NITI Aayog or the National Institution for Transforming India was established on 1 January 2015 vide a Resolution of the Union Cabinet. Thus, it is neither a Constitutional body nor a statutory body but it is an executive body headed by the Prime Minister of India. With the establishment of the NITI Aayog, the Planning Commission, as well as the National Development Council, stand dissolved. The NITI Aayog has been assigned the following functions :

1. To evolve a shared vision of national development priorities and strategies with the involvement of States,
2. To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis,
3. To ensure that the interests of national security are incorporated into economic strategy and policy,
4. To pay special attention to the weaker sections,
5. To design strategic and long term policy and programme frameworks and initiatives,
6. To create a knowledge, innovation and entrepreneurial support system for development,
7. To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices,
8. To actively monitor and evaluate the implementation of programmes and initiatives,
9. To focus on technology upgradation and capacity building, and
10. To undertake other activities necessary for the national development agenda.

The National Governing Council of the Aayog is the apex decision-making body of the NITI Aayog. It is headed by the Prime Minister and all the Chief Ministers of states and Lt Governors of Union Territories are the members of the Governing Council. The Council has established three sub-groups of the Chief Ministers on the three important national subjects: Centrally Sponsored Schemes, Skill India mission and Swachha Bharat Mission. The sub-groups will deliberate on the respective areas and will submit their report to the Council for further action.

The NITI Aayog has unveiled on 19 December 2018 its comprehensive national Strategy for New India, for five years till 2022-23 with due consultations with the states. The strategy notes the progress made so far; identifies constraints and suggests measures to move ahead in forty-one crucial areas of development. It aims 9-10 percent growth in the next five years.