India opted
for quasi-federal structure after Independence. After Independence from 1947 to
1967, India experienced the centralized federalism. From 1967 to 1990, India
witnessed confrontational federalism due to the emergence of other party
governments at the state level. Since 1990, Co-operative federalism has been
developed. The present NDA government has been focusing on the new concept of
competitive federalism along with co-operative federalism for higher growth of
the country.
In
competitive federalism, states would compete with each other over a broad-range
issues to provide citizens various services in a hassle-free manner. The policy
of one-size-fit-all is replaced with different policies of various states based
on their own priorities within the state. This spirit of competition has led to
lack of inter-state mutual assistance. The NITI Aayog was formed to empower and
strengthen the state governments. It also appointed regional councils to create
cooperation among two or more states facing a common set of problems or
amicably settle disputes.
While the
competition between states, reflected in the World Bank’s Ease of Doing
Business index, has generated a lot of enthusiasm, this must be a continuing
exercise. There are only few well-off states like Maharashtra, Gujarat, and
Tamil Nadu which are competing. The proposed GST law may help some of the less
productive states to raise the revenue. But the opposition of few well-off
states with respect to revenue loss in implementation of GST system points that
there is lack of will in participating in the process of competitive
federalism.
We’ve seen
various inter-state water disputes such as Krishna water disputes involving
Maharashtra, Karnataka and Andhra Pradesh, Narmada water disputes involving
Rajasthan, Gujarat, M.P, and Maharashtra, Cauvery water disputes involving
Karnataka, Kerala, Tamil Nadu, Puducherry, and various others. For this, under
Article 263, an inter-state council was established. The Sarkaria Commission on
center-state relations (1983-87) made a strong case for the establishment of a
permanent inter-state council. Article 301 to 307 in Part 13 deals with the
trade, commerce and intercourse within the territory of India, breaking all the
border barrier between the states. Zonal councils have also been established in
1956 to narrow the gap between the states. Cases such as Cauvery water dispute
and Sutlej Yamuna link canal issue have seen non-mutual assistance between the
states to a wider extent.
Thus, it
can be said that co-operative and competitive federalism are two sides of the
same coin. This spirit of competition has led to the lack of mutual assistance
between and among the states. It is competition with co-operation that will
drive the real change.
