Consider the following statements regarding lsquo Competitive Federalism rsquo 1 It r...........

Indian Polity Centre - State Relations

Consider the following statements regarding ‘Competitive Federalism’:

1) It refers to horizontal relationship among the states to compete with each other to attract investment by utilizing their comparative advantage.

2) It does not involve competition between Centre and States.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Competitive federalism is a concept where centre competes with states and vice-versa, and states compete with each other in their joint efforts to develop India. As a concept, it is more suitable to the countries like US, where it is in-built in their constitution. In competitive federalism, states would compete with each other over a broad range issues to provide citizens various services in a hassle-free manner. The policy of one-size-fit-all is replaced with different policies of various states based on the own priorities with in the state. Each state will design their own policies for development of the state with self-fund. The concept also promotes discipline among the states.