Press
Information Bureau
Government of India
Cabinet
01-January-2015
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