Explanation: The Planning Commission was a key institution in the Indian government, established in 1950, with the primary role of formulating national development policies and strategies. It was responsible for creating Five-Year Plans, which were comprehensive blueprints for economic development in India. The Planning Commission was chaired by the Prime Minister and comprised of various ministers and experts.
However, over time, the Planning Commission faced criticism for its centralized approach to economic planning and its limited flexibility in responding to changing economic conditions. The need for a more participatory and flexible framework for policy-making led to the establishment of the NITI Aayog (National Institution for Transforming India) in 2015.
NITI Aayog was created to replace the Planning Commission and to provide a more dynamic and inclusive approach to policy-making. Unlike the Planning Commission, NITI Aayog does not prepare Five-Year Plans but instead focuses on creating a framework for cooperative and competitive federalism. It aims to foster a culture of evidence-based policy-making and to promote innovation and technology in governance.
NITI Aayog's mandate includes:
1. **Policy Design and Implementation:** Developing and implementing policies that promote sustainable development and inclusive growth.
2. **Cooperative Federalism:** Facilitating cooperation between the central and state governments to ensure effective implementation of policies.
3. **Innovation and Technology:** Encouraging the use of technology and innovation in governance and development.
4. **Monitoring and Evaluation:** Providing a robust system for monitoring and evaluating the progress of various development programs.
The transition from the Planning Commission to NITI Aayog reflects a broader shift in the Indian governance system towards a more decentralized and participatory approach. This change aims to enhance the effectiveness and responsiveness of policy-making and to better address the diverse needs and challenges of different regions in India.
In summary, the statement that the Planning Commission was replaced by NITI Aayog is correct. This transition was a significant reform in the Indian governance system, aimed at creating a more flexible and inclusive framework for policy-making and development planning.