Article 10: Inclusive growth and NITI Aayog

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December 11, 2018
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December 23, 2018

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Article 10: Inclusive growth and NITI Aayog


  1. Concept of Inclusive growth
  2. Central Sector Schemes
  3. Centrally Sponsored Schemes
  4. NITI Aayog
  5. Quiz

Concept of Inclusive growth

  • Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty.
  • It means having access to essential services in health and education by the poor.
  • It includes providing equality of opportunity, empowering people through education and skill development.
  • It also encompasses a growth process that is environment friendly growth, aims for good governance and a helps in creation of a gender sensitive society.

Example: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), has improved the standard of living of people and has been able to check migration to a great extent. Apart from this, the Government has launched various flagship programmes like Sarva Siksha Abhiyan (SSA), National Rural Health Mission (NRHM), Bharat Nirman etc. to bring about improvement in the area of education, health and infrastructure thereby making growth more inclusive.

Central Sector Schemes:

  • Central Sector Schemes are the schemes that are entirely and directly funded and executed by the central government.
  • The schemes are formulated by the Centre, based on subjects from the Union List.

Some examples of Central Sector Schemes include Bharatnet, Namami Gange-National Ganga Plan, LPG connection to poor households, Crop Insurance Scheme, recapitalisation of public sector banks, family welfare schemes, labour welfare schemes, etc.

Centrally Sponsored Schemes:

  • Centrally Sponsored Schemes on the other hand are schemes that are implemented by state governments.
  • However, the cost of these schemes is borne on a shared basis in the ratio of 50:50, 70:30, 75:25 or 90:10; the larger portion is always borne by the Centre.
  • Schemes under CSS are formulated on the areas covered under the State List.
  • CSS is divided into three parts:
  1. Core of the core: For example, the MGNREGA scheme, which comes under core of the core group, will see the state pooling in 25 percent of funds, whereas the rest is taken care of by the Centre.
  2. Core – Schemes under the core group will see a higher share of state involvement of up to 40 percent
  3. Optional- Optional schemes, states will fund up to 50 percent. However, financially backward states need to bear only 20 percent of the financial burden

NITI Aayog

  • The National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015.
  • NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs.
  • While designing strategic and long term policies and programmes for the Government of India, NITI Aayog also provides relevant technical advice to the Centre and States.
  • NITI Aayog is also developing itself as a State of the Art Resource Centre, with the necessary resources, knowledge and skills, that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues.

The core of NITI Aayog:

  1. The Team India Hub leads the engagement of states with the Central government.
  2. Knowledge and Innovation Hub builds NITI’s think-tank capabilities.

Constitution of NITI Aayog:

  • Chairman: Prime Minister Narendra Modi
  • Vice-Chairman: Dr. Rajiv Kumar, Economist.
  • Governing Council: State Chief Ministers and Heads of all Union Territories. The Governing Council replaces the previous National Development Council.

Functions of NITI Aayog

  • To evolve a shared vision of national development priorities sectors and strategies with the active involvement of States.
  • To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.
  • To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.
  • To pay special attention to the sections of our society that may be at risk of not benefiting adequately from economic progress.
  • To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy.
  • To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think tanks, as well as educational and policy research institutions.
  • To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
  • To offer a platform for resolution of inter-sectoral and inter­ departmental issues in order to accelerate the implementation of the development agenda.
  • To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.
  • To focus on technology upgradation and capacity building for implementation of programmes and initiatives.

Specialised Wings of NITI Aayog

NITI Aayog houses a number of specialised wings, including Research, Consultancy and Team-India.

  1. The Research Wing will develop in-house sectoral expertise as a dedicated think-tank of top notch domain experts, specialists and scholars.
  2. The Consultancy Wing provides a marketplace of panels of expertise and funding for Central and State Governments to tap into.
  3. The Team India Wing comprises representatives from every State and Ministry and serves as a permanent platform for national collaboration.
  • A national Hub-Spoke institutional model has been developed, with each State and Ministry encouraged to build dedicated mirror institutions, serving as the interface of interaction. These institutions, nurture their own networks of expertise at state and ministry level.

Guiding Principles of NITI Aayog:

  1. Antyodaya, which advocates prioritizing service and uplift of the poor and marginalized;
  2. Inclusion of the vulnerable and marginalized sections and redressing identity-based inequalities;
  3. Integrating villages into the development process; harnessing India’s demographic dividend through education and skilling;
  4. People’s participation in the developmental process; nurturing an open and accountable style of governance;
  5. Sustainability at the core of the planning and developmental process.
  6. Cooperative and competitive federalism, decentralized planning, evolving a shared vision of national development priorities and designing medium- and long-term strategic frameworks of the big picture vision of India’s future across schemes, sectors, regions and time are among key objectives of the Aayog.
  7. To reflect changes required in India’s governance structures and provide a more active role for the state governments in achieving national objectives.
  8. It will provide critical, directional and strategic input to the development process, focusing on deliverables and outcomes.

A new planning timeline by the NITI Aayog:

  1. Fifteen Year  plan for government actions for achieving social goals such as poverty reduction, and improving health and sanitation.
  2. Seven Year strategy document for 2017-24 will chart out policy action outlined as the “National Development Agenda”.
  3. A three-Year “Action Agenda” from 2017-18 to 2019-20 is being worked out to assess funding requirements.


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