A social role for NITI Aayog

The NITI Aayog could throw light on long-term issues, with solutions that are not just economic or technological but also social and political — of strengthening democracy, building institutions and regaining policy space

NITI Aayog has had its first meeting with the economic experts. This was crucial since the government is trying to revive economic growth. The economy has experienced slow growth in spite of the revised national income data that has indicated faster growth. Industry, exports and so on, have shown tepid growth in recent years. The National Democratic Alliance’s electoral promise of an economic turnaround seems elusive in spite of its accelerating “reforms” by liberalising foreign direct investment (FDI) flows and land acquisition policies to signal its pro-corporate sector and big business inclinations.

Contradictory views

The budget is first a macroeconomic exercise and then a micro one catering to sectors of the economy. Two contradictory macroeconomic views are emerging from the government and its policy advisers. This is similar to the policy dilemma that the United Progressive Alliance faced earlier. The first view is to have a larger fiscal deficit so as to boost demand. The other view is to cut the fiscal deficit to keep the credit rating agencies (proxy for financial interests) happy so as to prevent a downgrade of the economy.

The Finance Minister favours the latter view and argues that a fiscal deficit imposes a burden on future generations who will have to repay the debt. This conservative view assumes that resources are constrained, so if the government spends more, the private sector has less to spend. But that cannot be true when the economy has spare capacity and can produce more. Increased government expenditures then boost the economy and lead to more investments via the accelerator. If increased spending is financed by increased direct taxation, that is even better. This is feasible in India since direct taxes are around 7 per cent of GDP which is low when compared to most other countries. But a government trying to signal its pro-business inclination would not wish to raise direct taxes like income, corporation and wealth taxes.

“For India, which remains very poor and very unequal, policies based on the interest of finance capital and a narrow section of society can only spell disaster.”

Actually, tax rates need not be raised but only the concessions given in taxes (these are called tax expenditures and amount to 4.5 per cent of GDP) need to be curtailed to get more resources. But this may also be seen as anti-business. The other possibility is to tap the black economy (more than 50 per cent of GDP, according to me.) This requires political will which is not yet visible. The business community, the largest generator of black incomes, would see this also as anti business — it has been opposing introduction of general anti avoidance rules (GAAR). Even if the economy grows faster due to the reduction of the size of the black economy and businessmen gain, they fear it since a bird in the hand is worth two in the bush.

The NITI Aayog meeting does not seem to have considered these deeper issues. Advice was sought from former bureaucrats, journalists, industry lobbyists and academics. Media reports suggest a lack of coherence in the discussion or in the advice given. Some of the invitees had been present in the Finance Ministry pre-budget meeting last month. So, what was the point of the meeting now when it did not lead to clarity on long-term issues? Further, the time for incorporation of policies in the budget is over since most of it would have been formulated by now. It may have been better to circulate for comments a discussion paper on the Indian economy’s slowdown and its global interlinkages.

Dilemma with global echoes

India’s current economic dilemma has global roots. The eurozone, Japan and Russia are in trouble, the Chinese economy has slowed down and the U.S. economy is the only big one that has improved. In such a scenario, increasing exports in a big way would be difficult. Declining commodity prices (like that of petroleum goods) signal a weakening global economy. Uncertainty is deepened by the arc of instability due to failing states, from Afghanistan, Syria, Iraq, Libya, Nigeria to East Africa. The war in Ukraine and the rise of IS are compounding the problem.

Greece threatens the economic stability of the eurozone. The new government there is defying the dictates from the world of finance and has promised to end the austerity regime hoisted on the people of Greece. The Greek Prime Minister is telling the European powers that the economic rules of integration of the weaker economies of Europe into the eurozone need change. He is arguing that a substantial portion of the debt resulting from the earlier wrong policies needs to be written off. The other troubled economies of Europe — Portugal, Spain and Italy — are under increasing political pressure to follow Greece’s example.

U.S. President Barack Obama has proposed increasing taxation of the rich while giving more to the middle classes to reverse the growing inequity there. This move not only has a political strategy underlying it but also economic reasons that favour it. Given the Republican domination in the legislature and their conservative inclinations, it is unlikely that this proposal would be accepted any time soon. But, other countries would be forced to think about the idea, especially in the context of the developments in Greece.

In 2011, Mr. Warren Buffett gave a call to tax the rich more not only for the sake of equity but also to tackle the global economic crisis. This call was picked up in Europe with 16 of the wealthiest French urging their government to tax them more. Fifty wealthy Germans backed this petition. In Italy, the chief of Ferrari also lent support.

Inequity has grown in most countries since the mid-1970s following the domination of global financial capital over policies — spearheaded by the World Bank and the International Monetary Fund (IMF). These policies have not only marginalised other sectors of the economy but also promoted bubble economies that are prone to periodic collapse as it happened beginning 2007 and from which the world economy has yet to fully recover.

These policies promoted shadow banking and all manner of opaque financial instruments that created economic instability. A casino economy emerged with speculation leading to a fictitious boost in paper wealth, promoting a false sense of well-being among individuals and increased consumption by them. As inequality increased dramatically, and there was the marginalisation of the vast majority, there followed the “Occupy Wall Street movement”, termed as the “99% v the 1%” and which also popularised the term, “Main street versus Wall street”.

