Federalism and Economic Development in India: An Assessment

52 Pages Posted: 8 Dec 2006

See all articles by Nirvikar Singh

Nirvikar Singh

University of California, Santa Cruz

T. N. Srinivasan

Yale University - Economic Growth Center; Stanford Center for International Development (SCID) - Stanford Institute for Economic Policy Research (SIEPR)

Date Written: November 6, 2006

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 discussion of potential reforms of aspects of India's federal institutions.

Suggested Citation

Singh, Nirvikar and Srinivasan, T. N., Federalism and Economic Development in India: An Assessment (November 6, 2006). Available at SSRN: https://ssrn.com/abstract=950309 or http://dx.doi.org/10.2139/ssrn.950309

Nirvikar Singh (Contact Author)

University of California, Santa Cruz ( email )

Department of Economics
E2 Building
Santa Cruz, CA 95064
United States
831-459-4093 (Phone)
831-459-5077 (Fax)

T. N. Srinivasan

Yale University - Economic Growth Center ( email )

Box 208269
New Haven, CT 06520-8269
United States
203-432-3630 (Phone)
203-432-3635 (Fax)

Stanford Center for International Development (SCID) - Stanford Institute for Economic Policy Research (SIEPR)

Stanford, CA 94305
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
535
Abstract Views
2,774
rank
51,346
PlumX Metrics