What does the term quot competitive federalism quot imply ........

Indian Polity Centre - State Relations

What does the term "competitive federalism" imply?

Competitive federalism means that regional or local governments compete with other regional or local governments.

Competitive federalism means that regional or local governments compete with the Central or Union government.

Competitive federalism means that regional or local governments compete with the regional ot local governments as well as the Central or Union government.

None of the above

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Explanation:

In Competitive federalism States need to compete among themselves and also with the Centre for benefits. States compete with each other to attract funds and investment, which facilitates efficiency in administration and enhances developmental activities.