NITI Aayog is based on the 7 pillars of effective governance –
(1) Pro-People
(2) Pro-Activity
(3) Participation
(4) Empowering
(5) Inclusion of all
(6) Equality
(7) Transparency

(i) NITI Aayog is also bringing about a greater level of accountability.
(ii) It has established a development monitoring and evaluation office which collects data on the performance of various ministries.
(iii) Using such data, the Aayog makes a performance-based ranking of states to foster a spirit of competitive federalism.

(i) If People spend larger proportion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer, according to Thomas Piketty.
(ii) Mass participation in development programs is a pre-condition for accelerating the development process.
(iii) Whenever the defective social organization allows some groups to appropriate the benefits of growth.
(iv) Majority of the poor people do not participate in the process of development. This is called crony capitalism.

The UDCs are characterized by a predominance of primary sector i.e. agriculture, low per capita income, widespread poverty, wide inequality in the distribution of income and wealth, over population, low rate of capital formation, high rate of unemployment, technological backwardness, dualism, etc.

(i) During 1970s, economic development was redefined in terms of reduction of poverty, ‘inequality’ and unemployment within the context of a growing economy.
(ii) In this phase, ‘Redistribution with Growth’ became the popular slogan.

(i) National Institution for Transforming India was formed on January 1, 2015 through a Union Cabinet resolution replacing the Planning Commission.
(ii) Prime Minister is the Chairperson and Union Ministers Ex-officio members.
(iii) Vice-Chairman of NITI Aayog is the functional head.

Basic and collective needs of the people - health, education, sanitation, water, food, housing facilities.

Economic Planning in the widest sense is the deliberate direction by persons-in charge of large resources of economic activity towards chosen ends. - Dalton

Gross National Product is the total total market value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (abroad) minus income of non residents located in that country.

1. Gross national product
2. GNP per capita
3. Welfare
4. Social indicators.

Development must, therefore, be conceived as a multidimensional process involving major changes in social structures, popular attitudes and national institutions and acceleration of growth, the reduction of inequality and the eradication of absolute poverty.
Michael P. Todaro