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What led the policy makers to reduce the importance of state in India's economy from 1980s onwards?

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Following factors led to reduce the importance of state in India’s economy from 1980s onwards:

  1. The period of 1980s is seen as a period of rising regional aspirations for autonomy, often outside the framework of the Indian Union.
  2. Movements for autonomy involved armed assertions by the people, their repression by the government, and a collapse of the political and electoral processes.
  3. Most of those movements were long drawn and concluded in negotiated settlements or accords between the Central Government and the groups leading the movement for autonomy.

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