The book A Sixth of Humanity: Independent India’s Development Odyssey by former CEA Arvind Subramanian and Devesh Kapur highlights growing concerns over India’s federalism and consensus building as a solution.
Challenges to Federalism in India
- Divergent Regional Performance: Southern and western states have grown faster economically than the northern states, creating disparities.
- Developed states feel penalized for better economic performance, with growing gap between states' economic contribution and Finance Commission transfers.
- Combative Federalism: Increasing unilateral Centre decisions have weakened consultation and cooperative federalism, eroding trust between Centre and states.
- E.g. 2020 Indian farm laws even agriculture is state subject under seventh schedule of Indian constitution
- Rising Democratic Deficit: Frozen Representation in Lok Sabha based on 1971 Census to avoid penalizing states controlling population growth affect democratic reforms mandated in original constitution.
- Increasing instances of Centralization: The improper use of assenting powers of the Governor in under Article 200 where opposite party to centre is in power.
Initiatives
- Inter-State Council: Set up under Article 263 to promote coordination between Centre and States.
- GST Council: A joint forum (Article 279A) with members from both Centre and States to decide GST policies.
- Others: 10% horizontal Tax devolution based on Contribution to GDP (16th Finance Commission recommendation), 73rd & 74th constitutional Amendments for local bodies creating a third tier of government etc.
Solutions to promote federalism
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