Top 13 Functions of NITI Aayog – Best Guide – 2024

NITI Aayog, or National Institution for Transforming India, is the premier policy planning institution of the Government of India. It was established in October 2015 to restructure the Planning Commission for the effective implementation of a cooperative federal structure for development in the country. 

However, after 2014, with the creation of NITI Aayog as the premier policy think tank, innovation, inclusion, and implementation have emerged as powerful tools in the policymaking process in India.

In this scholarly blog post, we aim to describe the top 13 functions of NITI Aayog in detail, including an understanding of its primary objectives, value, and relevance to the Indian government. If you are interested in knowing how functions of NITI Aayog aims towards India’s development agenda, this guide is made for you.

What is the NITI Aayog?

NITI Aayog is the official policy-level policy planning commission of the Indian central government, established in January 2015. It was based on 1 January 2015 and served as a replacement for the Planning Commission, which was formed in 1950. 

NITI Aayog is a policy think tank that was designed to advise the government on planning policies based on rigorous research into India’s sustainable development, cooperative federalism, and socioeconomic development of the nation.

Why Was NITI Aayog Formed?

The Planning Commission adopted a centralized approach that is widely associated with vertical imposition and lack of appropriate adjustment. 

Niti Aayog, on the other hand, follows a bottom-up approach that involves the participation of the state and civil society to ensure that development strategies are designed to address the challenges of the region and the required development trajectories.

What are the Top 13 Functions of NITI Aayog?

We have brought you all the top 13 functions of Niti Aayog; all the Namo are mentioned below in a very brief manner, along with which we have provided a lot of information about them:

1. Policy Formulation and Strategic Planning
2. Fostering Cooperative Federalism
3. Promoting Competitive Federalism
4. Catalyzing Economic Growth
5. Monitoring and Evaluating Government Programs
6. Fostering Innovation and Technology Development
7. Sustainable Development and Environmental Protection
8. Aspirational Districts Programme
9. International Collaboration and Partnerships
10. Advisory Role to the Government
11. Strengthening Human Capital Development
12. Rural Development and Agriculture
13. Addressing Social Issues

Policy Formulation and Strategic Planning

NITI Aayog is the strategy and policy paradigm of a nation, which emphasizes thinking about and formulating a sustainable action plan for the progress of the country. In particular, socially sensitive sectors such as education, health, agriculture, and infrastructure development are prioritized for sustainable and inclusive growth.

Key Aspects:

• Vision Documents: Medium to long-term plans are prepared by NITI Aayog, which includes a three-year action agenda, a seven-year strategy and a fifteen-year vision plan.
• Sectoral Reforms: The subcommittee provides policy recommendations for sectors that include the renewable energy sector, digital infrastructure, and manufacturing.
• Evidence-Based Policy: They are policy-based, with an emphasis on information sharing and rational use of available information.

Policy Formulation and Strategic Planning is the 1st function among the top 13 functions of NITI Aayog and also a very important one.

Fostering Cooperative Federalism

NITI Aayog is formed with the specific responsibility of reducing the role of centralization in governance, promoting cooperative federalism, and increasing the political participation of state governments. It also serves as a platform through which the central and state governments engage in development planning.

Key Mechanisms:

• Governing Council: This body consists of the Prime Minister, Chief Ministers, and Union Ministers who are well-placed to make decisions on important national concerns.
• Sub-Groups of Chief Ministers: Introduced essentially to follow up on specific areas such as Swachh Bharat, skill development initiatives, or agriculture reforms.
• Sharing Best Practices: Challenges states to adopt other governance best practices implemented in different states.

Fostering Cooperative Federalism is the 2nd function among the top 13 functions of NITI Aayog and also a very important one.

Promoting Competitive Federalism

NITI Aayog promotes or fosters competition among related entities with the aim of achieving greater efficiency and effectiveness on the part of the states, thereby improving the quality of governance and, ultimately, outcomes. Similarly we rank states on various indices, thereby encouraging states to enhance their capacity in key competency areas.