For people policies

Events in Greece and Mr. Obama’s suggestion suggest that the time has come to end the domination of finance capital over the rest of society. Policy space has to be recaptured from the world of finance by the democratic forces so that policies favouring the people can be initiated.

The dilemma currently facing Indian policymakers reflects these global trends. India’s rightward drift started with the Emergency in 1975 when Sanjay Gandhi marginalised the left of Centre thinking in the Indira Gandhi government. The trend continued during the Janata regime and thereafter under the Indira Gandhi government which had to approach the IMF for adjustment in 1980. Rajiv Gandhi, under considerable influence of the liberalisers, pushed this tendency faster. With the New Economic Policies in 1991 and the emergence of the World Trade Organization (WTO) in 1995, there was a paradigm change, with the policies of finance capital becoming entrenched.

For India, which remains very poor and very unequal, policies based on the interest of finance capital and a narrow section of society can only spell disaster. These policies push markets and technology-based solutions which marginalise the individual. The underlying idea is that if making democracy work is difficult, substitute it with technology. Those lacking faith in democracy and social institutions are (in the name of the poor) pushing an autocratic agenda based on greater use of technology. The hard work of creating and nurturing institutions that can deliver to the people and strengthen democracy is sought to be circumvented. So, one of the key proposals today is to push Goods and Services Tax (GST) even if it does not suit the needs of the vast unorganised sectors of our economy and benefits the MNCs and big business. The hard work of making taxation simple and effective and shifting to direct taxes is hardly on the agenda. Creating a large number of jobs is secondary to cash transfers, bullet trains for the elite and smart cities for the upwardly mobile.

The flyovers of Delhi were built to ensure smooth traffic flow but now have speed bumps to slow down vehicles and which leads to jams. The technological solution failed because the institutional design of management of urban traffic is flawed and that is because policymakers did not go deeper into the problem in their urge to provide quick fix technological solutions. The NITI Aayog could throw light on such long-term issues (with solutions that are not just economic or technological but also social and political) of strengthening democracy, building institutions, regaining policy space and so on.

India, Lanka ink civil nuclear pact, agree to expand defence ties

Sri Lanka's President Maithripala Sirisena, left, and Indian Prime Minister Narendra Modi shake hands as they pose for photos before their meeting in New Delhi, India, Monday, Feb. 16, 2015. Sri Lanka's new leader is underlining India's importance as a regional ally by making it his first official foreign destination as president, following years of uneasy relations with New Delhi and international pressure to speed up post-civil war reconciliation efforts at home. AP photo

Taking the ties to a new level, India and Sri Lanka today inked a civil nuclear pact besides deciding to expand defence and security cooperation.

This was announced after the talks between Prime Minister Narendra Modi and Sri Lankan President Maithripala Sirisena during which both the leaders expressed commitment to find a solution to the emotive fishermen issue by adopting a constructive and humanitarian approach.

"The bilateral agreement on civil nuclear cooperation is yet another demonstration of our mutual trust. This is the first such agreement Sri Lanka has signed. It opens new avenues for cooperation, including in areas like agriculture and healthcare," Modi said in a joint press interaction with Sirisena.

Sirisena, who arrived here yesterday, has chosen India for his first foreign trip after assuming charge of the country. He had dethroned Mahinda Rajapaksa from his 10-year rule after a bitter Presidential poll.

The nuclear pact would facilitate cooperation in the transfer and exchange of knowledge and expertise, sharing of resources, capacity building and training of personnel in peaceful uses of nuclear energy, including use of radioisotopes, nuclear safety, radiation safety and nuclear security.

It would also facilitate cooperation in radioactive waste management and nuclear and radiological disaster mitigation and environmental protection.

The two countries also signed three other pacts, including cooperation in the field of agriculture. Another MoU was signed to enable Sri Lanka to participate in the Nalanda University Project.

The Prime Minister said he and the Sri Lankan leader also agreed to expand the defence and security cooperation.

"We welcomed the progress in our maritime security cooperation, including in the trilateral format with the Maldives," he said.

Modi said he believed that destinies of both the countries are "inter-linked" and that "our security and prosperity are indivisible".

Modi said they had "excellent discussions" on bilateral relations and international issues and added that India was honoured that Sirisena had chosen the country for his first overseas destination after assuming charge.

On the fishermen issue, Modi said he and the President attached the "highest importance" to it.

"It affects livelihoods on both sides. We agreed that there must be a constructive and humanitarian approach to the issue.

"We will encourage the fishermen's associations on both sides to meet again soon. They should find a solution that can be taken forward by both governments," he said.
The Sri Lankan President expressed happiness over the outcome of the talks and said the friendship between the two countries was not only important to each other but was significant for the region as well.

"I really appreciate Prime Minister Modi's efforts (to improve ties). Relations between the two countries will be strengthened further," he said.

Modi also thanked Sirisena for inviting him to visit Sri Lanka and said he was "eagerly looking forward to visiting the country in March".

"We are at a moment of an unprecedented opportunity to take our bilateral relations to a new level. His visit today has set us firmly in that direction," the Prime Minister said while congratulating Sirisena for his historic victory in the recent elections in the island nation.

