Does regional decentralisation preserve the spirit of federal polity in India?

Richa Singh, Sankalpa Bhattacharjee and Amarendu Nandy

Regional Studies, 2025, vol. 59, issue 1, 2441222

Abstract: This paper investigates the impact of multidimensional elements of decentralisation, intergovernmental grants and centre–state polity on economic growth, employing both spatial and non-spatial techniques. We use a balanced panel dataset encompassing 14 non-special category states of the Indian federation for the period 1991–2019. Findings reveal a significant positive impact of fiscal and political decentralisation on economic growth, with spatial dependence among contiguous regions augmenting the impact of decentralisation. The study advocates fiscal decentralisation as the central pillar of economic reforms, underscores the need to enhance regional autonomy and emphasises the judicious use of grants devoid of political expediency to preserve the spirit of federal polity.

Date: 2025
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DOI: 10.1080/00343404.2024.2441222

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