THe Blog

August 11, 2017

The ‘One Nation’ Fallacy in a ‘New’ India

Visiting Senior Fellow Praveen Chakravarty and Resident Senior Fellow Vivek Dehejia, write for the Hindu Centre for Politics and Public Policy.

 

In this paper, they argue that the ‘new’ India demands a drastic shift towards maximum regional autonomy. Policies such as the Goods and Services Tax (GST), which further integrate the market while removing policy levers from States, can only exacerbate regional inequality. A ‘one nation one policy’ paradigm can fan fissiparous tendencies in a diverse polity and create sub-nationalism fault lines. Our policy prescription is directional in nature: The Union government should avoid unitarism and adopt “place-based” policies, which maximise policy and fiscal autonomy for the States.

 

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