It was established on 6th august 1952 with the aim of creating a platform for all state governments and union territories to get involved in the process of national financial planning. NDC is also known as Rashtriy Vikas Parishad. The Prime Minister of India is the ex officio chairman of NDC and all cabinet ministers, chief ministers of all states, governors of union territories and members of NITI ayog are the members of NDC. As there is no provision for the creation of this council, it is also called as a non constitutional or extra constitutional body.

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Prabhat Sir