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National Development Council

Last Updated : 28 Feb, 2024
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National Development Council: The National Development Council (NDC) also known as the Rashtriya Vikas Parishad, represents the government’s approach to planning and serves as a tool to guarantee that the planning system takes a national viewpoint. Established on 6th August 1952, it is an organization that plays a key role in the nation’s development process. The National Development Council is the apex body for decision-making and deliberations on development matters in India presided over by the Prime Minister.

NDC refers to the forum where the exchange of ideas on important development issues was made and was important for the economic as well as social development of India, It also reflects the country’s utmost commitment to inclusive growth as well as a sustainable form of development. Let us learn in detail!

National-Development-Council-(India)-copy

National Development Council

Overview on National Development Council

Aspect Overview
Name National Development Council (NDC)
Formation Established on August 6, 1952
Purpose – The NDC is a forum for cooperative federalism in India, facilitating cooperation and coordination between the central and state governments on matters of economic and social development.
– It serves as a platform for discussing and formulating policies, plans, and strategies for national development.
Structure – Chaired by the Prime Minister of India.
– Comprises the Chief Ministers of all states and union territories, along with members of the Union Cabinet, and other officials as required.
Meetings – The NDC meets periodically to review the progress of ongoing development programs and projects.
– It discusses key issues and challenges facing the country and identifies priority areas for focused attention and resource allocation.
Role – Provides a platform for states to express their views and concerns on matters of national importance.
– Guides the formulation of Five-Year Plans and other development initiatives.
– Facilitates intergovernmental cooperation and collaboration for balanced and inclusive development.

National Development Council

National Development Council (NDC), or the Rashtriya Vikas Parishad, is the highest body in India that makes decisions and has discussions on development issues under the Prime Minister’s direction.

The National Development Council was established on August 6, 1952, to ensure the balanced and quick development of every region of the country, promote unified economic policies in all important categories, and boost and organize national efforts and resources supporting the Plan.

History of NDC

The National Development Council (NDC) is apex body for approving the various five- year plans and was set up on 6th August 1952. Prime Minister is the head of NDC and is headquartered in New Delhi. Jawaharlal Nehru presided NDC first meeting in November 1952.

Chairman of National Development Council

The Chairman of the National Development Council (NDC) is the Prime Minister of India. The Prime Minister presides over the meetings of the NDC and plays a pivotal role in guiding discussions, setting agendas, and coordinating efforts between the central and state governments to foster economic and social development in the country.

National Development Council (NDC) – Background

Important facts on the background of National Development Council (NDC) are as follows:

  • One of the main institutions of India’s planning system is the National Development Council.
  • It represents the government’s approach to planning and serves as a tool to guarantee that the planning system takes a national viewpoint.
  • The NDC’s fortunes have gone through many ups and downs. The political environment that has ruled, the support that the central government has given it, and the effectiveness of the pressures exerted by state governments have all impacted its power.
  • Despite all of the ups and downs it has experienced over the last 60 years, its continued presence in the top policy structure has always been felt.
  • The Planning Advisory Board, chaired by KC Neogi, had suggested in 1946 that an advisory body should be formed with representatives from the states, princely states, and other interests included. The reasoning behind this concept was well understood, even if it was not used before independence.
  • From the very beginning of its establishment, the Planning Commission of the Government of India recognized the possible benefits of having a body for coordination.  
  • The Planning Commission highlighted in the Draft First Five Year Plan that a body such as the National Development Council was necessary to enable the Prime Minister and state Chief Ministers to regularly assess planning and its various aspects in a country the size of India, where the constitution grants the states independence in carrying out the duties they have.
  • As a result, the Cabinet Secretariat of the Government of India proposed the establishment of the National Development Council in August 1952.

NDC’s Composition and Appointment

The composition and appointment of NDCs are as follows:

  • The National Development Council comprises the following members –
    • Indian Prime Minister
    • All the Union Cabinet Ministers
    • Chief Ministers of all States or their substitutes
    • Representatives of the union territories and
    • The members of the NITI Aayog (erstwhile planning commission).
  • The NDC’s secretary is also the Planning Commission’s secretary. The Planning Commission also contributes administrative support.
  • The governor of the Reserve Bank and other specialists have occasionally been called to speak at the sessions. The Council initially consisted of fifty members, but this number was later lowered to nine Chief Ministers and a few Union Ministers. As a result, in November 1954, a Standing Committee was formed, replacing the Council as a compact platform for discussion.
  • Also, the Council has been forming committees regularly to conduct in-depth analyses of specific issues.
  • The Secretary to the Commission serves as the Council’s secretary, and the Prime Minister heads the organization. The Commission also provides the Council with additional administrative and support services.
  • The Council usually meets twice a year. Interestingly, the Council often does not adopt any official resolutions.
  • Maintaining a thorough record of all discussions and deriving general trends and specific conclusions from them is standard procedure. Most decisions are made by agreement.

