The southern States have called for a more balanced approach to fiscal devolution, stronger cooperation on shared water resources and greater coordination on infrastructure and economic development.
At the 31st meeting of the Southern Zonal Council in Mamallapuram, chaired by Union Home Minister Amit Shah, leaders from Tamil Nadu, Karnataka, Kerala, Telangana and Andhra Pradesh discussed several issues affecting the region.
The States stressed that they should receive fair and equitable treatment in the upcoming Finance Commission framework. They argued that fiscal allocation should consider both the needs and performance of States, particularly those that have invested in development, maintained fiscal discipline and successfully managed demographic changes.
The meeting also highlighted concerns over the limited revenue flexibility available to States following the introduction of GST. The participating States discussed the need to work together to protect greater flexibility in taxation while strengthening cooperation within the existing constitutional framework.
Inter-State water sharing remained another major area of discussion. The States emphasised the importance of protecting the rights of lower riparian States and ensuring that Supreme Court judgments, tribunal awards and statutory river management mechanisms are implemented properly. The Cauvery and Mullaperiyar water disputes were among the issues highlighted in this context.
The meeting also focused on the potential of southern States to work together as a single economic region. With strong manufacturing, technology and service sectors across the region, greater coordination could help create integrated value chains and attract more investment.
Proposals included common economic and logistics clusters, integrated manufacturing zones, multimodal logistics parks and improved freight corridors connecting industrial centres with ports and international markets.
Interstate infrastructure projects were also highlighted as an important part of regional cooperation. The proposed Bengaluru Metro extension from Bommasandra in Karnataka to Hosur in Tamil Nadu was cited as an example of how better connectivity between neighbouring States could strengthen employment, industry and economic activity.
The Southern Zonal Council meeting underlined the need for greater cooperation between the States and the Centre on fiscal policy, water management, infrastructure, logistics and economic development. A coordinated approach could help the southern region strengthen its contribution to India’s overall growth while ensuring more balanced development across States.
