Jul 17, 2025
20
mins read
Federalism in India refers to a system of governance where powers are constitutionally divided between the central and state governments. This division of powers is further extended by a third tier of local government (panchayats and municipalities), allowing governance at the grassroots. Indian federalism thus seeks to balance national unity with regional diversity, enabling uniform policies for the nation while permitting states to tailor solutions to local needs. For UPSC aspirants, federalism in India is a crucial topic under Polity, given its significance in accommodating India’s vast diversity within a single constitutional framework.
In general, federalism is an institutional mechanism to accommodate two sets of polity – one at the national level and another at the regional or state level. Both levels of government derive powers from a written Constitution and operate within their own jurisdiction. Key characteristics of a federal structure include:
Division of Powers: Powers and responsibilities are clearly divided between the Union government and state governments. Each level has authority over specific subjects (e.g. defense, foreign affairs for the Union; police, public health for states).
Supremacy of the Constitution: A written constitution is supreme and acts as the source of authority for both Union and states. Both levels of government must operate in compliance with the constitutional provisions, and any law contravening the Constitution can be struck down by the courts.
Independent Judiciary: A federal system has an independent judiciary (in India, a single integrated judiciary headed by the Supreme Court) to interpret the Constitution and adjudicate disputes between the Centre and states or between states. The Supreme Court has original jurisdiction in Centre–State or inter-state conflicts (Article 131 of the Indian Constitution).
Bicameralism: Most federations have a bicameral legislature. In India, the Parliament has two Houses – Lok Sabha (House of the People) and Rajya Sabha (Council of States). Rajya Sabha in particular represents the states of India, embodying the federal principle at the Union legislature.
Rigidity and Flexibility: The Indian Constitution is a unique blend of rigidity and flexibility. Some constitutional amendments require not just a special majority in Parliament but also ratification by at least half of the state legislatures (for example, changes affecting federal structure), ensuring that states have a say in such amendments. At the same time, many other provisions can be amended by Parliament alone, giving a unitary flavor. This balanced rigidity prevents unilateral erosion of the federal structure while allowing adaptation when necessary.
Additionally, the term federalism itself is not explicitly mentioned anywhere in the Indian Constitution. However, the SC has held federalism to be part of the basic structure of the Constitution (e.g. in the S.R. Bommai case, 1994). In practice, Indian federalism functions within the broader label of a “Union of States” (Article 1), indicating that India’s unity is indestructible even though the states have autonomy in their sphere.
Table of content
Article | Provision | Key Details |
Article 1 | “Union of States” | Declares India (Bharat) as a union comprising individual states. |
Article 79 | Bicameral Parliament | Establishes Lok Sabha and Rajya Sabha, the latter representing states in the federal legislature. |
Article 131 | Original Jurisdiction of the Supreme Court | Empowers the SC to adjudicate disputes between the Union and state governments. |
Article 246 | Distribution of Legislative Powers | Allocates subjects across three lists—Union, State, and Concurrent—in the 7th Schedule, ensuring equal authority over their respective lists. |
Article 368 | Amendment Procedure | Defines two tiers of constitutional amendment (rigidity vs. flexibility) and requires at least half of state legislatures’ concurrence for federal changes. |
— | Dual Polity & Division of Powers (Art. 1, Part V & VI; Art. 246 & 7th Schedule) | Creates a dual system of government; Part VI grants states independent constitutional status, while Article 246 and the 7th Schedule divide legislative subjects. |
India’s federal system has evolved over time through historical developments – from colonial arrangements to post-independence political shifts. Below is a concise overview of how Indian federalism has developed:
Pre‑Independence Developments (Up to 1947)
Colonial Constitutional Experiments
Simon Commission (1930):
First official recognition that India’s vast diversity required a federal structure rather than a unitary British Raj.
Round Table Conferences (1930–32):
Representatives of provinces and princely states agreed on an “All‑India Federation” model.
Deliberations highlighted power‑sharing, but princely states remained cautious about full integration.
Government of India Act, 1935:
Three Lists: Centre, provinces, and concurrent subjects clearly demarcated.
Provincial Autonomy (1937): Provinces gained elected legislatures and ministries, pioneering self‑rule; however, the envisaged federation—including princely states-never fully materialized.