Competitive Indices:

• Health Index: Aims to assess the effectiveness of states in public health.
• School Education Quality Index (SEQI): Indexes educational achievements.
• Ease of Doing Business Rankings: Evaluate the image of particular states as a place to do business.
• Sustainable Development Goals (SDG) Index: Aims to monitor progress towards achievement of SDGs at the state level.

Promoting Competitive Federalism is the 3rd function among the top 13 functions of NITI Aayog and also a very important one.

Catalyzing Economic Growth

NITI Aayog is at the center of India’s economic policies and reform process. It works to promote ideas, innovation, and business as well as industrial progress, which will create a strong economic environment.

Economic Initiatives:

• Make in India: Considers government efforts to establish India as a manufacturing nation.
• Startup India: Supports entrepreneurship through policies, incubation and funding to startup companies.
• Atmanirbhar Bharat (Self-Reliant India): Adopts measures to support the Made in USA initiative so as to minimize imports of goods.

Catalyzing Economic Growth is the 4th function among the top 13 functions of NITI Aayog and also a very important one.

Monitoring and Evaluating Government Programs

Whereas NITI Aayog focuses more on performance so as to monitor and evaluate performance. It monitors the implementation of government schemes and makes recommendations for modifications if needed.

Monitoring Framework:

• Output-Outcome Framework: Evaluates outputs, which are the activities produced, as well as outcomes, which are the long-term impact on the activities conducted.
• Data Dashboards: For example, the Aspiring Districts Programme and Ayushman Bharat have performance metrics updated in real-time dashboards.
• Third-Party Evaluations: Hires external contractors to obtain an unbiased evaluation.

Monitoring and Evaluating Government Programs are the 5th function among the top 13 functions of NITI Aayog and also a very important one.

Fostering Innovation and Technology Development

NITI Aayog plays a key role in popularising new-age technologies as well as innovation in administration and business.

Notable Programs:

• Atal Innovation Mission (AIM): Promotes entrepreneurship with programs like ATL AIC and other individual programs.
• National Strategy for Artificial Intelligence: Lays out a strategy on how to deploy AI in key sectors such as healthcare, farming and school education.
• Blockchain, IoT, and Big Data Initiatives: It aims to support pilot projects and research of new technologies.

Fostering Innovation and Technology Development are the 6th function among the top 13 functions of NITI Aayog and also a very important one.

Sustainable Development and Environmental Protection

NITI Aayog plays a leadership role in this important informal mechanism, tasked with aligning India’s development objectives with international environmental standards.

Sustainability Initiatives:

• SDG Localization: Collaborates with state governments to help them localize the SDGs or Sustainable Development Goals.
• National Energy Policy: Pro-energy and supportive of the use of renewable energy and energy conservation.
• Water Resources Management: Align programs such as the Composite Water Management Index to increase water use efficiency.

Sustainable Development and Environmental Protection are the 7th function among the top 13 functions of NITI Aayog and also a very important one.

Aspirational Districts Programme

Transforming India’s most backward areas is another key focus area of ​​NITI Aayog, the Aspirational Districts Programme. 

Key Features:

• Focus Areas: Improved health/nutrition, education, social/economic/security ([livelihood]), [physical] infrastructure/basic amenities. 
• Data-Driven Governance: The district uses real-time data to monitor its performance. 
• Collaborative Model: Involves state governments, civil society, and the private sector to ensure transformation.

Aspirational Districts Programme are the 8th function among the top 13 functions of NITI Aayog and also a very important one.

International Collaboration and Partnerships

NITI Aayog also partners with international organizations to build partnerships to provide best practices, knowledge, and expertise to India.

Key Collaborations:

• UN Agencies: All of these implement the strategies of UNDP and UNICEF in their MINSA for SDGs and various health programs.
• Multilateral Organizations: As a member of the International Monetary Fund as well as a bilateral and multilateral lending partner, the bank relies on policy advice and financial support from IMF ADB.
• Bilateral Partnerships: For technology partnerships and development, it partners widely with countries like Japan, Germany, and the United States.

