Although – Federalism is functioning satisfactorily, many problems and arguments are going on. Things got worse from the 1990s, after implementing the liberalization policies. When Indians and foreigners invest in the country, regional equality was not kept. Many States were ignored. Private investors want to invest in the States which are already rich in industries. They do that because in the developed States there will be roads and such other infrastructure facilities essential for industries.
Market economy will only widen the gap between the developed and developing or under-developed States. In short, liberalization has created regional inequalities and increased them. The only solution to this problem is government and the public sector taking the initiative and do things to bring the underdeveloped States at par with the developed ones.
