council Meeting of NITI Aayog

Governing Council of Niti Aayog

●It is the premier body tasked with evolving a shared vision of national priorities and strategies, with the active involvement of States, in shaping the development narrative.

●The Governing Council, which embodies the objectives of cooperative federalism, presents a platform to discuss inter-sectoral, inter-departmental and federal issues to accelerate the implementation of the national development agenda.

The Governing Council of NITI Aayog comprises the

●Hon’ble Prime Minister of India;

●Chief Ministers of all the States and Union Territories with legislature;

●Lt Governors of other UTs; Ex-Officio Members;

●Vice Chairman, NITI Aayog;

●Full-Time Members, NITI Aayog; and

●Special Invitees.

Core Functions:

●The Governing Council Secretariat (GCS) coordinates the meetings of the Governing Council.

●It also coordinates the activities of all the Verticals, Divisions and Units of NITI Aayog.

●As a coordination focal point, GCS organises the weekly Senior Officers’ Meeting (SOM) under the chairmanship of Vice Chairman, NITI Aayog.

●GCS acts as the nodal division for coordinating matters related to the Annual Report of NITI Aayog for circulation in the Parliament.

●The Division also handles Parliament Questions, Standing Committee matters, RTI queries, CPGRAMS grievances and VIP references pertaining to GCS.

About Niti Aayog:

●NITI Aayog was formed on January 1, 2015, by a resolution of the Union Cabinet.

●It replaced the Planning Commission.

● It designs long-term policies and programs for the government, and provides strategic and technical advice to the center, states, and union territories. The organization's seven pillars are pro-activity, pro-people, participation, empowering, inclusion of all, equality, and transparency.

It has a full-time organizational framework with the following components:

● Chairperson: The Prime Minister

●Vice-Chairperson: Appointed by the Prime Minister

●Governing Council: Chief Ministers of all states and Lt. Governors of Union Territories

●Regional Council: Chief Ministers and Lt. Governors chaired by the Prime Minister or their nominee to address specific regional issues

●Adhoc Membership: Two members from leading research institutions on a rotational basis

●Ex-Officio Membership: Up to four members from the Union Council of Ministers nominated by the Prime Minister

●Chief Executive Officer: Has the rank of Secretary to the Government of India and is responsible for administration

●Secretariat: Includes experts and specialists in various fields

Objectives:

7 Pillars of Niti Aayog

Planning Commission of India

The Planning Commission was a key institution within the Government of India, primarily responsible for formulating and overseeing the country's Five-Year Plans. It was dissolved in 2014 and replaced by NITI Aayog, marking a significant shift in India's planning and development strategy.

●Formation Date: 15 March 1950

●Dissolution Date: 13 August 2014

●Superseding Agency: NITI Aayog

●Headquarters: Yojana Bhavan, New Delhi

Introduction

The Planning Commission played a crucial role in India's economic planning and development. Its primary function was to create comprehensive Five-Year Plans aimed at driving national growth, addressing socio economic challenges, and coordinating resource allocation. The Commission operated directly under the Prime Minister of India and was influential in shaping the country's development policies.

History

●Pre-Independence Efforts:

○1938: Under the leadership of Netaji Subhash Chandra Bose, Atul Tiwari, and Pandit Jawaharlal Nehru, initial economic planning efforts began.

○National Planning Committee: Formed with Jawaharlal Nehru as the head, focusing on integrating science and politics in planning. The committee aimed to lay the groundwork for future economic planning.

○Advisory Planning Board: Established by the British Raj and operated from 1944 to 1946 under K. C. Neogy, focusing on the economic development of India during the late colonial period.

●Post-Independence Formation:

○15 March 1950: The Planning Commission was officially established with Jawaharlal Nehru as its first Chairman.

○The Commission was an executive body created by the Central Government and operated without direct constitutional or statutory backing, functioning as an advisory institution for economic planning and development.

●Five-Year Plans:

○First Plan (1951): Focused on agricultural development, aiming to enhance food security and rural development.

○Subsequent Plans:

■Second and Third Plans (1956–1961 and 1961–1966): Emphasized industrial development and infrastructure.

■Fourth Plan (1969–1974): Resumed after a hiatus due to Indo-Pakistan conflict and economic disruptions, focusing on economic stability and growth.

■Fifth to Seventh Plans (1974–1990): Addressed various socio-economic issues, including poverty alleviation and industrial growth.

■Eighth Plan (1992–1997): Launched post-economic reforms, focusing on structural adjustments and liberalization.

