The National Development Council Explained

The National Development Council (NDC) was an extra-constitutional, non-statutory body set up by a Government of India resolution in 1952 to bring the states into the process of national economic planning, and it was chaired by the Prime Minister. It brought together the Prime Minister, Union ministers, the Chief Ministers of all states and the members of the Planning Commission, and its approval was the last major step before a Five-Year Plan was presented to Parliament.

The NDC met only occasionally, and it has been dormant since the Planning Commission was replaced by NITI Aayog in 2015, with the Governing Council of NITI Aayog now serving a similar purpose for Centre-state discussion. This explainer sets out the origins, composition, functions, status and criticism of the council, and what happened to it. It was last reviewed on 12 October 2026.

Key Takeaways

• The National Development Council was created on 6 August 1952 by a resolution of the Government of India, and it has no basis in the Constitution or in any Act of Parliament.
• The National Development Council was chaired by the Prime Minister of India and included the Chief Ministers of all states, which made it the main forum where the Centre and the states discussed planning together.
• The National Development Council approved each Five-Year Plan after the Union Cabinet and before the plan was placed before Parliament.
• The National Development Council was set up to strengthen the national effort in support of the plan, promote common economic policies and ensure balanced development of all parts of the country.
• Critics described the planning machinery, including the National Development Council, as a “super cabinet” that influenced policy without the accountability of an elected body.
• The National Development Council has not been active since the Planning Commission was replaced by NITI Aayog on 1 January 2015, and the Governing Council of NITI Aayog now brings the Prime Minister and Chief Ministers together.

What is the National Development Council?

The National Development Council is a body of the Union and state governments that was created to discuss and approve national plans for economic and social development. It was not set up under the Constitution or by a law, but by an executive decision of the Union Cabinet.

The NDC sat at the top of the planning structure. The Planning Commission, which was itself created by a resolution in March 1950, drew up the plans, and the NDC gave them the support of the states. For this reason the NDC has been described as the highest decision-making body for development matters below Parliament, though it never had the power to make laws or levy taxes.

India followed a system of centralised planning after independence, with Five-Year Plans that set targets for agriculture, industry, power, transport and social services. Since many of these subjects are on the State List or the Concurrent List of the Seventh Schedule, the cooperation of the states was essential, and the NDC provided the means for it.

Why and when was the National Development Council set up?

The National Development Council was set up on 6 August 1952 because the First Five-Year Plan (1951-56) needed the participation of the states, which were responsible for much of the plan’s implementation. The Planning Commission had prepared the draft of the plan in 1951, and the government wanted a body in which the states could take part in its discussion.

The resolution that created the NDC stated that the Planning Commission had made recommendations for the plan, but that the success of planning depended on the cooperation of states. The idea was to create a forum which would draw the Centre, the states and the Planning Commission together at one table.

The decision reflected a wider view of Indian federalism in the early years. The Constitution divides powers between the Union and the states, but economic development cuts across this division. The NDC was designed to bridge the gap without altering the Constitution, by using a consultative body that could secure political agreement among the heads of government.

Who were the members of the National Development Council?

The members of the National Development Council were the Prime Minister, who was its chairperson, the Chief Ministers of all states and the members of the Planning Commission. Over time the membership was widened to include all the Union Cabinet ministers and the administrators or Chief Ministers of Union territories.

The Planning Commission was the secretariat of the NDC, and the commission’s Secretary served as the council’s Secretary. Special invitees, such as the heads of other planning bodies, could be asked to attend, depending on the subject. The size of the body, which brought dozens of participants to each meeting, meant that most of its work consisted of speeches and general discussion and not detailed negotiation.

What were the functions of the National Development Council?

The functions of the National Development Council were to strengthen and mobilise the effort and resources of the nation in support of the plan, to promote common economic policies in all vital spheres and to ensure the balanced and rapid development of all parts of the country. These three aims were stated in the resolution of 1952.