On the fishermen issue, Modi said fishermen's associations on both sides will be encouraged to meet again soon while noting that that they should find a solution that can be taken forward by both governments.

Modi said India was Sri Lanka's closest neighbour and friend and the goodwill and support of the people of India will always be with it.

"We also share a broad range of interests - economic development for our countries; peace and prosperity in South Asia; maritime security in the region," he said.
On the economic engagement, Modi said both the countries are committed to "unlock" the vast potential of the economic cooperation.

"We are pleased to be Sri Lanka's largest trading partner. I know that India enjoys a huge trade surplus. I expressed my support for a more balanced growth in trade in both directions," he said.


The Prime Minister said he had conveyed to Sirisena India's readiness to promote greater flow of Indian investments and tourists into Sri Lanka.
"We also intend to further improve air and sea connectivity between India and Sri Lanka," he said.

Modi said they discussed expansion of cooperation in energy sector, both conventional and renewable, and that Commerce Secretaries of both the countries will meet soon to review trade ties.

Talking about the Indian assisted projects for internally- displaced persons in Sri Lanka, Modi said they have made excellent progress.

"This includes the Housing Project, under which more than 27,000 houses have already been constructed. The President and I expressed satisfaction with the progress.
"I assured President Sirisena of India's commitment to its development partnership with Sri Lanka. This will continue to cover a broad range of areas, including infrastructure," he said.

Referring to a pact on cultural cooperation, Modi said that like cricket, culture provides a strong bond between the two countries.

"Sri Lankan nationals visit the National Museum in New Delhi in large numbers to pay homage to the Kapilavastu relics. We have decided to reduce the fees for them," he said.

Re Roadmap 2030 – NITI Aayog’s First Initiative

The “Report India’s Renewable Electricity Roadmap 2030—Toward Accelerated Renewable Electricity Deployment” was released at the Renewable Energy Global Investors Meet & Expo (RE-INVEST 2015) here today. The report was brought out by NITI Aayog with support of CII, Shakti Sustainable Energy Foundation and RAP (Regulatory Assistance Project), a global non-profit group, talks about the current scenario of renewable energy in India and what needs to be done for its accelerated deployment to address energy security concerns. Shri Piyush Goyal, Union Minister of State (IC) for Coal, Power and New & Renewable Energy, lauded NITI Aayog for the report and said that it has instilled a lot of hope for following more ambitious targets. “We need to create an enabling environment with respect to clearance, land acquisition and other regulatory support.” . The Minister suggested that the land owners, who provide their land for setting up renewable energy projects, could be given a stake in the projects as an incentive. He urged NITI Aayog to help in creating some innovative model for the RE sector. He addressed the panelists while sitting in the audience. . Commenting on the launch of the report, Smt Sindhushree Khullar, CEO, NITI Aayog- Govt of India stated that this is the first initiative of the Aayog. “Energy and renewable energy is a core area in India. We need to see actual movement on whatever the report suggests about,” said Smt Khullar. . Mr Deepak Gupta, Senior Programme Manager- Power, Shakti Sustainable Energy Foundation, said that the report suggests possible roadmap to achieve ambitious targets in the renewable sector after assessing several best practices around the world. . The panelists were of the opinion that India needs to keep renewable energy as a matter of national importance. They suggested that the need of the hour is to move away from the current practice and make RE as an integral part of the power sector. For this a comprehensive national policy framework would be required for smoother renewable projects development in the country. . Mr Mackay Miller, Technology Innovation Analyst, NREL, congratulated the Indian government for its ambitious RE targets and intent to attain that goal. He suggested that there is need to think about policy and financing mechanism so that investments take place. . Smt Varsha Joshi, Joint Secretary, Ministry of New and Renewable Energy, lauded the report terming it as a good effort by the compilers. “It’s time that India has to look at RE as a resource across the states. There are a lot of things to be learned and a lot to be done,” she said. . Shri Sumant Sinha talked about thinking ‘out of the box’ to operationalise the issues highlighted in the report. “Why can’t we make renewable energy as the backbone of India’s electricity generation? We have to re-think our entire reliability on coal. Discoms are reluctant on buying renewable power against highly subsidised conventional power,” Shri Sinha noted. . Getting fund is seen as one of the major challenges. However, Shri Rajat Misra, VP, SBI Capital Markets Ltd is of the opinion that funding is not a constraint if there is good policy in place. . Shri SK Soonee, CEO, POSOCO, raised the issue of grid as one of the major hurdles in increasing renewable potential. The experts stressed that renewable energy could be the backbone of Indian power scenario provided existing issues are addressed. They objected to having coal as the preferred power choice just because it is available beneath the earth. . Smt Khullar stated that there is misconception in India that renewable energy is for rich. She asked everyone to be a part of this movement in renewable energy. “We are starting this journey with great hope and we should walk together to make it happen,” Smt Khullar concluded. .

Asia is and will be the centre of gravity for a long time to come

Shared democratic values

First, shared democratic values: When you look at the sheer magnitude of India's diversity, traditions and people, you cannot help but appreciate the energy, sacrifice and persistence that were behind India creating the largest democracy in the world.

When the two largest democracies come together, we can have a powerful impact on people's lives, not only in our two countries, but we can provide a powerful example to other nations as well.