Organisation

●Leadership:

○Prime Minister: Served as the ex officio Chairperson, setting overall policy direction and overseeing the Commission's activities.

○Deputy Chairperson: Held the rank of a full Cabinet Minister and was responsible for assisting the Chairperson in daily operations and strategic planning.

●Members:

○ Ex officio Members: Included Cabinet Ministers from key departments such as Finance, Agriculture, Home, Health, Chemicals and Fertilisers, Information Technology, Law, and Human Resource Development. Their involvement ensured comprehensive representation of various sectors.

○Full-time Members: Experts in fields like economics, industry, science, and general administration, providing specialized knowledge and guidance for planning processes.

●Divisions:

○General Planning Divisions: Focused on broad planning aspects, including economic and social development strategies.

○Programme Administration Divisions: Managed specific programs and projects, ensuring effective implementation and coordination of planned activities.

Functions

●Resource Assessment:

○Conducted evaluations of India's material, capital, and human resources, including technical personnel.

○ Identified deficiencies and explored ways to augment resources to meet national needs.

●Plan Formulation:

○Developed plans for the optimal and balanced utilization of the country's resources.

○Ensured that plans addressed key developmental priorities and aligned with national goals.

●Stage Definition:

○Outlined stages of plan implementation based on priority.

○Proposed resource allocations for each stage to ensure effective execution and completion.

●Development Factors:

○Identified factors that could impede economic development.

○Recommended measures to mitigate these factors and enhance development prospects.

●Condition Determination:

○Determined necessary conditions for the successful execution of plans within the existing socio-political context.

○Ensured that plans were adaptable to changing circumstances and challenges.

●Machinery Requirements:

○Defined the machinery and mechanisms needed for successful implementation of plans.

○ Ensured that appropriate structures and processes were in place for effective execution.

●Progress Appraisal:

○Regularly reviewed progress achieved in implementing each stage of the plan.

○Recommended policy adjustments and measures to address any issues or deviations.

●Recommendations:

○ Provided recommendations on economic conditions, policies, and development programs.

○Addressed specific problems referred by central or state governments, contributing to informed decision-making and policy adjustments.

The Planning Commission played a significant role in shaping India's development over several decades, providing strategic direction and coordination for national planning efforts until its dissolution and replacement by the NITI Aayog.

First Five Year Plan

●Duration:1951 to 1956, under the leadership of Jawaharlal Nehru.

●Based on the Harrod-Domar model with a few modifications.

●Its main focus was on the agricultural development of the country.

●This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%).

●At the end of this plan, five IITs were set up in the country.

2nd Five Year Plan

●It was made for the duration of 1956 to 1961, under the leadership of Jawaharlal Nehru.

●Based on the P.C. Mahalanobis Model made in the year 1953.

●Its main focus was on the industrial development of the country.

●This plan lags behind its target growth rate of 4.5% and achieved a growth rate of 4.27%.

3rd Five Year Plan

●Duration : 1961 to 1966, under the leadership of Jawaharlal Nehru.

●This plan is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil.

●The stress was laid on agriculture and the improvement in the production of wheat.

●During the execution of this plan, India was engaged in two wars:

(1) the Sino-India war of 1962 and

(2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defence industry, the Indian Army, and the stabilization of the price (India witnessed inflation).

●The plan was a flop due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%.

Plan Holidays

●Due to the failure of the previous plan, the government announced three annual plans called Plan Holidays from 1966 to 1969.

●The main reason behind the plan holidays was the Indo-Pakistani war and the Sino-India war, leading to the failure of the third Five Year Plan.

●During this plan, annual plans were made and equal priority was given to agriculture, its allied sectors and the industry sector.

● In a bid to increase the exports in the country, the government declared devaluation of the rupee.

4th Five Year Plan

●Its duration was from 1969 to 1974, under the leadership of Indira Gandhi.

● There were two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.

●During this time, 14 major Indian banks were nationalised and the Green Revolution was started. Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place.

●Implementation of Family Planning Programmes was amongst major targets of the Plan

●This plan failed and could achieve a growth rate of 3.3% only against the target of 5.7%.

5th Five Year Plan

●Its duration was 1974 to 1978.

●This plan focussed on Garibi Hatao, employment, justice, agricultural production and defence.

●The Electricity Supply Act was amended in 1975, a Twenty-point program was launched in 1975, the Minimum Needs Programme (MNP) and the Indian National Highway System was introduced.

●Overall this plan was successful which achieved a growth of 4.8% against the target of 4.4%.

