Difference between NITI Aayog and Inter-State Council

Q: Is NITI Aayog a constitutional body?

No. NITI Aayog is an executive body created by the Government of India in 2015. It is not mentioned in the Constitution.

Q: Is the Inter-State Council constitutionally mandated?

Yes. It is a constitutional body established under Article 263 of the Indian Constitution.

Q: What is the main role of the Inter-State Council?

To discuss and recommend ways to improve Centre, State relations and resolve inter-state disputes.

Q: Does NITI Aayog allocate funds like the Planning Commission used to?

No. NITI Aayog does not have powers to allocate financial resources.

Q: Who chairs both these institutions?

The Prime Minister of India is the chairperson of both NITI Aayog and the Inter-State Council.

Table of Contents☰

India has a federal system requiring coordination between the Centre and States majorly in the matters of policy, finance and governance which are facilitated by NITI Aayog and Inter-State Council. Both of the institutes aim to promote federalism, yet have different structure, purpose and legal authority. By replacing the Planning Commission, NITI Aayog (National Institution for Transforming India) was established by the Government of India on January 1, 2015, whereas the Inter-State Council was constituted in 1990 under Article 263 of the Constitution, following the recommendations of the Sarkaria Commission.

NITI Aayog

The National Institution for Transforming India (NITI Aayog) is the policy think tank of the Government of India. It replaced the Planning Commission in 2015 and was created to promote cooperative federalism through structured support and partnership with states. NITI Aayog is responsible for designing strategic and long term policy along with monitoring the implementation and effectiveness.

Key Features

Established: January 1, 2015
NITI Aayog is an executive body (not constitutional or statutory)
Chairperson of NITI Aayog is Prime Minister of India
Vice Chairperson is Appointed by the PM
The Governing Council comprises all Chief Ministers, Lt. Governors of UTs
Function includes Policy planning, strategic advice, monitoring schemes, fostering innovation.

Inter-State Council

The Inter-State Council (ISC) is a constitutional body established under Article 263 of the Indian Constitution. It is meant to facilitate coordination between the Centre and States, especially on administrative and legislative matters. Unlike NITI Aayog, the Inter-State Council is more focused on political and administrative dialogue rather than technical planning.

Key Features

Discussed in Article 263 of Indian Constitution
Established in 1990 (on recommendation of Sarkaria Commission)
Chairperson of Inter-State Council is Prime Minister of India
Members includes Union Ministers, Chief Ministers of all states, Administrators of UTs
Function includes discussing inter-state disputes, recommending better Centre–State relations, ensuring smooth governance.

Difference between NITI Aayog and Inter-State Council

Below in the table we have shared the Difference between NITI Aayog and Inter-State Council:

Difference between NITI Aayog and Inter-State Council
Feature	NITI Aayog	Inter-State Council
Establishment Year	2015	1990
Nature	Executive (non-constitutional, non-statutory)	Constitutional (under Article 263)
Legal Status	Created via Union Cabinet resolution	Constitutionally mandated
Chairperson	Prime Minister	Prime Minister
Key Members	CMs, LGs of UTs, Vice Chairperson, Experts	CMs, Union Ministers, Administrators of UTs
Main Function	Policy planning, innovation, development advice	Centre-State coordination and cooperation
Focus Area	Developmental planning and economic reforms	Political dialogue and dispute resolution
Funding Role	No financial allocation powers	No funding role
Decision-Making	Advisory and consultative	Recommendatory

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