India’s Transformative Vision: Policy, Progress, and Future Pathways

NITI Aayog: India’s Policy on Innovation, Federalism, and Sustainable Development

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A comprehensive overview of NITI Aayog’s work in fostering competitive federalism, leading the Atal Innovation Mission, steering India’s SDG & climate goals, and strengthening manufacturing, healthcare, and social security systems.

1. What is the overarching mission and framework of NITI Aayog?

NITI Aayog, established on January 1, 2015, serves as India’s premier policy think tank, offering strategic and technical advice to the Central, State, and Union Territory governments. Its core mandate revolves around four key areas: promoting knowledge and innovation, fostering cooperative and competitive federalism through “NITI for States,” driving transformational change, and monitoring and evaluation. The organization aims to evolve a shared vision of national development, involving states in policy-making, formulating credible plans from the village level upwards, and incorporating national security interests into economic strategies. It also focuses on uplifting vulnerable sections of society, designing long-term policy frameworks, encouraging partnerships with various stakeholders, and creating a robust knowledge and entrepreneurial support system.

2. How does NITI Aayog promote cooperative and competitive federalism among Indian states?

NITI Aayog promotes cooperative federalism through initiatives like the “NITI for States” umbrella program, which provides structured support, capacity building, and knowledge sharing to states and UTs. Key components include the Aspirational Districts Programme (ADP) and Aspirational Blocks Programme (ABP), which use a data-driven approach to monitor and improve socio-economic indicators in underdeveloped regions. These programs foster healthy competition among districts and blocks through regular rankings. Additionally, NITI Aayog encourages states to establish their own State Institutions for Transformation (SITs) and Lead Knowledge Institutions (LKIs) to align state-specific development strategies with national priorities. The “NITI for States Platform” and “Viksit Bharat Strategy Room” further facilitate cross-learning and evidence-based decision-making by sharing best practices, policies, and data sets across all states and UTs. Annual conferences for Chief Secretaries and Governing Council meetings, chaired by the Prime Minister, serve as platforms for discussing inter-sectoral and federal issues and for sharing best practices.

3. What initiatives is NITI Aayog undertaking to drive innovation and entrepreneurship in India?

NITI Aayog spearheads innovation and entrepreneurship through its flagship Atal Innovation Mission (AIM). AIM 2.0 has an enhanced scope and budget, aiming to expand, strengthen, and deepen India’s innovation ecosystem. Key programs include:

• Atal Tinkering Labs (ATLs): Established in schools to foster curiosity and innovation in young minds through hands-on learning with modern technologies like robotics and 3D printing.
• Atal Incubation Centres (AICs): World-class business incubators at universities, institutions, and corporations supporting scalable and sustainable startups across diverse sectors.
• Atal Community Innovation Centers (ACICs): Focus on unserved/underserved areas to provide equitable opportunities and pre-incubation support for grassroots innovators.
• Atal New India Challenge (ANIC): Supports technology-based innovations that address sectoral challenges of national and societal importance, including international collaborations like the India-Australia Innovation and Technology Programme (RISE Accelerator).
• Language Inclusive Programme of Innovation (LIPI): Aims to build innovation ecosystems in India’s 22 scheduled languages, establishing Vernacular Innovation Centres.
• NITI Frontier Tech Hub: A think tank acting as a catalyst for India’s transformation into a Frontier Tech Nation, focusing on advanced technologies like AI, bioengineering, and quantum computing.

4. How is India leveraging technology for governance and economic development, particularly in its “Digital India” journey?

India is extensively leveraging technology for governance and economic development, as highlighted by its “Digital India” journey. The digital economy is rapidly expanding, projected to contribute nearly one-fifth of the country’s overall economy by 2030. Key focus areas include supporting digital entrepreneurship, technology for good governance, fostering innovation, digital inclusion, and capacity building.

