Sustainable Governance And Cooperative Federalism: Fostering Innovation And Growth In India's Entrepreneurial Ecosystem
DOI:
https://doi.org/10.69980/genpf728Keywords:
Sustainable Entrepreneurship; Federal Governance; Corporate Social Responsibility (CSR); Green Business Models; Small and Medium-Sized Enterprises (SMEs)Abstract
This paper explores the role of federal governance in fostering sustainable entrepreneurship in India. With a focus on the relationship between the Union and State governments, the paper examines how India’s federal system enables businesses to align with national sustainability goals while adapting to local conditions. The paper discusses the growing importance of green enterprises, social enterprises, and inclusive business models in addressing India’s environmental, social, and economic challenges. By analysing the strategic role of SMEs in driving sustainable growth, the paper highlights the critical contribution of small and medium-sized enterprises (SMEs) to both economic development and environmental sustainability. The paper also investigates federal policies that support sustainable business practices, such as corporate social responsibility (CSR) mandates, green energy incentives, and inclusive innovation schemes. Through case studies of successful SMEs that have integrated sustainability into their operations, the paper provides practical insights into how businesses can contribute to sustainable development. Further, the paper examines how Centre-State dynamics affect policy decisions on business ethics and CSR, emphasizing the need for greater coordination between the Centre and States to create a cohesive framework for promoting sustainable entrepreneurship. The S.R. Bommai jurisprudence and other judicial interpretations are explored to understand their role in shaping a cooperative federal environment for sustainable economic development. In conclusion, the paper argues that strengthening cooperative federalism and fostering collaboration between the Centre and States will be key to driving India’s green economy, ensuring that entrepreneurial ecosystems thrive while contributing to both economic prosperity and sustainability.
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