The Government of India has established NITI Aayog to replace the

The correct option is Planning Commission.

Step-by-step Explanation:

1. Establishment of NITI Aayog:
The Government of India established NITI Aayog (National Institution for Transforming India) on January 1, 2015. It was created through a resolution of the Union Cabinet.

2. Replacement of the Planning Commission:
NITI Aayog was introduced to replace the decades-old Planning Commission, which had been in existence since March 15, 1950. The Planning Commission was primarily responsible for formulating India's Five-Year Plans and allocating resources to states.

3. Shift in Approach:
While the Planning Commission followed a top-down approach to economic planning, NITI Aayog was designed to serve as a policy think tank. It operates on a bottom-up model, emphasizing cooperative federalism by ensuring active participation and collaboration of State Governments in the economic policy-making process.