A political economy of the Indian state in the era of globalisation: A review

Shalendra D. Sharma from the University of San Francisco reviews a political economy of the Indian State in the period of globalization. Even as social, cultural and political identities have multiplied, the political boundaries have remained fixed in many settings. Some states have responded to these challenges by involuntarily retreating from the sociopolitical and economic arena, or by devolving power to sub-national and regional authorities. The Indian state has single-mindedly sought to institutionalize statehood by expanding its power and reach over the social formation. While the Indian Constitution clearly demarcates specific responsibilities between the central government and the 28 states and seven union territories that make up the Indian Union, the constitution gives the center great discretionary authority in political and economic matters over the states. The combined fiscal deficit of the central and state governments has remained at around 10% of gross domestic product since the early 1990s.