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Reasons, objectives, and functions of NITI Aayog | UPSC-UPPSC NOTES

Table of contents:

  • Discuss the reasons, objectives, and functions of NITI Aayog and describe the recently re-organized NITI Aayog. ( UPPSC 2018)
  • What are the objectives of NITI Aayog? Explain its three-year action plan. ( UPPSC 2020)
  • Describe the targets of energy generation through renewable energy sources by National Energy Policy 2017 drafted by NITI Aayog. ( UPPSC 2018)
  • Explain the objectives and composition of "NITI Aayog". What are its significant achievements? ( UPPSC 2022)



Discuss the reasons, objectives, and functions of NITI Aayog and describe the recently re-organized NITI Aayog.

 (UPPSC, UP PCS Mains General Studies-II/GS-2 2018)


The full name of the NITI Aayog is "National Institution for Transforming India" a policy think tank which was formed by the Government of India on 1 January 2015. It acts as a platform to prepare and implement strategies to promote sustainable development and economic growth in the country.

Reasons for formation:

Modern Planning Process: NITI Aayog replaced the Planning Commission, which was in operation since India's independence. The government formed the NITI Aayog to modernize the planning process and make it more flexible and responsible for the dynamic economic and social challenges of the 21st century.

Emphasis on cooperative federalism: Planning Commission which was a more centralized approach. In contrast, the NITI Aayog promotes the higher participation of states in policy-making, recognizing their role as key stakeholders in national development.

The objectives of NITI Aayog:

Economic Planning and Policy Building: NITI Aayog determines long-term and medium-term strategic plans to achieve sustainable development and economic development in India and prepares policy recommendations for the government. It focuses on major areas like agriculture, health, education, infrastructure, and employment generation.

Cooperative Forestism: The objective of NITI Aayog is to promote cooperative federalism by encouraging the active participation and cooperation of the states in the implementation of policy-making, resource allocation, and development programs. It promotes the shared of the best practices between states and facilitates knowledge exchange.

Monitoring and Evaluation: NITI Aayog monitors the implementation of various government programs and initiatives to ensure the effective use of resources and the achievement of desired results. It assesses the progress made by various regions, identifies bottlenecks, and recommends necessary corrective measures. The following are some reports of NITI Aayog:

National Multidimensional Poverty Index.

Export Preparedness Index

Restoring Growth of Tourism in the Wake of Pandemic

Thinking For Our Planet 75 Ideas to Promote LiFE.

Functions of NITI Aayog :

Visionary Scheme: NITI Aayog prepares long-term development strategies and vision documents such as the National Development Agenda and 15 years of vision to guide the country's economic development and social progress.

Policy Advice and Research: NITI Aayog provides policy advice to central and state governments based on research, data analysis, and evidence-based decision-making. It studies, generates knowledge, and promotes innovation and reforms in various fields.

Associate initiative: NITI Aayog encourages cooperation to promote inclusive and sustainable development between the government, private sector, civil society organizations, and academics. It promotes public-private participation (PPP) and facilitates dialogue and partnership to achieve national goals.

Details of recently reorganized NITI Aayog:

In 2021, NITI Aayog made a restructuring to increase its effectiveness and address emerging challenges.

Reorganization introduced some major changes, including:

Construction of sectoral divisions: NITI Aayog established separate regional partitions to focus on priority areas like health, education, agriculture, water resources, and sustainable development. It enables special attention to important areas and facilitates targeted policy intervention.

Strengthening regional councils: NITI Aayog has strengthened its regional councils to improve regional cooperation and address regional inequalities. These councils provide a platform for the states and center regions to present their attitude, share experiences, and cooperate on regional development issues.

Integrated Resource Cell: NITI Aayog established an integrated resource cell to facilitate the efficient use of resources including finance, infrastructure, and human capital to achieve permanent development goals. Its purpose is to optimize resource allocation and promote coordination between different fields and stakeholders.

The restructured NITI Aayog reflects the developed preferences and challenges of India's development scenario, focusing on efficient resource use to run decentralized schemes, field-specific interventions, and inclusive and sustainable development.



What are the objectives of NITI Aayog? Explain its three-year action plan.

( UPPSC, UP PCS Mains General Studies-III/GS-3 2020)


"The National Institution for Transforming India" is commonly known as NITI Aayog. It is a policy think-tank and advisory body of the government of India.

NITI Aayog was established in 2015 and it replaced the erstwhile Planning Commission.

The following are the main objectives of NITI Aayog:

The main objective of NITI Aayog is to facilitate cooperative federalism and provide a platform for the involvement of states in the policymaking process. It recognizes that strong States make a strong nation.

It has a vision of priorities of national development, sectors, and strategies with the active involvement of States.

It strengthens cooperative federalism through structured support initiatives and mechanisms with the States continuously. 

To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government. So, it emphasizes the bottom-up approach to development.

It also offers a platform for the resolution of inter-sectoral and inter­ departmental issues to accelerate the implementation of the development agenda.

The year's action plan of NITI Aayog covers the period from 2017 to 2020. The following are three themes of this three-year action plan-

Transforming India- Transforming India includes doubling farmers' income, boosting manufacturing, and employment generation, expanding digital connectivity, improving ease of doing business, and promoting sustainable development.

Inclusive growth; The three-year action plan of NITI Aayog gives importance to inclusive growth and development of marginalized sections of society. Inclusive growth includes healthcare, education, skill development, and social security for all, irrespective of the socioeconomic status of the people. National health mission, Clean India Mission, and Pradhan Mantri Jan Dhan Yojna schemes were launched to promote inclusive growth.

Balanced Regional Development; Three years of NITI Aayog recognized the regional disparities in India, and the action plan highlighted the need for balanced regional development. It promotes infrastructure development, connectivity, and ease of living for all citizens, especially in backward areas.

