Which is an important factor identified to ensure competitive federalism among Indian states in the context of rural development?

Correct option is A

The correct answer is (A) Measurement of incremental outcomes in social sectors

Explanation:
• Competitive Federalism encourages healthy competition among states to improve governance and development parameters.
• To facilitate this, the NITI Aayog and the Central Government focus on ranking states based on the measurement of incremental outcomes (improvement over previous years) in sectors like health, education, and water management.
• This ensures that states that make significant efforts to improve are recognized, regardless of their historical baseline.

Information Booster:
• Aspirational Districts Programme: A prime example of this concept, where 112 under-developed districts are ranked monthly on delta rankings (incremental progress).
• SDG India Index: Another tool to foster competition among states to achieve Sustainable Development Goals.

Additional Knowledge:
• Financial Autonomy (Option B): While important for cooperative federalism, the *driver* of competition is the performance measurement.
• Control of Central Govt (Option C): Competitive federalism promotes decentralization, not centralization.
• Equal Distribution (Option D): Resources are typically distributed based on need and formula (Finance Commission), not strictly equally, to ensure equity.