The new approach to federalism – A combination of cooperation and competition

Context: The ongoing discords between the Centre and states over issues ranging from the allocation of financial resources to fixing of GST rates have once again brought to the fore issues pertaining to our federal structure, the resolution of which is essential for the country’s growth.

Approaches to federalism

• The traditional approach to federalism that sees competition and cooperation at loggerheads is no longer relevant in the post-1990s scenario.
• Indian federalism today enables the Centre and states to function with both exclusivity and mutualism.
• The new approach has shown that a combination of cooperative and competitive spirit ensures the economic prosperity and welfare of the nation in an equal and equitable manner.
• It is undeniable that cooperation is key to the smooth functioning of federal design.
• Ho