Read the following passage and answer the given questions.

The idea of planning as a process after independence of rebuilding economy led to the establishment of Planning Commission in 1950. But in era of globalisation in 21st Century, Planning Commission was becoming ineffective and irrelevant in coping up with challenges of development. Hence during Independence Day speech on 15 August 2014, Prime Minister Narendra Modi announced about abolition of Planning Commission. NITI Aayog was constituted in place of Planning Commission on 1 Jan 2015 with objective of providing necessary technical advice to Union Government.

NITI Aayog was constituted in palace of _____ on _____.

Planning Commission, 1 January 2015

The correct answer is option (1) - Planning Commission, 1 January 2015

The Planning Commission was set up in March 1950 by a simple resolution of the Government of India.
The Prime Minister was its Chairperson.
It was an extra-constitutional and non-statutory body.
It became the most influential & central machinery for deciding what path & strategy India would adopt for its development.
It had an advisory role and its recommendations became effective only when the Union Cabinet approved these.


The Government of India replaced the Planning Commission with a new institution named NITI Aayog. NITI Aayog stands for National Institution for Transforming India. The NITI Aayog came into existence on 1 January 2015. The Prime Minister was its Chairperson. At that time Shri Narendra Modi was the PM of India. Thus, he became the first chairperson of the NITI Aayog. The Vice-Chairperson of NITI Aayog is appointed by the Prime Minister of India.