Supreme Court of India strengthens fiscal federalism with new rulings on state powers

The Supreme Court of India recently ruled that states can collect royalties on minerals and tax industrial alcohol, strengthening fiscal federalism. This decision allows states greater control over alcohol regulation, reversing previous limitations set by earlier judgments. The court's ruling clarifies the regulatory powers between the Union and state governments, emphasizing a broader interpretation of state authority. This marks a shift towards increased state autonomy in areas traditionally governed by central laws. The judgments address long-standing disputes over federal and state powers, reflecting a changing judicial perspective on federalism in India. The Supreme Court's decisions aim to balance these powers more effectively.