ABSTRACT

The phenomenon of globalisation is characterised by increasing integration of the international economy through trade and relatively free cross-border flow of factors of production, as well as new information and communication technologies facilitating speedy exchange of information among nations. Globalisation of the world economy has been impelling cities and metropolitan areas to adapt their economic bases and cultures to the needs of international competition since the 1990s and the early years of the present century. According to the observers of the contemporary phenomenon of globalisation, the global economy has in recent times unleashed economic and political factors, strengthening both global and local pressures at the expense of the traditional nation-state. The management of decentralisation calls for strong national action, just as the management of globalisation requires strong international interventions. In India, decentralisation has to be considered in the context of a multi-level governmental system with the centre occupying, for historical reasons, the most dominant position.