Federalism in the Indian Constitution

Federalism is a system in which power is shared between a central government and state governments, and both get their powers directly from the Constitution. In India, the Union government handles matters of national importance (like defence and currency), while state governments handle matters closer to people (like police and agriculture). Neither can simply take away the other's powers. India's Constitution creates a federation, but with a strong Centre, which is why it is often called "quasi-federal" or a "federation with a unitary bias".

Why does it exist?

India is huge and diverse: many languages, religions, cultures and regions. One government in Delhi cannot understand and manage every local need. At the same time, at Independence the country faced Partition, the merger of over 500 princely states and threats to unity. So the makers of the Constitution chose a balance: share power to respect diversity, but keep the Centre strong enough to hold the nation together.

Where did it come from?

• The Government of India Act, 1935 first proposed a federation and divided subjects into three lists. Much of India's federal structure was borrowed from it.
• The idea of a federation with a strong Centre came from the Canadian model.
• Article 1 calls India a "Union of States", not a "federation". Dr B.R. Ambedkar explained that the word "Union" shows two things: the Indian federation is not the result of an agreement among states, and no state has the right to leave it. India is often described as "an indestructible union of destructible states", because Parliament can change state boundaries under Article 3.
• Political scientist K.C. Wheare described the Indian Constitution as "quasi-federal".

Federal features of the Constitution

• Dual polity: two levels of government, the Union and the states, each with its own powers.
• Written Constitution: the powers of each level are clearly written down.
• Division of powers (Article 246 and the Seventh Schedule): subjects are split into three lists:
• Union List: subjects only Parliament can make laws on (defence, foreign affairs, railways, currency). Originally 97 entries; often counted as about 100 today.
• State List: subjects for state legislatures (police, public order, public health, agriculture). Originally 66 entries; about 61 today.
• Concurrent List: subjects both can make laws on (education, forests, marriage, criminal law). Originally 47 entries; about 52 today. If both make conflicting laws, the Union law usually prevails (Article 254).
• Residuary powers (Article 248): subjects not in any list belong to Parliament.
• Supremacy of the Constitution: both levels must act within it.
• Rigid amendment for federal parts: under Article 368(2), changes to federal provisions (like the lists or representation of states in Parliament) need a special majority in Parliament plus ratification by at least half of the state legislatures.
• Independent judiciary: the Supreme Court settles disputes between the Centre and states (Article 131).
• Bicameral Parliament: the Rajya Sabha represents the states.

Unitary (centre-leaning) features

• Strong Centre: the Union List has the most important subjects, and residuary powers go to the Centre.
• Single Constitution for the Union and all states (J&K's separate constitution ended in 2019).
• Single citizenship: every Indian is a citizen of India only, not of a state.
• Article 3: Parliament can create new states or change state names and boundaries by a simple majority, without the state's consent (it only seeks the state's views).
• Emergency provisions: during a national emergency (Article 352), the Centre gains wide powers over states. Under Article 356, President's Rule can be imposed if a state's constitutional machinery fails.
• Governor: appointed by the President (Article 155), acting as a link with the Centre.
• All-India Services (IAS, IPS, IFoS) serve both levels but are controlled by the Centre.
• Integrated judiciary and a single Election Commission and CAG for the whole country.
• Article 249: Parliament can make laws on a State List subject if the Rajya Sabha passes a resolution by a two-thirds majority of members present and voting, in the national interest.
• Unity symbols: one national flag, one national anthem and one national emblem for the whole country.

What have the courts said?

• State of West Bengal v. Union of India (1962): the Supreme Court said the Indian Constitution is not a traditional federation, and the states are not sovereign.
• S.R. Bommai v. Union of India (1994): a nine-judge bench held that federalism is part of the basic structure of the Constitution. It limited the misuse of Article 356 by making President's Rule open to judicial review and saying a government's majority must be tested on the floor of the House.
• The court has also used the idea of cooperative federalism in later cases on Centre-state disputes.

How have Centre-state relations been reviewed?

• Rajamannar Committee (1969): set up by the Tamil Nadu government to study Centre-state relations; reported in 1971. It asked for more autonomy for states. It is the first major state-level review.
• Sarkaria Commission (1983-1988): set up by the Union government. It made many recommendations, including careful use of Article 356 and setting up a permanent Inter-State Council.
• Inter-State Council (Article 263): set up on 28 May 1990 by a Presidential Order, on Sarkaria's advice. It discusses issues between states and the Centre.
• Punchhi Commission (2007-2010): a second review, which gave 273 recommendations in its report of 30 March 2010.

Kinds of federalism you should know

• Cooperative federalism: the Centre and states work together as partners. Examples: the GST Council (Article 279A, added by the 101st Amendment Act, 2016) and NITI Aayog (2015), where Chief Ministers sit in the Governing Council.
• Competitive federalism: states compete with each other to attract investment and improve governance, often through rankings.
• Fiscal federalism: how money is shared between the Centre and states, mainly through the Finance Commission (Article 280).
• Asymmetric federalism: some states or regions get special provisions, for example Article 371 for several states, and the Sixth Schedule for tribal areas in Assam, Meghalaya, Tripura and Mizoram.

Commonly confused concepts

• Federation by agreement vs federation by disintegration: The USA was formed when independent states came together (coming-together federation). India was formed by dividing a single administration into units (holding-together federation). That is why Indian states cannot leave the Union.
• Union of States vs Federation of States: The Constitution uses "Union" deliberately to show that the federation is indestructible.
• Article 3 vs Article 4: Article 3 lets Parliament form new states or change boundaries; Article 4 says such laws are not treated as constitutional amendments under Article 368.
• Article 249 vs Article 250: Article 249 is for national interest via a Rajya Sabha resolution. Article 250 lets Parliament make State List laws during a national emergency.
• Decentralisation vs federalism: Decentralisation (like the 73rd and 74th Amendments, 1992, for panchayats and municipalities) shares power within a state. Federalism is about Union-state sharing.

Issues, criticism and the way forward

• Concentration of power: States argue that the Centre has gained power through cesses and surcharges (which are not shared with states), centrally sponsored schemes with conditions, and the use of central agencies.
• Role of the Governor: Disputes over Governors delaying assent to state bills have reached the Supreme Court in recent years.
• Fiscal stress: States have most spending duties but limited taxes of their own, especially after GST.
• Identity and symbols: Demands for state flags, language rights and greater autonomy reflect regional identity. Others argue that national symbols and a strong Centre protect unity.
• Way forward: Commissions suggest regular Inter-State Council meetings, careful use of Article 356, wider consultation on Concurrent List laws, and a fairer sharing of revenue, so that unity and diversity both stay strong.

Concepts to Know

• Sovereign: Having supreme, independent power. In India, only the Union as a whole is sovereign, not the states.
• Residuary powers: Powers over subjects not mentioned in any of the three lists. In India, they belong to Parliament.
• Ratification: Formal approval. Some constitutional amendments need approval by half of the state legislatures.
• Basic structure: Core features of the Constitution (like democracy and federalism) that Parliament cannot destroy even by amendment (from Kesavananda Bharati, 1973).
• Cess and surcharge: Extra taxes collected by the Centre for special purposes. Unlike most taxes, they are not shared with the states.