Co-operative Federalism for Transformation

India is definitely at the crossroads of history in the early 21^st century. Not only India is posed to be the 5^th largest economy in the world surpassing France, India is one of the few nations which does have nuclear power, India is the fastest growing economy in the world and being largest and stable democracy having rightfully earned reputation of peacekeeper, India also is a rightful claimant of extended UNSC. To bolster India’s strength further, more than 50 percent of Indians are below 25years and more than 65 percent of Indians are below age of 35 years.⁽¹⁾ India being at such an important juncture has all the more responsibility to harness its demographic dividend to be the great nation it is destined to be.

At a juncture as this Co-operative federalism becomes all the more important. The author of this paper tries to analyze the factors which gave rise to active federalism in India and the policy measures which are required to ensure sustainable economic growth and development of all the three tiers of Government. This has been analyzed in the light of the need for fiscal devolution to ensure co-operative federalism thus enabling transformation of India to a responsible emerging global power. To ensure this Co-operative federalism must be fuelled by Fiscal federalism