National Development Council, Establishment, Objectives, Functions

National Development Council

The National Development Council (NDC), also called Rashtriya Vikas Parishad, is the apex body for decision-making and deliberation on matters related to development in India. It is chaired by the Prime Minister of India, with Chief Ministers of all states, administrators of Union Territories, and members of the Planning Commission (now replaced by NITI Aayog) as its participants.

Established on 6 August 1952, the NDC was created to strengthen and mobilize national efforts and resources in support of the Five-Year Plans. Its primary aim was to ensure balanced and rapid development across all regions of the country by promoting coordinated economic policies and resolving inter-state or center-state developmental issues.

National Development Council Establishment

The National Development Council (NDC) occupies an important place in India’s planning system. It embodies a federal approach to planning, bringing together the Union government, state governments, and other stakeholders to shape a comprehensive national perspective. Over the years, the role and influence of the NDC have fluctuated depending on the political climate, the priorities of the central government, and the assertiveness of the states.

Despite these ups and downs, the NDC has consistently remained a part of India’s apex policy framework for over six decades. The idea of such a coordinating body was first suggested by the Planning Advisory Board (1946) under the chairmanship of K.C. Neogi. Although the proposal could not be implemented before independence, its importance was well recognized.

The Draft First Five Year Plan prepared by the Planning Commission highlighted the need for a forum like the NDC. Given India’s vast size and the federal structure granting autonomy to the states, it was considered essential to create a body where the Prime Minister and Chief Ministers could periodically review, evaluate, and coordinate planning efforts.

Based on this rationale, the National Development Council was formally established in August 1952 through a resolution of the Cabinet Secretariat of the Government of India. Since then, it has served as a platform for fostering cooperation between the Centre and the states in matters of national development.

National Development Council Objectives

As an advisory body to the Planning Commission, the NDC was set up with the following objectives:

  • Mobilization of resources - To channelize and consolidate the nation’s collective effort and resources for the successful implementation of development plans.
  • Policy coordination - To encourage the adoption of uniform economic policies across crucial sectors, ensuring harmony between the Centre and the states.
  • Balanced development - To promote equitable and rapid growth across all regions of the country, reducing inter-state and regional disparities.
  • Platform for states - To provide states with a forum to voice their developmental needs and concerns and to seek support for their priorities.
  • Cooperation and collaboration - To strengthen Centre–state and inter-state cooperation in planning and execution of national development programmes.

National Development Council Functions

  • Guideline Prescription - Sets the broad guidelines for the formulation of the National Plan and assesses the resources needed for its execution.
  • Plan Consideration - Reviews the draft National Plan, taking into account key social and economic policy issues that influence development.
  • Plan Review & Recommendation - Periodically evaluates the progress of the Plan, recommending measures to meet targets, improve administration, ensure public participation, and promote balanced regional growth.
  • Advisory Role - Advises both the Central and State Governments, functioning as a high-level consultative body on development policy.
  • Problem Solving - Discusses major challenges beyond the Five Year Plans, including issues like food security, land reforms, and institutional measures such as the creation of the State Trading Corporation.
  • Coordination & Exchange - Serves as a bridge between the Union Government, Planning Commission, and State Governments, enabling policy coordination and free exchange of views.
  • Responsibility Sharing - Provides a platform for shared responsibility between the Centre and States in the planning process.
  • Composition - Chaired by the Prime Minister, it includes Union Cabinet Ministers, Chief Ministers of all States, Chief Ministers/Administrators of Union Territories, and members of the Planning Commission.
  • Consensus Decision-Making - Decisions are made through consensus; while no formal resolutions are passed, records of discussions are maintained, and even dissenting opinions are taken into account.

National Development Council Compositions

The National Development Council is a broad-based body that brings together representatives from both the Union and State governments. Its composition ensures inclusivity and cooperative federalism in the process of national planning. The members include:

  • Prime Minister of India: Serves as the Chairperson of the NDC.
  • Union Cabinet Ministers: All Cabinet Ministers are ex-officio members.
  • Chief Ministers of States: Every State is represented through its Chief Minister or a nominated substitute.
  • Representatives of Union Territories: Heads or nominated representatives of Union Territories are also members.
  • Members of NITI Aayog (earlier Planning Commission): These members contribute to policy formulation and planning.

The Secretary of the Planning Commission functions as the Secretary of the NDC, while the Planning Commission/NITI Aayog provides administrative and technical support.

To improve its efficiency, a Standing Committee was created in November 1954. This smaller body included nine Chief Ministers and select Union Ministers, allowing more focused deliberations.

Additionally, the NDC could invite experts such as the Governor of the Reserve Bank of India to its sessions. It also had the power to constitute committees for in-depth examination of specific issues, ensuring a more effective planning process.

National Development Council New Role

With the establishment of NITI Aayog in 2015, the Planning Commission was abolished, and the National Development Council (NDC) was restructured into the Governing Council of NITI Aayog. In this new form, it continues to act as a crucial platform for cooperative federalism in India.

The Governing Council brings together the Prime Minister, Chief Ministers of all States, heads of Union Territories, and other senior officials to deliberate on issues of national importance.

  • Identifying Policy Priorities: Setting long-term goals and strategies for national development.
  • Review and Monitoring: Assessing the progress of ongoing schemes and flagship programs.
  • Guidance and Recommendations: Advising on major policy issues and development challenges.
  • Implementation Oversight: Ensuring that central and state governments work in sync for effective execution of initiatives.

This transformation has strengthened the federal structure, promoting closer collaboration between the Centre and States. It has also introduced a more inclusive and participatory approach to planning, where states have a direct voice in shaping development strategies.

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National Development Council FAQs

Q1: Who established the National Development Council?

Ans: The National Development Council (NDC) was established in 1952 by a Government of India resolution to strengthen planning and ensure cooperation between Centre and States.

Q2: Is NDC merged with Niti Aayog?

Ans: Yes, the NDC was dissolved in 2015 and its functions were transferred to NITI Aayog, which replaced the Planning Commission as India’s policy think tank.

Q3: What do you mean by National Development Council?

Ans: The NDC was a policy-making body chaired by the Prime Minister, including Union Ministers, Chief Ministers, and Governors, to approve and review Five-Year Plans.

Q4: Is NDC a constitutional body?

Ans: No, the NDC was neither a constitutional nor statutory body. It was an executive body created by a Government of India resolution in 1952.

Q5: Where is the headquarter of NDC?

Ans: The headquarters of the NDC was located in New Delhi, functioning under the Planning Commission until it was dissolved in 2015 and replaced by NITI Aayog.

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