The formation and reorganization of states in the country have been one the vehement issues since India’s independence. The creation of newer states has always attracted country policymakers who hold positive views on creating smaller states. The government always puts forward sets of reasons each time a new state is established. This highlights the economic and social benefits that will be achieved by the formation of the new state. Just like every other aspect of country politics, the formation of new states has its benefits and setbacks.
Benefits of the formation of new states
Studies have found that the smaller Indian states take part in the country’s trade more than the rest. This is solely due to the better administration due to the smaller size. Efficient management leads to development and better infrastructure, strong communication, and increased access to the market which improves trade. People in the area gain control over the natural resources and can reach their aspirations.
A smaller state encompasses the needs of its people. This leads to political stability and better representation of people. Moreover, striking economic growth has been observed after the creation of new states. These include increasing school enrollment and human capital investment.
Transportation and free movement of labour between the two state borders becomes easier. This also reduces conflicts between different groups in a diverse country like India.
What are the setbacks?
In an analysis of the economic development and political conditions of the new states in India, it has been noticed that the opposite picture is still visible. States have been reported to fail in proper management of natural disasters and dealing with the rehabilitation of the residents who are displaced. The economic benefits fail to match up with the miserable condition of displaced residents. Corrupt practices and scams have also been reported in several instances. The country has witnessed the exploitation of resources to match the growth trajectory. Hence, the creation of new states brings with it the chances of economic benefits, ultimately it depends on effective governance for them to be a success.
