Indian federalism push may deepen regional disparities

Subject

'Competitive federalism'.

Significance

Since Prime Minister Narendra Modi took office in May 2014, India's drive for economic development has placed renewed emphasis on 'competitive federalism' in which the states, rather than the federal centre, play the leading roles. Yet not all states have an equal capacity for self-development. There are risks that growth will become more skewed and social inequalities deepen.

Impacts

• Growth driven by non-industrial sectors is essential for some states, but out of favour with the centre.
• Institutional protections on social spending are being eroded, despite vast demographic needs -- and risks.
• Regional growth -- and deprivation -- may come to hinge increasingly on state-level political leadership with declining central mediation.