NITI Aayog’s role in fostering spirit of strong states, strong nation

“We should focus on one goal — to make Bharat Viksit by 2047. We should have the aim of making each state Viksit, each city Viksit, each Nagar Palika Viksit and each village Viksit. If we work on these lines, we will not have to wait till 2047 to become Viksit Bharat,” the Prime Minister said during the meeting held on May 25 in Delhi.

NITI Aayog drives this vision forward by actively supporting states through various initiatives and mechanisms, premised on the belief that strong States make a strong nation. But how does this premier policy think tank of the Government of India advance this vision? In what ways does it foster cooperative and competitive federalism? What are the significant initiatives it has launched since its inception? 

Strong states, strong nation 

With the twin mandate of promoting cooperative and competitive federalism, NITI Aayog (National Institution for Transforming India) was constituted in January 2015 replacing the 65-year-old Planning Commission as a public policy think tank. Outlining the body’s objectives, a press statement issued by the government of India on January 1, 2015, stated, “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 two fundamental pillars of the body are a collaboration between the Central and State governments and promoting healthy competition among States through various sectors such as agriculture, health, education, infrastructure, and irrigation.

Unlike the erstwhile Planning Commission, which worked as a centralised body through the five-year plans by pursuing top-down approach in allocating the funds to the States, NITI Aayog was envisaged to adopt a bottom-up model with no financial powers vested upon it. In doing so, it delinked fund allocation from policy planning and redefined the role of the States in the developmental paradigm and policy-making process.

In terms of its composition, the Governing Council of NITI Aayog comprises the Prime Minister of India, Chief Ministers of all the States and Union Territories with Legislature, and Lt Governors of other Union Territories. The body also includes a Vice Chairman and other members appointed by the Centre. The Governing Council presents a platform “to discuss inter-sectoral, inter-departmental and federal issues to accelerate the implementation of the national development agenda”. Building on this structure, NITI Aayog undertakes a wide range of activities.

Accelerating India’s development journey

The activities of the think tank can be classified into four broad areas: policy and programme framework, cooperative federalism, monitoring and evaluation, and think tank and knowledge and innovation hub. To promote cooperative federalism, it constitutes various task forces and sub-groups related to various flagship programmes introduced by the Centre. 

It has adopted a multifaceted governance model by forging partnerships with various stakeholders such as State governments, civil society representatives, the private sector, and technocrats to accelerate India’s development journey. The body has introduced several ideas in policy innovation and data. 

Additionally, NITI Aayog played an important role in tracking India’s performance on the United Nations Sustainable Development Goals (SDGs) by August 2030 as it introduced the SDG index to promote competition among States. The SDG India Index 2023-24 report, released by NITI Aayog, shows India’s composite score stood at 71 in 2023-24 compared to 66 in 2020-21. The report underlined significant progress made in eliminating poverty, providing decent work, economic growth, climate action and life on earth.

Specifically, India marked improvements in several key SDGs including 1 (No Poverty), 3 (Good Health and Well-being), 6 (Clean Water and Sanitation), 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure) and 11 (Sustainable Cities and Communities). Other significant initiatives by the  premier policy think tank included:

— Performance in Health Outcomes Index to review health performance.

— Composite Water Management Index to address India’s growing water crisis. 

— School Education Quality Index to improve education outcomes. 

These measures played a key role in getting real time data on various indices, encouraging informed policy-making and fostering competition among various States. 

Collaboration, convergence, and competition

In 2018, NITI Aayog also introduced the ‘Aspirational Districts Programme’ to study the underdevelopment and enhance the performance of human development indicators (such as health, education, agriculture and others) in 112 districts across 26 States and one Union Territory. The basic tenets of this ADP strategy were the three C’s which include: collaboration, convergence, and competition. Examples of the success stories from districts include:

— Jamui, Bihar: Technological intervention to reduce mortality rate in high risk pregnancies.

— Malkangiri, Odisha:-Transformation of the Anganwadi system.

— Viziangaram, Andhra Pradesh: Construction of hostels for tribal pregnant women.

— Nandurbar, Maharashtra: Centralised kitchens for better nutrition to tackle malnutrition.

The best performing districts were also rewarded on the rankings based on incremental progress made across 49 key performance indicators (KPIs) under five socio-economic themes – health and nutrition, education, agriculture and water resources, financial inclusion, skill development and infrastructure. 

The best practices pursued in governance in these aspirational districts were emulated in various other districts to alleviate regional disparities and improve the outcomes. Building on the successful implementation of this programme, ‘The Aspirational Blocks Programme’ was launched in 2023 to develop 500 underdeveloped blocks in India, aiming to improve living standards in remote areas lacking basic amenities. 

Empowering local governance and innovation

NITI Aayog also seeks to train local officials and create a robust tracking system to ensure centrally sponsored schemes are reached effectively to the intended beneficiaries without any hindrance. Examples of success stories from this programme include:

— Mandia, Assam in improving access to clean tap water to households through ‘Jal Mitras’.

— Dumri, Jharkhand for tackling malnutrition in children.

— Maddikera, Andhra Pradesh for improving education infrastructure.

In its role as a knowledge and innovation hub, NITI Aayog launched the Atal Innovation Mission (AIM) in 2016 to nurture the innovation ecosystem across the country. Through this programme, 1.1 crore students were engaged in 10,000 Atal Tinkering Labs (ATLs), nearly 32,000 jobs were created through 72 Atal Incubation Centres (AICs), 7,100 ATLs were sanctioned in 110 aspirational districts across the country. 

This programme played a significant role in bringing the best talent among young minds and fostering a culture of creativity, promoting entrepreneurial skills across various educational institutions. Several startups such as Agnikul (space tech) benefitted from the AIM. In November 2024, the Union Cabinet approved the continuation of the AIM programme until March 31, 2028, with an allocated budget of Rs. 2,750 crores. 

Unlike AIM 1.0, AIM 2.0 will expand the innovation and entrepreneurship ecosystems in 22 recognised languages. The mission also aims to create an innovation ecosystem in Jammu and Kashmir, Ladakh, North East, Aspirational Districts, and Blocks where 15 per cent of citizens reside.

To sum up, as an ideas platform, NITI Aayog fundamentally altered the landscape of planning in India by adopting a participatory model, decentralising the development journey, and working closely with States through new partnerships. The more frequent consultation with the States would help bridge gaps in policy implementation and address future challenges.

Post Read Questions

How does NITI Aayog reflect the principle of ‘Strong States, Strong Nation’ in its functioning?

What are the four broad areas under which NITI Aayog’s activities are classified? Name some initiatives or programmes launched by it to improve delivery of centrally sponsored schemes.

In what ways does NITI Aayog promote federal cooperation while maintaining competitive development among states?

Evaluate the impact of the SDG India Index in encouraging state-level performance on sustainable development.

Discuss how NITI Aayog’s initiatives like Atal Innovation Mission (AIM) contribute to long-term national innovation capacity.

(Dr. Akhil Kumar is a PhD in Political Science from University of Hyderabad.)

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