It was set up on 6 August 1952 to strengthen and mobilize the effort and resources of the nation in support of the Five Year Plans made by Planning Commission, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country.

During the tenure of former Prime Ministers Atal Bihari Vajpayee and Manmohan Singh it was felt that Planning Commission has outlived its life and needs some reform.

In 2014, Prime Minister Narendra Modi announced Planning Commission's abolition and created NITI Aayog through an executive resolution.

The 57th Meeting of National Development Council was held on 27 December 2012[2] at Vidhan Bhavan, Mumbai.

Dr Montek Singh Ahluwalia, the Dy Chairman of Planning Commission, raised six major issues for consideration at the NDC: 1.

Centre’s Gross Budgetary Support for the Plan as a ratio of GDP shall be increased while reducing the fiscal deficit.

Early implementation of the GST would not only raise more revenue for both the Centre and the States, it would also create a single market in the country and remove many of the distortions in the indirect tax system.

Agriculture needs more attention and priority at State Government levels (e.g. exempting horticultural products entirely from the application of the APMC Act.)

However, state budgets cannot provide subsidies on this scale and the losses are effectively being funded by the banking system.

The Twelfth Plan version of the Accelerated Power Development Reform Programme should be tailored to provide resources to States taking credible steps along these lines.

Water use in agriculture can be cut to half with known technology, e.g., by switching from flood irrigation of paddy to SRI.

The Approach paper called for a comprehensive re-examination of water policy including changes in the laws.

Report of the Chaturvedi Committee made a number of recommendations on the need for streamlining the centrally sponsored schemes.