Learn about cooperative and competitive federalism in India, their significance, mechanisms, and how they shape Centre-State relations and economic growth.
theIASHub | 09 May, 2025
India follows a quasi-federal structure, where power is divided between the central and state governments. However, within this framework, two distinct forms of federalism—cooperative and competitive federalism—play a crucial role in governance, policy implementation, and economic growth.
Cooperative federalism refers to a system where the central and state governments work together to formulate policies, share resources, and implement programs for national development. It focuses on collaboration, consultation, and coordination to achieve harmonious governance.
Competitive federalism encourages healthy competition among states to attract investment, improve governance, and enhance ease of doing business. It pushes states to innovate and adopt best practices for economic growth and efficient public administration.
India’s governance model embraces both cooperative and competitive federalism. Cooperative federalism ensures shared responsibility, while competitive federalism motivates states to enhance economic efficiency. Together, they create a dynamic federal structure that supports economic growth, innovation, and effective governance.
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