Spot the difference: Modi's NITI Aayog looks quite like the Planning Commission

The government has set up NITI Aayog, a think-tank that will replace the Planning Commission. According to a government press release, the new body is the result of "extensive consultations" the Centre held with state governments, domain experts and other relevant institutions.

The move is the first major step taken by Prime Minister Narendra Modi in order to break away from the Socialist legacies in the matters related to economy and development. The Planning Commission, established by Jawaharlal Nehru 65 years ago to formulate Five-Year Plans, has been criticised for being a Socialist era vestige, which became irrelevant in a more globalised and market-focussed economy.

NITI Aayog has been set up "to provide a critical directional and strategic input into the development process". It will act as a "think-tank" and advise the Centre and states on policy matters. The Aayog seeks to end "slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination", the press release says. It will also monitor and evaluate the implementation of programmes. NITI stands for National Institution for Transforming India.

One important factor being highlighted in the press release is that NITI Aayog rings in co-operative federalism. The term co-operative federalism denotes a two-way relationship between the Centre and state governments in matters related to economic policy and development. NITI Aayog is expected to "help evolve a shared vision of national development priorities", in keeping with the spirit of such a federal structure.

"The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states," the press release states.

Break from the past?

But just how big a break is this from the past?

A key difference NITI Aayog has from the Planning Commission is in its constitution. The new body has state chief ministers and lieutenant governors as members in the governing council. PM Modi has termed it as a landmark change that will foster spirit of "cooperative federalism".

NITI Aayog will also have a vice-chairperson and a CEO in addition to five full-time members and two part-time members. Four union ministers would also serve as ex-officio members. The Planning Commission had a Deputy Chairman and full-time members with a member secretary as a convener.

The opposition parties have criticised the move saying that the change that has been brought about is only cosmetic. Merely a change in the name is not going to make a difference, they say.