The late NT Rama Rao once described the center as “a myth”. That was extreme federalism, if you will. This is a sentiment that flourishes in India, if you take growth in the number of states as the specific metric. From 17 provinces and 565 princely states, which came together to form the Indian Union, a total of 14 states and six Union Territories (UTs) were formed after the states’ reorganization in 1956. The movement for a separate state raised the count to 29 states and by 2014 to seven union territories. Now, after the bifurcation of Jammu and Kashmir, there are 28 states and eight union territories since October 2019.
In terms of electoral and governance, beyond borders and demographics, federalism has driven the transition from single-party rule to that of coalitions. As democratic theorists have long argued, the principle of fiscal and administrative centralization, vigorously adopted by successive governments in New Delhi, is built on specific arguments. It ignores the argument that an effective, efficient union of states—and indeed, development—can only emerge from strong federalism, which is built around sustained social deliberation.
The National Development Council (NDC), a unique forum that brings together all the states and union territories, has failed to generate a genuine debate here. On balance, states have been better able to promote inclusive growth – an equal spread of health, education and poverty reduction – because they are focused on, and surviving, region-specific realities. Being more familiar with the ground and driven by democratic impulses, they have a better record of opening up social and political space to subaltern groups.
For example, Kerala and Tamil Nadu have done more to improve the lives of their residents in communities than any other state, and therefore, are at the top of human development indices. In Kerala, India’s first non-Congress government, led by EMS Namboodiripad, initiated land reforms that have served as the basis for the state’s success in education and health. In Tamil Nadu, MGR introduced a midday meal scheme for children, perhaps the first to provide better nutrition in the Direct Benefit Transfer scheme. Employment guarantees in Maharashtra, local administration initiatives in Karnataka and Kerala and school education in Himachal Pradesh are among the schemes that were later adopted at the national level. In 2021, the Dravida Munnetra Kazhagam reintroduced the narrative on respect for the rights of the state, previously articulated by party founder CN Annadurai.
Worryingly, states that have successfully controlled population growth may be deprived of resources if demographics is the sole determinant to fund development—poor states contribute little to the economy but require more financial input. . This has created a context where collective action between states becomes difficult.
Anyway, India’s macro-fiscal realities actually add to the fragility of state finances, say analysts. The central strategy of squeezing revenue from states—by raising the cess or increasing the state’s share in central schemes—and insisting on giving GST compensation only in the form of debt, runs contrary to the fiscal spirit of federalism, in a process marred by protracted delays. But the biggest ideological failure is to see regional identity politics as inherently separatist. The one-size-fits-all theory that lapses in the field of social development also lapses in the political sphere—the fact that states provide a better sieve and more sensitive lens with which to negotiate diverse political contexts and claims of identity. can be done.