Politics, Economic Development, and Second-Generation Strain in India's Federal System

Since the late 1960s, India's federal system has experiencedsevere strain in center-state relations. Such strain was almostnonexistent during the first generation of Indian federalism(1950–1966). During the second generation, which followedthe death of Prime Minister Lal Bahadur Shastri in 1966, therise of a powerful leader of the ruling Congress party, IndiraGandhi, and the emergence of dissent inside the party led toa greater emphasis on centralization and regimentation withinthe party and, thereby, the federal system as well. At the sametime, economic development had helped to produce new politicalelites from rural areas who benefited from the "green revolution"of the 1960s. These new elites challenged the professional andindustrial elites who had long controlled the Congress party,the national government, and many state governments. Feelingfrustrated in their efforts to influence national economic policyin a significant way, these new elites have formulated demandsthat call for substantial decentralization, greater state autonomy,and more tolerance for opposition parties whose electoral supportis mainly state-based.