To carry out these aims, the council was assigned several tasks:

• To prescribe guidelines for the formulation of the national plan, including the assessment of resources.
• To consider the plan prepared by the Planning Commission.
• To consider important questions of social and economic policy affecting national development.
• To review the working of the plan from time to time.
• To recommend measures for achieving the aims and targets set out in the national plan, including measures to secure public cooperation and improve administrative efficiency.

The council could therefore be consulted at three stages, which were the preparation of the approach to the plan, the approval of the final plan and the review of the plan during its operation.

How did the National Development Council approve the Five-Year Plans?

The National Development Council approved a Five-Year Plan after the Planning Commission had drafted it and the Union Cabinet had cleared it. The plan was then placed before Parliament for discussion, and it became the official policy of the Government of India.

The usual sequence was as follows:

• The Planning Commission prepared an approach paper, which was discussed with the Union and state governments.
• The NDC considered the approach paper and gave general guidance on the targets and priorities.
• The Planning Commission drafted the plan, after consultation with the Union ministries, state governments and experts.
• The Union Cabinet reviewed the draft plan.
• The NDC met to approve the plan, which gave it the endorsement of the states.
• The approved plan was presented to Parliament.

The Twelfth Five-Year Plan (2012-17), the last in the series, was approved at the 57th meeting of the NDC in December 2012. The approval of the NDC did not give the plan the force of law, but it meant that the Chief Ministers had publicly agreed to its objectives and would be expected to align their own state plans with it.

What was the legal status of the National Development Council?

The legal status of the National Development Council was extra-constitutional and non-statutory, meaning that it was neither mentioned in the Constitution nor established by an Act of Parliament. The council existed only because of the resolution of 6 August 1952, and the executive could have changed or ended it by a similar resolution.

This status had several consequences:

• The NDC had no power to make binding decisions of its own, and its decisions took effect through the Union and state governments.
• It had no statutory duty to meet at fixed intervals, and the frequency of meetings depended on the Prime Minister.
• Its composition and functions could be changed without the approval of Parliament.
• It was not answerable to Parliament in the way a statutory body would be.

The Planning Commission shared the same status. The Constitution does contain bodies for Centre-state coordination, such as the Finance Commission under Article 280 and the Inter-State Council under Article 263, and the difference between these and the NDC is important when discussing the council’s role.

What did the National Development Council decide over the years?

The National Development Council approved all the Five-Year Plans from the First to the Twelfth and decided several questions about the sharing of resources between the Centre and the states. Its most cited decision outside the plans was the approval in 1969 of the Gadgil formula for the distribution of central assistance to the states for their plans.

The table below lists the series of Five-Year Plans that the NDC considered.

There were also gaps in the sequence. Annual plans were used in 1966-69 after the Third Plan and in 1990-92 during a period of political and economic uncertainty. The council’s role in these phases was limited to approving the annual outlay.

Why was the National Development Council called a “super cabinet”?

The National Development Council, together with the Planning Commission, was called a “super cabinet” by critics because it was seen as influencing the economic policy of the whole country without the accountability of an elected body or the formal status of a constitutional one. The phrase was also used about the Planning Commission itself, which many commentators saw as more powerful than the ministries it advised.

The criticisms made over the years include:

• The NDC and the Planning Commission were not provided for in the Constitution, yet their decisions shaped the budgets of states and Union ministries.
• The council had too many members to deliberate effectively, so the real decisions were taken beforehand by the Planning Commission and the Cabinet.
• States complained that the Centre’s dominance meant they had little say, since the Prime Minister chaired the meetings and the plan was already settled.
• Parliament did not exercise detailed control over the plan, since the NDC had already approved it.

The Sarkaria Commission on Centre-State Relations, which reported in 1988, examined the issue and recommended that the NDC be reconstituted as a National Economic and Development Council and given constitutional status. The recommendation was not carried out. Defenders of the NDC argued that it gave the states a real voice and a place to raise their concerns directly with the Prime Minister, which they might not otherwise have had.

How was the National Development Council different from other Centre-state bodies?

