The correct Answer is
Greater state participation in national economic policy formulation
Explanation
The NITI Aayog (National Institution for Transforming India) was established on January 1, 2015, replacing the Planning Commission. This institutional change reflected a fundamental reorientation in India's approach to economic planning and governance, moving from a top-down model to a more collaborative and cooperative federalism framework.Statement-wise Analysis
Greater state participation in national economic policy formulation
- Correct. NITI Aayog was designed to foster cooperative federalism by ensuring greater involvement of State Governments in the economic policy-making process. Its Governing Council includes Chief Ministers of all States and Lieutenant Governors of Union Territories, providing a platform for states to contribute to national development priorities and strategies. This contrasts with the Planning Commission's more centralized approach.
Abandonment of centralized planning and formal Five-Year Plans
- Incorrect. While NITI Aayog replaced the Planning Commission, which was responsible for Five-Year Plans, the shift was not an abandonment of planning altogether. Instead, it moved towards a more strategic, long-term vision and framework, replacing the rigid Five-Year Plans with a 15-year Vision Document, a 7-year Strategy, and a 3-year Action Agenda. The nature of planning evolved from prescriptive to facilitative and strategic.
Shift towards target-group programmes instead of spatial planning
- Incorrect. NITI Aayog's mandate includes both sectoral and spatial planning considerations. It focuses on various dimensions of development, including specific target groups, but it does not exclusively shift away from spatial planning. Its role involves designing strategic and long-term policy frameworks and initiatives, which encompass diverse approaches to development.
Replacement of federal planning with market-driven planning
- Incorrect. NITI Aayog promotes cooperative federalism, which implies strengthening the federal structure of planning, not replacing it. While it advocates for market-friendly policies and leverages private sector participation, it does not entirely replace federal planning with purely market-driven planning. Its role is to act as a "think tank" and provide strategic and technical advice to the central and state governments, fostering a balance between state intervention and market mechanisms.