States may have NITI Aayog-like Bodies Soon

Context

The NITI Aayog is likely to handhold each state to set up similar bodies replacing their planning boards for faster and inclusive economic growth with the vision of becoming a developed nation by 2047.

About the proposal 

• It aims for 8-10 states to set up such bodies before reaching out to all by 2023.
• Four states Karnataka, Uttar Pradesh, Madhya Pradesh and Assam have already begun work in this regard while Maharashtra, Odisha, Andhra Pradesh and Gujarat will likely begin work soon.
• Function of State Institution for Transformation (SIT): It will guide states in policy formulation, take up monitoring and evaluation of government policies and programmes, and suggest better technology or models for delivery of schemes.

Challenges faced by the states currently 

• Most states so far have done little to rejuvenate their planning departments/ boards, which earlier dealt with the Planning Commission and prepared parallel state five year-plans with the Centre.
• Planning departments in most of the states with huge manpower are almost defunct and have no clarity what work they will do.

Significance of the move

• Increasing the role of states in GDP: The move is in recognition of the fact that except for sectors like defence, railways and highways, the national GDP growth is an aggregation of states rates of growth.
• Health, education and skilling are primarily with the state government.
• Sustained economic growth: State government’s role is critical to improving ease of doing business, land reforms, infrastructure development, credit flows and urbanisation.
• State support mission: It will likely extend support to states including experts from IIMs and IITs to fulfil the ambitious target of making India a developed nation by 2047.
• Lateral entry of professionals will be encouraged in SITs to undertake high-quality analytical work and policy recommendations.