NITI Aayog (National Institution for Transforming India) was established in 2015, replacing the erstwhile Planning Commission, primarily due to the latter's top-down, centralized approach which was deemed unsuitable for India's diverse federal structure and evolving economic landscape. The key reason for its formation was to foster cooperative federalism, allowing states to play a more active role in policy formulation.

The primary objectives of NITI Aayog include developing a shared vision of national development priorities, formulating credible long-term strategic frameworks, and providing expert advice to both central and state governments. It aims to act as a think-tank, offering strategic and technical guidance on policy matters, and promoting knowledge, innovation, and entrepreneurial support systems.

Its core functions involve designing policy and program frameworks, fostering cooperative federalism through structured support mechanisms for states, monitoring and evaluating program implementation, and serving as a platform for inter-sectoral and inter-departmental coordination. The term 'NITAI Aayog' appears to be a misnomer or a typo; the institution is known as NITI Aayog. The 're-organisation' likely refers to its fundamental structure, which is inherently designed to be more inclusive and dynamic than its predecessor, featuring a Governing Council (comprising the Prime Minister, Chief Ministers of all states, and LGs of UTs), Regional Councils, and a full-time organizational framework with a Vice-Chairperson, CEO, and expert members, ensuring broad-based consultation and expertise in policy-making.