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Indian Diaspora
federalism
India's Federalism Strains: Experts Call for Consensus
India's federal structure faces significant challenges, marked by a growing democratic deficit, rising fiscal transfers, and increasing centralisation of power. Experts highlight that parliamentary seat allocation, frozen since the 1971 census, disproportionately affects southern states, creating a "democratic deficit" in representation. Fiscal federalism is strained by states' declining revenue shares, reliance on centrally sponsored schemes, and GST-related complexities. The Union government's perceived unilateral actions on key policies have led to contentious Centre-state relations, eroding trust. To address these issues, experts recommend the Centre engage states through wide consultation, accommodation, compromise, and self-restraint to foster genuine cooperative federalism.
KEY TAKEAWAYS
Parliamentary seat allocation, frozen since 1971, creates a 'democratic deficit' for southern states.
Fiscal federalism is under stress due to declining state revenues and GST-related issues.
Increased centralisation and perceived unilateral policy-making by the Centre are eroding Centre-state trust.
Consensus building through consultation, accommodation, and compromise is crucial for a stronger federal system.
WHY IT MATTERS
These federalism challenges threaten India's diverse polity, potentially impacting governance effectiveness, equitable development across states, and the overall stability of Centre-state relations. Addressing these strains is vital for national cohesion and democratic health.