The National Development Council differed from other Centre-state bodies because it was a political forum for planning, whereas bodies such as the Finance Commission and the Inter-State Council have constitutional origins. The comparison below shows the main differences.

The NDC did not decide the division of taxes, which is for the Finance Commission, and it did not settle disputes between states, which is the business of the Inter-State Council or the courts. Its sphere was the plan and the priorities of national development.

What happened to the National Development Council after NITI Aayog replaced the Planning Commission?

The National Development Council became dormant after the Planning Commission was replaced by NITI Aayog (National Institution for Transforming India) on 1 January 2015, because the council’s secretariat and its main task of approving Five-Year Plans came to an end. The Prime Minister announced the plan to end the Planning Commission in August 2014, and the government set up NITI Aayog by a resolution in January 2015.

NITI Aayog has a Governing Council made up of the Prime Minister, the Chief Ministers of all states and the Lieutenant Governors of Union territories with legislatures, together with administrators of other Union territories. The Governing Council holds meetings to discuss national priorities, and the first was held in February 2015. The arrangement keeps the central idea of the NDC, which is a regular meeting between the Prime Minister and the Chief Ministers, but without the task of approving Five-Year Plans.

The Twelfth Plan was the last of the Five-Year Plans, and the system of Five-Year Plans formally ended in March 2017. The NDC has not been formally replaced by a statute, and the council is therefore best described as inactive. Its place in the system of Centre-state coordination is now taken by the Governing Council of NITI Aayog.

Why does the National Development Council still matter?

The National Development Council still matters because it shaped how Indian planning worked for six decades and set a model for consultation between the Union and the states. It remains a reference point in debates about cooperative federalism, institutional design and the place of non-constitutional bodies in the Indian system.

It also explains several features of the present arrangements. The Gadgil formula and its later revisions guided central assistance for decades. The practice of Chief Ministers meeting the Prime Minister in a regular forum continues in the Governing Council of NITI Aayog. And the debate over whether Centre-state bodies should have a constitutional or statutory basis, which was central to the criticism of the NDC, still arises when new bodies are proposed.

Bottom Line

The National Development Council was an executive creation of 1952 that brought the Prime Minister and the Chief Ministers together to approve the Five-Year Plans, and it served as the main Centre-state planning forum until 2012. It was criticised for its lack of constitutional status and its size, and it has been dormant since the Planning Commission gave way to NITI Aayog in 2015.

Frequently Asked Questions

What is the National Development Council?

The National Development Council is an extra-constitutional body set up in 1952 to associate the states with national planning. It was chaired by the Prime Minister and included the Chief Ministers of all states, Union ministers and members of the Planning Commission. It approved India’s Five-Year Plans before they went to Parliament.

When was the National Development Council set up?

The National Development Council was set up on 6 August 1952 by a resolution of the Government of India. The aim was to secure the cooperation of the states in the First Five-Year Plan and later plans. It was created by executive action, not by the Constitution or an Act of Parliament.

Who headed the National Development Council?

The Prime Minister of India headed the National Development Council as its chairperson. Its members included the Union Cabinet ministers, the Chief Ministers of all states and the members of the Planning Commission. The Secretary of the Planning Commission acted as the council’s Secretary.

Is the National Development Council a constitutional body?

The National Development Council is not a constitutional body and is not a statutory body either. It was created by an executive resolution and is described as extra-constitutional and non-statutory. The Sarkaria Commission in 1988 recommended giving such a body constitutional status, but this was not done.

What is the National Development Council’s role in the Five-Year Plans?

The National Development Council’s role was to approve each Five-Year Plan after the Union Cabinet had cleared it and before it was placed before Parliament. It also gave guidance on the approach to the plan and reviewed the plan’s working. The Twelfth Plan was approved by the council in December 2012.

What replaced the National Development Council?

The Governing Council of NITI Aayog has taken over the function of bringing the Prime Minister and the Chief Ministers together, after NITI Aayog replaced the Planning Commission on 1 January 2015. The National Development Council has not been active since then. The Five-Year Plan system itself ended with the Twelfth Plan in 2017.

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