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Economic Impact of New States

Is the Formation of New States in Recent Times Beneficial for India’s Economy? A Critical Analysis

Introduction Since Independence, India has repeatedly reorganized its internal political boundaries to improve governance, accommodate regional aspirations, and promote balanced development. While early state formation was primarily based on linguistic identity, recent state creation—such as Chhattisgarh, Jharkhand, Uttarakhand (2000), and Telangana (2014)—has been driven largely by developmental and administrative arguments. Supporters claim that smaller states…

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