States Crucial for Viksit Bharat: India's Economic Future Hinges on Federal System

• India's economic growth relies heavily on states' ability to execute reforms, attract investment, and build institutions, not just central policies.
• State governments manage nearly two-thirds of public expenditure and are responsible for key sectors like health, education, and infrastructure.
• India's diverse regional economies, with varying development models, highlight the importance of state-level competence and competitive federalism.
• Fiscal federalism faces strain due to central cesses/surcharges and GST compensation issues, impacting states' ability to fund development.
• Achieving Viksit Bharat requires strengthening states' capacity within a cooperative framework, allowing regional initiative and local administrative strength to flourish.