India, a diverse and vast nation, operates under a federal structure that positions both national and state governments at the heart of governance. These entities are primarily responsible for legislation, scheme design, and policy implementation, while local governments execute these regulations at the district, block, and local levels, both urban and rural. As we move forward in envisioning a Viksit Bharat, reimagining governance is essential to cater to the distinct needs of this extensive population and diverse geographical terrain.
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Federalism: A Necessity for India’s Diversity
Federalism is not merely an ideal for India—it is a necessity driven by the country’s vastness, population size, and diversity. India's states and even some districts are comparable to mid-sized countries. For example, Uttar Pradesh, if it were a separate nation, would be the 5th most populous in the world. Similarly, Maharashtra and Uttar Pradesh combined surpass the population of all countries except China. India's 700+ districts and over 7,000 sub-district blocks encompass an enormous population and terrain that necessitate tailored governance strategies.
The complexity of governance in India is heightened by its heterogeneity in physical features, ecology, natural resources, and levels of socioeconomic development. These disparities demand differential strategies that address specific local challenges and opportunities. One-size-fits-all planning at the national level is insufficient to achieve Sustainable Development Goals (SDGs) in such a diverse landscape. Hence, the governance approach must be decentralized, allowing for a closer connection to the people, and enabling more agile responses to emerging challenges.
Cooperative and Competitive Federalism: The Backbone of Governance
The concept of federalism in India is not hierarchical but rather a division of functions between various levels of government. In this framework, every level of government, from the center to the states, is an equal participant in the nation’s growth trajectory. NITI Aayog, India's policy think tank, has pioneered a hybrid approach of competitive and cooperative federalism that fosters a dynamic and effective governance system.
Through competitive federalism, states compete to outshine each other by implementing effective policies, fostering innovation, and attracting investments. Meanwhile, cooperative federalism ensures that states and the central government work together by sharing best practices, resources, and knowledge to achieve common goals.
NITI Aayog’s Role in Fostering Competitive and Cooperative Federalism
NITI Aayog plays a pivotal role in facilitating this hybrid model of governance by adopting various innovative approaches:
1 - Benchmarking State Performance
NITI Aayog has developed several indices to benchmark the performance of states, fostering healthy competition. These indices, such as the School Education Quality Index, State Health Index, Composite Water Management Index, and the SDG India Index, rank states based on transparent, objective criteria. This ranking system drives states to continuously improve and strive for better outcomes across various sectors.
2 - Encouraging Innovation through Best Practices
NITI Aayog actively disseminates best practices in sustainable and equitable development through platforms such as the NITI for States platform and the NITI-State workshop series. By creating a vast repository of policy resources, insights, and innovative practices, NITI Aayog fosters a culture of continuous improvement among states. Initiatives like the Atal Innovation Mission further bolster innovation by creating a collaborative community of national and international experts.
3 - Promoting Investment and Economic Growth
NITI Aayog collaborates with the private sector to promote investments and economic growth across the country. For instance, the National Mission on Transformative Mobility and Battery Storage and the Strategic Economic Partnership between India and Saudi Arabia highlight the organization’s efforts to attract investments and drive economic growth. NITI Aayog also organizes workshops focused on public service delivery, digital governance, and citizen-centric governance, ensuring efficient policy implementation across the country.
4 - Acting as a Catalyst for Dialogue
The Governing Council of NITI Aayog, which includes the Prime Minister of India, Chief Ministers of all states, and other key representatives, serves as a crucial platform for policy dialogue. Through the Governing Council Meetings, NITI Aayog facilitates discussions that help evolve a shared vision of national priorities and strategies. Sub-groups formed under this council work on vital issues like skill development, Swachh Bharat Abhiyaan, and the rationalization of centrally-sponsored schemes, ensuring cooperation between the center and the states.
5 - Facilitating Collaboration in Policy Formulation
NITI Aayog’s efforts in policy formulation, programme implementation, and resource sharing have significantly impacted governance at both the state and local levels. Programmes like the Aspirational Districts Programme (ADP) and the Aspirational Blocks Programme (ABP) demonstrate how collaborative efforts between central and state governments can drive inclusive development. These programmes focus on improving key performance indicators (KPIs) in underdeveloped districts and blocks, thereby accelerating the realization of SDGs across the country.
Towards a Viksit Bharat: The Role of State-Specific Initiatives
Recognizing the importance of strong states for a strong nation, NITI Aayog has implemented structured support initiatives like the State Support Mission (SSM). This mission provides special assistance to states by setting up institutions similar to NITI Aayog, called State Institutions for Transformation (SIT). These institutions focus on identifying state-specific growth drivers and boosting socioeconomic growth.
The Aspirational Districts & Blocks Programme is another key initiative that showcases the importance of collaboration between central and state governments. Launched in 2018, this programme builds on the principles of competition, convergence, and collaboration, driving transformational change in 112 districts and 500 blocks across India. This approach has led to significant improvements in development outcomes within a short span of time, as highlighted in an independent appraisal conducted by the UNDP.
A Roadmap for Viksit Bharat
Reimagining governance in India is not just about decentralizing power; it’s about fostering a culture of collaboration, innovation, and efficiency across all levels of government. As we move towards a Viksit Bharat, the principles of competitive and cooperative federalism must continue to guide our governance model. With initiatives like NITI Aayog’s indices, State Support Mission, and Aspirational Districts & Blocks Programmes, India is well on its way to achieving its vision of inclusive and sustainable development by 2047.
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