Indian Economy

Planning and NITI Aayog

Economic planning in India for UPSC: pre-independence plans, the Planning Commission, the twelve Five-Year Plans, and NITI Aayog's structure and role.

SyllabusGS III · Indian economy and issues relating to planning, mobilisation of resources, growth, development and employment

For sixty-five years India’s economic policy was organised around Five-Year Plans drawn up by the Planning Commission. In January 2015 the Commission was replaced by NITI Aayog, a policy think tank with a very different mandate. UPSC asks about both: the history as static facts, the change as a debate about federalism and the role of the State.

What UPSC asks

  • Prelims: which plan followed which model, plan holidays and rolling plans, the status of the Planning Commission and NITI Aayog (neither is constitutional nor statutory), the composition of the NITI Governing Council, and indices that NITI publishes.
  • Mains GS III: the relevance of planning in a market economy, cooperative and competitive federalism, and whether NITI Aayog has filled the gap left by the Planning Commission.

Key sub-topics

Sub-topicWhat to master
Pre-independence plansVisvesvaraya, National Planning Committee, Bombay, Gandhian and People’s Plans
Planning Commission and NDCCreation, status, functions, criticism
Five-Year PlansModels, objectives, plan holiday, rolling plan
NITI AayogStructure, functions, indices, flagship initiatives
DebatesPlanning vs markets; fund allocation after 2015

Begin with Planning in India and NITI Aayog, then revise with the quick revision sheet and practice questions.