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India Governance Forum: Cooperative Federalism

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A look at the larger picture of the Indian federation drives home the need and significance of reinforcing and strengthening the “cooperative” element in our federal structure is the key factor in formulating the fiscal relationship in the Indian economy. Experts believe that moving forward, “cooperative” federalism would be best served by four constituents, namely the Finance commission, NITI Aayog, Goods and Services Tax (GST), and de facto decentralisation. All these four constituents can play a vital role in strengthening the bond between the centre and state governments and among the state governments.