Transforming Institutions for Inclusive and Sustainable Governance: An Empirical Analysis of NITI Aayog’s Role in India

Public institutions play a crucial role in promoting inclusive and sustainable development at the national level. They serve the public interest, ensure equitable access to resources, and execute policies for long-term growth. India has established institutions like the Planning Commission to design, adopt, and implement policies addressing various sectors, including education, health, the environment, and energy. In 2015, India replaced the Planning Commission with Niti Aayog to strengthen its vision and mission for inclusive and sustainable development, adopting a more transparent, accountable, participative, and collaborative approach. Niti Aayog, a global institution, has the potential to coordinate development planning, promote public–private partnerships, and facilitate knowledge sharing for inclusive and sustainable development. However, it faces challenges in trust and credibility among stakeholders due to India’s quasi-federal state and bureaucratic resistance. The chapter emphasizes the critical role of institutions like Niti Aayog in guiding India toward an economically prosperous, socially equitable, and environmentally sustainable future. Recommendations include strengthening the framework, emphasizing stakeholder engagement, technology integration, and capacity building for decentralized decision-making.