The constitutional process for the creation of a new state is very easy and simple; but the implication are far reaching. The makers of the Indian Constitution empowered the Union Parliament to recognize a new state by a simple procedure, as provided in Article 3 of the Constitution. Article 3 says that the Parliament may by law form a new state- by separation of a territory from any state and by uniting two or more states or parts of state or by uniting any territory to a part of any state-by a simple majority or by ordinary legislative process. Parliament may form new states or alter boundaries etc. The Bill can be introduced on the recommendation of the President.

Positive Aspects

1. After independence, the role of Government has changed : from a pure law and order maintaining agency to a development sponsoring organization. This requires a more elaborate Government machinery. The smaller states would be more viable in this regard.
2. The smaller states would be more effective for the fiscal management.
3. The popular needs, demands and the problems of the people in this region could be articulated and paid attention by the Government, much more than the past.
4. If the North-East have not shown better results than the Himachal Pradesh and Haryana have definitely shown better results.
5. Even with the creation of 3 new states, India still has just over half as many states as the USA, with 4 times population.
6. This allows for the greater competition among States as well as for more experimentation and innovation.
7. The smaller states will have relatively more homogeneous preferences.
8. Infact, India's problem of centralization lies not between Centre and the State government but between State Government and the Local Bodies. This problem would be less in the smaller states.
9. The quality of governance would be better : vertically, there are likely to be fewer hierarchies in the administrative structures, which improves the quality of information that decision makers receive; and horizontally, the span of control is smaller, allowing for greater focus.

Negative Aspects

1. It will further lead to regional imbalances in terms of infrastructure facilities :
2. Vananchal would means a state with no agricultural land, but full of forest and minerals and it would make Bihar only with agricultural land with no minerals and forests;
3. Chattisgarh is backward, there is lack of basic facilities like communication, education, etc, with virtually no industry; and
4. Uttarakhand would have tourism as the only source of income.
5. In a heterogeneous society, creating new states would lead to the unlimited demand of states : demands for Eight states are already in the offing : Purbanchal, Harit Pradesh and Bundelkhand in Uttar Pradesh ; Bodoland in Assam; Gorkhaland in West Bengal ; Telangana in Andhra Pradesh; Vidarbha in Maharashtra; Saurashtra in Gujarat.
6. It will add additional wasteful administrative expenses in making of capitals and buildings.
7. Only by creating new states is no panacea for India's problems and evidence from the Northeast could be cited to demonstrate that smaller states do not necessarily result in better economic performance.
8.   It may give rise to new friction between state and central power too.

Uttaranchal 

The formation of this new state may change the political contours of the parent state. This new state includes 13 districts and its total area is to be 51,125 sq.km. out of the 2,94,411 sq.km. The BJP which has supported the demand of a separate Uttaranchal, has at last fulfilled the dream of the people of the hilly areas, who had been agitating for a separate hill state comprising of Garwhal and Kumaon areas The geography of this area is distinct from the rest of U.P. Its population may create new forces of political disunity.
Some problems may also be faced in the concept of separate state. First, the election of new capital- Dehradun or Nainital. Second, to build a capital at the location central to both the regions may curtail a huge, complicated expenditure. Now the idea was dropped. Third, the new state may have dispute with U.P. over distribution of power, sharing of river water and resources of undivided U.P. "The state can be self reliant and has tremendous potential in the information technology industry as well as a new power project." Naveen Joshi who has been associated with Uttrakhand movement points the scope of Fruits Processing Units and of medicinal plants. Unfortunately, since independence no such efforts are made to boost above claims.
The new state has established tourism industry which rakes on about Rs. 250 crore every year. But it is seasonal and the region may subsists on a "money-order Economy" depending or remittances from migrants.

Chhatisgarh

It is richly endowed with forest and mineral wealth, known as the rice bowl of the state, but still the area is underdeveloped. It produces coal, calcium, iron-ore, dolomite, bauxite, mica and tin. It supplies 70 per cent 'Tendu' leaves for making 'bidis'. The new state which has 16 of the 61 districts of Madhya Pradesh : Bastar, Bilaspur, Dantewada, Dhamtari, Durg, Janjgir-Champa, Jashpur, Kanker, Kawardha, Korba, Koriya, Mahasamund, Rajgarh, Raipur, Rajnandgaon and Surguja, has an area of 1,46,361 sq. km., bordering Bihar, U.P., Andhra Pradesh, Orissa and Maharashtra. The state has thick forest and the people depend upon this for their living. It is also rich in mineral, coal, calcium, mica, iron ore etc. It has huge reserve of diamonds in Raipur; and Bhilai Steel Plant is also situated there.

The state is predominantly tribal which is a dominant political class. Its problems are:
(a) the drought prone areas;
(b) backwardness and under-development;
(c) forest areas in the centre which are used by the Naxalites to move to Bihar or Nepal. The new State will also be facing the same problems. The Congress (I) and the BJP have both supported the creation of Chhattisgarh and they will try to establish their political stronghold. Both the parties support Raipur or Bilaspur as its capital.