Press Information Bureau
Government of India
Cabinet
01-January-2015
15:41 IST
Government constitutes National Institution
for Transforming India (NITI) Aayog
Press
Note
The
Government has replaced Planning Commission with a new institution named NITI
Aayog (National Institution for Transforming India). The
institution will serve as ‘Think Tank’ of the Government-a directional and
policy dynamo. NITI Aayog will provide Governments at the central and state
levels with relevant strategic and technical advice across the spectrum of key
elements of policy, this includes matters of national and international import
on the economic front, dissemination of best practices from within the country
as well as from other nations, the infusion of new policy ideas and specific
issue-based support.
The
following is the full text of the Cabinet Resolution:-
RESOLUTION
Mahatma Gandhi had said: “Constant development
is the law of life, and a man who always tries to maintain his dogmas in order
to appear consistent drives himself into a false position”. Reflecting this
spirit and the changed dynamics of the new India, the institutions of
governance and policy have to adapt to new challenges and must be built on the
founding principles of the Constitution of India, the wealth of knowledge from
our civilizational history and the present day socio-cultural context.
2.
The Planning Commission was set up on the 15th of
March, 1950 through a Cabinet Resolution. Nearly 65 years later, the
country has transformed from an under-developed economy to an emergent global
nation with one of the world’s largest economies.
3.
From being preoccupied with survival, our aspirations
have soared and today we seek elimination, rather than alleviation, of
poverty. The people of India have great expectations for progress and
improvement in governance, through their participation. They require
institutional reforms in governance and dynamic policy shifts that can seed and
nurture large-scale change. Indeed, the ‘destiny’ of our country, from the time
we achieved Independence, is now on a higher trajectory.
4.
The past few decades have also witnessed a strengthening
of Indian nationhood. India is a diverse country with distinct languages,
faiths and cultural ecosystems. This diversity has enriched the totality
of the Indian experience. Politically too, India has embraced a greater
measure of pluralism which has reshaped the federal consensus. The States
of the Union do not want to be mere appendages of the Centre. They seek a
decisive say in determining the architecture of economic growth and development.
The one-size-fits-all approach, often inherent in central planning, has the
potential of creating needless tensions and undermining the harmony needed for
national effort. Dr. Ambedkar had said with foresight that it is
“unreasonable to centralise powers where central control and uniformity is not
clearly essential or is impracticable”.
5.
At the heart of the dynamics of transforming India lies a
technology revolution and increased access to and sharing of information.
In the course of this transformation, while some changes are anticipated and
planned, many are a consequence of market forces and larger global
shifts. The evolution and maturing of our institutions and polity
also entail a diminished role for centralised planning, which itself needs to
be redefined.
6. The
forces transforming India are many and include:
a.
The industry and service sectors have developed and are operating on a global
scale now. To build on this foundation, new India needs an administration
paradigm in which the government is an “enabler” rather than a “provider of
first and last resort”. The role of the government as a “player” in the
industrial and service sectors has to be reduced. Instead, government has
to focus on enabling legislation, policy making and regulation.
b.
India’s traditional strength in agriculture has increased manifold on account
of the efforts of our farmers and improvements in technology. We need to
continue to improve, and move from pure food security to a focus on a mix of agricultural
production as well as the actual returns that farmers get from their
produce.
c.
Today, we reside in a ‘global village’, connected by modern
transport, communications and media, and networked international markets and
institutions. As India ‘contributes’ to global endeavours, it is also
influenced by happenings far removed from our borders. Global economics
and geo-politics are getting increasingly integrated, and the private sector is
growing in importance as a constituent within that. India needs to be an
active player in the debates and deliberations on the global commons,
especially in relatively uncharted areas.
d.
India’s middle class is unique in terms of its size and purchasing power.
This formidable group is increasing with the entry of the neo-middle
class. It has been an important driver of growth and has enormous
potential on account of its high education levels, mobility and willingness to
push for change in the country. Our continuing challenge is to ensure that
this economically vibrant group remains engaged and its potential is fully
realised.
e.
India’s pool of entrepreneurial, scientific and intellectual human capital is a
source of strength waiting to be unleashed to help us attain unprecedented heights
of success. In fact, the ‘social capital’ that is present in our people
has been a major contributor to the development of the country thus far and,
therefore, it needs to be leveraged through appropriate policy
initiatives.
f.
The Non-Resident Indian community, which is spread across more than 200
countries, is larger in number than the population of many countries of the
world. This is a significant geo-economic and geo-political strength.
Future national policies must incorporate this strength in order to broaden
their participation in the new India beyond just their financial support.
Technology and management expertise are self-evident areas where this community
can contribute significantly.
g.
Urbanisation is an irreversible trend. Rather than viewing it as an evil,
we have to make it an integral part of our policy for development.
Urbanisation has to be viewed as an opportunity to use modern technology to
create a wholesome and secure habitat while reaping the economic benefits that
it offers.
h.
