Political Economy of Federalism

M. Govinda Rao and Nirvikar Singh

in The Political Economy of Federalism in India

Published in print November 2006 | ISBN: 9780195686937
Published online October 2012 | e-ISBN: 9780199080571 | DOI:

Series: Oxford India Paperbacks

Political Economy of Federalism

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This chapter examines the challenges in reforming policies and institutions to pave the way for the success of federalism in India. It explains that India embarked upon market-oriented reforms since the early 1990s but in spite of the attempted changes in policies and institutions, much remains to be done to make the institutions of governance in the country to be more market-friendly. It clarifies that most of the gains attributed to fiscal federalism in the mainstream literature pertain to decentralisation, not federalism per se. It suggests that design of policies and institutions to effectively achieve economic and political goals in a federal economy requires the analysis to be done from an institutional perspective.

Keywords: federalism; India; policy reforms; institutions of governance; decentralisation

Chapter.  3937 words. 

Subjects: Economic Development and Growth

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