Laggard States need handholding to improve: Sitharaman
Finance Minister Nirmala Sitharaman emphasized the need for a strong central government to manage national priorities like defense and manufacturing while advocating for increased support for underdeveloped states. She argued that while states must be empowered, the Centre must provide the necessary resources and policy direction to ensure balanced national growth.
Why it matters
This highlights the ongoing debate regarding fiscal federalism and the balance of power between India's central government and individual states.
In a renewed push for the idea of federalism, Finance Minister Nirmala Sitharaman on Thursday (August 6, 2026) said India needs every State to be “strong”, and that “laggard” States need to be given “every handholding” so they can improve. At the same time, the country also needs a strong Centre to manage defence, exports and manufacturing, which a few States cannot take care of for the whole country, she said.
“I strongly believe States have to be strong,” she said in response to a question on Centre-State relations. “I strongly believe States have to be helped. I also strongly believe laggards among States will have to be told that you cannot be a laggard. Many times, we hesitate to say the fact, but they have to be pulled up.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in