On August 13, 2014 Planning Commission was replaced by

The correct answer is National Institution for Transforming India Aayog.

Key Points

• The Planning Commission was replaced by the National Institution for Transforming India (NITI Aayog) on August 13, 2014, by the Government of India.
• NITI Aayog was established to promote cooperative federalism and ensure greater involvement of state governments in the economic policy-making process.
• It functions as a policy think tank of the Government of India, offering strategic and technical advice to the central and state governments.
• The Prime Minister of India serves as the Chairperson of NITI Aayog, and it includes a Governing Council comprising Chief Ministers of all states and union territories.
• Unlike the Planning Commission, NITI Aayog does not have the power to allocate funds to states; instead, it focuses on policy formulation and monitoring.

Additional Information

• Planning Commission:
  • Established in 1950 by a resolution of the Government of India, it was tasked with formulating five-year plans for economic development.
  • Its approach was focused on centralized planning, which lacked flexibility and state-level participation.
  • Criticism of its inefficiency and outdated approach led to its replacement by NITI Aayog.
• NITI Aayog's Objectives:
  • Promote inclusive and sustainable development.
  • Encourage innovation and technology adoption in various sectors.
  • Formulate plans for economic growth by involving all stakeholders, including states, civil society, and private entities.
• Key Initiatives by NITI Aayog:
  • Aspirational Districts Programme: Aimed at improving socio-economic indicators in underdeveloped districts.
  • Atal Innovation Mission (AIM): Promotes innovation and entrepreneurship through initiatives like Atal Tinkering Labs.
  • Digital India Campaign: Supports the government's vision of transforming India into a digitally empowered society.
• Difference Between Planning Commission and NITI Aayog:
  • The Planning Commission followed a top-down approach, while NITI Aayog emphasizes a bottom-up approach to involve states and local bodies.
  • Planning Commission was focused on fund allocation, whereas NITI Aayog focuses on policy formulation and strategic planning.
  • NITI Aayog encourages public-private partnerships to drive development, a concept not emphasized by the Planning Commission.