Shared prosperity

Second, shared prosperity will be a central focus of our commercial and trade relationships. All companies want the opportunity to compete on an open and level playing field, whether it is trade in food and agricultural products or solar panels. In that spirit, Prime Minister Modi and President Obama, in their joint statement, affirmed their shared commitment to facilitating increased bilateral investment and fostering an open and predictable climate for investment. As our trade, technology, manufacturing and investment linkages between us become stronger, we will not forget our commitment to maintain labour standards in accordance with domestic law and international norms.

And what is our ultimate goal? It is recognising that more important than the fivefold growth to $100 billion per year in bilateral trade and investment; or the breakthrough WTO deals; or adding hundreds of billions of dollars to the global economy; is what all of this means for the living standards and economic well-being of average citizens and their children. We move forward with our eye on the prize; to creating opportunities for all of our people - from the street cleaner who dreams of owning a business to the student on a scholarship in Bengaluru who dreams of becoming the next big software developer, to the kids in front of the White House who dream of making the world a better place.

To this end, together we are committed to explore areas of collaboration in skill development ranging from partnerships between American skills building institutions - community colleges - and their Indian counterparts, establishing skills certification standards, nurturing and promoting social entrepreneurship and strengthening the innovation and entrepreneurship ecosystem.

Shared inclusion

Third, shared inclusion: Our nations are also strongest when we reinforce the central role of robust civil society and government engagement to advance shared goals of peace, prosperity and the well-being of all people. To put it simply, a strong civil society reminds us of why it is we are doing what we are doing, and for whom we are doing it.

One of the most enjoyable parts of my job will be to meet India's dynamic civil society leaders who are working with government to create inspirational change all over India, like women's empowerment pioneer Meenu Vadera, who is working with the government to break down barriers for women in traditionally male-dominated professions - specifically in the transportation sector - and as a result, helping women become financially independent decision-makers in their families and in society. Through her women-operated "Cabs for Women", she is also addressing one of society's most pressing challenges -women's and girls' safety - a theme the prime minister also prominently addressed in his Independence Day remarks.

Shared regional vision 

Fourth, our shared regional vision: Expanding on that regional theme, the work we do and successes we achieve in India on all of these issues will also create an opportunity for leadership in the region. We recognise that with more than two-thirds of the world's humanity, Asia is and will be the centre of gravity for a long time to come. It's important, therefore, to simultaneously focus on a strategic regional convergence of our shared democratic values.

This was the idea behind the president's and prime minister's Joint Strategic Vision for the Asia Pacific and Indian Ocean regions. It is a vision borne out of the recognition that India's Act East policy and our rebalance to Asia are complementary and have the potential to create meaningful impact in the region. But this should not be seen as a strategy that is confrontational to our relationship with China. On the contrary, as our new National Security Strategy outlines, we welcome a stable, peaceful and prosperous China and a constructive relationship that also promotes security and prosperity in Asia and around the world.

We look forward to cooperation on a wide range of issues; from implementing a global health security agenda, to enhancing connectivity and enabling the freer flow of commerce and energy in the region.

At the same time, we will continue to work with both India and Pakistan to promote dialogue, combat terrorism and advance regional economic integration in south and central Asia. This includes Afghanistan, where both India and Pakistan are key partners in that country's future.

Finally, I would like to think my story - that of an American of Indian descent - can also serve as a bridge between our two countries. My parents arrived in the United States in the 1960s with only a few belongings and even fewer dollars. Thanks to their perseverance and resilience, and with a lot of help from friends and neighbours, they raised five children. My personal story is an American story. And just like many of you, the story of President Obama and Prime Minister Modi standing outside the White House so long ago is one to which I can easily relate. Like them, I never imagined I would be in this position today.

Concern combined with realism

The year 2015 began with clear indications of how the Narendra Modi Government intends to position itself in global affairs. The Prime Minister’s invitation to the Heads of SAARC Governments for his swearing-in was followed by intensive interaction in Yangon and Brisbane with regional and global leaders, during the East Asia and G-20 Summits. The focus was very clearly on sending out the message that India was determined to return to a high-growth path economically. It would play a proactive role not only in regional economic integration with its ASEAN neighbours and major economies like Japan and South Korea, but also in fashioning new security dynamics across the Indo-Pacific region. India’s security perimeter was no lager confined to the Indian Ocean rim, but extended across the South China Sea and the Pacific Ocean.

While the Xi Jinping visit to India was marred by the Chinese military intrusion in Chumar, the message to Beijing was that while India would resist territorial incursions, it was ready for dialogue to end tensions, expand economic cooperation and widen interaction in forums like BRICS and G 20. But the event that received widespread global attention was the visit of President Obama on India's Republic Day. That visit clearly signalled that India was opening its doors to foreign investment, expanding the scope of bilateral cooperation in defence and seeking solutions constructively to issues of environment, energy, intellectual property rights and climate change.  New Delhi recognises the reality that the US is going to remain the pre-eminent global power for at least the next two decades. At the same time, one has to recognise that differences in areas like Intellectual Property Rights, especially in pharmaceuticals and in climate change, posed difficult challenges.  Moreover, the road ahead in nuclear power cooperation with the US is going to be bumpy. Legal challenges on issues of compensation appear inevitable. It also remains to be seen if American reactors can supply power at reasonable and competitive rates.