●This plan was terminated in 1978 by the newly elected Moraji Desai government.

Rolling plans

●After the termination of the fifth Five Year Plan,  the Rolling Plan came into effect from 1978 to 1880.

●In 1980, Congress rejected the Rolling Plan and a new sixth Five Year Plan was introduced.

●The plan has several advantages as the targets could be mended and projects, allocations, etc. were variable to the country's economy.

● This means that if the targets can be amended each year, it would be difficult to achieve the targets and will result in destabilisation in the Indian economy.

6th Five Year Plan

● Its duration was from 1980 to 1985, under the leadership of Indira Gandhi.

● The basic objective of this plan was economic liberalisation by eradicating poverty and achieving technological self-reliance.

●It was based on investment Yojna, infrastructural changing, and trend to the growth model.

●Its growth target was 5.2% but it achieved 5.7% growth.

7th Five Year Plan

●Its duration was from 1985 to 1990, under the leadership of Rajiv Gandhi.

●The objectives of this plan include the establishment of a self-sufficient economy, opportunities for productive employment, and up-gradation of technology.

●The Plan aimed at accelerating food grain production, increasing employment opportunities & raising productivity with a focus on ‘food, work & productivity.

●For the first time, the private sector got priority over the public sector.

●Its growth target was 5.0% but it achieved 6.01%.

Annual Plans

●Eighth Five Year Plan could not take place due to the volatile political situation at the centre.

●Two annual programmes were formed for the year 1990-91 and  1991-92.

8th Five Year Plan

● Its duration was from 1992 to 1997, under the leadership of P.V. Narasimha Rao.

●In this plan, the top priority was given to the development of human resources i.e. employment, education, and public health.

●During this plan, Narasimha Rao Govt. launched the New Economic Policy of India.

● This plan was successful and got an annual growth rate of 6.8% against the target of 5.6%

9th Five Year Plan

●Its duration was from 1997 to 2002, under the leadership of Atal Bihari Vajpayee.

●The main focus of this plan was “Growth with Social Justice and Equality”.

●It was launched in the 50th year of independence of India.

●This plan failed to achieve the growth target of 6.5% and achieved a growth rate of 5.6%.

10th Five Year Plan

● Its duration was from 2002 to 2007, under the leadership of Atal Bihari Vajpayee and Manmohan Singh.

●This plan aimed to double the Per Capita Income of India in the next 10 years.

●It also aimed to reduce the poverty ratio to 15% by 2012.

●Its growth target was 8.0% but it achieved only 7.6%.

11th Five Year Plan

●Its duration was from 2007 to 2012, under the leadership of Manmohan Singh.

●It was prepared by the C. Rangarajan.

●Its main theme was “rapid and more inclusive growth”.

● It achieved a growth rate of 8% against a target of 9% growth.

12th Five Year Plan

●Its duration is from 2012 to 2017, under the leadership of Manmohan Singh.

●Its main theme is “Faster, More Inclusive and Sustainable Growth”.

● Its growth rate target was 8%.

PRACTICE QUESTION

Q.Consider the following information about Five Year Plans in India(FYPs):

How many of the above Five year plans and their objectives are correctly matched?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Ans: b

Explanation

Pair 1 is incorrectly matched

Fourth FYP

●Its duration was from 1969 to 1974, under the leadership of Indira Gandhi.

●There were two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.

●During this time, 14 major Indian banks were nationalised and the Green Revolution was started. The Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place.

● Implementation of Family Planning Programmes was amongst major targets of the Plan

● This plan failed and could achieve a growth rate of 3.3% only against the target of 5.7%.

Pair 2 is incorrectly matched

9th FYP

●Its duration was from 1997 to 2002, under the leadership of Atal Bihari Vajpayee.

●The main focus of this plan was “Growth with Social Justice and Equality”.

●It was launched in the 50th year of independence of India.

●This plan failed to achieve the growth target of 6.5% and achieved a growth rate of 5.6%

Pair 3 and pair 4 are correctly matched

11th FYP

● Its duration was from 2007 to 2012, under the leadership of Manmohan Singh.

●  It was prepared by C. Rangarajan.

●Its main theme was “rapid and more inclusive growth”.

●It achieved a growth rate of 8% against a target of 9% growth.

12th FYP

●Its duration is from 2012 to 2017, under the leadership of Manmohan Singh.

● Its main theme is “Faster, More Inclusive and Sustainable Growth”.

● Its growth rate target was 8%.