Investor & author Ruchir Sharma has called for a shift in the focus from centralisation to the empowerment of states, adding that PM Modi should work towards fostering competitive federalism in the country.
In a wide-ranging interview with Network18's Zakka Jacob and Bodhisatva Ganguli, Sharma touched upon topics such as capitalism, globalisation, manufacturing as a share of India's economy, and the challenges faced by entrepreneurs.
He highlighted that "there's too much focus on the Centre" in India's federal system.
He opined that state governments have significant potential to drive local development and should be given more authority to address regional issues.
Sharma, who is the Chairman of Rockefeller International, suggested that Prime Minister Narendra Modi should shift his focus from daily tackling of issues to shaping his legacy by drawing on his experience as Gujarat’s chief minister.
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Sharma recalled Modi’s past concerns about centralisation, saying, "He would lament at that point in time, that why don't, you know, that, like, feeling oppressed almost by the centre of too much centralisation, that we need more competitive federalism."
He further argued for the need to enhance competitive federalism, saying, "I wish that now he thinks along those terms, that, okay, how do we get more competitive federalism? How do we empower the states to do much more, rather than the sort of friction which always seems to emerge between the centre and the states?"
He advocated for making governance "as local as possible" to address the challenges posed by India’s complex regulatory environment and investigative agencies.
Sharma also touched on global economic challenges, such as deglobalisation and the difficulties facing manufacturing.
Read: Full transcript of Ruchir Sharma's interview
While acknowledging these broader issues, he emphasised that India can do a lot more to improve the domestic business environment.
Further, Sharma also commented on the transformation of Rahul Gandhi as a politician, observing that his image has undergone a big change.
"I can't make out whether it's him, or whether it's just people just want something new," he said. He highlighted a broader trend in Indian democracy, noting that "when you're sort of getting fatigued with something, you almost begin to prop the other side up."
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Sharma also noted that India's democratic fiber is very strong. "We don't like one-sided battles for too long. There's a sort of natural tendency in us to root for the underdog in terms of that, you know, and so I think we're a naturally democratic nation and so there was a feeling that we need the other side to come up," he added.
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