Competitive federalism – Which are India’s hot States?

UK India Business Council (UKIBC) |

India is undergoing a historic phase of federalism, where states are playing a key role in the nation’s growth story. The central government’s focus on both co-operative federalism (the centre’s co-operation with states) and competitive federalism (competition between states) is crucial to this.

Following the 14th Finance Commission, the states are now receiving a higher share of tax devolution from the centre (42 per cent compared to an earlier 32 per cent). As a result, the states have been given the opportunity to become equal partners in determining India’s fiscal balance.

Watch our latest webinar with expert Dr. Shubhada Rao, Chief Economist at YES BANK, to discover the current state of competitive federalism in India, as well as the nation’s ‘hottest states’.

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