National Development Council: Powers, Functions and Responsibilities

Following the Administrative Reforms Commission’s recommendations, the Council was reorganized in October 1967 and its duties were expanded to include:

  • Setting guidelines for the creation of the National Plan, including evaluating its resources.
  • Examining the National Plan, as developed by the National Growth Council; Considering significant issues about social and economic policies that impact the nation’s growth.
  • The Plan’s operation will be periodically examined. Recommendations will be made for the necessary steps to secure public cooperation and active participation, enhance the effectiveness of administrative services, guarantee the fullest development of the community’s less developed areas, and build up resources for national development through the equally shared sacrifice of all citizens.
  • It was intended that the State and Central Governments would receive advice and recommendations from the National Development Council.
  • Since its establishment, it has served as a high-level consultative group where decisions regarding the structure of the Five Year Plans, the significant issues facing the Indian economy, and the policies that must be implemented to address the biggest challenges have been made.
  • So the Council has focused on issues like food, the establishment of the State Trading Corporation, and land reforms in addition to the Plan.
  • Working as a kind of mediator between the Central Government, the Planning Commission, and the State Governments is the Council’s primary duty.
  • It helps in the coordination of other important national issues as well as plans, programs, and policies. It offers a constructive platform for discussion and a full, unrestricted interchange of ideas.

Objectives of the National Development Council

NDC is an advisory body to the Planning Commission. The following is a list of NDC’s primary goals:

  • To strengthen and organize the country’s resources and efforts in favor of the Plan.
  • To promote integrated economic policy across all important areas.
  • To guarantee quick and fair development of every region within the nation.

Also, NDC offers a forum for all nations to debate development-related concerns and challenges. As a result, it guarantees state collaboration in carrying out development plans.

New Role of NDC

  • Sometimes, in circumstances where disagreements are common, the more fundamental national objectives of socioeconomic restoration are neglected. Therefore, it is still necessary to develop a “national agenda” for the nation’s overall growth, to which the NDC can make a major contribution.
  • Without a “national agenda”, planning cannot be done in a coordinated manner. The NDC should be strengthened so that it becomes the leading group in politics for center-state planning interactions, as per the Sarkaria Commission’s recommendation.
  • Additionally, it has been suggested that, by Article 263 of the Constitution, the National Development Council should be reorganized and renamed the “National Economic and Development Council” (NEDC).
  • The Prime Minister, the Finance Minister, the Deputy Chairman of the Planning Commission, the Governor of the Reserve Bank of India, and six Chief Ministers—one from each zone—selected by agreement or rotation will make up the Standing Committee of the NEDC, according to the recommendations made by the Sarkari Commission.
  • However, the entire politico-administrative system will be greatly affected if the NDC’s position is changed to grant it more and more constitutional authority. The necessity to improve the effectiveness of the Planning Commission’s and NDC’s roles would remain until the benefits of such an important organizational change are established.

Structure of NDC

Since its establishment, the Planning Commission’s members have been joined by senior leaders from both the national and state governments to form the National Development Council. The First Administrative Reforms Commission took up the task of reforming the NDC in 1967.

The commission suggested that the NDC be reorganized as follows in its Report on the Machinery for Planning (Interim):

  • Prime Minister
  • The Deputy Prime Minister, if any
  • The Central Ministers of (i) Finance; (ii) Food and Agriculture ; (iii) Industrial Development and Company Affairs (iv) Commerce ; (v) Railways ; (vi) Transport and Shipping (vii) Education ; (viii) Labour, Employment and Rehabilitation (ix) Home Affairs; and (x) Irrigation and Power
  • The Chief Ministers of all states
  • The Planning Commission members In addition, it was suggested that the Planning Commission secretary serve as the NDC’s secretary and the Prime Minister as its chairman.

Is National Development Council Abolished?

As of my last update in January 2022, the National Development Council (NDC) has not been officially abolished. The NDC continues to serve as a forum for cooperative federalism in India, facilitating cooperation and coordination between the central and state governments on matters of economic and social development.

However, it’s essential to note that governmental structures and institutions can undergo changes over time due to policy decisions, legislative actions, or administrative reforms. If there have been any developments regarding the status of the NDC after January 2022, I would recommend checking the latest news sources or official government announcements for the most up-to-date information.

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Conclusion

The National Development Council is a proof of the effectiveness of cooperative governance and the shared responsibilities between the central government and the states for determining a country’s future. The NDC continues to be an example of hope for India’s population, showing the path toward a future that is more just, sustainable, and wealthy as the country deals the challenges of the twenty-first century.

FAQs on National Development Council (NDC)

What is the full form of NDC Aayog?

The full form of NDC is National Development Council or the Rashtriya Vikas Parishad, which is apex body for decision making and deliberations on development matters in India and headed by Prime Minister.

Is NDC replaced with NITI Aayog?

NITI Aayog was established in 2015 for replacement of Planning Comission and has been given new role in the formation of Governing Council of NITI Aayog.

What is the National Development Council (NDC)?

The National Development Council is a forum in India that brings together the Prime Minister, Union Cabinet Ministers, Chief Ministers of States and Union Territories, and key government officials to discuss and strategize the nation’s economic and social development.

What is the difference between NITI Aayog and NDC?

NITI Aayog is a policy think-tank that was set up by the executive order of the government in 2014. The National Development Council (NDC), established by the executive order of the government in 1952, acted as the country’s “highest decision-making authority” on development issues.

Who is the present head of NDC?

The Prime Minister of India, Narendra Modi is the present head of NDC.



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