🔥THE HARD TRUTH india IS TOO SCARED TO SAY LOUDLY
india doesn’t suffer from a lack of talent, ambition, innovation, or enterprise.
India suffers from over-centralised taxation — a system where the states that create the nation’s wealth barely get to keep any of it.
The result?
The most productive regions of india — South & West India — are forced to grow with broken roads, water crises, overburdened metros, and under-funded city governments…
while their tax money fuels regions that contribute far less.
This is not anti-India.
This is not secessionism.
This is basic economics — and a call for smarter federal design.
The world’s most successful federations — the USA, Australia, Germany,and Canada — all know one principle:
👉 Let states keep more of the wealth they generate.
That’s how nations grow FAST.
india refuses to learn that lesson.
🔥THE TAX REALITY delhi DOESN’T WANT YOU TO ANALYSE
1. The South & West Are India’s Economic Engine — But Only on Paper
Seven states — Gujarat, Maharashtra, Karnataka, tamil Nadu, kerala, Andhra Pradesh, Telangana — generate a disproportionate share of India’s GDP, exports, and direct taxes.
They innovate, manufacture, ship, employ, educate, and produce.
But how much of that money stays back?
Barely crumbs.
2. The Tax Return Numbers Are Not Just Unfair — They’re Insulting
For every ₹100 paid in direct taxes:
Maharashtra gets back ₹7.70
Karnataka ₹13.90
Tamil Nadu ₹22.90
Gujarat ₹31.30
But…
Uttar Pradesh gets ₹333 back
Bihar gets ₹922 back
Let that sink in.
The states that power the economy get cents.
The states that drain the economy get windfalls.
3. “India’s Unity Depends on It” — The Lazy Argument That Suits the Centre
Whenever this imbalance is questioned, the response is:
“This is the price of unity. Rich states must fund poor ones.”
But no one says this to:
California (US)
Bavaria (Germany)
New South wales (Australia)
Île-de-France (EU)
Because in healthy federations, redistribution has limits — you don’t choke the growth engines to feed everyone else.
4. The South Is Not Asking to Stop Helping — It’s Asking To Stop Being Punished
These states aren’t rejecting redistribution.
They’re rejecting punishment for performance.
Today, being a high-tax, high-GDP, high-productivity state in india means:
You get less money
fewer projects
less political influence
and more central control
No successful nation penalises excellence.
5. Centralised Taxation Leads to Centralised Power — And That Kills Growth
delhi controls:
GST
direct taxes
borrowing limits
cess funds
centrally sponsored schemes
States generate wealth but need Delhi’s permission to spend on basic necessities.
It’s like asking a grown adult to ask for pocket money.
6. If These States Retained Their Revenue, india Would Look NOTHING Like Today’s India
Imagine if Maharashtra, Karnataka, TN, Gujarat, AP, telangana, kerala kept:
50% of their direct taxes
More GST share
local urban taxes without central interference
freedom to decide their own spending model
You’d see:
Singapore-level infrastructure
Korea-level manufacturing
Dubai-level urban development
European-level public services
Because the economic engines finally keep their fuel.
7. The Finance Commission Could Decide India’s Growth Trajectory for the Next 10 Years
The 16th Finance Commission is finalising India’s tax devolution formula.
This is not a technical exercise.
This is political surgery.
A small change in the formula = thousands of crores shift between states.
A smart change = india grows.
A lazy change = india remains slow, uneven, and regionally unstable.
Right now, the debate is hotter than ever — and the cracks between states are widening.
🔥 FINAL TAKEAWAY:
INDIA’S PROBLEM IS NOT FEDERALISM —
IT’S THE LACK OF IT.
The South & West don’t want separation.
They want fairness.
They want incentives, not punishment.
They want autonomy, not control.
They want reward for performance, not exploitation for politics.
If india is serious about becoming a $10 trillion economy, it must let its most productive states breathe.
Prosperity grows where resources stay — not where they are siphoned.
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