While India can be satisfied at signs that the US support for the Afghan armed forces will continue together with air support, American ambivalence on the Taliban will remain a matter of concern. India will have to now seek greater cooperation on the Afghanistan issue in interactions with members of the Shanghai Cooperation Organisation, including particularly China and Russia. The Americans clearly understand that India will not join the Western efforts to isolate and condemn Russia. The recent trilateral India-Russia-China ministerial meeting in Beijing has made it clear that India has serious concerns about the challenges China poses to its national security along its borders and by its nuclear, missile and military relationships with Pakistan and its assertiveness across the India Ocean littoral. Despite this, every effort will be made to address differences on the border issue seriously, while expanding trade, industrial and investment ties, equitably and realistically.

Unlike Pakistan, which reacted immaturely and churlishly to the Obama visit, the Chinese reacted with a measure of concern combined with realism. The Chinese were unquestionably unsettled by the readiness of the US and India to expand military ties, while enunciating a common vision for the Indian Ocean and Asia-Pacific regions, “from Africa to East Asia”.  The references to the need to avoid the threat of use of force and abide by the provisions of the UN Convention on the Law of the Sea clearly conveyed concerns over Chinese behaviour in its maritime disputes with South Korea, Japan, Taiwan, Vietnam, the Philippines, Brunei, Malaysia and Indonesia. It was also asserted that there would be strengthening of India-Japan-US trilateral cooperation. The Chinese responded by expressions of concern together with rolling out the red carpet for Mrs. SushmaSwaraj and welcoming a proposed visit by Mr Modi in May 2015.  One can reasonably expect that at the very least, such a visit will lead to measures that ensure that border incursions like those which occurred in Depsang and Chumar in 2013-2014 are avoided.

It would be too much to expect China to proceed more cautiously in its policies of military, nuclear and missile technology and weapon transfers to Pakistan. China will also proceed ahead with enhancing support for its Maritime Silk Route, designed to surround India, across its entire coastal periphery. But recent developments in Sri Lanka and Myanmar should serve as a caution to the Mandarins in Beijing about getting overzealous on “strategic containment” of India. The recent agreements with the US, Japan and Vietnam should also serve as a signal to Beijing that a determined India can, at the very least, respond diplomatically to its moves in the Indian Ocean by counter-measures, leveraging its partnerships with China's immediate coastal neighbours and the USA.  Following a categorical US commitment to back India for APEC membership, China has indicated that it will not be an obstacle on this score. The time has also perhaps come to informally sound out the US, Australia, Japan and ASEAN States like Vietnam and Singapore for exploring possibilities of India joining the Trans-Pacific partnership in course of time.

There are indications that Mr Modi will visit France, Germany and the UK this year, apart from a visit to Russia. With a number of its members afflicted by serious economic maladies, the European Union appears to be increasingly looking inwards. But its major powers do have the potential to contribute significantly to Mr Modi's “Make-in-India” programme and its defencemodernisation. The proposed visit to Israel has also to be looked at in this context. Missing from this schedule are possible visits to Gulf countries like Oman, Qatar, Iraq and, circumstances permitting, even Iran, especially if we are able to finalise long-term contracts for the import of LNG. There is now every indication that, like the prices of oil, the prices of LNG are also set to fall in the coming years as global shale gas production rises. Success on such an active foreign policy agenda will naturally depend on the government's success in getting its economic reforms agenda and legislation approved by Parliament.

Transforming India’s Development By Way Of Structured Change through Cooperative, Competitive Federalism

India has changed dramatically over the past 65 years in terms of demography with the population increasing to 121 crores. With increasing levels of development, literacy and communication, the aspirations of the people have soared, necessitating changes and innovations in governance systems. Even the economy has undergone a paradigm shift with Agriculture’s share showing dramatic drop, from more than 50% to less than 15% of GDP and the private sector emerging as a vibrant and dynamic force with a global scale and reach. Even the central government’s Twelfth Five Year Plan size of Rs 43 lakh crore, is huge compared to the First Five Year Plan size of Rs 2,400 crore. Moreover in the last few decades, States have evolved from being mere followers of the Centre, to being the actual drivers of national development. Hence the nation’s progress lies in the progress of States.

This changing reality and growing mismatch has been recognized for years now; with experts, including many from within the erstwhile Planning Commission, recommending appropriate changes letting go of old practices and beliefs whose relevance had been lost, and adopting new ones based on the past experiences of India as well as other nations. Even the former Prime Minister and noted economist, Dr. Manmohan Singh - in his farewell address to the Commission in April 2014 - also urged reflection on "what the role of the Planning Commission needs to be in this new world. What additional roles should the Planning Commission play and what capacities does it need to build to ensure that it continues to be relevant to the growth process?

Hence it was time that priorities, strategies and structures dating back to 1950 when the Planning Commission was set up, were to be revisited. As a result the Government of India set up NITI Aayog (National Institution for Transforming India) in place of the Planning Commission, as a means to better serve the needs and aspirations of the people of India with the Governments’ transition from being a ‘provider of first and last resort’ and ‘major player’ in the economy, to being a ‘catalyst’ nurturing an ‘enabling environment’, where the entrepreneurial spirits of all, from small self-employed entrepreneurs to large corporations, can flourish. This would help the Government to focus its precious resources on public welfare domains such as food, nutrition, health, education and livelihood of vulnerable and marginalized groups.

