NITI Aayog's role in promoting Federalism | YOJANA MAY 2021

NITI Aayog has a twin mandate, which is to promote cooperation (between center and states) and competitive federalism (among States) through partnerships with States for designing and reviewing development plans.
Both cooperative and competitive federalism are complimentary to each other.

Planning Commission	NITI Aayog
Operated through the lens of 5 Year Plans, using financial resources as the primary lever for guiding development.	Driven through intellectual resources & partnerships with State Governments, civil societies, the private sector, and innovators for accelerating development.
Major role: Fund disburser	Major role: Thought partner
PC affected fiscal sovereignty of States	States empowered to decide how best to use their funds, w/o a mandate to follow a top-down direction.
‘one-size-fits-all’ approach	‘States-first’ approach
Centralized & top-down strategy	Decentralized & bottom-up strategy

NITI Aayog:

NITI has replaced the practice of unilaterally designing pan-Indian development strategy.
Cooperates with States in preparing development blueprints taking into account unique features of each state. which is necessary for a diversified country like India.
Acts as a platform facilitating direct issue-based interaction between State & Central Ministries, promoting quick resolution of issues.

Initiatives of NITI in promoting Federalism:

NITI Forum for North East

An initiative by NITI
Mandated to identify constraints of North East Region and promote inclusive and sustainable economic growth.
This forum works closely with DoNER and North East Council.

The Himalayan States Regional Council

NITI's initiative
Acts as a nodal agency for sustainable development in the Himalayan Region.
It has formed a coalition of all 13 central universities in these states, to conduct research on issues common to all Himalayan states.

Publishing Indices

NITI publishes periodic sectoral indices on water, education, health, innovation, export preparedness, & SDGs which is done through rigorous analysis. E.g. Performance in Health Outcomes Index, Composite Water Management Index, School Education Quality Index.
These are available in the public domain.
This promotes healthy competition among states.

Aspirational Districts Program

Implemented by NITI to raise human development in these selected districts to national averages.
The program focuses on governance improvement and achieving effective convergence among various government agencies and stakeholders.
In recent years these aspirational districts have shown significant improvements in health and nutrition, education, agriculture, financial inclusion, skill development & Infrastructure.
These indicators are monitored on real-time basis.
Best governance practices from these districts are selected by NITI and are replicated at the block level in those states to expand the development throughout the state.

NITI's support to parliament:

NITI has helped in drafting the National Medical Commission Bill and Bills for reforming the education system of Indian Systems of Medicine and Homeopathy.
All three of those bills are passed in both houses of Parliament.

Ayushman Bharat & POSHAN Abhiyan

NITI played a key role in designing and monitoring these two programs, providing insights.

SATH – ‘Sustainable Action for Transforming Human Capital’

Development Monitoring and Evaluation Office:

Under NITI
To evaluate Government schemes especially Centrally sponsored schemes.
DMEO helps the Dept of Expenditure in preparing outcome budgets for various ministries/depts.

Atal Innovation Mission (AIM)

An initiative by NITI
To promote innovation and entrepreneurship by establishing an ecosystem of innovation and entrepreneurship at school, university, industry levels, linking NGOs, venture capital, and private industries.
It promotes innovation among school students through Atal Tinkering Labs.

Conclusion:

India needs structural reforms for clean, sustainable, and inclusive growth.
NITI Aayog has a potential role to play in framing and implementing these reforms.

Nuzhaipulam