NITI Aayog (National Institution for Transforming India):

NITI Aayog (National Institution for Transforming India):

National Institution for Transforming India or NITI Aayog is a policy think-tank of Government of India. It replaces Planning Commission and aims to involve the states in economic policy-making in India. It will be providing strategic and technical advice to the central and the state governments i.e. by adopting bottom-up approach rather than traditional top-down approach as in planning commission. The Prime Minister of India will head the NITI Aayog as its chairperson. While the Planning Commission had no representation for State and Union territories, the NITI Aayog has.

Difference between NITI Aayog and Planning Commission:

Finance related:

NITI Aayog –  No power of allocating Funds. It is just  an advisory body, or a think-tank. The powers to allocate fund rests in the Finance ministry.

Planning Commission – Enjoyed the powers to allocate funds to ministries and state governments

Full-time members:

NITI Aayog – Two full-time members.

Planning Commission – had Eight full-time members

Role of States:

NITI Aayog – Includes the Chief Ministers of all States and the Lieutenant Governors of all Union territories in its Governing Council, devolving more power to the States of the Union.

Planning Commission – State’s role was limited to the National Development Council and annual interaction during Plan meetings.

Member secretary:

NITI Aayog – To be known as the CEO and to be appointed by the prime minister

Planning Commission – Secretaries or member secretaries were appointed through the usual process

Part-time members

NITI Aayog – To have a number of part-time members, depending on the need from time to time

Planning Commission – Full Planning Commission had no provision for part-time members


Niti Aayog – Governing Council has state chief ministers and lieutenant governors.

Planning Commission- The commission reported to National Development Council that had state chief ministers and lieutenant governors.


Niti Aayog – New posts of CEO, of secretary rank, and Vice-Chairperson. Will also have two full-time members and part-time members as per need. Four cabinet ministers will serve as ex-officio members.

Planning Commission – Had deputy chairperson, a member secretary and full-time members.


Niti Aayog- Consulting states while making policy and deciding on funds allocation. Final policy would be a result of that.

Planning Commission- Policy was formed by the commission and states were then consulted about allocation of funds.


Niti Aayog- No power to allocate funds

Planning Commission- Had power to decide allocation of government funds for various programs at national and state levels.


Niti Aayog- NITI is a think-tank and does not have the power to impose policies.

Planning Commission- Imposed policies on states and tied allocation of funds with projects it approved.


The NITI Aayog comprises the following:

  1. Prime Minister of India as the Chairperson
  2. Governing Council comprising the Chief Ministers of all the States and Union territories with Legislatures and lieutenant governors of other Union Territories.
  3. Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee
  4. Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister
  5. Full-time organizational framework (in addition to Prime Minister as the Chairperson) comprising
    1. Vice-Chairperson
    2. Members: Two (2) Full-time
    3. Part-time members: Maximum of two from leading universities research organizations and other relevant institutions in an ex-officio capacity. Part-time members will be on a rotational basis
    4. Ex Officio members: Maximum of four members of the Union Council of Ministers to be nominated by the Prime Minister
    5. Chief Executive Officer: To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.
    6. Secretariat as deemed necessary.

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