The NITI Aayog comprises of the Prime Minister of India as the Chairperson; Governing Council comprising the Chief Ministers of all the States and Lieutenant Governors of Union Territories with the Regional Councils formed to address specific issues and contingencies impacting more than one state or a region. Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister will assist this think tank comprising Vice Chairman, two fulltime and part time members among others.

Differences between NITI and Planning Commission

While Planning Commission enjoyed the powers to allocate funds to ministries and state governments, NITI Aayog will be an advisory body, or a think-tank.  Under Planning Commission, States' role was limited to the National Development Council and annual interaction during Plan meetings and the commission reported to National Development Council that had state chief ministers and lieutenant governors of UTs. But Niti Aayog’s Governing Council has state chief ministers and lieutenant governors as the all powerful body. Under Niti Aayog states are consulted while making policy and deciding on funds allocation. Final policy would be a result of thatconsultations unlike under Planning Commission when policy was formed by the commission and states were then consulted about allocation of funds. While Niti Aayog is a think-tank and does not have the power to impose policies, Planning Commission decided policies for states and tied allocation of funds with projects it approved, a methodology driven by "one size fits all" concept.

Objectives of NITI Aayog

NITI Aayog envisages providing a critical directional and strategic input into the development process. The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states. The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It is expected to help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation. In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and focus on technology upgradation and capacity building.

Comments

          The opposition parties as usual had mocked the launch of NITI Aayog as a cosmetic relabeling exercise. However, the ruling party  justified  by saying that, “With the new set of changes, the state governments no longer need to have a begging attitude and instead take independent steps for development,”  and it is one more of their key promises of robust federalism.

 Prime Minister, Shri Narendra Modi in the first Governing Council meeting called upon all Chief Ministers to work with the Centre to forge a model of cooperative federalism, whereby the Centre and the States – TEAM INDIA - can come together to resolve differences, and chart a common course to progress and prosperity. Noting that India cannot advance without all its states advancing in tandem, the Prime Minister said the idea was to bring up all states together in the spirit of Sabka Saath, Sabka Vikas. He added that he envisioned different states competing with each other in promoting governance initiatives, in a spirit of "cooperative, competitive federalism." He urged all Chief Ministers to focus on the cycle of investment, growth, job creation and prosperity. 

           The Prime Minister emphasized that the Centre wants to empower the states with finances, with technology and knowledge so that they are able to plan better and execute even better.  He said that for federalism to work well, states must also fulfill their role in promoting the shared national objectives. He said that the critical element for cooperative federalism to flourish is that states commit to the path they choose within the context of the shared national objectives and then deliver on that commitment.

             To conclude, adoption of new ideas, techniques, institutions, processes does not occur naturally but results from hard work, trial and error. The adoption of innovations involves altering human behavior, and the acceptance of change.  There is a natural resistance to change for several reasons, but change is inherent to development and a structured change through cooperative, competitive federalism can dismiss all resistance and usher in a New Vibrant India.

Good Governance Initiatives

Abolition of affidavits and adoption of self certification

DARPG endeavours to simplify administrative procedures and make governance citizen-centric. In this context, the central Ministries/Departments and States/UTs have been requested to review the existing requirement of documents attested by Gazetted officers or affidavits in various forms in a phased manner, wherever feasible. This is to be replaced by self-certification.

As a result of constant efforts by the Department, 24 State Governments/UTs and 41 Central Ministries/Departments have reportedly taken appropriate action already.

The Department of Administrative Reforms & Public Grievances and United Nations Development Programme joint collaborative project “Strengthening Public Administration and Governance”:

(i)         The Department of Administrative Reforms and Public Grievances in collaboration with the United Nations Development Programme is implementing the joint collaborative project “Strengthening Public Administration and Governance” for the period 2013-2017 under Country Programme Action Plan (CPAP).    The Project aims to address the following development challenges or gaps:

(a)    The changing environment, rising aspirations of the people, to seek greater accountability and improved efficiency and effectiveness and changing role of the Government necessitate administrative reforms in India, in tune with the rapid development of the country.  There is also a need for associated simplification of rules and procedures, business process re-engineering and change management.

(b)   While Indian states and district governments have come up with innovative solutions and have implemented best practices in public service delivery and public administration, including through the use of ICT and e-governance, these experiences have not been documented in a systematic manner. As a result, states don’t benefit and learn from such experiences of other states.

(c)    Currently, there are hardly any analytical studies that attempt to highlight factors responsible for poor service delivery that impinge on development and social indicators for the marginalized people. Similarly, there is no documentation or analysis as to why some best practices that were rewarded or recognized a few years back have disappeared, or have degenerated without making any permanent impact on administrative productivity.

(ii)        The Project conceives the following strategies for addressing the above mentioned challenges / gaps described in the Project document:

·         Changes in attitudes and access to decision making through awareness raising, brokering, convening.

·         Changes in policies, plans, budgets and legislation through support to national assessment, planning, budgeting, policy making.

