Planning Commission of India, Establishment, Members and Chairman

Planning Commission of India: The Planning Commission of India was a governmental organization tasked with developing the country’s five-year plans and carrying out a number of other duties. The creation of opportunities for everyone to find work in fields that advance society was one of its main missions.

Planning Commission of India

• In the history of India’s economic development, a pivotal institution had played a significant role in shaping policy decisions and steering the nation toward progress- Planning Commission.
• The erstwhile Planning Commission was established by an executive resolution of the Government of India, (i.e., the Union Cabinet) on the recommendation of the Advisory Planning Board constituted in 1946, under the chairmanship of K.C. Neogi.
• Thus, the erstwhile Planning Commission was neither a constitutional body nor a statutory body. In India, it was the supreme organ of planning for social and economic development.
• The Planning Commission held sway for over six decades before being replaced by NITI Aayog in 2015.

Planning Commission- Establishment and Background

The Planning Commission was founded in 1950, shortly after India gained independence.

• Jawaharlal Nehru, the first Prime Minister of India, recognized the need for a centralized body to guide the nation’s economic development.
• The commission was created to formulate and implement comprehensive five-year plans, which aimed at achieving specific economic targets and social objectives.
• The Indian economy, still grappling with the aftermath of colonial rule, needed a strategic roadmap for growth.

Functions of the Planning Commission

The Planning Commission’s primary functions encompassed formulating long-term and short-term plans, allocating resources to various sectors, and assessing progress through periodic evaluations.

• It acted as a bridge between the Centre and the states, coordinating efforts to achieve balanced regional development. The commission facilitated resource allocation, prioritized projects, and set sectoral targets to realize ambitious economic goals.
  Composition and Dissolution
• The Planning Commission was headed by the Prime Minister and included a Deputy Chairman, experts, and members from various sectors.
• This composition ensured a multidisciplinary approach to policy formulation.
• However, criticisms over its top-down approach, rigid planning, and lack of transparency led to growing calls for reform.
• In 2014, the Planning Commission was dissolved, marking the end of an era in Indian policy-making.

NITI Aayog- A Paradigm Shift

• The National Institution for Transforming India (NITI) Aayog emerged as a successor to the Planning Commission in 2015.
• The key difference between the two lies in their approach.
• NITI Aayog operates as a think tank, fostering a cooperative federalism model where states play a more active role in policy formulation.
• This shift is in line with the changing global economic landscape and the need for more flexible, dynamic strategies.

Comparative Analysis with NITI Ayog

• Flexibility vs. Rigidity: NITI Aayog offers more flexibility in planning, promoting innovation and adaptability to changing circumstances, unlike the rigid five-year plans of the Planning Commission.
• Cooperative Federalism: NITI Aayog’s approach acknowledges the varying needs of different states and promotes cooperative federalism, fostering a sense of ownership among states in the policy-making process.
• Decentralized Decision-Making: NITI Aayog encourages bottom-up planning, giving states more autonomy in designing and implementing development programs, thereby ensuring local needs are addressed effectively.
• Inclusive Growth: While both institutions are aimed at inclusive growth, NITI Aayog emphasizes the involvement of private sectors, NGOs, and international experts to develop a holistic perspective.
• Global Integration: NITI Aayog aligns India’s policies with global trends and innovations, ensuring the nation remains competitive on the international stage.

Planning Commission VS Niti Aayog

The Planning Commission and NITI Aayog are both important institutions in the context of India’s economic planning and policy formulation. However, they serve different roles and have distinct structures. Here’s an overview of both:

The Planning Commission and NITI Aayog stand as milestones in India’s journey toward economic development and prosperity. While the Planning Commission provided a structured approach to post-independence economic planning, NITI Aayog brings a more flexible and collaborative framework, aligning with contemporary global economic dynamics. The transition from the former to the latter underscores India’s commitment to embracing change, innovation, and inclusive growth in an ever-evolving world.

Planning Commission of India for UPSC

Understanding the historical significance and transformation of the Planning Commission is essential for UPSC aspirants to comprehend the evolution of India’s planning and policy landscape.

• The Planning Commission of India held significant importance in the nation’s governance.
• Its primary role was to create and implement strategic Five-Year Plans guiding India’s socio-economic progress.
• Founded in 1950, the Commission was instrumental in allocating resources, coordinating policies, and defining growth objectives across various sectors.
• In 2015, NITI Aayog replaced the Planning Commission, signifying a transition towards a more collaborative and decentralized planning approach.
• NITI Aayog emphasizes the active involvement of states and diverse stakeholders in the policy-making process, marking a departure from the earlier centralized approach.

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