**Subject:** Economy The transformation from Planning Commission to **NITI (National Institution for Transforming India) Aayog** marks a paradigm shift in India's development planning approach, reflecting the evolving needs of a dynamic economy. ## Key Differences in Principles ### Structural Framework
- Planning Commission followed a **top-down, one-size-fits-all approach** with central control over resource allocation and policy implementation.
- NITI Aayog adopts a **bottom-up, participatory approach** through initiatives like **Aspirational Districts Programme**, enabling states to drive their development agenda. ### Federal Relations
- Planning Commission operated on **centralized planning principles**, where states had limited autonomy in policy formulation.
- NITI Aayog promotes **cooperative and competitive federalism** by: - Fostering collaboration between Centre and States. - Encouraging healthy competition through initiatives like **SATH (Sustainable Action for Transforming Human Capital)** program. ### Resource Allocation
- Planning Commission had **financial powers** to allocate resources to states and ministries.
- NITI Aayog functions as a **think-tank and advisory body**, focusing on: - Policy coordination. - Evidence-based policymaking. - Technical support to states. ### Planning Approach
- Planning Commission emphasized on **Five-Year Plans** with rigid targets and allocations.
- NITI Aayog focuses on: - **Dynamic monitoring** through real-time data. - **Flexible planning** adapted to changing economic scenarios. - Innovation through programs like **Atal Innovation Mission**. ### Implementation Strategy
- Planning Commission relied on **directive planning** with mandatory compliance.
- NITI Aayog employs: - **Collaborative implementation** involving multiple stakeholders. - **Knowledge partnerships** with experts and institutions. - **State-level reforms** through technical assistance. The transformation from Planning Commission to NITI Aayog represents India's shift from a **directed economy** to a **facilitated economy**, aligning with the principles of **cooperative federalism** and **sustainable development**. The success of initiatives like **Aspirational Districts Programme** demonstrates the effectiveness of this new collaborative approach to national development.