Tolls and taxes keep India from the fast lane (Scott Baldauf, 6/28/06, The Christian Science Monitor)

On paper, India is an economic power, with vast natural resources and a massive population of talented workers. In reality, India remains a collection of 28 separate states and seven union territories, each with its own rules and regulations, its own tax code, and in many cases, its own separate language and cultural customs. To solve this problem, India may need a free-trade agreement with itself. […]

In many respects, the European Union is a more coherent polity. “India is more complex, larger, and more diverse than all of the European nations put together,” says Rajiv Kumar, director of the Indian Council for Research on International Economic Relations in New Delhi.

They have a wonderful opportunity to cut to the chase by devolving government power to the various regions while simplifying the trade rules.

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