Step 1: Establishment of Niti Aayog.
Niti Aayog, which stands for National Institution for Transforming India, was established in 2015 as a policy think tank of the Indian government.
Step 2: Replacement of Planning Commission.
It replaced the Planning Commission, which was set up in 1950, to better align India's development strategy with modern economic needs.
Step 3: Functions and significance.
Niti Aayog is tasked with fostering cooperative federalism, sustainable development, and improving governance.