Five-year plans of the People’s Republic of China and NITI Aayog of the Republic of India: principles and objectives of economic policy in 2015–2025

Abstract

The People’s Republic of China and the Republic of India have traditionally shared similar economic development goals, but their principles for achieving them differ. While both countries initially relied on five-year plans, their paths began to diverge by the end of the 20th century. China continued to refine its system of prescriptive five-year plans, building on its accumulated experience. Meanwhile, India abandoned this approach by creating the National Institution for Transforming India (NITI Aayog). The new model is based on a series of coordinated plans of varying timeframes, fostering cooperative federalism and the development of grassroots innovation that more closely responds to local needs. Thus, China’s centralized model and India’s decentralized system represent contrasting governance philosophies. Despite this, both demonstrate a key capacity for adaptation, ensuring resilience and technological transformation. The experiences of China and India, their ability to flexibly respond to global challenges and long-term risks, serve as valuable guidance for other developing economies.

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