Creating smaller states for development: The clash of law, economics and political expediency

Abstract

There is a general sentiment that the creation of states in India has always been determined by political expediency rather than logic. While Uttar Pradesh has a population bigger than that of Brazil, at the other end of the spectrum, states like Sikkim, Mizoram etc. have just a fraction of that population. This piece examines the economic impact of State creation, and whether statehood actually augments the economic development of a region otherwise alleged to be neglected and treated in a step motherly manner. Alongside is the issue of better governance and rule of law. The results are a mixed bag: creation of smaller states does not always yield positive results. The critical point for consideration is then whether better political governance and fiscal management within the bigger State is more economically prudent.