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Federalism and economic development in India:An assessment

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Author Info
Singh, Nirvikar
Srinivasan, T.N.

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Abstract

This paper examines India’s federal system in the context of prospects for India’s future economic growth and development. After a brief review of India’s recent policy reforms and economic development outcomes, and of the country’s federal institutions, the analysis focuses on the major issues with respect to India’s federal system in terms of their developmental consequences. We examine the impacts of tax assignments, expenditure authority and the intergovernmental transfer system on the following aspects of India’s economy and economic performance: the quality of governance and government expenditure, the efficiency of the tax system, the fiscal health of different tiers of government, and the impacts on growth and on regional inequality. In each case, we discuss recent and possible policy reforms. We make comparisons with China’s federal system where this is instructive for analyzing the Indian case. Finally, we provide a discussion of potential reforms of aspects of India’s federal institutions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1273.

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Date of creation: Oct 2006
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Handle: RePEc:pra:mprapa:1273

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416. [Downloadable!] (restricted)
  2. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," MPRA Paper 1705, University Library of Munich, Germany. [Downloadable!]
  3. Roy Bahl & Jorge Martinez-Vazquez, 2003. "Fiscal Federalism and Economic Reform in China," International Studies Program Working Paper Series, at AYSPS, GSU paper0313, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  4. Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," MPRA Paper 1276, University Library of Munich, Germany, revised Dec 2006. [Downloadable!]
  5. Rao, M. Govinda & Singh, Nirvikar, 2006. "The Political Economy of India’s Fiscal Federal System and its Reform," MPRA Paper 1279, University Library of Munich, Germany. [Downloadable!]
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  6. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," NBER Working Papers 10376, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Singh, Nirvikar, 2007. "The Dynamics of Reform of India’s Federal System," MPRA Paper 2282, University Library of Munich, Germany. [Downloadable!]
  2. Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," MPRA Paper 1276, University Library of Munich, Germany, revised Dec 2006. [Downloadable!]
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