​Data and federalism: On the NITI NCAER States Economic Forum portal  

This week, NITI Aayog, in partnership with the National Council of Applied Economic Research (NCAER), launched the NITI NCAER States Economic Forum — a portal aggregating data and analysis on State finances. It presents State-wise reports covering macroeconomic indicators including tax and non-tax revenues, as well as human development statistics such as school dropout rates, literacy levels, employment, and historical trends in the devolution of central funds. At a time when Centre-State relations are under renewed scrutiny, particularly in the southern States, where fiscal federalism has been a long-standing flashpoint, this portal is a timely and welcome move. The data is not new, drawn as it is from established sources such as the 2011 Census, the Periodic Labour Force Survey, and the Reserve Bank of India’s State Finances Report. However, its comparative presentation across States brings clarity to the diverse fiscal realities of India, offering a structured lens through which to assess disparities and development. Concerns persist about the quality of economic data in India, and this portal is not immune to these, relying as it does on existing sources. Yet, by organising the data in a user-friendly and comparative format, it can help anchor contentious debates — such as those around revenue-sharing and parliamentary delimitation — in facts rather than sentiment. While these issues are serious, they are part of a much larger set of challenges tied to fiscal relations and political power-sharing between the Union and the States.

The effective use of such data depends on ongoing engagement by States, especially through institutions such as the Sixteenth Finance Commission. For India’s federal structure to work equitably, regional data must be translated into policies that ensure fair representation, resource allocation, and administrative responsibility. Unfortunately, discussions on federalism often get reduced to narrow and polarised frames such as debates around the three-language policy or calls to defer delimitation. Over-centralisation can breed discontent, while regional resistance often risks turning parochial. Navigating this balance requires cooperation rooted in evidence and mutual recognition of diverse State realities. Leaders in both New Delhi and the State capitals must engage in a spirit of transparency and trust. The new data platform is not a panacea but offers a credible starting point — a tool for fostering informed, pragmatic conversations around governance, development, and the future of Indian federalism.