NITI Aayog – State Support Mission (2025–26): Strengthening Cooperative Federalism And State-Level Development Planning

Policy Update

Tanisha Hooda

Background

India’s development depends not only on policies made at the national level but also on how effectively each State and Union Territory (UT) plans and works towards its own development. Every State has different strengths, challenges and priorities. Keeping this in mind, NITI Aayog introduced the State Support Mission to strengthen coordination between the Centre and States/UTs. The Mission aims to help States identify their strengths, set clear development priorities and prepare practical roadmaps for achieving their socio-economic objectives by 2047, while remaining aligned with national priorities.

A major focus of the Mission is to improve State-level planning and decision-making. NITI Aayog supports interested States in setting up State Institutions for Transformation (SITs) or strengthening their existing Planning Departments and Boards. These institutions can provide expert support in areas such as development planning, data analysis, monitoring and evaluation. The Mission was initially approved with a total outlay of ₹237.5 crore for 2022–23 to 2024–25, while its ongoing activities and progress during 2025–26 are reported in NITI Aayog’s Annual Report 2025–26.

The Mission also encourages States and UTs to work with universities, research institutions, development partners, civil society and other experts to find innovative solutions to their development challenges. It also proposes a Knowledge Platform where States can share successful policies and governance practices, allowing them to learn from one another. The main beneficiaries are State Governments, UT administrations and State-level planning institutions, while citizens are expected to benefit indirectly through better-informed development strategies and more effective policies. Through these efforts, the State Support Mission seeks to strengthen cooperative federalism by enabling the Centre and States to work together more effectively towards India’s long-term development goals.

Functioning

1. Institutional Structure for Implementation: The State Support Mission (SSM) functions through two committees within its institutional structure. The Mission Steering Committee (MSC) provides overall guidance and direction for the implementation of the Mission and reviews its progress on a quarterly basis. The Mission Implementation Committee (MIC), set up in NITI Aayog, monitors the Mission’s activities, coordinates with States/UTs and Lead Knowledge Institutions, and examines proposals submitted under the Mission.

2. State Institutions for Transformation (SITs): At the State level, the Mission supports the establishment of State Institutions for Transformation (SITs). States/UTs can either establish a new SIT or strengthen existing institutions such as Planning Departments and Boards. To support this process, the Mission provides for the deployment of a Programme Implementation Unit (PIU) consisting of up to nine sectoral experts in the State/UT. These experts work under the supervision of the respective State/UT Government.

3. Monitoring, Evaluation and Data-Based Planning: The Mission makes Monitoring and Evaluation (M&E) and Data Analytics Units an integral part of the SIT. These units help States/UTs assess the effectiveness of government programmes and make mid-course corrections. They also support informed policymaking and data-driven governance. States can use Mission funds for activities such as surveys, dashboards, data collection and developing state knowledge repositories.

4. Capacity Building and Performance Incentives: The SSM focuses on improving the capacity of officials at the State/UT level. States/UTs can undertake research studies, projects, workshops and conferences in line with the objectives of the Mission. In addition, milestone-based incentives and recognition are provided to encourage States/UTs to achieve the objectives of the Mission.

5. Support from Lead Knowledge Institutions and SETU: States/UTs can designate Lead Knowledge Institutions (LKIs) such as IIMs, IITs, Central and State Universities, and research-based organisations to provide specialised knowledge and research support. LKIs support States/UTs in developing State-level strategies and long-term development plans, strengthening institutional collaboration and training, and identifying best practices. At NITI Aayog, the State Economic Transformation Unit (SETU) supports the implementation of the Mission through a digital knowledge repository, stakeholder consultations and by bringing expertise from institutions, think tanks, multilateral agencies and civil society.

6. Financial Assistance and Fund Disbursal: The Mission provides financial assistance to States/UTs, LKIs and SETU for undertaking activities under the SSM. States/UTs are required to submit a detailed action plan to NITI Aayog while requesting funds. The funds are disbursed according to the guidelines of the Department of Expenditure, with the action plan prepared according to the budget heads defined under the Mission.

Performance

SSM’s performance during 2025–26 can be assessed through the expansion of state-level institutions, knowledge partnerships and Centre–State engagement. A key component of the Mission is the State Institution for Transformation (SIT), which functions as a state-level policy institution to strengthen planning and development strategies. The notification of 32 SITs reflects an expansion of institutional capacity across States/UTs, while 16 Lead Knowledge Institutions (LKIs) provide specialised research and technical support. Further, 32 high-level State/UT visits during FY 2025–26 reflect continued policy engagement between NITI Aayog and States/UTs. Taken together, these indicators demonstrate measurable progress in expanding institutional structures, knowledge partnerships and Centre–State engagement during FY 2025–26.

Table: Key Performance Indicators of SSM, 2025–26

Indicator	Achievement
SITs notified	32
Lead Knowledge Institutions (LKIs) onboarded	16
High-level State/UT visits	32

Source: NITI Aayog, Annual Report 2025–26, pp. 23–25.

