Introduction
India is a very large country with variety of people, languages and cultures. The
Constitution’s authors determined that we had a far larger, more complicated population than
any of us ever would have thought, and they chose not to entrust it — all of it — to just one
government. So, they devised a system in which powers are divided between two levels —
the Central Government and the State Governments. This sort of arrangement is called
federalism. In such a system Centre and the State have their own fields of operation and
responsibility. This facilitates resolving the local problems at the State level, and let the
Centre take care of national issues such as Defence, Foreign Affairs and Money.
But Indian federalism is not like American federalism. India’s is called “federal with a
unitary bias”, which in practice means that although powers are divided, the Centre has more
say on many vital things. This design was rooted in the desire to ensure the country remained
united and strong — particularly in light of India’s independence, with a newly-established
central authority.
The Constitution distributes power in three fundamental ways — among the three branches of
government, state and federal governments, and the states and citizens. These divisions
inform us who has the power to make laws, who gets to raise the money and who runs an
administration. But the Constitution also grants special powers to the Centre during
emergencies including war, internal disturbances and financial emergency. In times like this,
the powers of States can be suspended so that Central Government acts fast and strong to
protect the nation.
This architecture has been often explored in both practice. In seminal cases such as
Kesavananda Bharati v State of Kerala [1973] 4 SCC 225 and S R Bommai v Union of India
[1994] 3 SCC1, the Supreme Court held that federalism is part of the basic structure of the
Constitution. This makes it difficult to take out and change. But, the Court also added that in
certain circumstances like emergencies, Centre can intervene to ensure unity and peace.
2. Legislative Powers
In India, the Constitution clearly divides law-making powers between the Centre and the
States. This division is in Articles 245–255 and the Seventh Schedule. The Schedule has
three lists:
1. The Union List stipulates that Parliament is the only governing body
authorized to pass laws on topics like defense, foreign affairs,
banking, and communications. These are important national issues.
2. State List: States have the authority to create laws covering areas
such as public health, agriculture and local government
3. Parliament and State legislatures have the authority to create laws
on various topics, including education, forests, marriage, and
adoption. See the Concurrent List. Article 254 provides the Court of
Appeal's jurisdiction in cases of conflict between Centre and its law.
It demonstrates that the Centre is more dominant than States, particularly
in areas that affect the entire nation. If two or more States request it,
Parliament can legislate on a State List subject (Article 252) during op-ed
periods (Alia is Article 252 and 249 respectively), or in the event of
national interest resolutions by the Rajya Sabha.
In India, the courts have emphasized that the Central Government has
more control over the formulation of laws than the States. The decision in
R C Cooper v Union of India [1970] was one more. See R. According to the
SCC 248, the Supreme Court stated that Parliament has extensive powers,
particularly in economic and banking matters. In 1975, 2 years later,
Indira Nehru Gandhi and Raj Narain were involved in a case that was
heard by the court. The Court acknowledged in SCC 159 that the
Constitution is necessary for all Centre laws to be consistent, while also
acknowledging the Union's strong law-making power.
if there is a disagreement between the Centre and the States, the Centre’s law will win, even
on subjects that both can make laws about (the Concurrent List). This shows that the Union
government is stronger and has the final say. Because of this, India’s system is considered to
favor the Centre more than the States.
However, the courts protect the States from misuse of power by the Centre. The judiciary acts
as a balance, making sure both the Centre and the States stay within their powers.
3. Financial Powers
The government of India depends on money to function. The Constitution
of India grants financial powers to the Centre and States under Article
268–293. The Union regulates the major sources of income, which include
income tax, customs duty (customs Duty), excise Duty, and corporate tax.
What generates the most revenue? Land revenue, stamp duty, and taxes
on goods sold in the state are collected by states but are not equal to the
Centre's revenue.
The Constitution's Article 280 established the Finance Commission to
provide aid to the States. This is significant. It offers suggestions on how
the Centre can allocate funds to States. This is called tax devolution. The
Finance Commission also suggests state development and welfare grants.
