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CA Foundation · Business Economics · Indian Economy

In January 2015, the Planning Commission was replaced by NITI Aayog. Which of the following is a key difference in NITI Aayog's approach compared with the Planning Commission?

NITI Aayog works as an advisory think tank that promotes cooperative federalism and a bottom-up approach, unlike the Planning Commission, which drew up Five Year Plans and allocated funds to states. It has no role in regulating money supply or implementing GST decisions.

  1. AIt acts as an advisory think tank promoting cooperative federalism rather than allocating funds through Five Year PlansCorrect
  2. BIt prepares binding Five Year Plans and allocates central funds to states
  3. CIt regulates the money supply and credit in the economy
  4. DIt was set up to implement the GST Council's decisions

Explanation

NITI Aayog is a policy think tank that advises the Centre and states and promotes cooperative federalism with a bottom-up approach. It does not prepare binding Five Year Plans or allocate funds as the Planning Commission did, so option 2 is wrong. Money supply is the RBI's role.

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