360° UPSC Mains Analysis

The relationship between the Union and States is governed by fiscal federalism under Article 280 (Finance Commission) and cooperative federalism facilitated by NITI Aayog. While the Finance Commission is a constitutional body recommending tax devolution, NITI Aayog is an executive body providing strategic and technical advice without financial allocation powers.

Strategic policy inputs from NITI Aayog on high-tech manufacturing and biotechnology are expected to enhance India's export competitiveness in pharmaceuticals and advanced technologies. By promoting domestic R&D and reducing import reliance on active pharmaceutical ingredients (APIs) and medical devices, these policies aim to improve the balance of trade. This aligns with the goal of integrating India into global value chains while safeguarding economic sovereignty.

The reconstitution of NITI Aayog (established via Cabinet Resolution on January 1, 2015) with experts in public finance and scientific research is designed to strengthen evidence-based policymaking and cooperative federalism. While NITI Aayog is an advisory body without direct executive powers to alter the fiscal deficit (budgeted at 4.4% of GDP for FY26) or CPI inflation, its strategic inputs on capital expenditure and state-level reforms support long-term GDP growth. Its advisory role helps align state development plans with national macroeconomic targets, such as the 'Viksit Bharat @ 2047' vision.

The inclusion of scientific expertise is expected to drive policy focus toward the tertiary sector, specifically healthcare, biotechnology, and pharmaceutical R&D, aligning with the BioE3 Policy 2024. This aims to boost domestic manufacturing of active pharmaceutical ingredients (APIs) and reduce import dependency. Additionally, strategic inputs on agricultural reforms, such as the Model Agricultural Land Leasing Act, 2016, will continue to influence the primary sector's productivity.

Enhanced focus on scientific research and public health policy is projected to stimulate high-skill employment in the biotechnology and healthcare sectors. Strategic policy formulation by the think tank on human capital development, aligned with the 'Human Capital for Viksit Bharat' agenda, aims to improve vocational training and wage standards. Over the medium term, these structural reforms help streamline supply chains and stabilize consumer prices by addressing structural bottlenecks in food and medical distribution.

The concept of structured economic planning in India dates back to the pre-independence era, driven by the need to overcome colonial economic stagnation. In 1938, Congress President Subhas Chandra Bose established the National Planning Committee (NPC) under the chairmanship of Jawaharlal Nehru to draft a blueprint for independent India's development. This was followed by the 'Bombay Plan' in 1944, authored by eight leading Indian industrialists, which advocated for state intervention and a public sector to build basic infrastructure.

Post-independence, the Government of India established the Planning Commission on March 15, 1950, via a Cabinet Resolution as an extra-constitutional, non-statutory body to formulate Five-Year Plans. Over the decades, the centralized, top-down planning model faced criticism for ignoring regional diversity and federal dynamics. Consequently, on January 1, 2015, the Planning Commission was replaced by the National Institution for Transforming India (NITI Aayog) via a Cabinet Resolution, shifting the paradigm to cooperative federalism, a bottom-up approach, and evidence-based policymaking led by domain experts.

The appointment of a leading economist (Ashok Lahiri) and a prominent scientist (Gobardhan Das) to NITI Aayog mirrors the historical composition of the early Planning Commission, which integrated scientific and economic expertise. For instance, the inclusion of statistician P.C. Mahalanobis, who drafted the Second Five-Year Plan (1956–1961), and the advice of physicist Meghnad Saha in the 1930s, highlighted the long-standing Indian tradition of leveraging academic and scientific pioneers for nation-building.

The integration of scientific research and economic planning was a core tenet of the Indian freedom struggle, championed by leaders like Subhas Chandra Bose and Jawaharlal Nehru, who believed that political freedom was incomplete without economic sovereignty and scientific self-reliance.

The inclusion of a scientist specializing in tuberculosis and infectious diseases (Prof. Das) and an expert in public finance (Dr. Lahiri) directly impacts public health delivery and fiscal devolution to states. This ensures that national policies are grounded in scientific evidence and equitable resource distribution, directly improving healthcare access and livelihood security for the poorest.

Article 38 of the Constitution (DPSP) directs the State to secure a social order for the promotion of welfare of the people and minimize inequalities in income, status, and opportunity. Article 46 mandates the promotion of educational and economic interests of Scheduled Castes, Scheduled Tribes, and other weaker sections. Additionally, Article 21 (Right to Life) encompasses the right to health and a dignified livelihood, as established in Olga Tellis v. Bombay Municipal Corporation (1985).

As an administrator, balancing political neutrality with technocratic appointments (since Dr. Ashok Lahiri is a BJP MLA) poses a challenge to maintaining institutional credibility. Additionally, reconciling merit-based scientific/economic appointments with the ethical imperative of ensuring representation for historically marginalized groups (like Dalit refugees) requires balancing efficiency with social equity.

The appointment of Prof. Gobardhan Das, a Dalit refugee who overcame extreme poverty and communal violence, highlights the potential for inclusive policy formulation at the highest level. His lived experience can directly influence policies targeting Scheduled Castes (SCs), refugees, and economically weaker sections (EWS) to ensure grassroots-level impact. This representation fosters trust and social mobility among historically marginalized and vulnerable populations.