Economics • Indian EconomyMedium
What is the primary mandate of 'NITI Aayog' (National Institution for Transforming India), which replaced the Planning Commission in 2015?
A. Allocating financial grants and annual plan outlays directly to various state governments
B. Fostering cooperative federalism and acting as the premier policy think tank of the government✓ Correct Answer
C. Regulating foreign direct investment approvals across sensitive industrial sectors
D. Determining minimum support prices for agricultural commodities nationwide
💡 Solution & Explanation
NITI Aayog functions as the premier policy think tank of the Government of India, providing directional and policy inputs while fostering cooperative federalism through active involvement of state chief ministers in economic decision-making. Unlike the erstwhile Planning Commission, NITI Aayog possesses no financial allocation powers or discretionary fund disbursement authority, functioning instead as a knowledge and advisory hub. It promotes strategic policy formulation, innovation, and monitoring of national development indices. A related institutional mechanism is the National Development Council, which was previously associated with the Five-Year Plan approval process.
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