UPSC Mains 2018 GS1 Q12 — Regionalism and Economy

• Evaluate the economic performance of states created post-2000 (Uttarakhand, Chhattisgarh, Jharkhand, Telangana) against their parent states.
• Analyze the macro-economic impact on the Union budget and fiscal federalism, including the cost of setting up new capitals and administrative machinery.
• Examine if smaller states lead to better resource mobilization, specialized economic focus (e.g., mineral wealth vs agriculture), and reduced regional disparities.

• Focusing too much on the political movements and 'Sons of the Soil' narratives instead of the economic outcomes required by the prompt.
• Failing to mention specific data points or indices like GSDP growth rates, fiscal deficits, or poverty reduction figures for the new states.
• Generalizing all new states together without acknowledging that Telangana’s success differs significantly from Jharkhand’s challenges.
• Ignoring the 'Recent Times' constraint by discussing 1956 linguistic reorganization or 1960s state formations.

Allocate 50 words to the introduction and context of 21st-century state formation. Devote 80 words to the 'pro-economic' arguments such as localized planning and competitive federalism, and another 80 words to 'anti-economic' arguments like increased establishment costs and revenue deficits. Use the final 40 words for a balanced conclusion on whether the 'economic dividend' is realized or lost in administrative overheads.