Specific initiatives include:

• Digital Infrastructure: Expansion of high-speed internet, universal digital identity (Aadhaar), mobile banking, and common service centers.
• Governance and Services on Demand: Seamlessly integrated services across departments, real-time availability on mobile platforms, cloud accessibility for entitlements, and electronic financial transactions.
• Digital Empowerment: Universal digital literacy, accessible digital resources in Indian languages, and collaborative platforms for participative governance.
• IndiaAI Mission: A comprehensive mission with pillars like the IndiaAI Innovation Centre, Application Development Initiative, AIKosh Platform (for datasets and tools), and IndiaAI Compute Capacity (exceeding 34,000 GPUs).
• Semicon India Mission: Supports local chip and display manufacturing with significant government outlay and incentives, approving six semiconductor projects worth ₹1.55 lakh crore by May 2025.
• BHASHINI: An AI-powered language platform supporting 35+ languages and over 1,600 AI models, integrated into various government services to break language barriers and enhance digital accessibility.
• UMANG app: Offers 2,300 services in 23 Indian languages, facilitating electronic and cashless transactions.
• Aadhaar: Over 142 crore Aadhaar IDs generated by April 2025, simplifying e-KYC processes and bringing transparency.
• Direct Benefits Transfer (DBT): Utilizing Aadhaar to deliver welfare payments, saving the government over ₹3.48 lakh crore between 2015 and March 2023.
• Two-Factor Authentication (2FA): Becoming essential for securing digital accounts, with India recording 22.7 lakh cybercrime cases in 2024, emphasizing the need for robust security.

These initiatives aim to transform India into a global leader in innovation and technology, ensuring inclusive and sustainable growth.

5. What are India’s strategies for achieving sustainable development and addressing climate change?

India is actively pursuing sustainable development and addressing climate change through various strategies, with NITI Aayog playing a nodal role in coordinating and supervising SDG efforts.

• SDG Localisation: NITI Aayog spearheads SDG localisation by working closely with States and UTs, integrating SDGs into national and subnational development plans through tools like the SDG India Index and National Multidimensional Poverty Index. India’s SDG composite score improved to 71 in 2023-24, with significant advancements in Goals 1 (No Poverty), 8 (Decent Work and Economic Growth), and 13 (Climate Action).
• Green Transition, Energy, Climate & Environment (GTC) Division: This division develops strategies and policies for sustainable forest administration, wildlife protection, environmental soundness, climate change adaptation, and promoting a circular economy.
• Net Zero Commitment: India has committed to achieving net-zero greenhouse gas emissions by 2070. NITI Aayog has formed six working groups to examine Net Zero trajectories, utilizing tools like IESS 2047, focusing on macroeconomic implications, sectoral shifts, climate finance, R&D, and social impacts.
• Clean Energy Deployment: Efforts include promoting large-scale clean energy sources like solar, wind, biomass, nuclear, hydro, electric vehicles, hydrogen, and Carbon Capture, Utilisation, and Storage (CCUS) technologies. The “Accelerating Sustainable State Energy Transition (ASSET)” initiative supports states in their energy transition plans.
• Energy Modelling and Data Management: The India Energy Security Scenarios 2047 (IESS 2047) tool and the India Climate Energy Dashboard (ICED) provide data-driven insights to develop diverse energy transition scenarios and track climate action progress.
• Circular Economy Initiatives: Five working groups focus on End-of-Life Vehicles, Tyres, E-Waste, Scrap Metal, and Lithium-Ion Batteries to promote resource efficiency, minimise waste, and encourage recycling.
• Climate-Resilient Cities: Strategies include smart zoning (GIS-based master plans), green infrastructure (wetlands, green corridors), resilient transport, and leveraging climate finance through Urban Climate Bonds and PPP models.
• Water Conservation: The “Jal Utsav 2024” campaign promotes water conservation, management, and sustainability, while initiatives like “Rejuvenation of Water Bodies” and water budgeting exercises aim to enhance water security at the grassroots level.

6. What reforms and challenges are present in India’s legal landscape?

India’s legal landscape is undergoing significant transformation, driven by technological advancements, evolving regulatory frameworks, and increased global integration.

