In recent times there have been demands for carving out smaller states, latest being great hoop-hulla around Telangana and anti-telangana agitations. The main apparent reason is sense of economic deprivation of certain areas in large states like UP, WB, AP MH etc. Cultural and political reasons are also responsible for such demands. It is argued that smaller and medium sized states will bring functional politics closer to people by making state government more responsive to local demands. Such an arrangement will also ensure proper distribution of centarl development funds to various regions of the larger states with subregional needs highlighted well.
Therefore such an arrangement expected to bring regional development.
On the other hand the demand for creation of smaller state is opposed on the ground that it is likely to raise dormant statehood demands like Bodoland, Gorkhaland, Coorg etc which are not economically viable and may set a bad precedent for the creation of too many smaller states, leading to balkanisation of India. It may also place impediments in the growyh of interstate trade and other economic activities, as large number of local taxes may be introduced by these new states.
What I think is that the smaller size of state by itself cannot gaurantee economic development of a region as has been experience in the North-east, Goa and recent pocket filling incidents by Jharkhand polititians, whereas Gujarat, tamilnadu had shown that big state can be very advanced if governed properly. There is a need to balance local aspirations with the macro level needs of country. One main point why I think Telangana, Harit Pradesh, Poorvanchal, Vidarbha etc (new medium sized states) should be constituted because of administrative problems of erstwhile bigger/giant states. Carving out smaller states should neither be opposed nor supported on the basis of short term political gain, as being done by Samajwadi party as it feels that it will be marginalized in new Harit Pradesh.
The ultimate criteria should be administrative convenience, economic viability and political consensus, in that order. I hope a new state reorganisation committee is formed to reorganise country properly and not just under pressure of some people going on indefinite fast.