The NITI Aayog – the central-level think tank – will guide each state to set up similar bodies and replace their planning bodies for faster and inclusive economic growth, in line with the vision of becoming a developed nation by 2047.
This reflects the fact that national gross domestic product (GDP) growth, excluding sectors such as defense, railroads and highways, is a sum of states’ growth rates. Health, education and qualification are primarily a matter for the state government. The NITI Aayog states that the role of state governments is critical in business improvement, land reform, infrastructure development, credit flows and urbanization, all of which are critical to sustained economic growth.
In his Independence Day speech last month, Prime Minister Narendra Modi set the ambitious goal of making India a developed nation by 2047. The NITI Aayog has already initiated the “state support mission” by holding a meeting of state planning ministers on September 6. The think tank, which is likely to support states, including experts from IIMs and IITs, has positive feedback from states, according to sources receive.
Initially, 8-10 states are to set up such bodies before reaching everyone by March 2023. Four states – Karnataka, Uttar Pradesh, Madhya Pradesh and Assam – have already started work in this regard, while Maharashtra, Odisha and Andhra Pradesh and Gujarat are likely to start work soon, sources said.
It has been seven years since the 65-year-old Planning Commission was replaced by the Modi government in January 2015 with the NITI Aayog, primarily as a think tank for crafting a national development vision. The Center has since delegated authority to allocate plan funds to the Treasury.
However, most states have done little to rejuvenate their planning departments/committees, which formerly dealt with the planning commission and prepared five-year state plans in parallel with the center. “Most states’ planning departments, with their enormous manpower, are almost in disarray with no clarity as to what work they will do,” said a senior official. “The NITI Aayog has prepared a plan to help form teams that will examine the existing structure of the state planning bodies and design the State Institution for Transformation (SIT) over the next 4-6 months.”
Lateral entry of professionals into SITs is encouraged to perform high-quality analytical work and policy recommendations. In addition to realigning state planning agencies as SITs, it outlines how they will guide states in policy formulation, undertake monitoring and evaluation of government policies and programs, and propose better technologies or models for program implementation. FE
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