Transparency is now a sine qua non for good governance.
We are in a digital age where the tools and modes of communication, like social
media, are powerful instruments to share and explain the thoughts and actions
of the government. This trend will only increase with time.
Government and governance have to be conducted in an environment of total
transparency – using technology to reduce opacity and thereby, the potential
for misadventures in governing.
7.
Technology and information access have accentuated the
unity in diversity that defines us. They have helped integrate different
capabilities of our regions, states and eco-systems towards an interlinked
national economy. Indeed, Indian nationhood has been greatly strengthened
on their account. To reap the benefits of the creative energy that
emerges from the Indian kaleidoscope, our development model has to become more
consensual and co-operative. It must embrace the specific demands of states,
regions and localities. A shared vision of national development has to be
worked out based on human dignity, national self-respect and an inclusive and
sustainable development path.
8. The challenges we
face as a country have also become more complex:
a.
India’s demographic dividend has to be leveraged
fruitfully over the next few decades. The potential of our youth, men and
women, has to be realized through education, skill development, elimination of
gender bias, and employment. We have to strive to provide our youth
productive opportunities to work on the frontiers of science, technology and
knowledge economy.
b.
Poverty elimination remains one of the most important
metrics by which alone we should measure our success as a nation. Every
Indian must be given an opportunity to live a life of dignity and self
respect. The words of Tiruvalluvar, the sage-poet, when he wrote that
“nothing is more dreadfully painful than poverty”, and “gripping poverty robs a
man of the lofty nobility of his descent”, are as true today as they were when
written more than two thousand years ago.
c.
Economic development is incomplete if it does not provide
every individual the right to enjoy the fruits of development. Pt. Deen Dayal
Upadhyaya had enunciated this in his concept of Antyodaya, or uplift of the
downtrodden, where the goal is to ensure that the poorest of the poor get the
benefits of development. Inequalities based on gender biases as well as
economic disparities have to be redressed. We need to create an
environment and support system that encourages women to play their rightful
role in nation-building. Equality of opportunity goes hand in hand with
an inclusiveness agenda. Rather than pushing everyone on to a
pre-determined path, we have to give every element of society – especially
weaker segments like the Scheduled Castes and Scheduled Tribes - the ability to
influence the choices the country and government make in setting the national
agenda. In fact, inclusion has to be predicated on a belief in the ability
of each member of society to contribute. As Sankar Dev wrote centuries
ago in the Kirtan Ghosh: “To see every being as equivalent to one’s own soul is
the supreme means (of attaining deliverance)”.
d.
Villages (Gram) continue to be the bedrock of our
ethos, culture and sustenance. They need to be fully integrated
institutionally into the development process so that we draw on their vitality
and energy.
e.
India has more than 50 million small businesses, which
are a major source of employment creation. These businesses are
particularly important in creating opportunities for the backward and
disadvantaged sections of the society. Policy making must focus on
providing necessary support to this sector in terms of skill and knowledge
upgrades and access to financial capital and relevant technology.
f.
Responsible development implies environmentally sound
development. India is one of the mega-diverse countries. Our
environmental and ecological assets are eternal, and must be preserved and
safeguarded. The country’s legacy of respect for environment is reflected
in our reverence for trees and animals. Our legacy to future generations
must be sustainable progress. Each element of our environment (paryavaran)
and resources, namely water, land and forest (Jal, Jameen evam
Jungle) must be protected; and this must be done in a manner that takes
into account their inter-linkages with climate (jal vayu) and people (jan).
Our development agenda has to ensure that development does not sully the
quality of life of the present and future generations.
9.
The role of the government in achieving ‘national
objectives’ may change with time, but will always remain significant.
Government will continue to set policies that anticipate and reflect the
country’s requirements and execute them in a just manner for the benefit of the
citizens. The continuing integration with the world – politically and
economically - has to be incorporated into policy making as well as functioning
of the government.
In essence, effective governance in India will
rest on the following pillars:
a. Pro-people
agenda that fulfils the aspirations of the society as well as individual,
b. Pro-active in
anticipating and responding to their needs,
c. Participative, by
involvement of citizens,
d. Empowering women
in all aspects
e. Inclusion of
all groups, with special attention to the economically weak (garib), the
SC, ST and OBC communities, the rural sector and farmers (gaon and
kisan), youth and all categories of minorities.
f. Equality
of opportunity to our country’s youth,
g. Transparency through
the use of technology to make government visible and responsive.
10.
Governance, across the public and private domains, is the
concern of society as a whole. Everyone has a stake in ensuring good
governance and effective delivery of services. Creating Jan Chetna, therefore,
becomes crucial for people’s initiative. In the past,
governance may have been rather narrowly construed as public governance.
In today’s changed dynamics – with ‘public’ services often being delivered by
‘private’ entities, and the greater scope for ‘participative citizenry’,
governance encompasses and involves everyone.
11.
