Press Information Bureau

Government of India
Cabinet
01-January-2015 17:9 IST

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 Governmenta 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 metamorphosed from an under-developed economy to an
emergent global nation with one of the worlds 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.

Indias 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.

Indias 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. Indias 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 geoeconomic 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. Indias 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
ones 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 countrys 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 countrys
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.
b.
c.
d.
e.

Pro-people agenda that fulfils the aspirations of the society as well as individual,
Pro-active in anticipating and responding to their needs,
Participative, by involvement of citizens,
Empowering women in all aspects
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 countrys 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 peoples initiative. In the past, governance may have been rather
narrowly construed as public governance. In todays 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 Aayog 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 development process. This, along with being the
incubator of ideas for development, will be the core mission of NITI Aayog.
Cabinet Secretariat, Government of India
New Delhi, 1st January 2015

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