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What is Competitive


Concept where centre

competes with states &
vice-versa, & Ultimate aim is
to develop India
States compete with
each other

Policy shift from one-size-fit-all to based on own

priorities with in the state.

Originated in countries Bottom-up

such as the US Bottom-up approach

According to Liberty Services at the

Foundation (USA): it is a lowest cost, and
system that allows States
to compete with each other
over a broad range of issues The best value
Why in to provide citizens with goods

News? Progress in Terms of Competitive

Signs of competitive
Federalism in States
federalism especially Reforms in ease of Competed for investments
in terms of ease of doing business by bringing various
doing business reforms

States trying to Expediting the pending Eg. Andhra Pradesh &

attract investments by project clearances Karnataka (Hyderabad
facilitating reforms and Bengaluru)

Federalism in India Way
NITI One of the mandates of NITI Aayog
Aayog to develop competitive federalism
India on right track of Special funding required
competitive federalism by deficit states like Bihar,
State governments Policy guidance Odisha, Jharkhand, NE
do not look towards Not all states have yet states etc to participate
centre for embraced the concept in competitive federalism
Fiscal resources

Reforms in land
Share of states in central tax revenue increased  andful of states are taking
H acquisition &
tax from 32% to 42% steps to strengthen their
business environments like Labour flexibility
Freedom with states to plan their expenditure
based on their own priorities

Work within the context of shared

national objectives