Which of the following have caused the growth of Co-operative federalism in India?
(A) Union-State collaboration in economic matters
(B) Union-State legislative relations
(C) Compulsion of developmental finance
(D) Dynamics of electoral politics
Choose the most appropriate answer from the options given below:

Correct option is A

Co-operative federalism in India refers to the collaboration and partnership between the Union and State governments to achieve common goals, particularly in areas like economic development and public welfare. The key factors that have contributed to its growth are:
· Union-State collaboration in economic matters (A): The need for close coordination between the Union and States on economic policies, including planning, budgeting, and fiscal management, has led to stronger co-operative federalism. Institutions like the NITI Aayog promote this collaboration.
· Compulsion of developmental finance (C): States depend heavily on the Union for financial resources for development projects, infrastructure, and welfare schemes. The financial dependence compels cooperation, especially in areas like centrally-sponsored schemes, resource distribution, and taxation frameworks (like the Goods and Services Tax—GST).
Thus, Union-State collaboration in economic matters and the compulsion of developmental finance are the main drivers of co-operative federalism in India.
Information Booster:
1. Co-operative federalism emphasizes mutual collaboration and decision-making between different levels of government.
2. The establishment of NITI Aayog in 2015 replaced the Planning Commission and fostered greater Union-State coordination in economic planning.
3. The Finance Commission plays a crucial role in determining the financial distribution between the Union and States, encouraging cooperation.
4. GST (Goods and Services Tax) is an example of co-operative federalism where the Union and States worked together to implement a unified tax system across the country.
5. Centrally Sponsored Schemes (CSS), like MGNREGA and PMAY, involve joint funding and execution, enhancing Union-State collaboration.
6. Developmental finance is a major factor that forces States to align with Union policies, as significant financial resources are distributed through these channels.