Why NITI Aayog Replaced Planning Commission: Reasons . The new National Institution for Transforming India (NITI) will act more like a think tank or a forum, in contrast with the Commission which imposed five-year-plans and allocated resources to meet set economic targets. . NITI will include leaders of India’s states and union territories.
Its full-time staff - a Deputy Chairman, Chief Executive Officer and experts - will answer directly to the Prime Minister, who will be the Chairman. It is different from Planning Commission. . The major difference in approach to planning between NITI Aayog and Planning Commission is that the former will invite greater involvement of the states, while the latter took a top-down approach with a one-size-fits-all plan.
. The Planning Commission’s role was formulation of broad policy and its capacity was more advisory. NITI Aayog shall have powers for resource allocation to states, based on their respective needs. .
The states had little direct say in policy planning, which was the purview of the Planning Commission. Involvement of the states was indirect through the National Development Council; which is not the case in the NITI Aayog.