Why? This system exists, but many States heavily rely on the Centre for
funding. Why? The Centrally sponsored schemes, in which the Centre sets
conditions while providing funds, can be used by states to exploit this
dependence.
In times of crisis, the Centre's financial strength increases. In case of
financial emergencies, a State's finances can be taken over by the Union
as per Article 360. The Centre has the ability to determine how States
gather and spend their money, which is crucial for national stability.
The court is currently examining the money balance.? In S.R. 6. The case
of Bommai v Union of India was heard in February 1939. Legal Case. SCC
644 saw the Supreme Court recognize that states' financial dependence
makes them vulnerable, particularly in cases of political discord between
the Centre and State governments. While States are granted
constitutional rights, the Court maintained that the Centre's financial
powers provide it with a practical advantage.
Financial powers also affect policy-making. In States, the funding for
education and health is often provided by Central funds. States can be
impacted by the Centre's decision to delay or change funding. The need
for Centre-State cooperation is exemplified by GST, but the Union has
greater influence in formulating policies.
4. Administrative Powers
In India, administration is responsible government and "administrative
function" or management of the state (ensured effectiveness of laws and
policies). Powers are vested jointly at the Centre and States under this
Constitution, but in so doing they have firm control to maintain national
unity. Articles 256–263 provide for the powers that are in place.
The Governor is a significant administrative authority. The President
designates Governors to serve as the Centre in States.' The President can
reserve State bills for their approval or veto a law passed by the State
legislature and present it to the Union. The State government's adherence
is subject to Governor oversight. Does it grant the central government
authority over the state? If yes, why?
Another way in which the Centre controls administration is through
various All-India services like the Indian Administrative Service (IAS), IPS,
and IFS. These services' officers are accountable to the Centre and work
across the Union and State.. By maintaining the same level of
administration, the Union can guide policies in the States. Hence... To
maintain consistency, the Centre can provide national programs to IAS
officers in a State.
Another mechanism for coordination is the Inter-State Council, which is
covered by Article 263. The Centre has the ability to work with the States
to resolve administrative problems. However, the Council is created by the
President and remains in the hands of the Centre.?...
The courts have endorsed this legal framework.'". The case of State of
West Bengal v Union of India occurred in 1963 at 2:36. ". According to SCR
538, the Supreme Court's decision stated that States have administrative
powers but are bound by national law as dictated in its directives. It
demonstrates the centralization of administrative control in order to
protect national interest and maintain the autonomy for States within their
region.
In emergencies where we have administrative powers, this is especially
crucial. State administration is under the direct authority of the Centre, as
stated in Articles 352, 356, or 360, which may involve taking control of
governance for States that do not comply with the Constitution. This
demonstrates the unitary bias of Indian federalism.'
5. Unitary Bias
Although India's Constitution is federal in form, it exhibits a unitary bias
that results in the Centre holding more power than any State. The reason
they did it was to keep India together as a country of its size, diversity,
and history. They wanted to ensure stability within the country.
Article 248 of the Constitution confers residuary powers to that Centre.
Issues that are not included in the Union, State, or Concurrent Lists are
addressed by these. Indian residuary powers are not transferred to the
States by the US, but rather fall under the jurisdiction of the Union. It
means the Centre can now enact legislation on issues not included in the
Constitution, such as digital technology, cyber laws or space exploration.
Emergency provisions must be available as well. The Centre is granted
supplementary powers in emergencies as per Articles 352, 356 and 360
The Centre has the power to legislate for public order or national security
on all subjects, including State matters. In case the Constitution is unable
to function, the Centre can take over the State government under the
President's Rule (Article 356). Article 360 empowers the Union to handle
State finances in times of financial crisis.
The federal structure can become unitary during crisis periods, allowing
the Centre to exercise full authority. Previously, S.R. had misused these
authority.? 6. The Bommai v Union of India case was heard in February
1939. Legal Case. State governments led by opposition parties were
ousted using Article 356 during the SCC 604. Later on, the Supreme Court
clarified that judicial review can apply to President's Rule, affirming its
intended purpose.
