Economy Economic Planning and NITI Aayog

NITI Aayog

NITI Aayog for CGPSC: origin, composition, office-holders (as of 2026), functions, indices, Aspirational Districts, vs the Planning Commission, and Chhattisgarh's State NITI Aayog.

13 min read Updated Oct 2026 #niti aayog#cooperative federalism#aspirational districts

Prerequisites

The Hook: Bastar on the National Table

Connect

In May 2025, at the tenth meeting of NITI Aayog’s Governing Council in New Delhi, Chhattisgarh’s Chief Minister presented the state’s development roadmap, including a vision for Bastar and a target of a ₹75 lakh crore state economy by 2047. Every Chief Minister sat at the same table with the Prime Minister.

A decade earlier there was no such table in this form. States went to the Planning Commission to negotiate plan funds. Today, the body that replaced it does not hand out money at all. So what exactly does NITI Aayog do, who runs it, and why does Chhattisgarh have its own “State NITI Aayog” now?

Why it matters: Prelims asks NITI’s founding date, legal status, composition and flagship programmes. Mains asks you to compare it with the Planning Commission and evaluate it as an instrument of cooperative federalism.


Origin

PointDetail
AnnouncementPM Narendra Modi announced the end of the Planning Commission in his Independence Day speech, 15 August 2014
Set up1 January 2015, by a resolution of the Union Cabinet
Full nameNational Institution for Transforming India; Niti (नीति) means “policy”
Legal statusNeither constitutional nor statutory: an executive body, like the Planning Commission before it
NatureThe government’s policy think tank; advisory, with no power to allocate funds
First Governing Council meeting8 February 2015

Composition

graph TD
    PM["Chairperson
Prime Minister"] --> GC["Governing Council
CMs of all States and of UTs with legislatures;
Lt Governors of other UTs"] PM --> VC["Vice-Chairperson
(appointed by the PM)"] PM --> RC["Regional Councils
CMs and LGs of a region,
for specific issues, fixed tenure"] VC --> FT["Full-time Members"] VC --> PT["Part-time Members (up to 2)
from universities / research bodies,
ex officio in rotation"] VC --> EO["Ex-officio Members (up to 4)
Union Ministers nominated by the PM"] VC --> CEO["CEO
Secretary rank, fixed tenure,
appointed by the PM"] PM --> SI["Special Invitees
experts and ministers nominated by the PM"]
ComponentWho
ChairpersonThe Prime Minister
Governing Council (शासी परिषद)All Chief Ministers of states and of UTs with legislatures, Lt Governors of other UTs, plus ex-officio members, special invitees and NITI’s full-time members
Regional CouncilsFormed for specific issues affecting more than one state or region; convened by the PM; chaired by the PM or a nominee
Vice-ChairpersonAppointed by the PM; by practice holds the rank of a Cabinet Minister
Full-time membersExperts; by practice hold the rank of a Minister of State
Part-time membersUp to two, from leading universities and research organisations, ex officio in rotation
Ex-officio membersUp to four members of the Union Council of Ministers, nominated by the PM
CEOAn officer of Secretary to the Government of India rank, for a fixed tenure

Office-holders (as of October 2026)

PostHolder
ChairpersonPM Narendra Modi
Vice-ChairpersonAshok Kumar Lahiri (economist; appointed April 2026, succeeding Suman K. Bery)
Full-time membersRajiv Gauba, Prof. K.V. Raju, Prof. Gobardhan Das, Prof. Abhay Karandikar, Dr M. Srinivas (reconstitution of April 2026)
CEOAnurag Jain (IAS, 1989 batch; appointed July 2026, succeeding B.V.R. Subrahmanyam)
Past Vice-ChairpersonsPast CEOs
Arvind Panagariya (first, 2015–17)Sindhushree Khullar (first)
Rajiv Kumar (2017–22)Amitabh Kant (2016–22)
Suman K. Bery (2022–26)Parameswaran Iyer (2022–23)
B.V.R. Subrahmanyam (2023–26)
Office-holders change
NITI Aayog was reconstituted in April 2026. Names in this table are dated “as of October 2026”. Before your exam, check the latest notification on niti.gov.in; questions often ask about the person in office at the time the paper was set.

Objectives and Functions

The 2015 Cabinet resolution frames NITI around cooperative federalism (Centre and states as partners) and competitive federalism (states compete on outcomes, measured by indices).

