A Critical Evaluation of the Role of NITI Aayog in Shaping India's Economic Planning Framework

Abstract

The transformation of India’s economic planning framework has been marked by a significant institutional shift from centralized planning under the Planning Commission to a more decentralized, participatory, and policy-oriented approach under NITI Aayog (National Institution for Transforming India). Established in 2015, NITI Aayog was envisioned as a dynamic think tank aimed at fostering cooperative federalism, enhancing policy innovation, and aligning development strategies with the evolving needs of a rapidly growing economy. Unlike its predecessor, NITI Aayog does not allocate financial resources but instead focuses on strategic policy formulation, coordination between central and state governments, and long-term development planning.

The present study critically evaluates the role of NITI Aayog in shaping India’s economic planning framework from 2015 to 2019. Using a qualitative and analytical approach, the study examines key initiatives, institutional reforms, and policy interventions undertaken by NITI Aayog. The analysis is based on data from government reports, policy documents, and academic literature. The findings suggest that while NITI Aayog has contributed significantly to promoting cooperative federalism, fostering innovation, and improving governance, challenges remain in terms of implementation effectiveness, institutional authority, and measurable impact on economic outcomes. The study concludes that strengthening coordination mechanisms, enhancing accountability, and improving policy execution are essential for maximizing the effectiveness of NITI Aayog in India’s evolving economic planning landscape.