Source: The post NITI Aayog drives India’s human capital transformation has been created, based on the article “NITI Aayog’s human capital revolution” published in “Businessline” on 31st July 2025
UPSC Syllabus Topic: GS Paper 1- Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Context: India’s progress depends not just on GDP or infrastructure but on the development of human capital — education, health, skills, and productivity. Over the past decade, NITI Aayog has reshaped policies to invest in people and ensure inclusive, evidence-based, and future-ready development.
Transforming Human Capital Policy
- Tapping the Demographic Dividend: With over 65% of the population below age 35, India holds a unique opportunity. NITI Aayog rose as a reformist think tank and implementation partner, turning policymaking into a collaborative process involving states, private actors, and civil society.
- Insights-Driven Governance: NITI Aayog shifted governance from a top-down model to listening-based action, using data and insights to drive real change. It focused on converting youthful energy into national growth.
Revolution in Education and Skilling
- Reimagining Education: Playing a key role in the National Education Policy 2020, NITI Aayog moved the focus to quality, equity, and flexibility. It emphasized early childhood education, mother-tongue instruction, and vocational integration.
- Fostering Innovation in Schools: The Atal Innovation Mission led to over 10,000 Atal Tinkering Labs, promoting critical thinking and creativity in school education.
- Career-Oriented Skilling: Over1.5 crore youth were trained under the Skill India Mission. With industry-aligned and tech-driven programs, it helped bridge the gap between classroom and employment, especially in underserved regions through the Aspirational Districts Programme.
Building Inclusive Health and Labour Systems
- Labour Law Reforms: NITI Aayog supported the rationalisation of 44 central labour laws into four simplified codes — covering wages, social security, industrial relations, and safety. These reforms encouraged formalisation and protected informal workers.
- Wellness over Treatment: was reframed as an investment. The Ayushman Bharat scheme provided health insurance to over 50 crore people, while 1.5 lakh Health and Wellness Centres expanded access to primary care and preventive health.
- Pandemic Leadership: During COVID-19, NITI Aayog worked with the Health Ministry and ICMR to model infections, allocate resources, and launch eSanjeevani for telemedicine. It later pushed for public health management cadres and digital health systems.
Catalyzing Innovation and Entrepreneurship
- Supporting Start-Ups: Initiatives like Start-Up India, Stand-Up India, and AIM created a strong ecosystem for fintech, agri-tech, EdTech, and clean energy start-ups, turning them into job creators and problem solvers.
- Data-Driven Policy Reforms: NITI Aayog promoted AI, big data, and behavioural insights in governance. It launched India’s first SDG Index, guided states with performance metrics, and improved accountability.
- Global Recognition and Inclusion: it engaged civil society and international partners, enabling India to rise in the Global Innovation Index and earn praise from the UN, World Bank, and UNESCO.
Ensuring Sustainable and Equitable Growth
- . Encouraging Competitive Federalism: By ranking states and supporting cooperative efforts, NITI Aayog fostered innovation and responsiveness across levels.
- Sustainable Goals in Focus: clean energy to gender equity, its policies aligned with the Sustainable Development Goals, building inclusive and future-ready systems.
Conclusion:
NITI Aayog has shown that empowering people builds a stronger nation. Its work redefined development, making it the pulse of young India — one that dreams, dares, and delivers.
Question for practice;
Examine how NITI Aayog has contributed to strengthening human capital and promoting inclusive development in India over the last decade.
