Federalism in India: Nature and Issues
Introduction
Federalism refers to a form of government in which powers are divided between a
national authority and regional units in a manner that ensures both unity and
diversity. It is not merely a question of constitutional design but also a matter of
political practice. As Granville Austin remarked, “Federalism is not a matter of legal
structure alone, but also of political practice.” In the Indian context, federalism is
rooted in the idea of shared sovereignty, yet tilted towards a strong Centre to
preserve unity in a highly diverse polity.
Federal Features of the Indian Constitution
Although the Constitution does not describe India as a federation, but rather as a
“Union of States,” it incorporates several federal features. A dual polity exists with
governments at both Union and State levels, each operating in its defined sphere.
The Seventh Schedule distributes powers into the Union, State and Concurrent Lists.
The supremacy and rigidity of the Constitution, along with the institution of an
independent judiciary, safeguard federal principles. Bicameralism, with the Rajya
Sabha representing the states, further reflects this design. For instance, while states
like Maharashtra or Tamil Nadu regulate law and order or education, the Union
manages defence, foreign policy, and currency.
Unitary Elements in Indian Federalism
Yet, Indian federalism is not strictly federal but often described as ‘quasi-federal’ or
‘federal with a unitary bias.’ Certain features ensure the predominance of the Centre.
India has a single Constitution and single citizenship. The Union controls crucial
services such as the IAS and IPS. The Union List carries more weight than the State
List. Emergency provisions, particularly Articles 352, 356 and 360, allow the Centre to
take over state functions when required. Further, under Article 3, Parliament may
alter boundaries or names of states unilaterally. It was on this basis that Dr. B.R.
Ambedkar called the Constitution “federal in structure but unitary in spirit.”
Constitutional Scheme for Federal Relations
The Constitution makes clear provisions for Centre-State relations. Legislative
powers are covered by Articles 245–255, while administrative relations are dealt with
by Articles 256–263. Financial matters are guided by Article 280, through the
institution of the Finance Commission. Emergency provisions from Articles 352–360
significantly alter the federal balance. Importantly, Article 368 prescribes that certain
provisions require ratification by half of the states, reflecting cooperative federalism.
Dimensions of Federal Relations
Legislative Relations: The Union has exclusive jurisdiction over subjects like
defence, foreign policy and railways in the Union List. States regulate police,
agriculture, or public order. Subjects like education and marriage laws fall
into the Concurrent List. However, Articles 249 and 250 empower Parliament
to legislate on State List subjects under certain circumstances, diluting federal
supremacy.
Administrative Relations: The Union may issue directions to states (Article
256). All-India Services further blur boundaries. In case of President’s Rule
under Article 356, the Union directly governs a state.
Financial Relations: A major imbalance exists, as the Union controls most
sources of taxation. States, though responsible for key social and
developmental expenditure, depend on Finance Commission devolution,
central grants, and now, the GST Council. The GST regime is a prime example
of cooperative fiscal federalism where Centre and States jointly decide tax
structures.
Issues and Challenges in Indian Federalism
Despite constitutional clarity, federal practice remains contested.
1. Centralisation of Power: States often criticize the Union for excessive use of
powers. The misuse of Article 356, especially during the pre-1990s era,
reflects this tendency.
2. Governor’s Role: Governors, appointed by the Centre, often function as its
political agents, particularly during government formation crises (e.g.,
Maharashtra 2019, West Bengal).
3. Fiscal Imbalance: The Centre appropriates almost two-thirds of revenues,
leaving states over-dependent despite their larger expenditure
responsibilities.
4. Inter-State Disputes: Water-sharing conflicts such as the Cauvery dispute, or
boundary disputes (e.g., Assam–Nagaland), also strain federal harmony.
5. Political Divergence: When states and Centre are ruled by rival parties,
cooperation is weakened, as seen in Punjab or Kerala vis-à-vis national farm
laws and CAA debates.
Evolving Nature: Cooperative and Competitive
Federalism
Post-2014 reforms have promoted both cooperative and competitive federalism.
Cooperative federalism is visible in institutions like NITI Aayog, the GST Council, or
schemes like the Aspirational Districts Programme. Simultaneously, competitive
federalism is witnessed in rankings such as Ease of Doing Business or Startup State
indices, where states compete to attract investment and improve governance. Thus,
federalism today thrives both on collaboration and healthy competition among
states.
Asymmetric Federalism and Special Provisions
India also exhibits features of asymmetric federalism, wherein not all states enjoy
equal powers. Jammu and Kashmir had special status under Article 370 (revoked in
2019). Similar protections exist under Articles 371A (Nagaland), 371G (Mizoram) and
via the Sixth Schedule for the North-East. These adaptations respect cultural
uniqueness, though also pose challenges to uniformity.
Recent Developments and Federal Politics
The federal balance has been reshaped in recent years. The abrogation of Article
370 significantly weakened state autonomy in Jammu and Kashmir. The 2020 farm
laws, later repealed, were contested by states as an encroachment on agriculture,
their legislative domain. COVID-19 management exposed coordination gaps
between Union and State authorities. Similarly, proposals such as "One Nation, One
Election" raise concerns of centralising tendencies.
Conclusion
Indian federalism is neither purely federal nor wholly unitary. It is a unique blend,
combining a strong Centre with substantial State autonomy, designed to ensure
unity amidst enormous diversity. The challenges of centralisation, fiscal dependency,
and political frictions continue to test this balance. However, the future of federalism
in India will depend on strengthening cooperative mechanisms, respecting state
autonomy, and ensuring fiscal and political trust. Without mutual accommodation
and dialogue, the federal spirit of the Constitution may be compromised.