With the consent of members of the State, the Parliament can pass
legislation on State matters through Article 249 and/or National
Emergency resolution, as well as Article 250 and/2nd or even Article 252
in certain cases. It also shows that the Centre can extend its law-making
power at any time if necessary in the national interest.
Furthermore, its administrative structures strengthen the Centre.
Governors may be appointed by the President and have a hand in shaping
state politics.
6. Effectiveness in Practice
India's Constitution confers powers on both the Centre and States, but
their actual functioning can differ. Why does this happen? In practice,
although India is technically federal, the Centre has more power in both
practical and political spheres, particularly when facing financial
difficulties or crises.
Cohesion is essential for achieving a balanced outcome. Cooperative
federalism is emphasized by the GST Council, which allows both levels to
determine tax rates and policies. While the states are authorized to
propose changes, the Centre's increased financial control often results in
a more dominant role for the centre.
Several financial resources are under the control of States. Central funds
are allocated for a range of welfare programs and infrastructure
initiatives. The Central can make State decisions by donating or receiving
money. Courts, including in S.R. Bommai v Union of India (April 1994)
Case No. According to SCC 644, the Union's financial dependence gives it
a practical advantage over the States.
During times of crisis, the Centre's strength becomes apparent. For
example, during the 1975–77. Following the National Emergency, the
Union government assumed control of State administration, curtailed civil
liberties, and centralized decision-making. In cases like these, Articles
352, 356, and 360 empower the Centre to nullify State powers. Article
356, which provides for emergencies situations, often has been misused
in the past with regards to political reasons, thus limiting states'
autonomy. Yet, the Supreme Court of South Africa... In order to avoid the
arbitrary imposition of President's Rule, Bommai instituted judicial review.
Despite these challenges, Indian federalism has improved. The Centre
and States' friction can be reduced through the use of mechanisms like
Inter-State Council and cooperative schemes. This allows for the
maintenance of national unity while preserving the autonomy of States
through political dialogue and judicial oversight.
Although India's federal system is functional, it has a strong Centre-centric
orientation. The Centre's dominance in law-making, finance, and
administration is unparalleled in ordinary circumstances where states
have the right to exercise powers. The presence of emergency situations,
administrative control, and financial control often reinforces the unitary
bias.
7. Conclusion
Essentially, the Indian Constitution establishes a federal system that
grants powers to both the Centre and States. This division aims to enable
States the authority over local affairs while also promoting national unity
at the Centre. Constitutional powers have been bestowed upon the Centre
on both levels, giving it a more extensive mandate in significant matters.
In addition, financial and administrative powers are also present. This is
why India is often referred to as having a unitary tendency.'
The Constitution includes a Union List and State List, along with lists of the
various states. Legislative authority over State matters can be vested in
Parliament in specific cases. A Central Finance Commission oversees
major taxes and furnishes monetary support to States... The funds allow
states to exercise significant control over their policies by distributing
them for development or welfare purposes. Governance in India is under
the jurisdiction of the Centre, which is supervised by Governors and All-
India Services
Emergency situations also exhibit a unitary bias. In order to ensure
security, stability, and constitutional governance, Articles 352, 356; 360
grant the Centre additional authority over States. In S.R, there have been
instances of abuse of these powers. Civil liberation was a significant
concern in the Bommai v Union case of 1994. The case. Jurisdiction and
boundaries have been established by SCC 644.?
This balance is very practical: states can participate in governance by co-
operative mechanisms such as the GST Council or the NITI Aayog but even
with its central power, like emergency management and finances, it is
much more powerful. While it promotes national cohesion and stability,
this approach impeded the complete State autonomy for a nation with
diverse cultures, like India. Additionally,
Indian federalism operates on a federal system, known as unitarianism.)
States have powers and responsibilities, but the Centre's jurisdiction
includes law-making, finance (i.e. Financial stability and the ability to tap
into emerging markets are crucial factors in strengthening the Union.