FunctionHow it works
Policy think tankStrategic and technical advice to the Centre and states; policy papers and sector strategies
Cooperative federalismThe Governing Council and Regional Councils; state support and “Team India” approach
Bottom-up planningEncourage credible plans at village, district and state level
Monitoring and evaluationThrough the Development Monitoring and Evaluation Office (DMEO), an attached office
Innovation and entrepreneurshipAtal Innovation Mission (AIM), including Atal Tinkering Labs in schools and Atal Incubation Centres
SDG coordinationNodal role for tracking the Sustainable Development Goals in India
Knowledge hubResearch, best practices, data dashboards

From plans to vision documents

After the Twelfth Plan ended in 2017, NITI proposed a three-tier framework in place of five-year plans:

  • a 15-year Vision,
  • a 7-year Strategy,
  • a 3-year Action Agenda (the first covered 2017–18 to 2019–20).

It also released Strategy for New India @75 (2018). The current long-term goal is Viksit Bharat @2047 (a developed India by the centenary of Independence), around which recent Governing Council meetings have been themed.

Governing Council meetingDateTheme
1st8 February 2015First meeting of the new body
10th24 May 2025“Viksit Rajya for Viksit Bharat @2047”
11th11 June 2026“Inclusive Human Development for Viksit Bharat @2047”

Indices: competitive federalism in action

NITI ranks states on outcome indices so that they compete to improve. Learn the names; editions and ranks change.

IndexWhat it ranks
SDG India Index (first edition 2018)States and UTs on the Sustainable Development Goals
Composite Water Management IndexWater-management performance
School Education Quality IndexSchool education outcomes
State Health IndexHealth outcomes and systems
India Innovation IndexInnovation capacity of states
Export Preparedness IndexStates’ export readiness
Fiscal Health Index (first edition January 2025)Fiscal health of 18 major states
National Multidimensional Poverty IndexMultidimensional poverty, based on NFHS data

Aspirational Districts and Aspirational Blocks

ProgrammeLaunchCoverageKey features
Aspirational Districts Programme (ADP)January 2018112 of the most under-developed districtsFive themes: health and nutrition, education, agriculture and water resources, financial inclusion and skill development, basic infrastructure. Districts are ranked monthly on progress (delta ranking). Strategy: Convergence, Collaboration, Competition
Aspirational Blocks Programme (ABP)January 2023500 blocksThe same model taken down to the block level
Chhattisgarh's ten Aspirational Districts

Bastar, Bijapur, Dantewada (Dakshin Bastar), Kanker (Uttar Bastar), Kondagaon, Narayanpur, Sukma, Korba, Mahasamund, Rajnandgaon.

Seven of the ten are in the Bastar division, the state’s Left Wing Extremism-affected tribal belt. Several of them, including Bijapur, Dantewada, Sukma and Narayanpur, have at different times been among the top performers in NITI’s monthly delta rankings. In Mains, this is your best example of NITI’s work reaching Chhattisgarh’s villages.

Memory hook for the list: the seven Bastar-division districts plus “Korba, Mahasamund, Rajnandgaon” (KMR).


Planning Commission vs NITI Aayog

PointPlanning Commission (1950–2014)NITI Aayog (2015–)
Created byCabinet resolution, 15 March 1950Cabinet resolution, 1 January 2015
NaturePlanning and fund-allocating bodyPolicy think tank, advisory
FundsAllocated plan funds to ministries and statesNo power to allocate funds; transfers go through the Finance Ministry and the Finance Commission
ApproachTop-down, “one size fits all” Five Year PlansBottom-up; vision, strategy and action agenda; no five-year plans
States’ roleLimited; states approved plans in the NDCEvery CM sits on the Governing Council; Regional Councils
FederalismCentralising, in practiceCooperative and competitive federalism
MembersFull-time experts; no part-time membersFull-time, part-time and ex-officio members
Key officialDeputy Chairman (e.g. Montek Singh Ahluwalia, the last)Vice-Chairperson; CEO heads the secretariat
Plan and non-plan expenditure
With the plan system gone, the Union Budget from 2017–18 dropped the old plan / non-plan classification of expenditure and moved to a revenue / capital focus. See Public Finance, Budget and Taxation.

