Abstract

The emergence of globalization is causing a strain in the relation between different state governments of a country and is also causing a far- reaching change in the relation between the federal and state government. The repercussions of globalization are causing an unintended divulgence on the established intention of the constitution makers both in the United States and India. Though there is not much of contention between the states of the United States of America, the recent composition of ‘Investor Summit’ to attract foreign investors in India makes it very evident in India. Thus said article research work seeks to provide a critical analysis of how globalization is leading to an unintended competition between the states of India to attract FDI. Likewise, it also discusses how the vision of “New Federalism” of America is getting hampered on account of corrective measures adopted by the federal government of the US towards regulating FDI.

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