Critically analyze the efficacy of India’s federal

Critically analyze the efficacy of India’s federal structure in addressing regional disparities, focusing on the role of inter-state councils & fiscal devolution. Evaluate if it requires re-calibration in the current socio-political context. (Approx. 295 Characters)

Paper: paper_3
Topic: Polity

India’s federal structure, designed to balance central authority with state autonomy, faces the enduring challenge of regional disparities. This analysis evaluates its effectiveness, focusing on inter-state councils and fiscal devolution, and assesses the need for re-calibration.

Federalism, Regional Disparities, Fiscal Devolution (Finance Commission, grants-in-aid), Inter-State Councils (Article 263), Socio-political context, Economic Development, Equity, Good Governance.

Inter-State Councils, though intended to foster cooperation, have seen limited effectiveness due to infrequent meetings and lack of enforcement power. Fiscal devolution, while aiming to equalize resource distribution, often faces challenges: states’ varying fiscal capacities, conditional grants influencing state priorities, and the impact of centrally sponsored schemes.

The current socio-political climate, with increasing polarization and assertiveness from states, necessitates a re-evaluation. Increased devolution of funds and greater autonomy to states are vital for addressing regional imbalances effectively. However, this should be coupled with mechanisms ensuring accountability and promoting good governance at the state level. Strengthening Inter-State Councils with enhanced powers can facilitate dialogue and collaborative problem-solving.

India’s federal structure, while fundamentally sound, requires recalibration. Enhancing fiscal devolution, empowering inter-state councils, and adapting to the evolving socio-political landscape are crucial for mitigating regional disparities and ensuring equitable development and national unity.

  • Inter-State Council effectiveness
  • Fiscal devolution impact (Fin. Comm., grants)
  • Socio-political context’s influence
  • Need for greater state autonomy
  • Accountability and governance are key.
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