Laggard States need handholding to improve: Sitharaman

Finance Minister Nirmala Sitharaman emphasized the need for a strong central government to manage national priorities like defense and manufacturing while advocating for increased support for underdeveloped states. She argued that while states must be empowered, the Centre must provide the necessary resources and policy direction to ensure balanced national growth.
In a renewed push for the idea of federalism, Finance Minister Nirmala Sitharaman on Thursday (August 6, 2026) said India needs every State to be “strong”, and that “laggard” States need to be given “every handholding” so they can improve. At the same time, the country also needs a strong Centre to manage defence, exports and manufacturing, which a few States cannot take care of for the whole country, she said.
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