A welcome initiative

It is a good beginning. The northern states of Punjab, Haryana, Himachal and Delhi, and the UT of Chandigarh have agreed to adopt uniform tax rates on select goods and work for a single market. Though driven by the loss of revenue due to varying rates and evasion of taxes, the collaborative effort can be a starting point for resolving inter-state and even national issues. To start with, they can look at how best to implement the goods and services tax (GST) which, if rolled out from April next year as planned, would demolish the existing barriers and turn the entire country into a single market apart from reducing tax headaches.

The northern states need not confine themselves to taxes only. They can think big and look at common problems; focus, for instance, on their shortcomings; and especially ask themselves why private investors, domestic as well as foreign, have chosen to shun North India and park their investment in western and southern India. Individually they may be small states but collectively they can become major producers, consumers and exporters of goods. They can explore national and international markets, and particularly campaign for land routes to Pakistan, Iran, Afghanistan and China. To become competitive, they can pool in resources to create world-class infrastructure. For collective development, peace on the borders with Pakistan and China is a priority and the northern states can lobby for it since it is they who suffer the brunt first in case of a conflict. The jingoistic elements in Delhi and elsewhere need to be contained.  

Also, Punjab and Haryana can together fund research into agricultural issues, including low productivity, crop diversification and effects of climate change on farming. Since a new generation of leaders is on the rise in the northern states which is not hamstrung by the baggage of the past, there is a hope that they can thrash out inter-states issues, including disputes over water, power and territory. But will they rise above petty politics?