Why the new states were created? 

One main reason was the cultural or social affiliations. For instance, the state of Nagaland in the Northeast was created taking tribal affiliations into account. 

Another reason was economic development. For instance, Chhattisgarh felt that the region could grow economically only through separate statehood because the region’s development needs were not being met by the state government. For an aggrieved region, there is a strong sense that overall development will not come to them in the bigger state because of inequitable distribution of resources and lack of adequate opportunities for growth.

There is also a shift in power from the Centre to the states and with the growth of diverse communities, the existing federal structure is probably not sufficient to meet the aspirations of the rising numbers. 

Also, parties tend to associate themselves with identity politics to get attention on the national stage and for gaining a vote bank. Hence, there is an increasing demand for formation of new states based on social and cultural identities.

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