NITI (National Institution for Transforming India) Aayog is a Government of India policy think-tank that replaced the Planning Commission. NITI Aayog seeks to foster involvement and participation in the economic policy-making process by state governments of India, a "bottom-up" approach in contrast to the Planning Commission's tradition of "top-down" decision-making. It is a body meant to streamline economic growth in the reforms-era.
Its federal efforts can be understood from the following:
1. Centralization of planning was in vogue when Planning Commission undertook socio economic planning. Its replacement by a much leaner body with less functions augurs well for federalism.
2. Niti Aayog does not recommend transfer of plan funds to states. It is largely being done by the Constitutional body of Finance Commission. States have welcomed it
3. NITI, is expected to be federal in character as it has a Governing Council consisting of the VCMs of States and UTs and administrators of UTs.
4. There will be regional bodies for a group of states in every region. Regional Councils will be formed to address specific issues impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee.
