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Trending: Call for Papers Volume 5 | Issue 3: International Journal of Advanced Legal Research [ISSN: 2582-7340]

IMPACT OF GLOBALISATION ON INDIAN FEDERALISM – Debasrita Choudhury

Abstract

The Indian federalism is cooperative in nature where central and sub-central governments work together to achieve sustainable goals. Globalization has led to increased decentralization of government powers and responsibilities, but the idea of a sovereign state began to dissipate. Globalization opened India to the world, affecting trade, agriculture, public policy, and every sphere of life, significantly impacting various aspects of the nation, including politics, administration, economy, health, and environment. Decentralisation ideals in the Indian Constitution were implemented to handle the rapid changes of the rapidly globalizing economy. The Indian economy and governance have faced challenges due to globalisation, with states adopting short-sighted policies to attract foreign investment. The Planning Commission played a key role in liberalisation, regulating economic and financial relations between the centre and states. India’s federalism has faced challenges such as financial disparity between states due to historical, geographic, and political factors. Post-independence, the Centre took on a stronger role in providing equitable measures to states lagging behind. However, globalisation changed this for the worse, emphasizing further decentralisation and an atmosphere of competition. The states started competing amongst each other to attract foreign revenue, leading to increased inequality in state incomes and divides in infrastructural development. Further globalisation has caused a vacuum of legitimacy concerns, as nations as units of governing municipal law are losing their sovereignty. The rise of civil society organizations, such as NGOs, has also contributed to the parallel and horizontal structures of democratic governance in India. The Supreme Court has redefined its role as an adjudicator and governance institution in the realm of privatisation and development policies, creating ‘asymmetrical rights terrains’ where rights of certain interests and stakeholders are privileged above others. Globalisation is essential, but at the rudimentary level, a nation must balance national or public interest with the fundamental rights of citizens.