Evaluation (for Mains)

StrengthsCriticisms
Brings all CMs into national policy; promotes cooperative federalismHas no financial powers, so its advice can be ignored
Outcome indices make states compete on resultsIndices can be gamed and depend on data quality
Aspirational Districts shows targeted, data-driven developmentGoverning Council meets only about once a year; some CMs have boycotted meetings
Long-term thinking (Viksit Bharat @2047), innovation (AIM)Seen by critics as close to the Union government rather than independent

Chhattisgarh: the State NITI Aayog and Anjor Vision @2047

  • State NITI Aayog. The Chhattisgarh cabinet decided to rename the State Planning Commission as the State NITI Aayog (राज्य नीति आयोग), on the model of the national body. Former IAS officer Ganesh Shankar Mishra has taken charge as its Vice-Chairman, and the Chief Minister has described it as the state’s long-term vision and evidence-based planning body.
  • Chhattisgarh Anjor Vision @2047 (अंजोर, “light” in Chhattisgarhi) is the state’s Viksit Chhattisgarh roadmap, dedicated to the people by CM Vishnu Deo Sai in 2025. It sets short-term goals to 2030, medium-term goals to 2035 and long-term goals to 2047, and aims to raise the state economy from about ₹5 lakh crore to ₹11 lakh crore by 2030 and ₹75 lakh crore by 2047, through missions across sectors such as agriculture, manufacturing, tourism, logistics, IT and education. See Chhattisgarh: Economy, Budget and State Schemes.
  • Fiscal Health Index 2025 (NITI, January 2025): Chhattisgarh ranked second among 18 major states (score 55.2), behind Odisha and ahead of Goa, in the “achiever” group.
  • Ten Aspirational Districts, most in Bastar division (see above).

Memory Tricks

NITI's birthday
New Year, New Institution: NITI Aayog began on New Year’s Day 2015 (1 January). The announcement came on Independence Day 2014.
Composition: 'P-G-R-V-F-P-E-C'
PM chairs · Governing Council (all CMs) · Regional Councils · Vice-Chairperson · Full-time · Part-time (max 2) · Ex-officio (max 4) · CEO. “2 part-time, 4 ex-officio”: the even numbers double.

Don’t Confuse

ThisvsThat
Governing Council: all CMs, national forumvsRegional Councils: CMs of a region, issue-specific, fixed tenure
NITI Vice-Chairperson: appointed by the PM, Cabinet rank by practicevsNITI CEO: Secretary-rank officer, runs the secretariat
NITI Aayog: advisory think tank, no fundsvsFinance Commission (Art 280): constitutional, recommends tax devolution
Aspirational Districts (2018, 112)vsAspirational Blocks (2023, 500)
State NITI Aayog (Chhattisgarh’s renamed planning body)vsNITI Aayog (Union body, Governing Council includes the CG Chief Minister)

Common Mistakes

MCQ traps
  • “NITI Aayog was set up by an Act of Parliament.” False. It was set up by a Cabinet resolution (1 January 2015).
  • “NITI Aayog allocates funds to states.” False. It has no fund-allocation role.
  • “The Vice-Chairperson of NITI Aayog is elected by the Governing Council.” False. The VC is appointed by the PM.
  • “Governors are members of the Governing Council.” False. Chief Ministers of states sit on it; Lt Governors represent UTs without legislatures.
  • “NITI Aayog prepares Five Year Plans.” False. The Twelfth Plan (2012–17) was the last.

Practice

All questions below are original practice questions written in CGPSC style. They are not previous-year questions.

Level 1: Foundation

  1. NITI Aayog stands for National Institution for ______ India.
  2. The ______ is the ex-officio Chairperson of NITI Aayog.
  3. The Aspirational Districts Programme was launched in ______ and covers ______ districts.
Answers
  1. Transforming.
  2. Prime Minister.
  3. January 2018; 112.

Level 2: Prelims MCQs

Q1. Consider the following statements about NITI Aayog:

  1. It was set up on 1 January 2015 by a resolution of the Union Cabinet.
  2. Its Governing Council includes the Chief Ministers of all states.
  3. It recommends the distribution of the divisible pool of central taxes between the Centre and the states.

Which of the statements given above is/are correct?

  • (a) 1 only
  • (b) 1 and 2 only
  • (c) 2 and 3 only
  • (d) 1, 2 and 3
Answer and explanation
(b) 1 and 2 only. Statements 1 and 2 are correct. Statement 3 describes the Finance Commission under Article 280. NITI Aayog has no role in tax devolution or fund allocation.

Q2. Who among the following is not appointed or nominated by the Prime Minister under NITI Aayog’s framework?

  • (a) The Vice-Chairperson
  • (b) The ex-officio members from the Union Council of Ministers
  • (c) The Chief Executive Officer
  • (d) The Chief Ministers who sit on the Governing Council
Answer and explanation
(d). Chief Ministers are members of the Governing Council by virtue of their office. The Vice-Chairperson, the (up to four) ex-officio ministers and the CEO are all appointed or nominated by the PM.

