Explanation:

Competitive Federalism professes a vertical relationship between the States and the Central government while states compete among themselves. Hence option (a) is the correct answer. • Cooperative Federalism signifies a horizontal relationship between the Centre and the State. This means the two entities cooperate and tackle shared issues to serve the larger public interest. • Cooperative and Competitive Federalism in India: o Cooperative and Competitive Federalism, though seem to be at loggerheads, aims towards the common objective of economic growth and welfare of the nation in an equal and equitable manner. o When our Constitution was first created, it only comprised the notion of cooperative federalism through mechanisms like the Inter-state council, Zonal council, and 7th schedule. o But in the course of time, as States competed to attract capital and Investment to facilitate and stimulate economic activity and improve administrative efficiency, the need for Competitive capitalism was founded. o It ensures minimum waste and maximum resource usage by stimulating healthy competition among states in creating physical and social infrastructure. o NITI Aayog’s Index approach, whereby it releases sector-specific indices like School Education Quality Index, Sustainable Development Goals Index, State Health Index, India Innovation Index, Composite Water Management Index, and Export Preparedness Index, has heralded a new wave of healthy competition among states.