Planning Commission planned for economic development and social justice, but NITI Aayog has been structured to realise growth potential across the sectors. Discuss. (Answer in 350 words)

- Planning Commission planned for economic development and social justice, but NITI Aayog has been structured to realise growth potential across the sectors. Discuss. (Answer in 350 words)
Introduction
The replacement of the Planning Commission by NITI Aayog in 2015 marked a shift from centralized, resource-allocation-based planning towards strategic, cooperative and sector-oriented policy facilitation aimed at unlocking India’s growth potential.
Body
Planning Commission: Development and Social Justice Orientation
1. Centralised Planning: The Planning Commission formulated Five-Year Plans and allocated Plan funds to States and ministries.
2. Resource Redistribution: It sought to reduce regional inequalities through public investment and special assistance to backward areas.
3. Social Sector Emphasis: Poverty alleviation, employment, health, education and rural development remained central to planning.
4. Commanding Heights Approach: Public-sector investment and state direction played a major role, particularly during the early decades.
5. Top-down Character: States often had limited influence in determining national planning priorities, creating criticism of centralised decision-making.
NITI Aayog: Realising Growth Potential
1. Think Tank Role: NITI does not allocate funds; instead, it provides strategic policy advice, research and innovation support.
2. Cooperative Federalism: The Governing Council, comprising Chief Ministers and Lieutenant Governors, provides a platform for Centre-State coordination.
3. Competitive Federalism: Rankings such as the Aspirational Districts Programme, SDG Index and innovation indices encourage States to improve performance.
4. Sectoral Transformation: NITI focuses on areas such as electric mobility, renewable energy, digital economy, agriculture, health, manufacturing and frontier technologies.
5. Outcome Orientation: Emphasis has shifted from financial outlays to measurable outcomes, monitoring and data-driven governance.
6. Private Sector Engagement: Greater reliance on PPPs, entrepreneurship and market mechanisms reflects a post-liberalisation governance environment.
7. Long-term Strategy: Documents such as Strategy for New India @75 reflect flexible strategic planning rather than rigid Five-Year Plans.
Critical Perspective
The distinction is not absolute. NITI also addresses social inclusion, SDGs and backward-region development, while the Planning Commission too pursued economic growth. However, NITI lacks the financial authority that gave the Planning Commission stronger implementation leverage.
Conclusion
Thus, the institutional shift represents movement from centralised distributive planning to strategic and catalytic governance, where NITI seeks to unlock sectoral growth through cooperative federalism, innovation and evidence-based policy while retaining inclusive development as an underlying objective.