The economics of carving out new states
What we have learnt from the reorganization of 2000 is that the new states did as well, or no worse, than their parent states
The reorganization of states has for long been a contentious issue in India. Last year’s creation of Telangana as the 29th Indian state was also preceded by intense street protests. But that is not the only type of disagreement when it comes to the creation of new states. There are also intellectual debates between those who see smaller states as a boon for development, while others say that dividing existing states can breed animosity to an extent that national political stability comes under threat.
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