Press
Information Bureau
Government of India
Cabinet
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
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