Q3. Which of the following districts of Chhattisgarh is not among its Aspirational Districts?

  • (a) Korba
  • (b) Raipur
  • (c) Mahasamund
  • (d) Kondagaon
Answer and explanation
(b) Raipur. Chhattisgarh’s ten Aspirational Districts are Bastar, Bijapur, Dantewada, Kanker, Kondagaon, Narayanpur, Sukma, Korba, Mahasamund and Rajnandgaon. Raipur, the capital district, is not on the list.

Q4. Match List I with List II:

List IList II
A. Planning Commission1. 1 January 2015
B. National Development Council2. 15 March 1950
C. NITI Aayog3. 6 August 1952
D. Aspirational Blocks Programme4. January 2023
  • (a) A-2, B-1, C-3, D-4
  • (b) A-2, B-3, C-1, D-4
  • (c) A-3, B-2, C-1, D-4
  • (d) A-2, B-3, C-4, D-1
Answer and explanation
(b) A-2, B-3, C-1, D-4. Planning Commission: 15 March 1950. NDC: 6 August 1952. NITI Aayog: 1 January 2015. Aspirational Blocks Programme: January 2023.

Level 3: Mains Answer Writing

Q1. (60 words) What is meant by “competitive federalism”? Give one example from NITI Aayog’s work.

Model answer outline
  • Meaning: states compete with one another to improve governance and outcomes, while cooperating with the Centre.
  • Example: NITI’s indices (SDG India Index, Fiscal Health Index) and the Aspirational Districts delta ranking publicly compare performance.
  • Chhattisgarh line: second among 18 major states in the Fiscal Health Index 2025; Bastar-division districts have featured among top ADP performers.

Q2. (150–200 words) “NITI Aayog is a think tank, not a planning body.” Compare it with the Planning Commission and assess its role in cooperative federalism.

Model answer outline
  • Intro: Planning Commission (1950) replaced by NITI Aayog on 1 January 2015, both by Cabinet resolution.
  • Comparison: fund allocation vs advisory only; top-down plans vs bottom-up vision–strategy–action agenda; NDC vs Governing Council of all CMs; Regional Councils; CEO-led secretariat.
  • Cooperative federalism: Governing Council meetings themed on Viksit Bharat @2047; Team India approach; support to State NITI-type bodies.
  • Competitive federalism: indices; Aspirational Districts and Blocks.
  • Limits: no financial teeth; infrequent meetings, occasional boycotts; perceived Centre bias.
  • Chhattisgarh angle: ten Aspirational Districts (Bastar belt); the state’s own State NITI Aayog and Anjor Vision @2047 mirror the national model.
  • Conclusion: NITI is effective as a convenor and catalyst; its influence depends on persuasion and data rather than money.

Quick Revision Table

FactDetail
Announced15 August 2014
Established1 January 2015, Cabinet resolution
StatusNon-constitutional, non-statutory, advisory think tank
ChairpersonPrime Minister
Vice-ChairpersonAshok Kumar Lahiri (since April 2026; as of Oct 2026)
CEOAnurag Jain (since July 2026; as of Oct 2026)
First VC / CEOArvind Panagariya / Sindhushree Khullar
Part-time / ex-officioUp to 2 / up to 4
Governing CouncilAll CMs + LGs; 10th: 24 May 2025; 11th: 11 June 2026
Framework15-yr vision, 7-yr strategy, 3-yr action agenda; Viksit Bharat @2047
ADP / ABPJan 2018, 112 districts / Jan 2023, 500 blocks
CG Aspirational Districts10 (seven in Bastar division + Korba, Mahasamund, Rajnandgaon)
Fiscal Health Index 2025Odisha 1st, Chhattisgarh 2nd, Goa 3rd
CG State NITI AayogRenamed from State Planning Commission; VC Ganesh Shankar Mishra
Anjor Vision @2047₹75 lakh crore state economy by 2047; milestones 2030, 2035

Key Takeaways

Key Takeaways
  1. NITI Aayog (1 January 2015) is a Cabinet-resolution think tank with no fund-allocation power.
  2. The PM chairs it; the Governing Council brings in every CM; the VC and CEO are appointed by the PM.
  3. It drives cooperative (Governing Council) and competitive (indices, Aspirational Districts) federalism.
  4. As of 2026: VC Ashok Kumar Lahiri, CEO Anurag Jain; NITI was reconstituted in April 2026.
  5. Chhattisgarh has 10 Aspirational Districts, a State NITI Aayog and the Anjor Vision @2047.

What’s Next

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