Fiscal Challenges and Federalism in India
Keywords:
Fiscal Challenges, FederalismAbstract
Over the past seven decades, the United States federal system has gone from being universally despised to being lauded as an exceptional example of federal governance. This paper seeks to address the recent developments and problems in Indian federalism. In era of liberalisation, Indian federalism has gained increasing significance. As India transitioned from a command to a market economy, the states climbed from a position of subordination until the late 1980s, when they assumed a pivotal role. It is not surprising that the Centre started to show greater interest in bringing states into even taboo subjects like foreign policy. Several states are currently shifting away from divisive politics and toward developmental politics. There is a lot of mutual learning and competition among the states. It is believed by the Centre that the states will propel India's economic growth.
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