The principles followed by NITI Aayog (National Institution for Transforming India) are different from those followed by the erstwhile Planning Commission in India in several ways:

1. Bottom-up approach: NITI Aayog follows a bottom-up approach, which means it encourages the active participation of states and Union Territories in the policy-making and planning process. It focuses on cooperative federalism and promotes inclusive development by involving all stakeholders.

2. Decentralized planning: NITI Aayog emphasizes decentralized planning, as opposed to the centralized planning approach of the Planning Commission. It encourages states to come up with their own development plans based on their specific needs and resources.

3. Flexibility and adaptability: NITI Aayog aims to be more flexible and adaptive in its approach. It focuses on providing policy advice and guidance rather than rigidly allocating funds and resources like the Planning Commission did. It encourages innovative solutions and experimentation to address the diverse developmental challenges faced by different states.

4. Private sector involvement: NITI Aayog actively involves the private sector in the policy-making process. It recognizes the significance of robust private sector participation in driving economic growth and development. The Planning Commission, on the other hand, primarily focused on public sector-led development.

5. Outcome-oriented approach: NITI Aayog promotes an outcome-oriented approach, wherein the emphasis is on achieving tangible results. It sets specific targets and monitors progress towards achieving them. The Planning Commission largely focused on planning and resource allocation without a strong emphasis on measuring outcomes.

Overall, the shift from the Planning Commission to NITI Aayog represents a move towards a more participatory, flexible, and outcome-oriented approach in India's policy-making and planning processes.

NITI Aayog, established in 2015, replaced the Planning Commission, signifying a shift in the approach to planning and development in India. Here's a breakdown of the key differences in principles between the two institutions:

Planning Commission (1950-2015)

• Centralized Planning: The Planning Commission operated on a top-down, centralized approach. It formulated five-year plans, allocating resources and setting targets for various sectors. States were largely expected to implement these plans.
• Directive Role: The Commission had a directive role, with its recommendations carrying significant weight and often being considered binding on states.
• Focus on Physical Targets: The focus was primarily on achieving physical targets, like production of food grains, industrial output, etc.
• Emphasis on Public Sector: There was a strong emphasis on the public sector driving economic growth.
• Command and Control Model: The approach was largely based on a command and control model, with the Commission acting as the central authority.

NITI Aayog (2015 onwards)

• Cooperative Federalism: NITI Aayog promotes a collaborative approach, working with states as equal partners in the development process.
• Think Tank and Advisor: It acts as a think tank and advisor, providing technical expertise and strategic guidance to the government.
• Focus on Outcomes and Results: The focus is on achieving specific outcomes and results, not just physical targets.
• Encouraging Private Sector Participation: It emphasizes the role of the private sector in driving economic growth and innovation.
• Market-Oriented Approach: NITI Aayog encourages a market-oriented approach to development, with a focus on competition and efficiency.
• Data-Driven Decision Making: It relies heavily on data analytics and evidence-based policymaking.

Key Differences Summarized:

| Feature | Planning Commission | NITI Aayog | |----------------------|--------------------------|--------------------| | Planning Approach | Centralized | Cooperative Federalism | | Role | Directive | Advisor and Think Tank | | Focus | Physical Targets | Outcomes & Results | | Sector Emphasis | Public Sector | Private Sector Participation | | Approach | Command & Control | Market-Oriented | | Decision Making | Traditional | Data-Driven |

Impact of the Shift:

The move from the Planning Commission to NITI Aayog signifies a shift towards a more decentralized, collaborative, and results-oriented approach to development in India. This transition aims to empower states, promote private sector participation, and encourage a more competitive and efficient economy. However, the transition also presents challenges, like ensuring effective coordination among states and developing robust mechanisms for monitoring and evaluating outcomes.

NITI Aayog, established in 2015, replaced the Planning Commission of India, which was set up in 1950. While both institutions aimed to promote economic growth and development in India, there are significant differences in their principles, approaches, and functions. Here are the key differences:

1. Approach:

• Planning Commission: Followed a top-down, centralized planning approach, where the government played a key role in allocating resources and setting development targets.
• NITI Aayog: Adopts a more collaborative, inclusive, and decentralized approach, encouraging stakeholders, including states, civil society, and the private sector, to participate in the development process.

2. Role:

• Planning Commission: Had a more extensive role in allocating resources, setting development targets, and monitoring progress.
• NITI Aayog: Acts as a think tank, providing strategic guidance, policy advice, and coordination between the central government, states, and other stakeholders.

3. Focus:

• Planning Commission: Emphasized Five-Year Plans, which focused on achieving specific economic growth targets, industrialization, and infrastructure development.
• NITI Aayog: Encompasses a broader range of issues, including sustainable development, environmental protection, social inclusion, and human development.

4. Governance:

• Planning Commission: Had a more rigid, bureaucratic structure, with a powerful chairman and a small team of experts.
• NITI Aayog: Has a more flexible, transparent, and inclusive governance structure, with a larger team of experts and a stronger role for states and stakeholders.

5. Funding:

• Planning Commission: Had significant influence over the allocation of central funds to states and sectors.
• NITI Aayog: Does not have direct control over fund allocation, which is now handled by the Ministry of Finance.

6. Decision-making:

• Planning Commission: Decisions were largely made by the central government, with limited state autonomy.
• NITI Aayog: Encourages collaborative decision-making, involving states, civil society, and other stakeholders, to ensure that development policies are more responsive to local needs.

7. Sectoral focus:

• Planning Commission: Focused on specific sectors, such as agriculture, industry, and infrastructure.
• NITI Aayog: Takes a more holistic approach, considering the interlinkages between sectors and promoting a more integrated development strategy.

8. Role of States:

• Planning Commission: States played a limited role in the planning process, with the Planning Commission setting development targets and allocating resources.
• NITI Aayog: States are encouraged to take a more proactive role in development planning, with NITI Aayog providing guidance and support.

Overall, NITI Aayog's principles are designed to be more inclusive, collaborative, and responsive to local needs, with a greater emphasis on sustainable development and human well-being.