Planning Commission to NITI Aayog: Institutional Transition & Federal Architecture
Cabinet Secretariat / Ministry of Planning
The dissolution of the 65-year-old Planning Commission and the establishment of the National Institution for Transforming India (NITI Aayog) represents India’s most significant macroeconomic administrative transition in recent decades.
Growing criticism of the one-size-fits-all allocation paradigm in a post-1991 market economy; demand from state governments for fiscal autonomy and cooperative federalism; and the recommendations of the 14th Finance Commission increasing tax devolution to 42%.
A replaced institution leaves behind coordination voids. Understanding policy continuity requires examining where statutory and unwritten allocative responsibilities migrate following structural dissolution.