National Development Council, History, Role, Members and Functions

National Development Council: The Prime Minister is in charge of the Rashtriya Vikas Parishad, popularly known as the National Development Council (NDC), which is India’s highest authority for decision-making and discussion of developmental-related matters.

The National Development Council was founded on August 6, 1952, with the main goal of coordinating and mobilizing national efforts and resources in support of the Plan. Its goals also include promoting consistent economic strategies in key areas and guaranteeing the swift and equal development of every region.

National Development Council (NDC)

Apex Decision-Making Body

NDC/Rashtriya Vikas Parishad: Topmost body for development decisions and discussions in India, chaired by the Prime Minister.

Establishment and Purpose

• Formed on 6 August 1952 to reinforce national efforts and resources for Five Year Plans by Planning Commission.
• Aims: Foster common economic policies, and ensure balanced national development.

Proposed Abolition

• Proposal to abolish NDC, yet no official resolution enacted.
• NITI Aayog’s Governing Council, resembling NDC, handles its functions.
• NDC remains inactive since NITI Aayog’s establishment.

Historical Context

• During Atal Bihari Vajpayee and Manmohan Singh’s tenures, the need for reform arose.
• Planning Commission’s obsolescence led to its abolition in 2014.
• NITI Aayog emerged via executive resolution, replacing the Planning Commission.

Role and History of the National Development Council (NDC)

In India’s planning system, the National Development Council is a key player and a symbol of the federal planning philosophy. Its responsibility is to ensure that a genuinely national perspective is incorporated into the planning process.

Composition of the National Development Council (NDC)

Objectives of the National Development Council (NDC)

• State Collaboration
  • Achieve state cooperation in Plan execution.
• Resource Mobilization
  • Strengthen and mobilize national efforts and resources for Plan support.
• Common Economic Policies
  • Foster common economic policies in crucial domains.
• Balanced Development
  • Ensure equitable and swift development across the nation.

Furthermore, the NDC serves as a forum wherein states convene to address their developmental challenges and concerns. In doing so, it fosters collaboration among states, ensuring their active involvement in the implementation of developmental strategies.

Functions of the National Development Council (NDC)

The National Development Council (NDC) undertakes a multifaceted role encompassing various aspects of developmental planning and execution. One of its pivotal functions is the formulation of guidelines that provide a structured framework for the preparation of the national Plan.

Furthermore, the NDC assumes the responsibility of rigorously evaluating the national Plan presented by the Planning Commission (now known as NITI Aayog), ensuring its alignment with the country’s developmental aspirations.

Resource assessment stands as another crucial facet of the NDC’s responsibilities. It conducts an in-depth evaluation of the resources requisite for the effective implementation of the Plan, and in turn, suggests augmentation measures to enhance these resources, thus fostering a robust foundation for the nation’s developmental journey.

Moreover, the NDC serves as a platform for profound deliberations on vital social and economic policy matters pertaining to the overall national development agenda. Through comprehensive discussions, the council endeavors to shape policies that reflect the nation’s aspirations and challenges, laying the groundwork for a holistic and sustainable growth trajectory.

Role of the National Development Council (NDC)

• Cabinet Submission
  • Draft Five-Year Plan from the Planning Commission (now NITI Aayog) is initially presented to the Union Cabinet.
• NDC Review
  • Post Cabinet approval, the Plan is submitted to the NDC for acceptance.
• Parliamentary Presentation
  • Upon NDC acceptance, the Plan is presented in Parliament for approval and becomes official after endorsement.

NDC’s Significance and Advisory Role

The National Development Council (NDC) holds a supreme position in the hierarchy of policy-making within India. Functioning just below the Parliament, it wields significant authority over decisions related to social and economic planning. As an advisory body to the Planning Commission, which has now transformed into NITI Aayog, the recommendations it provides are of great importance.

However, these recommendations do not carry legal binding, making them more of a guiding influence on policy matters directed at both the Central and state governments. To ensure its duties are effectively executed, the NDC is mandated to conduct a minimum of two biannual meetings, reflecting its commitment to consistent engagement in the nation’s development agenda.

Diverse Perspectives on NDC’s Efficacy

‘Super Cabinet’ View

• Seen as a powerful body due to its extensive composition.
• Recommendations hold weight due to national backing.
• Although advisory, its influence cannot be disregarded.

‘Rubber Stamp’ Perception

• Some view it as merely endorsing decisions already taken by the Union government.
• Linked to Congress Party’s dominance in the Centre and states.

Key Issues Addressed by Dr. Montek Singh Ahluwalia at NDC Meeting

• Early Formulation of State-Level Plans for the Twelfth Plan Period
• Dr. Ahluwalia emphasizes setting growth and social indicator targets, aligning state and national goals, and fostering a supportive economic environment for farmers and entrepreneurs.

Resource Mobilization and Allocation for Inclusive Growth

• Prioritizing rural and urban infrastructure, health, education, and skill development. Increase the Centre’s budgetary support, enhance tax revenues, cut subsidies, explore public-private partnerships, and implement GST.

Reinforcing Agriculture’s Significance

• Dr. Ahluwalia underscores elevating attention to agriculture, exempting horticultural products from APMC Act, and enhancing agricultural policies at state levels.

Efficient Energy Resource Management

• Addressing energy sector challenges, boosting energy supplies, enhancing energy efficiency, curbing distribution system losses, implementing tariff reforms, and mandating energy-efficient building standards.

Sustainable Water Resource Management

• Focusing on efficient water use in agriculture, treating sewage and industrial effluents, promoting water policies, establishing empowered water regulatory authorities, and encouraging rational water usage.

Enhancing Plan Scheme Implementation

• Stressing improved implementation of flagship programs, streamlining centrally sponsored schemes, enhancing governance, innovation, e-governance, transparency, and utilizing UID for efficiency and tracking disbursements

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