·         Changes in the lives of individuals and communities through implementation for inclusive development.

(iii)       The specific strategies to be adopted to achieve the targets are as below:

·         Carrying out cross-sectoral studies on the desired goals in government programmes with a view to improve outcomes and to suggest measures that would improve the targets in such programmes, especially in UN-focussed.

·         Evidence-based national and International best practices are available to GOI and State Governments for strengthening public administration and governance.

·         Adaptation and replication of best practices within states and in other states.

·         Demonstrating innovative e-governance and m-governance initiatives that enhance efficiency in public administration and management.

(iv)       The possible improvements in the capacities of institutions, individuals and systems that will occur as a result of this Project are:

·         Improve capabilities of institutions and individuals responsible for public administration and governance

·         Deeper understanding of administrators on factors that contribute to success or failure of service delivery under government programmes

·         Increased cooperation in the area of Public Administration globally including the South-South Context.

(v)        As part of this on-going Project, an “International Symposium on Excellence in Public Service / Public Administration” was successfully conducted in New Delhi during 7-9 October, 2014.  The major objectives of the International Symposium were (i)  to foster spirit of excellence in Public Administration;  (ii) to acknowledge, disseminate and learn from the innovative practices and extraordinary achievements in improving public administration and governance. Around 23 countries participated and made presentations on Award winning best practices in international public administration reforms and best practices in governance, including e-governance and m-governance.

            Around 200 Indians have also participated in the same.

(vi)       A Case Study Workshop was also organised from 21^st to 23^rd August, 2014 followed by concluding session on 31^st October & 1^st November, 2014.  The objective of the Workshop on Case Studies was to build capacity in developing / teaching case studies and develop case studies of international standard on some of the award winning best practices in India, to facilitate its replication. An eminent expert in Public Policy and Government at Georgetown University, Prof. R. Kent Weaver, had been engaged for this purpose.  Five cases have been developed in the Case Study Workshop.

(vii)      The Annual Work Plan, 2015 is under finalization.

Public Grievances

            The front end of PG portal for lodging grievances by citizen has been improved by providing more options to the petitioner who can now upfront select whether it is public or pensioners grievances. Grievances relating to subject matter handled by Directorate of Public Grievances can be directly lodged to them by the petitioner on the pgportal. The petitioner in case he or she is not aware of the authority to whom it should be forwarded can now select NOT KNOWN (earlier it was in dropdown) upfront and by default it would come to DARPG.

“e-Office” Mission Mode Project

(i)         INTRODUCTION

            The Department of Administrative Reforms & Public Grievances (DAR&PG) has been entrusted the role to promote e-Governance activities in consonance with the overall national objectivities and priorities. This task mainly involves conceptualization and overall coordination for governance related issues in collaboration with Department of Electronics and Information Technology (DEITy) for technical expertise.                                   

            DARPG has prepared and circulated reports to all Central Government Ministries on Change Management for eGovernance projects and Business Process Re-engineering for eGovernance projects.

            DAR&PG has formulated a generic document on Business Process Reengineering named GPAF as envisaged in National e-Governance Plan (NeGP) and 11th report of 2nd ARC. Government Process Architecting Framework (GPAF) provides a detailed systematic guide for conducting Business Process Reengineering in Central Government Organizations and optimize delivery of services.   

            DAR&PG had also issued Government of India Guidelines for Government Websites (GIGW) in 2009. In line with new developments,  DAR&PG is updating the same.

            NeGP (since merged with Digital India Programme) was approved by Cabinet in May 2006. E-Office is one of the Mission Mode Project (MMP) under Central Government category of NeGP jointly formulated by DEITY and DARPG. , DAR&PG is the Line Department (Nodal Department)  for  e-office Mission Mode Project(MMP). NIC is the technology partner.

         ‘e-Office’ aims at creating an office environment that minimizes the use of paper documents and files, and by streamlining office workflow helps reduce process delays.  Its main objectives are:

• To improve efficiency, consistency and effectiveness of government responses
• To reduce turnaround time and to meet the demands of the citizens charter
• To provide for effective resource management to improve the quality of administration
• To establish transparency and accountability
• To provide cost effective e-storage facility
• To make office environment friendly and eco-friendly

(ii)           e-Office product developed by NIC presently consists of the following:

• File Management System(eFile) - Automates the processing of files and receipts.
• Knowledge Management System (KMS) - Acts as a centralized repository of various documents such as acts, policies and guidelines.
• Leave Management System (eLeave) - Automates the leave application and approval process.
• Tour Management System (eTour) - Automates employee tour programmes. 
• Personnel Information System (PIS) - Manages employee records.
• Collaboration and Messaging Services (CAMS) & ndash for internal collaboration & messaging. 

            The ‘eOffice’  project was launched in 2011-12 in  phases with Phase-I started in 12 Ministries/Departments. Phase-II was started in 2012-13 and implemented in 5 Ministries/Departments. Phase-III was launched in 2013-14 and being implemented  in 7 Ministries/Departments.

