Q.Why was the Planning Commission replaced by NITI Aayog? State the main differences between the two.
Why the change was made. The Planning Commission functioned for over sixty years but faced mounting criticism:
- It was seen as too centralised, deciding allocations for states from the top down.
- It followed a "one-size-fits-all" approach ill-suited to a large and diverse country.
- It reduced states to claimants of central funds rather than genuine partners in development.
To build an institution better suited to a diverse, growing economy and to a stronger role for states, the government replaced it with NITI Aayog on 1 January 2015.
Main differences.
| Feature | Planning Commission | NITI Aayog |
|---|---|---|
| Set up | 1950 | 1 January 2015 |
| Nature | Plan-making, fund-allocating body | Think-tank and policy adviser |
| Allocates funds to states? | Yes | No |
| Centre–state relations | Top-down direction | Cooperative federalism (partnership) |
| Main tool | Five Year Plans | Policy advice, strategy, monitoring |
For a state like Manipur, the shift means a stronger voice in shaping national priorities and central support delivered through targeted programmes rather than a single centrally-fixed allocation.
The Planning Commission was replaced because of its centralised, top-down, one-size-fits-all working; NITI Aayog (1 January 2015) differs in being an advisory think-tank that does not allocate funds and works through cooperative federalism, treating states as development partners.
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.