The notification of 32 SITs indicates the expansion of institutional capacity across States/UTs, while 16 LKIs provide specialised research and technical support. Further, 32 high-level visits during FY 2025–26 reflect continued policy engagement between NITI Aayog and States/UTs. Taken together, these indicators suggest that SSM has made measurable progress in expanding institutional structures, knowledge partnerships and Centre–State engagement during FY 2025–26.

Under SSM, NITI Aayog has also undertaken State-focused workshops to strengthen planning capacity and policy support. In FY 2024–25, the NITI-State Workshop Series addressed sector-specific issues; for instance, the Punjab workshop covered hand/machine tools, sports and leather goods, textiles and hosiery, and agri-processed exports. The discussions identified challenges related to MSMEs, exports, infrastructure, skills and agricultural diversification, while exploring actionable policy measures. These activities show that SSM’s performance extends beyond institutional expansion to include technical knowledge, stakeholder consultation and sector-specific policy inputs for State-level development planning.

Earlier SSM-supported initiatives have further contributed to peer learning and cross-State collaboration. A workshop on Building State-level Innovation Ecosystems brought together 28 States/UTs, 8+ Central Ministries/Departments and 150+ participants to exchange policy practices and strategies. The workshop resulted in commitments for joint projects, policy recommendations and continued knowledge-sharing through monthly virtual and regional engagements. Such initiatives demonstrate the Mission’s role in facilitating peer learning, policy innovation and sustained collaboration among States/UTs.

SSM-supported State-level engagement has also facilitated discussions on strengthening urban data ecosystems for improved planning and service delivery. In November 2025, NITI Aayog organised the NITI-State Workshop on Urban Data Ecosystems in Madhya Pradesh, bringing together 100+ participants from government, academia, the World Bank and other stakeholders. The workshop saw the launch of the City Data and Analytics Platform (CDAP) under NDAP, enabling cities to access, analyse and visualise urban data for improved planning and service delivery. This initiative highlights the Mission’s contribution to strengthening urban data capacity and informed decision-making.

SSM has also contributed to expanding knowledge and policy resources at the State and sub-State levels. The NITI for States Knowledge Platform provides government officials with access to policy resources, best practices and datasets to support data-informed decision-making.

Table: Key Performance Indicators of Knowledge Support under SSM, 2025–26

Indicator	Achievement
Best Practices available	7,500+
Policies available	5,000+
Datasets available	980+
Data Profiles	1,500+
Starter Kits	56
States & UTs covered	36
Districts covered	765
Aspirational Blocks covered	500
Portal visitors	2 lakh+

Source: NITI Aayog, Annual Report 2025–26, pp. 27–28.

The platform expands access to policy knowledge, datasets and best practices for use by government officials. The Viksit Bharat Strategy Room (VBSR) further supports analytical decision-making through the visualisation of trends, policies and best practices. Its approach has been adopted by initiatives such as Bihar’s GenNext Lab, with another Strategy Room established at LBSNAA, Mussoorie, with SSM support. Together, these developments point to a growing ecosystem of knowledge and analytical resources for planning across different levels of governance.

Impact

1. Improving State-Level Planning Capacity: The State Support Mission should focus on improving the long-term effectiveness of State-level planning systems by encouraging regular capacity-building, stronger use of data and analytics, and greater coordination among State institutions. Strengthening linkages between SITs, Planning Departments, research institutions and other knowledge partners can help States/UTs develop more responsive and context-specific strategies for addressing emerging development challenges.

2. Promoting Evidence-Based Policymaking: The Mission’s emphasis on research, data analytics and monitoring can strengthen the evidence base for policy decisions. Access to data, analytical tools and monitoring mechanisms can help States/UTs identify development gaps, assess programme performance and make more informed policy choices.

3. Supporting State-Specific Development Strategies: The Mission supports a differentiated approach to development planning by encouraging States/UTs to identify growth drivers and priorities based on their own economic and social conditions. This can help States/UTs formulate strategies that are better suited to their specific strengths and challenges while remaining aligned with broader national priorities.

4. Strengthening Cooperative Federalism: The Mission has created a more structured channel of engagement between NITI Aayog and States/UTs through institutional coordination, consultations and knowledge-sharing mechanisms. These arrangements can strengthen state ownership, facilitate cross-State learning and improve coordination between national priorities and State-level development strategies.

5. Emerging Impact and Limitations: The Mission’s early impact is more visible in institutional strengthening, planning capacity and evidence-based policymaking than in direct socioeconomic outcomes such as employment, income or poverty reduction. Since the Mission is relatively recent, it is difficult to establish a direct causal link between its interventions and long-term development outcomes. Its sustained impact will therefore depend on how effectively States/UTs translate the institutional capacity, knowledge and strategies developed through the Mission into actual policy implementation.

Emerging Issues

1. Uneven Institutional Capacity Across States/UTs: The State Support Mission aims to establish State Institutions for Transformation (SITs) or strengthen existing Planning Departments and Boards to improve development planning. However, States and UTs differ in their institutional strength, availability of skilled personnel and technical expertise. While some States may have stronger planning and analytical institutions, others may require greater support to build these capacities. This may affect how effectively States utilise the institutional and technical support provided under the Mission. NITI Aayog should provide need-based capacity-building support, while State Governments/UTs and LKIs should strengthen SITs through adequate expertise and training.

