“Planning after 1991 did not disappear but transformed into market-aligned steering.” Explain this continuity in disguise. Analyse the role of NITI Aayog in post-plan coordination.

Topic: Issues related to planning

Q5. “Planning after 1991 did not disappear but transformed into market-aligned steering.” Explain this continuity in disguise. Analyse the role of NITI Aayog in post-plan coordination. (10 M)

Difficulty Level: Medium

Reference: InsightsIAS

Why the question
How planning evolved post-1991 from centralized allocation to market-aligned steering and to test understanding of NITI Aayog’s role in coordination after the abolition of Five-Year Plans.

Key demand of the question
Explain continuity of planning in a liberalised economy and analyse how NITI Aayog functions as the post-plan coordination and outcome-monitoring institution.

Structure of the answer

Introduction
Briefly show shift from directive planning to market-based indicative steering after 1991.

Body

  • Explain how planning persisted but changed form (indicative orientation, market role, cooperative design).
  • Analyse NITI Aayog’s functions in post-plan era (visioning, coordination, outcome monitoring, competitive federalism).

Conclusion
Link planning evolution to future strategic state-market partnership and evidence-based development.