The demonetization announced by the Centre has touched every citizen of India in a manner in which no policy has did. It also shown its affects on the federal structure of India where some states responded positively and some negatively.
- Some states welcomed the move though they are not under ruling party states which indicates states are with the centre to implement though they have some political differences
- Some states are against the move as they claim it is against the cooperative federalism and states are not taken into consideration while taking the decision
- This move undermined the state sponsored schemes where the cash crunch will hit them due to this move
- New notes contain the devnagiri numerals on it , where the some linguistic states may take a step against it
- The Swatch Bharat Abhiyan symbol which is a Central scheme is printed on notes which might be politicized by the states
Overall , due to demonetization there will not be much changes in Central-state relations. But in the federalism set up that India is in, states should be given their due part in the decision making which affects larger number of people. Otherwise states will get the feeling of isolation which is not good for the federal political set up like India.