International Collaboration and Partnerships are the 9th function among the top 13 functions of NITI Aayog and also a very important one.

Advisory Role to the Government

NITI Aayog serves as an advisory body to the central and state governments on a wide range of policy matters, from economic reforms to social welfare schemes.

Advisory Areas:

• Economic Policy: Provides recommendations on fiscal policies, disinvestment, and economic reforms.
• Social Sector Initiatives: Advises on education, healthcare, and rural development strategies.
• Crisis Management: Offers policy advice during crises like the COVID-19 pandemic.

Advisory Role to the Government are the 10th function among the top 13 functions of NITI Aayog and also a very important one.

Strengthening Human Capital Development

Human capital development is of paramount importance to NITI Aayog, with an emphasis on education, healthcare, and skill development.

Key Initiatives:

• National Education Policy (NEP) 2020: Assisted in formulating the NEP to redesign the education system in India.
• Skill India Mission: Favors skill building in view of the increasing workforce requirements due to the constantly evolving economy.
• Ayushman Bharat: Provides inputs for the reform of India’s most ambitious health insurance program.

Strengthening Human Capital Development are the 11th function among the top 13 functions of NITI Aayog and also a very important one.

Rural Development and Agriculture

Transformation of agriculture and rural areas is an important part of NITI Aayog’s policies, which have the potential to transform human existence in villages and increase farmers’ income.

Agriculture Reforms:

• Doubling Farmers’ Income: Provides policy advice aimed at doubling farmers’ income.
• Model Agricultural Reforms: Develop model codes on contract farming and agricultural markets.
• Water Conservation and Irrigation: Supports sustainable water management in agricultural value addition through projects such as Pradhan Mantri Krishi Sinchai Yojana.

Rural Development and Agriculture are the 12th function among the top 13 functions of NITI Aayog and also a very important one.

Addressing Social Issues

NITI Aayog also addresses various social issues, focusing on inclusivity, gender equality, and poverty reduction.

Social Initiatives:

• Women Entrepreneurship Platform (WEP): Encourages women entrepreneurs by providing mentorship, funding, and networking opportunities.
• Health and Nutrition Programs: Collaborates with ministries to improve maternal and child health outcomes.
• Poverty Alleviation: Formulates strategies to reduce poverty and ensure social justice.

Addressing Social Issues are the 13th function among the top 13 functions of NITI Aayog and also a very important one.

What is the Importance of NITI Aayog?

NITI Aayog plays a crucial role in shaping India’s development by fostering cooperative federalism and ensuring sustainable growth. It provides key policy guidance, acts as an executive policy advisory body, and advocates innovation and technology. In addition, it focuses on issues such as poverty, inequality, and governance reforms that make it the core of India’s development.

Also Read: Objectives of NITI Aayog

What is the Composition of NITI Aayog?

Currently, NITI Aayog has the Prime Minister as its chairperson, vice-chairperson, full-time members, and ex-officio members who are Union Ministers and all Chief Ministers of States and Union Territories. It invites subject experts and specialists as special guests and contributes to policymaking and planning.

What is the Structure of NITI Aayog?

NITI Aayog operates under a structured framework to ensure efficiency and accountability:

• President: Prime Minister of India.
• Governing Council: It consists of Chief Ministers of all States and Union Territories and lieutenant Governors of Union Territories.
• Vice President: A person directly selected by the Prime Minister who has the responsibility of running the party at the operational level.
• Full-time members: Top professionals from various fields.
• Ex-officio members: Members of the Cabinet controlling important ministries.
• Special invitees: Gathering of leading scholars and professionals to seek advice.

In Conclusion

NITI Aayog has transformed the landscape of policy planning in India through its dynamic, participatory, and data-driven approach. 

As an effective tool for cooperative and competitive federalism, besides promoting innovation and fostering sustainable development, it is a major contributor to India’s growth dynamism. 

Being based on principles such as evidence-based policy and collaborative governance, functions of NITI Aayog will continue to shape India’s progress towards a progressive and better future in the years to come.

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