Context:

According to NITI Aayog, the State Institute for Transformation (SIT) Aayogs are needed to support states to ensure the development goals are achieved.

More on News:

• NITI Aayog has received requests from states to set up SIT, a NITI-like body to prepare their development strategies.
• The state government of Rajasthan, Odisha, Chhattisgarh, Andhra Pradesh, etc. has recently requested NITI Aayog.

About SIT Aayog:

• Aims:  Increasing the Gross State Domestic Product (GSDP) and removing regional imbalances in development indicators.
• Objectives: Attaining sustainable development goals (SDGs) by 2030 and India@2047 goals.
• Partner Institutions:  Many reputed institutions of the State government and non-state government would be partner institutions.
  • For example, SIT Karnataka has partner institutions like Karnataka Innovative Authority, Fiscal Policy Institute, etc.

Role of NITI Aayog in Setting up SIT’s:

• State Support Mission: It has started the work under this mission to assist five state governments viz. Uttar Pradesh, Karnataka, Madhya Pradesh, Assam and Maharashtra are preparing their development strategies.
  • The Maharashtra government recently formed the Maharashtra Institution for Transformation (MITRA).
• One Size Does Not Fit All: States are innovators and are the size of individual countries and each state will have its own development journey. 
• Cooperative Federalism: NITI Aayog with its mandate to actualise cooperative federalism has decided to play a lead role in bringing the states to work towards this National Development Agenda.
• No Role in Implementation: NITI Aayog is clear that its role remains in the realm of helping make policies and programs, not in their implementation. 

State Planning Commission vs SIT Aayog:

The discontinuation of five year plans, plaguing inefficiency and outdated working structure has led to initiation of scrutiny against the role of state planning commission, which has led to rise in demand for the SIT’s by various states in India. 

Need for SIT Aayog:

• Holistic Policy Making and Evaluation: Blueprint will be made on how SITs will guide states in policy formulation, take up monitoring and evaluation of government policies, and suggest better technology or models for delivery of schemes.
• Challenges Faced by the NITI Aayog: While it promotes cooperative federalism in its policy making, it lacks in meeting diverse state needs, ground knowledge in local context, and there is limited customisation of policies according to local needs. 
• Increase Efficiency: Managerial efficiency is extremely important for development outcomes and the core idea is that states can do a lot with existing resources.
• Ensuring National Development: Central government cannot ensure the development and sustainability of sectors under state government. For instance, health, education, and infrastructure development are sectors for which state governments are responsible.
• Ease of Doing Business: Providing assistance to state governments to reimagine the role of their planning departments. The SITs can play a crucial role in bringing various stakeholders, private sector, and experts in addressing important state specific issues.
• Training and Capacity Building: The SIT can provide training and capacity building programs for planning and implementation professionals at all levels of government. This training can focus on the latest tools and techniques, as well as on how to overcome common challenges.

Challenges Associated with SITs:

• Reliance of Individual States: Everything depends on how seriously the states take SITs, if they don’t take SITs seriously then their creation might not help the situation.
• Resource Constraints: Setting up and maintaining a SITA requires financial resources for infrastructure, staffing, training programs, and research activities. Many states face budgetary constraints, which can limit the scope and impact of these institutions.
• Data Availability and Quality: Ensuring access to accurate, timely, and relevant data can be challenging, particularly at the state level where data collection and management systems may be less developed.

Way Forward:

• Boosting Cooperative Federalism: Empowering the role of states and local governments and making them partner in national development. Cooperation with other states and local bodies can further help in sharing resources and best practices.
• Competitive Federalism: SITs are focused on innovation which can help the local economy by making it more competitive both domestically and internationally.
• Resource Mobilization: Ensuring sustainability in functioning of SITs by annual resource allocation. 
  • For example, Karnataka Government has allocated a sum of Rs 150 crore annually to SITK.
• Sustainable Development: Innovation can lead to more sustainable practices and solutions in areas like renewable energy, waste management, and resource conservation. 
  • For example, one of the primary functions of Assam’s SITA is the focus on SDGs.
• Stakeholder Engagement: Ensuring that the voice and needs of various stakeholders, including marginalized communities, are taken into account in the transformation process can be challenging. SITAs must employ inclusive and participatory approaches.

Conclusion:

The SITs can help in improving the local economy and polity which can help improve India’s GDP growth and ensure making India “Viksit Bharat” (developed country) by 2047.

News Source: Mint