Composition of The National Development Council

Composition of National Development Council

The National Development Council is involved in decision making for resources and efforts in issues related to five-year plans. The National Development Council also acts as the advisor to the planning commission. The National Development Council includes the Prime minister (considered as the chairman), the Union Cabinet Ministers, the Chief Minister of each State, representatives of the Union Territories, along with members of the NITI Aayog. The State governor is not considered a member of the National Development Council. However, ministers of the State with independent charge are invited to the meetings organized by the National Development Council. 

Chairman of National Development Council 

The chairman of the National Development Council is the Prime minister of India. The very first Prime minister of India, as well as the first chairman of the National Development Council, was Jawaharlal Lal Nehru. Currently, the prime minister, along with the chairman of the National Development Council, is Narendra Modi. 

Functions performed by the National Development Council

The National Development Council performs the following functions:

1. The national development Council prescribes guidelines for the formulation of the National Plan along with the assessment of resources for the Plan.

2. The National Development Council consider the National Plan as formulated through the Planning Commission.

3. The national development Council creates an assessment of the resources needed to implement the Plan and the way to increase the resources.

4. The National Development Council considers vital questions of social as well as economic policy affecting national development.

5. The national development Council review the working of the Plan from time to time.

6. The National Development Council recommends such measures that are vital for obtaining the aims as well as targets set out in the National Plan.

What is NITI Aayog?

NITI (National Institution for Transforming India) is the highest think task of the Government of India. 

The role of NITI Aayog is:

1. To grow mechanisms to formulate plans for rural areas.
2. To pay special attention to that part of the society that is at the risk of depriving them of economic growth.
3. To pay attention to the upgradation of technology.
4. To undertake activities that is vital for the execution of National Development.
5. To design long term and strategic policy and supervise their progress. 

Historical Background of NITI Aayog

The Independent Evaluation Office submitted an assessment report to Prime Minister Narendra Modi, which consisted of a recommendation to replace the Planning Commission with a “control commission” on 29th May 2014. As a result, the Union Cabinet scrapped the Planning Commission (India) to be replaced with a diluted version of India’s National Advisory Council (NAC) on 13th August 2014.

A Cabinet resolution was passed to replace the Planning Commission with the newly formed NITI Aayog (National Institution for Transforming India) on 1st January 2015.

The Union Government of India announced the establishment of NITI Aayog on 1st January 2015. Narendra Modi hosted the first meeting of the NITI Aayog on 8th February 2015.

Finance Minister Arun Jaitley observed the importance of creating NITI Aayog, “The 65-year-old Planning Commission had become a redundant institution. It was relevant in a command economy structure, but not anymore. 

India is a diversified country and its states are in different stages of economic development consisting of their own strengths and weaknesses. In this matter, a ‘one size fits all approach to economic planning is obsolete. It cannot lead India into competition in today’s global economy.

Conclusion 

The National Development Council is the highest decision-making authority in matters related to development. The National Development Council was established in 1952. The functions performed by the National Development Council include:

• Reviewing the plans working regularly
• Recommending measures that are important for achieving objectives set in the National Plan
• Creating an assessment of the resources required to execute the Plan
• Prescribing guidelines for the construction of the National Plan

The majority of functions of the National Development Council revolves around establishing and executing the five-year Plan within the country. 

NITI Aayog was established on 1st January 2015. The very first meeting of the NITI Aayog was held by prime minister Narendra Modi.