The word ‘planning’ is not new to you as it is a part of everyday usage. You must have used it with reference to preparation for your examination or visit to a hill station. It involves the process of thinking, formulation of a scheme or programme and implementation of a set of actions to achieve some goal. Though it is a very broad term, here, it has been used with reference to the process of economic development. It is, thus different from the traditional hit-and-miss methods by which reforms and reconstruction are often undertaken. Generally, there are two approaches to planning, i.e., sectoral planning and regional planning.

Which of the following statements is correct?

a- On 1 January 2014, the NITI Aayog was formed.

b- The Planning Commission was replaced by the NITI Aayog.

Only statement b is correct.

On 1 January 2015, the NITI Aayog was formed. India adopted centralised planning after its Independence, but subsequently, it graduated into decentralised multi-level planning. The responsibility of plan formulation was with the Planning Commission at the Centre, State and district levels. But on 1 January 2015, the Planning Commission was replaced by the NITI Aayog.

NITI Aayog has been set up with the objective of involving the states in economic policy-making for India for providing strategic and technical advice to the Central and State governments.