The Political Economy Of Federalism In India

This is a comprehensive work on India's fiscal federalism. The book surveys and analyses the evolution of fiscal federalism from the angle of political economy and brings to bear analytical skills of a very high order to assess and relate the political and administrative dimensions of India's federal system to fiscal federal issues. The authors present a synthesized framework, combining both economic and political elements in a political economy prism such as the Cente–State relations with not only the political perspectives but also the economic ones with the belief that only such a framework can provide a useful guide to implementable reform of policies.

This study examines the system, institutions, and outcomes arising from the interplay of political and economic forces in Indian federalism. The authors broaden the conceptual framework for analysing Indian federalism to include the political elements and institutions and their strategic interaction with fiscal elements.

Chapter 1 INTRODUCTION -- chapter 2 The geography and the political economy of Punjab: an historical overview of Punjab-centre relations -- chapter 3 Federalism, nationalism and India's development strategy: an historical overview and analytical framework -- chapter 4 Federal financial relations in India and their implications for centre-Punjab financial relations -- chapter 5 CENTRE-STATE RELATIONS IN AGRICULTURE AND THEIR IMPLICATIONS FOR PUNJAB AGRICULTURE -- chapter 6 CENTRE-STATE RELATIONS IN INDUSTRY AND THEIR IMPLICATIONS FOR THE PATTERN OF INDUSTRIAL DEVELOPMENT IN PUNJAB -- chapter 7 SUMMARY AND CONCLUSIONS.

To understand how politics, the economy, and public policy function in the world’s largest democracy, an appreciation of federalism is essential. Bringing to surface the complex dimensions that affect relations between India’s central government and states, this short introduction is the one-stop account to federalism in India. Paying attention to the constitutional, political, and economic factors that shape Centre–state relations, this book stimulates understanding of some of the big dilemmas facing India today. The ability of India’s central government to set the economic agenda or secure implementation of national policies throughout the country depends on the institutions and practices of federalism. Similarly, the ability of India’s states to contribute to national policy making or to define their own policy agendas that speak to local priorities all hinge on questions of federalism. Organised in four chapters, this book introduces readers to one of the key living features of Indian democracy.

This volume analyzes centre-state dynamics in India placed against the backdrop of the election of a Narendra Modi-led Bharatiya Janata (BJP) government to central power in 2014. It reflects on how centre-state relations have been shaped by the legacy of nearly two decades of broad-based coalition government at the centre and the concurrent and ongoing liberalization of the Indian economy. To this purpose, the volume engages with several relevant questions linked to the political economy of Indian federalism and its ability to manage ethno-linguistic difference. Did liberalization strengthen the economic or political autonomy of the Indian states? What impact did party system change have on the capacity of parties in central government to influence the actions of state governments? How did party system change and liberalization influence the fiscal and financial autonomy of the states and the capacity of the centre in planning and social development? Did both processes strengthen the autonomy of Chief Ministers in foreign policy-making? What are the strengths and weaknesses of Indian federalism in ethno-linguistic conflict management and what do the recent split of Andhra Pradesh or the proposed formation of Bodoland tell us about the dynamics underpinning the management of ethno-linguistic difference in contemporary India? The chapters originally published as a special issue of India Review.

This book is one of the first in-depth and systematic studies on the functioning and aspiring federations of South Asia. It examines how federal dynamics in India, Pakistan, Nepal, and Sri Lanka are impinged on by the nature of their specific constitutions; their societal, political and cultural fabrics; composition of power elites and ruling classes; structures of political economy and market; electoral and party systems; mass media; and information technology. The authors offer a comparative, analytical, conceptual, and theoretical framework to understand patterns and trends as also experiences of and possibilities for federalism in South Asia. They highlight divergences and similarities, successes and key challenges, while indicating federalism’s wider regional relevance in the discourse on democracy and governance. The book concludes that the multicultural character of these societies — beset with ethnic and regional conflicts, separatist and military undercurrents — makes federal political solutions the only viable route. Providing a wealth of material, this will deeply interest scholars, students and teachers of comparative politics, political science, federal studies, area studies as well as those interested in political structures and processes in South Asia.

Tracing the historical roots of India`s federalism, this book analyzes the changes brought about by the shift from one-party dominance to coalition politics and multi-party governance. Coupled with these changes, the author maintains that the process of economic liberalization has permanently altered the federal calculus in India. The book argues that these developments have transformed federal relations in India from intergovernmental competition between the central government and the states to interjurisdictional cooperation between the states. As a result, the states no longer need to rely exclusively on the central government for their economic and industrial development.

Likening fiscal federalism to a game between the Union and the States, and among the States themselves, Indian Fiscal Federalism lays bare the complex rules of play. It examines the pivotal role of Finance Commissions and assesses momentous events since 2014, such as the replacement of the Planning Commission by NITI Aayog, the emergence of the GST Council, and the controversies surrounding the Fifteenth Finance Commission. States, and among the States themselves, Indian Fiscal Federalism lays bare the complex rules of play. It examines the pivotal role of Finance Commissions and assesses momentous events since 2014, such as the replacement of the Planning Commission by NITI Aayog, the emergence of the GST Council, and the controversies surrounding the Fifteenth Finance Commission. A contemporary, timely, and comprehensive analysis of fiscal federalism in India, this practitioners’ perspective is a must-read for all those interested in the subject.