The institutional framework of government has developed
and matured over the years. This has allowed the development of
domain expertise which allows us the chance to increase the specificity of
functions given to institutions. Specific to the planning process, there
is a need to separate as well as energize the distinct ‘process’ of governance
from the ‘strategy’ of governance.
In the context of governance structures, the changed
requirements of our country, point to the need for setting up an institution
that serves as a Think Tank of the government – a directional and policy
dynamo. The proposed institution has to provide governments at the
central and state levels with relevant strategic and technical advice across
the spectrum of key elements of policy. This includes matters of national
and international import on the economic front, dissemination of best practices
from within the country as well as from other nations, the infusion of new
policy ideas and specific issue-based support. The institution has to be
able to respond to the changing and more integrated world that India is part
of.
An important evolutionary change from the past will be
replacing a centre-to-state one-way flow of policy by a genuine and continuing
partnership with the states. The institution must have the
necessary resources, knowledge, skills and, ability to act with speed to
provide the strategic policy vision for the government as well as deal with
contingent issues.
Perhaps most importantly, the institution must adhere to
the tenet that while incorporating positive influences from the world, no
single model can be transplanted from outside into the Indian scenario.
We need to find our own strategy for growth. The new institution has to
zero in on what will work in and for India. It will be a Bharatiya
approach to development.
12.
The institution to give life to these aspirations is the NITI
Aayog (National Institution for Transforming India). This is being
proposed after extensive consultation across the spectrum of stakeholders
including inter alia state governments, domain experts and
relevant institutions. The NITI Aayog will work towards the following
objectives:
a.
To evolve a shared vision of national development
priorities, sectors and strategies with the active involvement of States in the
light of national objectives. The vision of the NITI Aayog
will then provide a framework ‘national agenda’ for the Prime Minister and the
Chief Ministers to provide impetus to.
b.
To foster cooperative federalism through structured
support initiatives and mechanisms with the States on a continuous basis,
recognizing that strong States make a strong nation.
c.
To develop mechanisms to formulate credible plans at the
village level and aggregate these progressively at higher levels of government.
d.
To ensure, on areas that are specifically referred to it,
that the interests of national security are incorporated in economic strategy
and policy.
e.
To pay special attention to the sections of our society
that may be at risk of not benefitting adequately from economic
progress.
f.
To design strategic and long term policy and programme
frameworks and initiatives, and monitor their progress and their
efficacy. The lessons learnt through monitoring and feedback will be used
for making innovative improvements, including necessary mid-course corrections.
g.
To provide advice and encourage partnerships between key
stakeholders and national and international like-minded Think Tanks, as well as
educational and policy research institutions.
h.
To create a knowledge, innovation and entrepreneurial
support system through a collaborative community of national and international
experts, practitioners and other partners.
i.
To offer a platform for resolution of inter-sectoral and
inter-departmental issues in order to accelerate the implementation of the
development agenda.
j.
To maintain a state-of-the-art Resource Centre, be a
repository of research on good governance and best practices in sustainable and
equitable development as well as help their dissemination to stake-holders.
k.
To actively monitor and evaluate the implementation of
programmes and initiatives, including the identification of the needed
resources so as to strengthen the probability of success and scope of delivery.
l.
To focus on technology upgradation and capacity building
for implementation of programmes and initiatives.
m.
To undertake other activities as may be necessary in
order to further the execution of the national development agenda, and the
objectives mentioned above.
13. The
NITI will comprise the following:
a.
Prime Minister of India as the Chairperson
b.
Governing Council comprising the Chief Ministers of all
the States and Lt. Governors of Union Territories
c.
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.
d.
Experts, specialists and practitioners with relevant
domain knowledge as special invitees nominated by the Prime Minister
e.
The full-time organizational framework will comprise of,
in addition to the Prime Minister as the Chairperson:
i.
Vice-Chairperson: To be appointed by the Prime Minister
ii. Members:
Full-time
iii. Part-time
members: Maximum of 2 from leading universities research organizations and
other relevant institutions in an ex-officio capacity. Part time members
will be on a rotational basis.
iv. Ex Officio
members: Maximum of 4 members of the Union Council of Ministers to be nominated
by the Prime Minister.
v. Chief Executive
Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank
of Secretary to the Government of India.
vi. Secretariat as
deemed necessary.
14.
Swami Vivekananda said “Take up one idea. Make that one
idea your life – think it, dream of it, live on that idea. Let the brain,
muscles, nerves, every part of your body, be full of that idea and just leave
every other idea alone. This is the way to success.” Through its commitment to
a cooperative federalism, promotion of citizen engagement, egalitarian access to
opportunity, participative and adaptive governance and increasing use of
technology, the NITI Aayog will seek to provide a critical directional and
strategic input into the governance process. This, along with being the
incubator of ideas for effective governance, will be the core mission of NITI
Aayog.
Cabinet Secretariat, Government of India
New Delhi, 1st January 2015
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