Competitive Federalism
Competitive federalism refers to a governance model where states and the Centre compete to attract investments, deliver better services, and innovate across sectors. Unlike cooperative federalism, which emphasizes partnership, competitive federalism drives healthy rivalry among subnational governments for economic and social progress.
- Examples include state rankings like the Good Governance Index, Ease of Doing Business Index, and the Fiscal Health Index 2025, which evaluate and publicly rank states based on criteria such as infrastructure, fiscal discipline, investment climate, and service delivery, incentivizing healthy competition.
Background
- The concept gained prominence after 1991’s liberalization, privatization and globalization (LPG) reforms, with states increasingly competing ....
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