Constituent Assembly Deliberations (1946–49)
Initial Vision:
Jawaharlal Nehru’s early resolution favored strong, autonomous provinces with residuary powers (those not listed anywhere) vesting in the states.
Union Powers Committee:
Chaired by Nehru himself, this committee reversed the draft, assigning residuary powers to the Centre to:
Integrate 500+ Princely States efficiently.
Ensure Post‑Partition Stability in the fraught aftermath of 1947.
Resulting Constitution (1950):
A quasi‑unitary federation: federated in form, but structured to give the Centre overriding authority in emergencies and on residuary matters.
Post‑Independence Evolution (1950–Present)
Inner‑Party Federalism (1950s–Mid‑1960s)
Congress Hegemony:
Single‑party rule at both Centre and state levels meant intergovernmental disputes were mediated within party structures rather than through constitutional confrontations.
Key Outcome:
Relative harmony despite a centrally biased constitutional design; this “inner‑party federalism” masked underlying tensions.
Linguistic Reorganization and State Creation
Linguistic Reorganisation Commission (1953):
Recommended redrawing state boundaries to align with linguistic and cultural identities.
State Reorganisation Act (1956):
Implemented those recommendations, inaugurating:
New States: e.g., Andhra Pradesh (1953), Gujarat & Maharashtra (1960).
Federal Flexibility: Demonstrated willingness of the Centre to accommodate regional aspirations.
Expressive Federalism (Late 1960s–1980s)
Rise of Regional Parties:
As non‑Congress governments took power in states, Centre–State disputes surfaced more openly.
Article 356 (“President’s Rule”):
Frequently invoked—sometimes for political expediency—leading to accusations of misuse during the Indira Gandhi era.
Emergency (1975–77):
Suspension of civil liberties and state assemblies, effectively converting the federation into a unitary system for its duration.
Multi‑Party & Bargaining Federalism (1990s–2000s)
Coalition Governments at Centre:
No single party could secure an absolute majority; regional parties became essential coalition partners.
“Multi‑Party Federalism” emerged as states leveraged their bargaining power.
Judicial Safeguard:
S.R. Bommai vs Union of India (1994):
SC limited arbitrary dismissals of elected state governments under Article 356.
Cemented federalism as part of the Constitution’s basic structure.
Fiscal Devolution:
14th Finance Commission (2015–20): Increased states’ share of central taxes to 42%.
15th Finance Commission (2020–25): Maintained a 41% share, boosting state budgets.
Emergence of the Third Tier (1992 Onward)
73rd & 74th Constitutional Amendments:
Mandated regular elections and reservations for Panchayati Raj institutions (rural) and Municipal bodies (urban).
Created a constitutionally recognized third tier of government, deepening grassroots democracy.
21st‑Century Dynamics
Cooperative Federalism Mechanisms:
NITI Aayog (2015): Forum for Central and State governments policy consultation.
GST Council (2017): Joint decision‑making on indirect taxes.
Resurgence of Dominant‑Party Federalism:
Post‑2014, a single‑party majority at the Centre has reintroduced centralizing tendencies while championing cooperative platforms.
Confrontational Episodes: Disputes over agricultural reforms (2020) and uneven consultation during the COVID‑19 response highlighted persistent federal tensions.
The Constitution of India establishes a unique federal system that blends federal principles with unitary bias. This duality leads scholars to describe India as a "quasi-federal" state-federal in structure but unitary in spirit.
Dr. B.R. Ambedkar called it “both unitary as well as federal according to the requirements of time and circumstances.”
K.C. Wheare labeled it “quasi-federal,” while Granville Austin preferred the term “cooperative federalism.”
