in the USA have more popular governors says Andrew Gelman in Popular governor, small state. According to one of the comments, small states have less unemployment. Nay be this is point to ponder about in India too. According to Bibek Debrai the results are mixed in India but he says in From 28 to 45?:
"In principle, transparency and accountability should improve with smaller states. But even if this doesn’t happen, there is a geographical shift in location of administrative costs and leakage. They occur in Darjeeling rather than Kolkata, with consequent multiplier benefits also changing geographically. Since Planning Commission (including Central sector and Centrally-sponsored schemes) and Finance Commission transfers have failed to develop backward regions, backward region development through localisation of administrative costs and corruption is hardly unmitigated disaster."