BHARAT……..”The Development Dilemma” ( India Challenge Series - 9 ) Planning Commission &NitiAyog Strategy: Implementation A Challenge  https://youtu.be/MwReW_-NlME https://youtu.be/4P2kkbEAmQw Author :  CA  A. K. Jain Introduction Economic planning has been a defining feature of India’s development journey since independence. From the centrally directed Five-Year Plans of the Planning Commission to the policy think tank model of NITI Aayog, India has experimented with different strategies to drive growth, equity, and modernization. While both institutions shaped India’s trajectory in their own ways, a recurring concern has been the gap between policy formulation and effective implementation. The Era of Five-Year Plans The Planning Commission, set up in 1950, steered India’s development through Five-Year Plans modeled on the Soviet approach. The objective was rapid industrialization, self-reliance, and social welfare within a mixed economy framework. Key Achievements: • Industrial Base: Establishment of heavy industries, steel plants, and power projects. • Agriculture: Green Revolution boosted food grain production, securing self-sufficiency. • Infrastructure: Large dams, irrigation networks, and expansion of railways and highways. • Human Capital: Institutions like IITs and AIIMS strengthened education and health systems. Major Shortcomings: • Bureaucratic inefficiency and red tape under the License Raj slowed entrepreneurship. • Inefficient public enterprises drained resources and lacked innovation. • Fiscal strain from subsidies and deficit financing led to recurring crises. • 1991 Balance of Payments crisis exposed structural weaknesses. • Regional disparities widened, leaving states like Bihar and Odisha behind. • Environmental costs of industrialization were ignored. By the 1980s, comparisons with East Asian nations underscored India’s relative underperformance. While South Korea and China surged ahead with export-oriented strategies, India remained constrained by over-regulation and poor execution. The Liberalization Shift The 1991 reforms marked a watershed. Liberalization, privatization, and globalization reduced state control, opened markets, and increased foreign investment. The reforms also weakened the relevance of centralized planning. Over time, the Planning Commission appeared outdated, prompting the creation of NITI Aayog in 2015 as a flexible, collaborative policy body. NITI Aayog: A New Approach NITI Aayog (National Institution for Transforming India) was conceived as a policy think tank to replace rigid planning with strategic, evidence-based recommendations. Its mandate is to foster cooperative federalism, empower states, and promote innovation. Notable Initiatives: • Atal Innovation Mission to nurture startups and entrepreneurship. • Aspirational Districts Programme targeting development in 112 lagging districts. • National Education Policy 2020 modernizing the education framework. • Ease of Doing Business reforms, which helped India jump from rank 142 in 2014 to 63 in 2019. • Digital push through strategies for Artificial Intelligence and blockchain adoption. These initiatives reflect a future-oriented agenda, aligning India with global trends in technology, sustainability, and competitiveness. Persistent Challenges Despite its proactive stance, NITI Aayog faces significant constraints: 1. Lack of fiscal authority - Unlike the Planning Commission, it cannot allocate funds, limiting its influence. 2. Implementation gaps - Policies often falter at the execution stage; GST rollout is one example. 3. Weak data systems - Inaccurate agricultural and health data hinder effective policy design. 4. Uneven state participation - Cooperative federalism remains more an aspiration than reality. 5. Regional disparities - Many aspirational districts and poorer states still lag behind. 6. Technology underuse - Potential of AI and digital tools in monitoring is not fully tapped. 7. Limited citizen engagement - Feedback loops and public accountability remain weak. 8. Perception of central dominance - Being under the PMO raises concerns of political bias. Thus, while NITI Aayog has energised policy debates, its impact on the ground remains constrained by executional bottlenecks. Global Comparisons India’s planning trajectory contrasts with other economies: • United States: Relies largely on market forces; government plays a regulatory, not directive, role. • China: Successfully combined central planning with market reforms, using Special Economic Zones to drive manufacturing and exports. • Russia: Shifted from Soviet-style planning to a market economy, though state influence in energy and defence persists. • Australia & Canada: Resource-driven economies with decentralized planning, strong environmental safeguards, and indigenous participation. Lessons for India: China’s success highlights the importance of clear execution, export orientation, and renewable energy adoption. Unlike India’s SEZs, China’s zones had stronger incentives and infrastructure, turning it into the “factory of the world.” India must similarly align policy with robust delivery. The Way Forward To fulfill its role as a strategic catalyst, NITI Aayog must move beyond recommendations and ensure results. Priorities should include: • Strengthening monitoring and evaluation mechanisms for real-time policy assessment. • Enhancing state cooperation to reduce regional imbalances. • Deepening SDG integration into sectoral strategies. • Leveraging technology like AI and blockchain for transparency in subsidy and welfare delivery. • Expanding citizen engagement for inclusive, responsive policymaking. • Promoting export-oriented manufacturing and green energy adoption, learning from global best practices. Conclusion The Planning Commission laid the foundation for India’s industrial and agricultural base, while NITI Aayog has sought to adapt planning to the demands of a globalized, innovation-driven economy. Yet, both share a common weakness: implementation gaps. India’s future growth will depend not merely on visionary policy documents but on effective, accountable, and inclusive execution. NITI Aayog must evolve into a true agent of transformation-bridging the distance between policy intent and on-ground outcomes. Only then can India achieve sustainable, balanced, and globally competitive development.   ---------------------------------------------------- About The Article This article is the extract of one of the chapter of the best-selling book on Indian Macro-Economics, titled.... Bharat........” The Development Dilemma" authored by CA Anil Kumar Jain. “This book is a must-read for every aware and enlightened citizen. It presents an in-depth analysis of the challenges faced by an emerging India and offers innovative suggestions and practical solutions to overcome them, paving the way for our nation to attain the esteemed position of Vishwaguru in the near future.” The book is available at Amazon, Flipkart, Google Play Books and Ahimsa Foundation (WhatsApp Your Request - 9810046108).