Key Federal System Features in the Indian Constitution
Feature | Explanation |
Dual Polity | India’s federal system has two levels of government-Central and State governments-each deriving power from the Constitution of India (Article 1: “Union of States”). |
Division of Powers | The Seventh Schedule (Article 246) provides a three-fold distribution: - Union List (Centre only) - State List (States only) - Concurrent List (Both, but Union prevails in conflicts - Article 254). |
Independent Judiciary | The Supreme Court (Article 131) acts as the guardian of the Constitution of India and arbitrates Centre-State disputes. High Courts function in states. |
Bicameralism | Rajya Sabha represents the states in Parliament (Article 79). Though proportional to population, it provides a forum for state participation. |
Rigid Amendment Process | Certain amendments require ratification by 50% of states (Article 368), especially those affecting the federal system. |
Financial Autonomy | States have taxation powers under the State List and receive a share in central taxes via the Finance Commission. They can also borrow (within limits). |
Unitary Features in the Indian Constitution
Feature | Explanation |
Strong Centre | The Union List has more and weightier subjects (e.g., defense, foreign affairs). Residuary powers lie with the Centre (Article 248). |
Indestructible Union | Parliament (Article 3) can alter state boundaries, names, or create new states without state consent (e.g., Telangana in 2014). |
Single Constitution and Citizenship | India has one Constitution for all states (except temporary J&K exception till 2019). Also, single citizenship prevails. |
Emergency Provisions | During emergencies (Articles 352, 356, 360), the federal structure is suspended and power centralizes with the Union. |
Governor’s Role | Governors, appointed by the Centre, can reserve state bills and act as agents of the Union, affecting state autonomy. |
Central Control through Services | All-India Services (IAS, IPS) are recruited and controlled by the Centre but work in states, giving indirect control over administration. |
Integrated Institutions | Common institutions like the Election Commission and CAG audit and manage both Union and State activities, ensuring uniform standards but limiting state autonomy in these areas. |
Understand Unitary feature on Emergency Provisions : President's rule
Summary Table: Federal System vs. Unitary System Features
Federal System Features | Unitary Features |
Dual polity: Union and State governments operate independently. | Residuary and overriding powers rest with the Centre. |
Clearly demarcated legislative powers under three lists. | States’ boundaries can be altered unilaterally by Parliament (Article 3). |
Written, rigid Constitution: supreme law binding on both Centre and States. | One Constitution and single citizenship (no state constitutions/citizenship). |
Independent Judiciary with power to resolve Centre–State and inter-state disputes. | Emergencies allow the Centre to legislate on state matters (Articles 352, 356). |
Rajya Sabha represents states in central law-making. | Governors appointed by the Centre; may reserve bills or override state decisions. |
Financial devolution via Finance Commission and own tax sources. | Integrated institutions (ECI, CAG, UPSC) serve both Union and states. |
Indian federalism operates through two dynamic approaches—cooperative and competitive federalism. These are not mutually exclusive but are complementary strategies used to strengthen Centre–State relations and promote inclusive development.
Cooperative Federalism
Cooperative federalism emphasizes partnership and collaboration between the Union and state governments to achieve common national goals. It is based on the horizontal relationship where both tiers of government work together through consultation and consensus.
Key Features:
Promotes shared responsibility in planning and implementation.
Encourages joint decision-making and trust-building.
Exemplified in institutions like:
Inter-State Council (Article 263): Facilitates policy discussions.
NITI Aayog: Includes state participation in national planning.
GST Council: Ensures joint decisions on taxation.
Crucial in managing national emergencies, such as:
COVID-19 response
Natural disasters
Recognized by the Supreme Court as part of the basic structure of the Constitution.
Competitive Federalism
Competitive federalism involves states competing with each other—and at times with the Union-for investments, innovation, efficiency, and performance outcomes. It emerged prominently post-liberalization (1990s) and is characterized by a vertical and horizontal race for better governance.
Key Features:
Promotes innovation and performance-based competition.
States strive to improve in:
Ease of Doing Business
Fiscal discipline
Public service delivery
Encouraged by:
NITI Aayog indices (e.g., Innovation Index, Education Index)
Aspirational Districts Programme
Performance-linked central grants
Aims to reward efficiency but must ensure weaker states aren’t left behind, preserving federal equity.
Comparison: Cooperative vs Competitive Federalism
Aspect | Cooperative Federalism | Competitive Federalism |
Nature of Relationship | Horizontal – Centre and states work together as equal partners. | Both vertical (Centre–State) and horizontal (inter-State) competition. |
Core Objective | Joint collaboration to achieve common developmental goals. | Enhance performance by fostering rivalry among states for resources, investments, rankings, etc. |
Approach | Consensus-building, consultation, shared responsibility. | Reform-driven, performance-based, innovation-focused governance race. |
Mechanisms/Platforms | - Inter-State Council - Zonal Councils - NITI Aayog consultations - GST Council - Centrally Sponsored Schemes | - Ease of Doing Business rankings - NITI Aayog’s performance indices - Competitive grant allocation schemes |
Examples | - GST formulation - COVID-19 management - Joint healthcare, education, disaster response | - Investment summits - Aspirational Districts ranking - Special incentives to better-performing states |
Constitutional Status | Considered part of the basic structure by the Supreme Court. | Not mandated by the Constitution; rather a policy orientation post-1991 economic reforms. |
Potential Risks | May slow down decisions due to prolonged consensus-building. | May exacerbate inequalities if weaker states are unable to compete effectively without support. |
India's federal structure plays a critical role in ensuring that governance is inclusive, responsive, and democratic in a diverse society. The Constitutionally mandated division of powers enables states to address local needs while upholding national unity.
