Paradiplomacy in India in the Post-Reform Period

The onset of the coalition era in Indian politics in 1967 and the liberalisation of the Indian economy in 1990 are the two key factors that created conditions for Indian states and cities to play a role in foreign policy. The need for decentralisation in the “form of an increased sharing of decision- making in India was voiced by various regional parties in 1983 and the Sarkaria Commission was established to study the state of federal relations in India.” 1 In 1989, the growing participation of the regional parties in federal governance led to the beginning of coalition politics in India. Simultaneously, the economic reforms of 1991 opened the doors for Indian chief ministers to invite foreign investments for their respective states.