India may increase federal financing for some states
Subject India's redistribution of federal resources. Significance At the general election likely in April or May, the nationally ruling Bharatiya Janata Party (BJP) and the main opposition Congress party will be seeking the support of state-based parties to bolster their alliances. Unequal patterns of regional development are prompting some states to seek a greater share of federal resources, but ‘special category status’ for disadvantaged states has effectively been abolished. Impacts Personal campaigning by Prime Minister Narendra Modi could improve the BJP’s chances of winning votes in states where it is unpopular. Congress will claim that Modi’s government has failed to deliver on economic development, hoping to increase its support. No post-election government will likely consider creating new states.