Dimension | Significance |
Accommodation of Diversity | Allows states to govern in line with their linguistic, cultural, and regional distinctiveness. Helps preserve India’s pluralism. |
Effective Governance | Power-sharing ensures governance is closer to the people, addressing local needs more efficiently. |
Promotion of Democracy | Decentralized power enables greater participation at all levels-Union, State, and Local. Enhances grassroots democracy. |
Protection of Rights | States can legislate and frame policies specific to local social and economic issues, strengthening protection for minorities and weaker sections. |
Despite a strong constitutional framework, Indian federalism faces multiple challenges that test the balance between central authority and state autonomy. These challenges are summarized below:
Challenge | Description & Examples | Implications |
1. Centralization vs State Autonomy | - Centre’s dominance in financial and legislative matters causes friction. - Article 356 (President’s Rule) was misused frequently until the S.R. Bommai judgment curtailed it. - Governors (Centre appointees) often delay bills or act without consulting elected state governments. - Centrally Sponsored Schemes often follow a one-size-fits-all model (e.g., education/agriculture), ignoring regional diversity. | - Perceived erosion of state autonomy. - Declining trust in cooperative federalism. - Political tensions between Union and opposition-ruled states. |
2. Regionalism and Secessionist Tendencies | - Sub-national identities can lead to demands for greater autonomy or separate statehood (e.g., Bodoland, Gorkhaland). - Abrogation of Article 370 (J&K’s special status) was criticized as unilateral. - Historical examples: Insurgencies in Punjab and Northeast. | - Strains Centre-State relations. - Challenges national integration. - Requires sensitive handling to avoid alienation. |
3. Overlap of Functions & Disputed Jurisdictions | - Concurrent List subjects (e.g., education, forests, agriculture) often create legislative overlap. - Farm laws (2020) passed by Parliament faced pushback from states citing agriculture as a State subject. - GST compensation delays caused fiscal mistrust. | - Policy confusion and litigation. - Weakens functional clarity. - Encourages Centre-State disputes. |
4. Fiscal Imbalances | - Vertical imbalance: Centre holds more taxation powers; states bear greater spending responsibilities. - Horizontal imbalance: Wide variation in states’ revenue capacity. - Cesses/surcharges not shared with states dilute actual devolution. - Southern states fear punishment for population control in delimitation and fund allocation. | - Dependency on Centre increases. - Resentment among performer states. - Risk of inter-regional inequality. |
5. Inter-State Disputes | - Water sharing disputes (e.g., Cauvery, Krishna) and boundary disputes (e.g., Maharashtra–Karnataka over Belagavi) persist for decades. - Prolonged litigation in the Supreme Court due to ineffective Inter-State Council mechanisms. - Escalation to public protests or political standoffs. | - Hampers federal harmony. - Resource-intensive conflict resolution. - Urgent need for effective adjudicatory bodies. |
6. Emerging Political Demands & Dynamics | - Rise of coalition politics may lead to stronger regional demands. - Push for Special Category Status, early delimitation, and greater state say in treaties. - Resistance to “One Nation, One Election” as it may dilute state-level political autonomy. | - Demands a flexible federal framework. - Increases pressure on the Centre to negotiate equitably. - Potential for federal restructuring debates. |
To make Indian federalism more robust and responsive in the 21st century, reforms should focus on deepening cooperative mechanisms, empowering all tiers of government, and institutionalizing constitutional values. The table below summarizes key action areas and proposed measures:
Key Area | Action Steps & Reforms |
Promote Cooperative Federalism | - Regularize Inter-State Council and Zonal Council meetings for policy consultations and dispute resolution. - Establish joint working groups (Centre-State) for sectoral issues (e.g. health, internal security, education). - Ensure prior consultation with states before enacting laws on concurrent/state list subjects (e.g. farm, labor laws). |
Respect Constitutional Boundaries & Spirit | - Use Article 356 (President’s Rule) sparingly; follow S.R. Bommai judgment guidelines. - Governors must act impartially; implement Punchhi Commission recommendations (e.g., CM consultation during appointment, fixed tenure). - Refrain from excessive central legislation on State List subjects. |
