Revision summary
The Planning Commission set Five-Year Plans and allocated Central plan funds in a top-down way. NITI Aayog is a shared think tank: Governing Council of CMs, no scheme-money power, and long-term strategy. Cooperative and competitive federalism, SDG dashboards, and Aspirational Districts replace quota-style planning. Centrally sponsored schemes still limit how federal NITI really is. NITI must evaluate honestly and help weak States with capacity, not only with ranks.
Model answer
Flow diagram
flowchart TD PC[Planning Commission] --> T[Top-down Five-Year Plans] PC --> M[Plan fund allocation] N[NITI Aayog] --> F[Cooperative federalism] N --> K[Think tank no purse] N --> C[Competitive rankings SDGs] F --> O[State-led outcomes] C --> O
Conclusion
- Keep NITI as an honest evaluator of schemes, not as a silent cheerleader of every Union programme.
- Give States a real say in scheme design, and publish dissenting notes from the Governing Council so cooperative federalism is more than a photograph.
- Tie Aspirational District lessons to finance and personnel, or competition will stay a dashboard sport.
The Planning Commission planned and paid from the Centre; NITI Aayog is meant to think with States and to compete on outcomes without holding the cheque. The principle-shift is federal, evidence-based, and long-horizon. It will matter only if advice can change schemes and if weak States get capacity, not only ranks.
Quick related
Students also ask
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How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? (250 Words, 15 Marks).
Next question in the 2018 paper (Q12). View answer →
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Does NITI Aayog still make Five-Year Plans?
No. It uses vision, strategy, and action horizons and monitors SDGs. Annual and scheme money sits in the Budget and ministries.
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Is NITI weaker because it has no funds?
It is weaker as a controller and stronger as an adviser if the Centre and States actually use its evidence. Without that, it is only a ranking office.
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