## Disputes Between Centre and States Over Economic Policies in India
Disputes between the central government and individual states over economic policies have a long history in India. However, in recent years, these conflicts have become more frequent and intense. States like Karnataka and Kerala have accused the central government of unfairly allocating resources and neglecting their needs.
Amartya Lahiri, a professor at the University of British Columbia, believes that India is not fully utilizing the benefits of its federal structure. He argues that the country has traditionally relied too heavily on the central government, leading to these conflicts.
Lahiri suggests that a more robust form of fiscal federalism could be a solution. This would involve encouraging states to compete with each other in terms of best practices and efficiency. He believes that this approach would incentivize states to improve their performance and attract businesses.
Lahiri acknowledges that some states may have legitimate concerns about the central government's policies. However, he also believes that some complaints may be politically motivated. Finance Minister Nirmala Sitharaman has expressed similar concerns, stating that accusations of discrimination against certain states are often politically driven.
Lahiri believes that it is important to address these concerns and ensure that all states have a fair chance to succeed. He argues that a more competitive federal system would benefit the entire country by promoting economic growth and development.