Abstract
The post-independence history of India contradicts the segmental-institutions thesis. Non-ethnic federalism was met with popular resistance and segmental institutions emerged because of nationalist mobilization. These institutions stabilized India, which has remained intact. Central violations of segment-state arrangements have been the impetus for violent nation-state crises. The Gorkhaland movement in the Darjeeling area of West Bengal in India is used to explain the disconnection between India's experience and the segmental-institutions thesis. As the thesis predicts, progressively more-generous autonomy arrangements have helped regional elites to repress political competition in Darjeeling. However, limited political competition in Darjeeling curbs demands on the centre because regional elites' primary incentive to mobilize ethnic grievances is to outflank local political rivals.
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