Fiscal Federalism Reforms | - Increase unconditional tax transfers to states; reduce reliance on conditional grants. - Rationalize cesses/surcharges (not shareable with states). - Strengthen GST Council: improve dispute resolution, transparency in compensation. - Factor in human development and performance indicators (not just population) in Finance Commission formulas to reduce North-South fiscal tensions. |
Empower the Third Tier | - Fully implement the 73rd and 74th Amendments by devolving powers, funds, and functionaries to Panchayats and Urban Local Bodies. - Route more schemes directly through local governments where appropriate. - Build capacity at grassroots for efficient service delivery and decentralized planning. |
Balance Competitive Federalism | - Create a level playing field by offering special packages or fiscal support to lagging states. - Reward performance through outcome-based incentives (e.g., SDG Index, NITI Aayog rankings). - Encourage replication of best practices across states (e.g., health reforms, education innovations). |
Forge a New Federal Structure | - Revisit the Seventh Schedule to rebalance subject distribution (e.g., include health/environment in Concurrent List). - Involve states in international agreements that impact them (e.g., river treaties). - Address pending issues like delimitation and Special Category Status through inclusive dialogue. |
Build a Culture of Federalism | - Promote mutual respect and trust between Centre and states beyond legal frameworks. - Encourage healthy debates over confrontation in federal discourse. - Highlight and reward cooperative success stories via media, civil society, and NITI Aayog platforms. - Uphold the spirit of “Ek Bharat, Shreshtha Bharat” by valuing diversity and regional contributions. |
Q. What is the significance of federalism in India's constitutional framework?
A. Federalism in India balances national unity with regional diversity by constitutionally dividing powers between the Union and the States, and empowering local governments. It ensures effective governance, protects regional interests, and upholds democratic decentralization. The Supreme Court has affirmed federalism as part of the Constitution’s basic structure.
Q. Why is India described as a “quasi-federal” country?
A. India is termed “quasi-federal” because its Constitution combines federal features (dual polity, division of powers) with strong unitary elements (residuary powers for the Centre, emergency provisions, central authority over state boundaries). This blend ensures adaptability and unity .
Q. How do cooperative and competitive federalism differ in India?
A. Cooperative federalism relies on partnership—through institutions like the GST Council and NITI Aayog—to reach consensus in policy-making. Competitive federalism, post-liberalization, fosters healthy rivalry among states in areas like ease of doing business and social development indices .
Q. What are the key constitutional safeguards for India's federal structure?
A. The Constitution of India safeguards federalism through a written Supreme Law, independent judiciary, bicameral legislature (including the Rajya Sabha), and a rigid amendment procedure requiring state ratification for federal-structure changes .
Q. What challenges does Indian federalism currently face?
A. Indian federalism faces challenges like centralization trends, misuse of Article 356, fiscal and regional imbalances, overlapping subjects (e.g., GST), and inter-state water/boundary disputes. Ongoing state demands like delimitation and autonomy further highlight the need for adaptive federal governance.
India’s federalism, though termed a “Union of States” and lacking the explicit word, blends federal and unitary traits through its written Constitution, division of powers, independent judiciary, and bicameralism-all upheld by the Supreme Court as part of the basic structure doctrine . This quasi‑federal structure ensures national unity while accommodating diversity via state autonomy and grassroots governance. Despite periodic centralizing trends, judicial vigilance and cooperative mechanisms like the GST Council and NITI Aayog reinforce its resilience.
For UPSC aspirants, grasping these nuances of federalism in India, embedded within the Indian Constitution, is vital to understanding contemporary governance challenges.
Internal Linking Suggestions
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External Linking Suggestions
UPSC Official Website – Syllabus & Notification: https://upsc.gov.in/
Press Information Bureau – Government Announcements: https://pib.gov.in/
NCERT Official Website – Standard Books for UPSC: https://ncert.nic.in
