How are the principles followed by the NITI Aayog different from those followed by the erstwhile Planning Commission in India? [200 words; 12.5 marks; 2015]

The National Institution for Transforming India (NITI) Aayog and the erstwhile Planning Commission have several key differences in terms of their principles and approach to economic planning and development in India.

1.       Approach to Planning: The Planning Commission had a top-down approach to planning, where the central government would set the agenda and state governments would implement it. In contrast, NITI Aayog follows a bottom-up approach, where the states are involved in the planning process and have a greater say in the development of their respective states.

2.       Focus on cooperation and coordination: NITI Aayog emphasizes on cooperation and coordination between the central and state governments, and between the different stakeholders in the development process. In contrast, the Planning Commission had a more centralized approach, where the central government had a greater say in the development process.

3.       Emphasis on innovation and technology: NITI Aayog places a greater emphasis on innovation and technology in the development process, and promotes the use of technology to improve efficiency and effectiveness. The Planning Commission had a more traditional approach to development and did not give much importance to technology.

4.       Role of private sector: NITI Aayog encourages greater private sector participation in the development process and promotes Public-Private Partnerships (PPPs) as a means of achieving economic development. The Planning Commission had a more state-centric approach, where the role of the private sector was limited.

5.       Monitoring and Evaluation: NITI Aayog focuses on monitoring and evaluation of the progress made by the states in implementing the development plans and identifying areas for improvement. The Planning Commission had a more passive approach to monitoring and evaluation.

6.       Role of the government: NITI Aayog's approach is more focused on creating an enabling environment for growth, whereas the erstwhile Planning Commission's approach was more focused on direct intervention in the economy.

7.       Decentralized approach: NITI Aayog follows a more decentralized approach to economic planning, with a greater emphasis on the role of states in the development process. The erstwhile Planning Commission, on the other hand, had a more centralized approach, with the national government playing a larger role in economic planning.

Overall, NITI Aayog's principles are more focused on cooperation, coordination, innovation, and private sector participation, while the Planning Commission's principles were more focused on a centralized approach to planning and state-centric development.