What institutional body replaced the Planning Commission of India to foster cooperative federalism through active involvement of state governments in economic policy formulation?

💡 Solution & Explanation

National Institution for Transforming India, known as NITI Aayog, was established in 2015 as the premier policy think tank of the government, replacing the erstwhile Planning Commission to promote cooperative federalism through bottom-up planning. The Finance Commission is a constitutional body under Article 280 determining tax devolution. The National Development Council was an advisory body associated with five-year plans. NITI Aayog acts as a knowledge and innovation hub without financial allocation powers.