Model answer & approach
- Competitive federalism in India while intended to have healthy competition among states has shown tendencies towards parochialism. Comment. (Answer in 150 words)
Introduction
Competitive federalism seeks to encourage States to compete for investment, infrastructure, innovation and better governance. However, excessive competition can sometimes foster regional protectionism and parochial tendencies.
Body
Positive Role:
1. State rankings and performance indices encourage reforms in ease of doing business, health, education and innovation.
2. Competition attracts investment and improves administrative efficiency.
3. States experiment with policies, creating models for wider replication.
Parochial Tendencies:
1. Sons-of-the-soil politics may lead to preferences for local residents in jobs and education.
2. Competition for industries can trigger tax concessions and subsidy races, weakening fiscal prudence.
3. Inter-state disputes over river waters, boundaries and resources may intensify.
4. Political narratives sometimes portray migrant workers as competitors, undermining national mobility.
5. Wealthier States may widen regional disparities by attracting disproportionate private investment.
Conclusion
Thus, competitive federalism must operate within cooperative federalism, with stronger Inter-State Council mechanisms, equitable fiscal transfers and national norms ensuring that competition strengthens efficiency without weakening unity.
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