NITI Aayog calls in consultants from BCG, EY and McKinsey

In response to a question asked in Parliament, Indian Minister of State for Planning Rao Inderjit Singh announced that the National Institute for Transforming India (NITI) Aayog (Commission) would be hiring consultancy firms Boston Consulting Group (BCG), Ernst & Young (EY), IPE Global, and McKinsey & Company to assist with time-bound projects.

Earlier this year, the Output Outcome Framework for Schemes 2017-2018 announced that Rs 35 Crore (€4.65 million) would be assigned to the NITI Aayog in the next financial year with the sole purpose of hiring consultancy firms for time-bound services.

Formed in 2014 under the administration of Prime Minister Modi, the NITI Aayog replaced the erstwhile Planning Commission on the grounds that the economic and demographic circumstances of India had altered significantly since the formation of the Planning Commission in 1950. The flagship initiative of the NITI Aayog is the Development Support Services for States (DSSS), which has been established to provide federal support to states at the project level through “end-to-end transaction management,” as well as at the sector level through the hiring of private consultancy services.

Under the DSSS, a consortium of BCG, IPE Global, McKinsey & Company, and Indian consultancy firm Piramal Foundation Education has been called upon, in order to “transform health and education in three states,” according to Rao. Big Four professional services company EY, have meanwhile been called upon to help promote Public Private Partnerships (PPPs) within the infrastructure sector.

The firms were hired through a process of “open competitive bidding,” and it comes as no surprise that the aforementioned firms demonstrated an interest in the projects available. BCG are fairly familiar with the education scenario in India, having worked in collaboration with the Indian State of Haryana to bring about transformational improvements in their school system. Similarly, Mckinsey have worked closely with government agencies in South Africa for a number of projects in the field of education and healthcare over 20 years. Lastly, the establishment of PPPs is one of EY’s primary specialisations within their range of government sector activities.

As stated by Singh, the projects are currently in early stages, and no official payment or compensation has been provided as of now for the services.