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Bifurcation of States: Economic Impact on the Country

Even though India moves forward to complete 66 years of independence as an "United" nation, it faces continuous instances where this "Unity" is jeopardised for the sake of regionalism. Being a nation of varied cultures and dialects, each state aims at uplifting their own beliefs. As a consequence several attempts have been made to re-organise the state territories. Although this is considered as a major political crisis, its economic implications are as gigantic. By disturbing every sector of the economy from agriculture to industry or employment to revenue distribution, regionalism can lead to several long term economic issues. Thus, taking the example of the very first bifurcation of Bombay to the most recent of Talangana, this paper focuses on the economic bearings that the fragmentation of a state brings on a country.