             DAR&PG has prepared the Master e-Governance Training Plan (MeTP), which has been implemented in NeGP implementing Ministries/ Departments in 2013-14. Master e-Governance Training Plan (MeTP) intends to build the capacity of central government employees for implementing e-Governance projects. Major proficiency tracks covered are Business Process Re-engineering (BPR), Project Management, Change Management, etc. Training of     Group-1(SO/Asst and equiv), Group-2(US/DS/Director and equiv) and Group-3(JS and equiv) levels are  being conducted by National Institute of Electronics and Information Technology (NIELIT) and NIC.

             Digitization of records has been undertaken on priority and more than 700 files have been digitized in DARPG.

            DARPG has already implemented e-Office programme. The Department has switched over to e-Leave, e-GPF application, File Tracking System(FTS) and Knowledge Management System(KMS)

Trysts with e-governance

Life has become simpler for dogs and drivers, but could be even more so

Soon after we moved to Mumbai a few years ago, we were informed that our dog needed a licence from the municipal authorities. Not wanting the favourite member of the family deemed an illegal alien, we set out to obtain one. We entered the building with trepidation, born out of years of frustrating and mind-numbing encounters in government offices, expecting to spend much of the day moving from one counter and one queue to another. Not to mention, the dust, grime and stacks of musty files.

We needn't have worried. The customer-facing part of this particular office had clearly been re-done with e-governancein mind. A number of counters all with desktops, a large waiting area and, best of all, hardly any queues greeted us. I reached the counter and requested a dog licence. Instantaneously, a form appeared on the screen - name, father's name, dog's name, etc, etc. When the dog's breed was mentioned - dachshund - a dropdown menu appeared. Standard or miniature? Smooth, wiry or long-haired? I was impressed! Then came the first hurdle. Dog's age? Eight. Months? No, years. Hesitation and a worried look on the other side of the counter. She then asked me to wait and called a huddle with her colleagues. My heart sank.

It didn't take them very long, though. She came back and told me that the system did not allow her to issue a new licence for an eight-year-old dog. She could only renew an existing licence; a new one was issuable only to a dog less than one year old. The empire strikes back! I said that we'd just moved from New Delhi, so I couldn't have got him a Mumbai licence before this in any case. But, apparently, there was no provision for adult dogs re-locating to Mumbai.

I asked how much the licence fee was. She said it was Rs 100 a year. Rs 100?! I offered a solution. Let me pay the back dues - Rs 800 in all and issue me licences for his whole lifespan. She called another huddle and, re-assured by her colleagues, agreed to this proposal. In and out in about 20 minutes. Not bad at all! But then came the second twist. Go upstairs and get a signature, I was told. My old fears came rushing back.

I walked up the stairs and with every step, the old stereotype of government offices came more and more into view. I found the room, entered and was directed to a desk that was, predictably, unoccupied. No one else in the room volunteered any information, so I just waited - amidst the dust, grime and musty files. Fortunately, the person returned in a few minutes. He looked at me as though I was something he'd scraped off his shoe, but took the licence and signed it without a word. No perceptible value was added by this process, but it took just another 10 minutes and showed me a look that I've been trying to imitate since.

Back in New Delhi, I had to renew my driving licence, which had been issued in Mumbai. The last time I did this, it took six weeks. The Mumbai licence had to be sent back for a no-objection certificate, on receipt of which the New Delhi authority would issue me a fresh licence. Two trips to the office, each of which lasted a few hours, jumping through a number of hoops, the nightmare government office environment - I had the full experience. This time around, though, I was obviously on a different planet.

There was a new office within walking distance from my home. The public areas of the facility were spacious, clean and airy, full of promise for efficient transacting. The room that I was directed to was occupied and the person in charge was handling multiple transactions with great efficiency.

Then came the great surprise! He looked at my licence and, in response to my query about how long it would take, said that just the same as any local licence renewal. I asked about the whole six-week procedure and he said that that was no longer in place. There was a national register of licences now and all I had to do was to get a printout of my Mumbai registration. I got that in about five minutes from another counter and then just had to fill out the regular forms for a local renewal. In and out in 15 minutes, plus another visit, based on an appointment made over the phone - they called me - to get photographed and the licence issued. It reached me by mail a week later. Total time spent in the authority office on both visits: 30 minutes. I was ecstatic!

Even then, while going through the process, I felt it could be speeded up further. I had to stand in about four different queues to complete the process. About half the people ahead of me in all of them turned out to be in the wrong queue. Information about each counter's functions are provided, but sketchily and apparently beyond many people's comprehension. The need to visit multiple counters itself is part of a legacy process that detracts from efficiency.

Based on these and a few other transactions, I am hugely appreciative of how much better routine interface with government has become. But there is always room for improvement.

First, do away with needless steps in the process. E-governance systems make many steps and, consequently, people redundant, but we seem to feel the need to keep them occupied in some way. Hence, the traipse up the steps and the scathing look. It took me only 10 minutes, but the queue for his signature could have been a lot longer.

Second, create full-service counters. Enable all counters to carry out all the steps in the process. Specialised counters are a legacy of a manual process and can easily be done away with, saving time and easing confusion.

Third, provide more comprehensible information and better facilitation services. The much-maligned touts who have been barred now, among other things, were also effective information providers. Their disappearance has left a vacuum, both for customers and new employees! It needs to be filled by the system.

And, of course, accommodate the possibility of adult dogs re-locating!