As NITI Aayog marks its 10th anniversary on December 31, 2024, it faces scrutiny regarding its effectiveness in fulfilling the roles it was designed to take over from the Planning Commission [a0449285]. The Planning Commission had four primary functions: vision articulation, five-year plan formulation, program implementation, and budget negotiation. However, NITI Aayog has struggled to perform these functions effectively since its inception [a0449285].
One significant concern is that India remains the only Asian country without a dedicated ministry for planning since the Planning Commission was dissolved in 2014 [a0449285]. The absence of a five-year plan has raised alarms, especially considering the historical context where the abandonment of central planning in regions like Latin America and sub-Saharan Africa led to economic stagnation [a0449285]. NITI Aayog was expected to produce comprehensive vision documents for 3, 7, and 15 years, yet none have materialized [a0449285].
The centralization of planning within the Ministry of Finance has further complicated matters, leading to a significant reduction in NITI Aayog's staff from 1,200 to approximately 400-450 [a0449285]. This downsizing has resulted in 89% of Union government staff being in lower categories, raising questions about the agency's capacity and expertise [a0449285]. The reliance on temporary staff has diminished NITI Aayog's institutional memory, contrasting sharply with China's State Planning Commission, which has maintained its power and expertise over the years [a0449285].
Critics argue that India's economic stagnation is more a result of policy failures rather than planning deficiencies [a0449285]. The historical context of India's economic conditions in the 1950s, particularly the vision of Jawaharlal Nehru, underscores the importance of effective planning in driving growth [a0449285]. As NITI Aayog reflects on its past decade, the lessons learned could shape the future of economic planning in India, emphasizing the need for a robust and effective planning framework to avoid the pitfalls experienced by other regions in the past [a0449285].