Concept:
NITI Aayog (National Institution for Transforming India) is the premier policy "Think Tank" of the Government of India, providing both directional and policy inputs. It replaced the decades-old Planning Commission.
Step 1: The Shift in Planning Philosophy.
The Planning Commission (established in 1950) followed a "top-down" approach with Five-Year Plans. The Union Government decided to move toward a "bottom-up" approach to foster Cooperative Federalism, where States have a stronger say in policy-making.
Step 2: The Formation Date.
The cabinet resolution to form NITI Aayog was passed on January 1, 2015. This marked a formal departure from the command-economy model toward a more consultative and strategic developmental model.
Step 3: Structure and Goals.
NITI Aayog is headed by the Prime Minister (Chairperson) and includes a Governing Council comprising Chief Ministers of all states and Lt. Governors of Union Territories. Its goal is to design long-term strategic policies and provide technical advice to the Centre and States.