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From 1947 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951–2014) and the NITI Aayog (2015–2017).
With the prime minister as the ex-officio chairman, the commission has a nominated deputy chairman, who holds the rank of a cabinet minister. Prior to the Fourth Plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption for the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans.[1]
The Narendra Modi government elected in 2014, announced the dissolution of the Planning Commission, and its replacement by a think tank called the NITI Aayog (an acronym for National Institution for Transforming India).
- ^ Planning Commission (24 February 1997). "A Background Note on Gadgil Formula for distribution of Central Assistance for State Plans" (PDF). Retrieved 17 September 2010.