Step 1: Understanding the Concept:
NITI Aayog (National Institution for Transforming India) replaced the Planning Commission in 2015. It serves as the premier policy "Think Tank" of the Government of India.
Step 2: Key Role - Cooperative Federalism:
Unlike the old Planning Commission, NITI Aayog follows a "Bottom-Up" approach. It ensures that State Governments are active partners in the national development process, fostering a spirit of cooperative federalism.
Step 3: Strategic Functions:
Policy Design: It designs long-term strategic policies and monitors their implementation.
Innovation and Knowledge: Through initiatives like the "Atal Innovation Mission," it promotes an ecosystem of entrepreneurship.
Monitoring and Evaluation: It uses indices (like the SDG India Index) to rank states, encouraging healthy competition for development.
Step 4: Final Answer:
NITI Aayog drives development by providing strategic direction, fostering state participation, and promoting innovation through evidence-based policy.