Introduction:
In India, the states have the authority to borrow from the market in order to meet their financial requirements. However, there are certain conditions and procedures that need to be followed for borrowing purposes. The correct answer to the given question is option 'C', which states that the states can borrow from the market with the consent of the Centre.

Explanation:
The borrowing powers of the states are regulated by the Constitution of India and the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. Let's understand why option 'C' is the correct answer.

Borrowing powers of the states:
The states in India have the power to borrow from the market to meet their fiscal requirements. This borrowing can be done through the issuance of State Development Loans (SDLs). These loans are issued by the state governments to finance their development projects, infrastructure development, and other expenditure needs.

Consent of the Centre:
While the states have the authority to borrow from the market, they need to obtain the consent of the Centre for such borrowings. This is because the Centre plays a crucial role in regulating and monitoring the borrowing activities of the states to ensure fiscal discipline and stability.

Conditions for borrowing:
The consent of the Centre is required for the states to borrow from the market, and this consent is granted based on certain conditions and guidelines. These conditions include:

1. Fiscal Responsibility and Budget Management (FRBM) Act: The states need to adhere to the provisions of the FRBM Act, which sets targets for fiscal deficit and debt levels. The Centre ensures that the borrowing by the states is in line with these targets.

2. Fiscal Consolidation Plan: The states also need to prepare a Fiscal Consolidation Plan (FCP) in consultation with the Centre. This plan outlines the strategies and measures to be undertaken by the states to achieve fiscal discipline and reduce their debt burden.

3. Market Borrowing Limits: The Centre sets limits on the market borrowing by the states as a percentage of their Gross State Domestic Product (GSDP). The states need to adhere to these limits while borrowing from the market.

4. Monitoring and Reporting: The states are required to regularly report their borrowing activities to the Centre. The Centre monitors the borrowing of the states to ensure compliance with the prescribed guidelines and targets.

Conclusion:
In conclusion, the states in India can borrow from the market with the consent of the Centre. The Centre plays a crucial role in regulating and monitoring the borrowing activities of the states to ensure fiscal discipline and stability. The states need to adhere to the conditions and guidelines set by the Centre while borrowing from the market.