Reforms and Advancements:

• Technology-Driven Arbitration & Litigation: The Indian legal services market is projected to grow substantially, with a notable shift towards Alternative Dispute Resolution (ADR) for speedier settlements. AI tools are increasingly being deployed for predictive analysis, case management, and e-discovery. Online Dispute Resolution (ODR) is expected to become standard for smaller claims, reducing court backlogs.
• Digital Protection: New reforms in digital protection and data privacy laws have emerged, aiming to create a more accountable digital ecosystem and enhance data safety.
• Competition Law Reforms: The legal framework is evolving to address modern market dynamics and ensure fair competition.
• ESG Compliance: Environmental, Social, and Governance (ESG) compliance has gained prominence, with increased scrutiny on businesses’ environmental impact and a likely rise in climate-related litigation.
• Insolvency and Bankruptcy Code (IBC): Landmark judgments and reforms under the IBC in 2024 have bolstered creditor confidence and provided clarity on resolution timelines.

Challenges:

• AI and Job Displacement: The deployment of AI in legal practices raises concerns about potential job losses and the “outsourcing” of cognitive tasks to large language models (LLMs).
• Ownership of AI-Generated Content: The intersection of technology and law presents novel questions regarding the ownership of AI-generated content and the liability of AI tools.
• Judicial Vacancies: Addressing judicial vacancies remains a critical issue to reduce case pendency and ensure timely justice delivery.
• Cyber Threat Landscape: The evolving cyber threat landscape necessitates robust cybersecurity frameworks to safeguard digital assets, as evidenced by the 22.7 lakh cybercrime cases recorded in India in 2024.
• Access to Legal Services: The increasing complexity and rising costs of legal services can hinder access to justice, particularly for smaller businesses and vulnerable citizens.
• Personality Rights: Indian law lacks explicit statutes for personality rights, relying on existing constitutional and intellectual property laws, which can lead to complexities in protecting individuals’ attributes from unauthorized use.

7. What steps is India taking to enhance its manufacturing capabilities and integrate into global value chains?

India is actively working to transform into a global manufacturing hub and enhance its participation in Global Value Chains (GVCs), which account for over two-thirds of international trade.

• Strategic Initiatives: NITI Aayog’s Industry & Foreign Investment Division is analyzing challenges and developing strategies to boost India’s GVC presence, focusing on priority sectors with high growth potential.
• Electronics Sector: A vision to achieve US$500 billion in electronics production and US$200-225 billion in exports by 2030, creating 5.5 to 6 million jobs. Strategies include fiscal and non-fiscal interventions, technology transfer, regulatory reforms, ease of doing business, infrastructure development, skill enhancement, and R&D.
• Automotive Sector: Recognizing its 4th largest global market position, NITI Aayog is working on increasing India’s footprint in the global automotive ecosystem, focusing on EVs, advanced driving technologies (ADAS), and strengthening backward and forward linkages in the industry.
• Chemicals Sector: Initiatives are underway to enhance India’s competitiveness in the chemicals sector, which contributes 7% to India’s GDP, by boosting manufacturing capabilities, driving innovation, and promoting sustainability.
• Site Adjacent Factory Employee (S.A.F.E.) Accommodation: To support rapid industrialization and improve worker productivity, NITI Aayog has proposed facilitating rental housing with dormitory-type accommodation for industrial workers through Public-Private Partnerships (PPP) with Viability Gap Funding (VGF) support. This addresses regulatory and economic bottlenecks and aims to classify such accommodation as a distinct category for potential tax incentives and environmental clearances.
• Research Studies: Ongoing studies aim to identify potential sectors to transform India into a global manufacturing hub, including textiles, leather, gems & jewelry, solar PV, capital goods, and food processing, by understanding bottlenecks and recommending policy interventions.
• MSME Empowerment: Initiatives focus on converging schemes for Micro, Small and Medium Enterprises (MSMEs), providing incentives for medium enterprises, and enhancing MSME competitiveness to boost exports and entrepreneurial activity.