The three-year action plan of NITI Aayog aimed to provide a roadmap for achieving sustainable and inclusive development, transforming India, and reducing regional disparities.


Describe the targets of energy generation through renewable energy sources by National Energy Policy 2017 drafted by NITI Aayog.

( UPPSC, UP PCS Mains General Studies-III/GS-3 2018)


The National Energy Policy 2017 drafted by the National Institute for Transforming India ( NITI Ayog) aims to replace the integrated Energy Policy of 2008 by taking into consideration of present and future availability of resources and energy demand. 

It aims to achieve four objectives in the energy sector namely Access at affordable prices, Improved security and Independence, Greater Sustainability, and economic growth. It sets targets for energy generation through renewable energy sources in India.

The following are descriptions of the targets of energy generation through renewable energy:

Renewable energy capacity target:

The draft policy aims to achieve a total installed capacity of 175 gigawatts ( GW) of renewable energy by the year 2022. This includes 100 GW of solar power, 60 GW of wind power, 10 GW of biomass power, and 5 MW of small hydropower.

Solar energy: 

The draft policy sets a target of achieving a grid-connected solar power capacity of 100 GW by 2022, which includes rooftop solar installation and solar parks.

Wind Energy:

The draft policy targets the development of wind energy capacity of 60 GW of wind power by 2022, focusing on both onshore and offshore wind power projects.

Biomass Energy;

The draft policy aims to achieve a capacity of 10 GW of biomass power by 2022, which involves utilizing agriculture residue, forestry waste, and organic municipal waste for power generation.

Small Hydropower: 

The draft policy focuses on 4 GW of energy generation from small and mini hydropower projects by 2022.

Other Renewable energy sources: 

This policy acknowledges the potential of other renewable energy sources like tidal energy, geothermal energy, and wave ocean energy. It encourages the research and development of technologies for the development of this energy.

The draft National Energy Policy of 2017 also highlights the importance of energy efficiency, energy conservation, and integration of renewable energy into the grid.


Explain the objectives and composition of "NITI Aayog". What are its significant achievements?

 (UPPSC, UP PCS Mains General Studies-II/GS-2 2022)


NITI Aayog, also known as the National Institution for Transforming India, is a policy think tank and a premier planning body of the Government of India. It was established on January 1, 2015, to replace the Planning Commission, with the aim of fostering cooperative federalism and providing a platform for evidence-based policymaking. 

The objectives, composition, significance, and achievements of NITI Aayog are as follows:

Objectives of NITI Aayog:

Foster Cooperative Federalism: 

NITI Aayog seeks to promote cooperative federalism by encouraging the involvement of state governments in the policymaking process. It aims to facilitate cooperation and coordination between the center and states for holistic development.

Formulate Strategic and Long-Term Policies: 

The think tank is responsible for formulating long-term strategic policies and programs for various sectors, including social and economic development, infrastructure, and governance.

Enhance Ease of Doing Business: 

NITI Aayog works towards improving the ease of doing business in India by identifying and addressing bottlenecks and implementing reforms to promote a conducive business environment.

Foster Innovation and Entrepreneurship: 

The institution promotes innovation and entrepreneurship through various initiatives and programs, supporting startups and providing a platform for new ideas.

Composition of NITI Aayog:


The Prime Minister of India serves as the ex-officio Chairman of NITI Aayog.


NITI Aayog has a Vice-Chairman who is appointed by the government and serves as its chief executive officer.

Governing Council: 

The governing council of NITI Aayog includes the Chief Ministers of all states and union territories, along with administrators of union territories. This council acts as a platform for cooperative federalism and allows states to present their perspectives on national issues.

Full-Time Members: 

NITI Aayog may have full-time members who assist the Vice-Chairman in policy formulation and implementation.

Part-Time Members: 

Experts and specialists from various fields can be appointed as part-time members to provide domain-specific insights and expertise.

Significance and Achievements of NITI Aayog:

Focus on Sustainable Development Goals (SDGs): 

NITI Aayog aligns its policies and programs with the United Nations' Sustainable Development Goals to ensure inclusive and sustainable development.

Transformative Reforms: 

The institution has been instrumental in driving various transformative reforms, including the Goods and Services Tax (GST) implementation and agricultural reforms.

Strengthening Federalism: 

NITI Aayog has played a significant role in fostering cooperative federalism by facilitating better coordination and collaboration between the central and state governments.

Innovation and Entrepreneurship: 

NITI Aayog's initiatives like Atal Innovation Mission and Startup India have promoted innovation and entrepreneurship, contributing to India's burgeoning startup ecosystem.

Data-Driven Policymaking: 

The think tank emphasizes evidence-based policymaking by leveraging data and analytics to identify challenges, evaluate outcomes, and design effective solutions.

Sectoral Reforms: 

NITI Aayog has recommended sector-specific reforms in areas such as health, education, infrastructure, agriculture, and urban development to drive inclusive growth and development.

International Engagement: 

NITI Aayog actively engages with international organizations, think tanks, and countries to learn from best practices and experiences and foster global partnerships.

It is important to note that NITI Aayog's achievements are continually evolving, and its impact will be better assessed over the longer term as its policies and programs take effect. The institution continues to play a crucial role in shaping India's development trajectory and fostering a culture of innovation and evidence-based policymaking.

MCQ on NITI Aayog:

1. Which authority is entrusted with the task of overseeing the implementation of Sustainable Development Goals in India?

a) NITI Aayog

b) PMO

c) Cabinet

d) None of the above

Answer. a) NITI Aayog

The word "Sustainable Development" was given by the Brundtland Commission in 1987.


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