Government Policy is the overall framework, comprising a set of principles and guidelines, that directs the actions and decisions of government entities to address social, economic, and political issues. It is a purposive course of action, which can take the form of an Act of Parliament, a Scheme (like the Pradhan Mantri Jan Dhan Yojana), a Regulation, or a broad Concept (like the National Education Policy 2020).
The origin of modern Indian public policy is rooted in the post-independence era of 1947, where the focus was on nation-building and rapid industrialization. This was initially guided by the Planning Commission, which was established to formulate Five-Year Plans and followed a top-down model of policy-making. The process works through a structured cycle: identifying a problem, setting the agenda, formulating policy options, adoption by the Executive (Cabinet) and Legislature (Parliament), implementation by the bureaucracy (IAS), and eventual evaluation. The Constitution of India provides the foundational framework, ensuring policies align with principles of democracy and federalism, and the Judiciary exercises Judicial Review to check the constitutionality of policy actions.
A significant recent change occurred on January 1, 2015, when the Planning Commission was replaced by the NITI Aayog (National Institution for Transforming India). This change shifted the policy-making approach from a centralized, top-down model to one that emphasizes cooperative federalism and a bottom-up approach, actively involving State Governments in the economic policy process. NITI Aayog now serves as the apex public policy think tank, providing strategic input and monitoring the adoption of the Sustainable Development Goals (SDGs). The core mechanism of policy formulation by the Cabinet, led by the Prime Minister, and legitimation by Parliament remains central to the process.