Definition
NITI Aayog
NITI Aayog is the government's policy think tank, which replaced the Planning Commission and advises on long-term strategy and cooperative federalism.
NITI Aayog (National Institution for Transforming India) crafts strategic and policy advice rather than allocating funds as the old Planning Commission did. It promotes cooperative and competitive federalism, runs initiatives like the Aspirational Districts Programme, and publishes indices on health, education and innovation.
It acts as a knowledge hub, incubates ideas, and monitors implementation of key government programmes. By design it has no power to allocate plan funds, which now flow through the regular Budget, marking a shift from centralised planning to advisory, outcome-focused governance.
Related terms
- Finance CommissionThe Finance Commission is a constitutional body set up periodically to recommend how tax revenues should be shared between the Centre and the states.
- PLI SchemeThe Production Linked Incentive scheme offers financial incentives to manufacturers based on incremental sales of goods made in India, to boost domestic production.
- Atmanirbhar BharatAtmanirbhar Bharat is the government's self-reliant India policy thrust aimed at boosting domestic manufacturing, reducing import dependence and supporting local industry.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.