2. Need to Strengthen Monitoring, Evaluation and Data Systems: Effective policymaking requires reliable data as well as mechanisms to assess whether government programmes are achieving their intended objectives. The Mission therefore focuses on strengthening Monitoring and Evaluation (M&E) ecosystems and data-analytical systems across States/UTs. However, differences in data availability, analytical expertise and institutional capacity may affect the effective use of evidence in policymaking. State Governments/UTs should strengthen M&E and Data Analytics Units, while NITI Aayog and LKIs should provide technical guidance and analytical support to improve the use of evidence in policymaking.

3. Coordination Among Multiple Stakeholders: The Mission brings together State Governments/UTs, NITI Aayog, Knowledge Institutions, development partners, multilateral agencies, civil society and academia to support State-level development planning. While this provides diverse expertise and knowledge, coordinating stakeholders with different roles and priorities can be challenging. Effective coordination is therefore necessary to ensure that technical knowledge is translated into practical and State-specific policy inputs. NITI Aayog should strengthen coordination mechanisms, while States and knowledge partners should align their efforts with State-specific development priorities.

4. Need for Effective Cross-State Learning and Knowledge Sharing: The State Support Mission proposes a Knowledge Platform to enable States/UTs to share good governance practices, successful policies and development experiences. However, meaningful cross-State learning requires States to actively share their experiences, learn from successful practices and adapt them to their own socioeconomic and institutional conditions. NITI Aayog should facilitate regular knowledge exchange, while States/UTs and Knowledge Institutions should evaluate and adapt relevant best practices to strengthen cross-State learning.

Way Forward

The State Support Mission provides an important institutional framework for strengthening State-level development planning and cooperative federalism in India. Its progress in establishing 32 State Institutions for Transformation (SITs), onboarding 16 Lead Knowledge Institutions (LKIs) and facilitating 32 high-level State/UT visits during 2025–26 reflects growing institutional engagement and policy support. Going forward, greater emphasis should be placed on strengthening these institutions so that they can effectively support evidence-based planning, monitoring and evaluation, and State-specific development strategies.

The Mission should also focus on converting its growing ecosystem of knowledge, data and technical expertise into measurable improvements in policy implementation. The expansion of the NITI for States Knowledge Platform, which provides access to thousands of best practices, policies and datasets, provides a strong foundation for informed decision-making. However, the long-term value of these resources will depend on their effective use by States/UTs, continued capacity building, stronger monitoring mechanisms and adaptation of successful practices to State-specific requirements. Greater collaboration among NITI Aayog, State Governments, Knowledge Institutions and other stakeholders can further strengthen peer learning and policy innovation.

In the broader context of New India, the ultimate focus of the Mission should therefore move beyond institutional expansion towards measurable and inclusive development outcomes. Since its early impact is currently more visible in institutional capacity, planning and evidence-based policymaking than in direct outcomes such as employment, income or poverty reduction, sustained efforts are required to translate State-level strategies into effective implementation. By enabling States to build their own development pathways while remaining aligned with national priorities, the Mission can strengthen State ownership, deepen cooperative federalism and contribute to the long-term vision of a Viksit Bharat by 2047.

Reference

NITI Aayog (2026), State Support Mission, Government of India.

Available at: https://www.niti.gov.in/divisions/mission/state-support-mission

NITI Aayog. (2023). State Support Mission: Guidelines of the Mission. Government of India.

Available at: https://www.niti.gov.in/sites/default/files/2023-09/Guidelines_State_Support_Mission.pdf

NITI Aayog. (2026). Annual Report 2025–26. New Delhi: National Institution for Transforming India (NITI Aayog).

Available at : https://www.niti.gov.in/sites/default/files/2026-05/Annual%20Report%20of%20NITI%20Aayog%202025-26%20%28English%29.pdf

NITI Aayog. (2025). A Compendium on NITI-State Workshop Series: An Initiative to Support States FY 2024–25. New Delhi: National Institution for Transforming India (NITI Aayog). https://www.niti.gov.in/sites/default/files/2025-09/A-Compendium-NITI-State-Workshop-Series-FY-2024-25.pdf

NITI Aayog. (2025). Compendium on Takeaways: NITI-State Workshop Series, FY 2023–24. Government of India. https://www.niti.gov.in/sites/default/files/2025-09/Compendium-on-takeaways-NITI-State-Workshop-Series-FY-2023-24.pdf

Press Information Bureau (PIB), 2025, High-Level Forum on Urban Data Ecosystems for Growth, Jobs and Service Delivery, Government of India, 21 November 2025 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192621&reg=48&lang=2

About the Contributor

Tanisha Hooda is a Research Intern at the Impact and Policy Research Institute (IMPRI) and a B.A. (Hons.) Economics graduate from Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad. Her research interests include competition policy, digital economy, public policy, and economic development, with a focus on analysing the socio-economic implications of emerging policy frameworks.