These efforts aim to leverage India’s demographics, skilled workforce, and economic growth to attract investments and become a preferred global manufacturing destination.

8. What is India doing to strengthen its social security, healthcare, and education systems?

India is undertaking significant initiatives to strengthen its social security, healthcare, and education systems, with a focus on inclusive growth and addressing the needs of vulnerable populations.

Social Security and Welfare:

• Care Economy: Workshops and initiatives focus on demand and supply of care services, addressing challenges for India’s aging population, and building capacity for caregivers.
• Senior Citizen Care Reforms: NITI Aayog has a position paper and a committee to analyze challenges faced by the aging population (projected to be 192 million by 2030), develop a strategic framework for holistic care, and identify gaps in existing policies and programs.
• Post-Retirement Security: A study is underway to evaluate socio-economic aspects related to post-retirement security and propose a framework for elderly persons in India.
• Social Security for Gig Workers: NITI Aayog provided suggestions for social security initiatives for gig and platform workers, leading to the establishment of a committee by the Ministry of Labour and Employment to draft schemes.
• PM-JANMAN Model Villages: A special initiative to develop six model villages in Aspirational Blocks for Particularly Vulnerable Tribal Groups (PVTGs), implementing interventions for financial inclusion, assistive devices, and livelihood opportunities.
• High-Capacity Tribal Hostels: Initiative for establishing two model hostels in Aspirational Districts to cater to 500-1000 Scheduled Tribe (ST) students.
• Mentorship Programme for Vulnerable Students: Framework being developed to support students from SC, ST, and OBC communities in higher education, addressing dropout rates, academic preparedness, and socio-economic disparities.

Healthcare:

• Ayushman Bharat School Health Mission: A comprehensive framework to ensure optimum health, nutrition, and healthy lifestyles for 25.5 crore school-going children and adolescents, focusing on health education, yoga, mental health, and health check-ups. A pilot project was launched in Tripura.
• Future Pandemic Preparedness: An Expert Group report provides a framework for action and a 100-day response plan for future public health emergencies, incorporating lessons from COVID-19.
• Brain Health Care: A National Task Force on Brain Health is developing strategies for surveillance, prevention, acute care, and rehabilitation of neurological disorders, aiming to improve accessibility and quality of services at all healthcare levels.
• Antimicrobial Resistance (NAP-AMR 2.0): NITI Aayog coordinated with twenty ministries to draft a national action plan (2024-2028) to manage the burden of antimicrobial resistance in India.
• Drugs for Rare Diseases: Efforts to fast-track indigenous manufacturing of affordable drugs for selected rare diseases, with four drugs already available at significantly reduced costs.
• Sickle Cell Anaemia: Utilizing CRISPR-mediated genome editing technology and whole-blood PCR diagnostics for treatment and diagnosis, with actions underway for GMP research labs and clinical trials.
• AIIMS, New Delhi Reforms: A committee is working to transform AIIMS into a premier institution for medical research and practice, focusing on streamlining patient inflow, KPIs, governance, and financial sustainability.
• Emergency and Trauma Care: Development of a comprehensive framework for emergency and trauma care, with pilot programs for cashless treatment to road accident victims.
• Universal Health Coverage (UHC): Examining international experiences to propose multi-faceted approaches for improving healthcare delivery, accessibility, quality, and affordability.

Education:

• National Education Policy 2020: Guiding policy research studies to transform India into a global hub for higher education, focusing on quality education, internationalization, financing, and incubator ecosystems.
• Project SATH-Education: Successfully implemented in Jharkhand, Madhya Pradesh, Odisha, and currently in Arunachal Pradesh, focusing on academic reforms, capacity development, governance, and community engagement for school education transformation.
• Youth Affairs and Sports: Active participation in various meetings for schemes like Khelo India and Rashtriya Yuva Sashaktikaran Karyakram (RYSK).