What is Federalism in India?

Federalism is a system of government where power is divided between a central authority and regional units (states or provinces). It ensures that governance is shared between the national government and smaller political units, allowing local autonomy while maintaining national unity.

In most federations, the central government handles national issues, such as defense and foreign affairs, while state or local governments manage matters like education, law enforcement, and local infrastructure.

Federalism in India Unique Structure

Unlike traditional federations like the United States, where states have sovereign powers, India's system is often called "quasi-federal"—a mix of federal and unitary features. The Indian Constitution does not explicitly use the term "federation" but describes India as a "Union of States" (Article 1).

Federalism in India was influenced by the Canadian model, which emphasizes a strong central government rather than the American model, where states have more autonomy.

Key Features of Federalism in India

1. Federal Characteristics of India’s Constitution

Despite being quasi-federal, India exhibits several classic features of federalism:

• Dual Polity: India has a two-tier governance system—the Union Government (Central Government) and the State Governments.
• Division of Power: The Seventh Schedule of the Constitution divides powers between the Union List, State List, and Concurrent List.
• Written Constitution: The Indian Constitution is the longest written constitution in the world, providing a structured framework for governance.
• Supremacy of the Constitution: The Constitution is the highest authority, ensuring that both the Centre and States operate within constitutional limits.
• Constitutional Rigidity: The process of amending federal provisions requires a special majority, making the Constitution relatively rigid.
• Independent Judiciary: The Supreme Court of India acts as the final interpreter of the Constitution and resolves Centre-State disputes.
• Bicameralism: The Indian Parliament has two houses—the Lok Sabha (House of the People) and the Rajya Sabha (Council of States)—representing both national and regional interests.

2. Unitary Features of Indian Federalism

India’s federalism has several unitary (centralized) features, which make it unique:

• Emergency Powers: During a national, state, or financial emergency, the Centre gains overriding authority, reducing states’ autonomy.
• All-India Services: Key administrative services (IAS, IPS, IFS) are controlled by the Central Government, ensuring uniform governance across states.
• Parliament’s Authority Over State List: Under Article 249, Parliament can legislate on State List subjects if it is in the national interest.
• Single Constitution: Unlike the U.S., where each state has its own constitution, India follows one uniform Constitution for the entire country.
• Role of Governors: The Governor, appointed by the President, acts as a bridge between the Centre and the State, sometimes influencing state decisions.
• Demos-Enabling Federalism: The Indian model ensures that a single electorate (the people of India) elects both central and state governments.

Evolution of Federalism in India

1. Pre-Independence Federalism

• Government of India Act, 1935: Laid the foundation for Indian federalism by creating a division of powers between the Centre and Provinces.
• British Rule: The British adopted a unitary system, but gradually introduced provincial autonomy through Montagu-Chelmsford Reforms (1919) and Government of India Act (1935).

2. Post-Independence Federalism

• Constitution of India (1950): Adopted a quasi-federal structure with a strong Centre to maintain national unity.
• Reorganization of States (1956): States were reorganized based on linguistic lines, ensuring better regional representation.
• Rise of Regional Parties (1970s-1990s): The dominance of regional political parties led to greater demands for autonomy and power decentralization.
• Economic Reforms (1991): Liberalization led to greater financial independence for states, promoting competitive federalism.

Types of Federalism in India

1. Cooperative Federalism

• Centre and States work together on policies, economic development, and governance.
• Example: GST Council, where both Union and State governments collaborate on taxation policies.
• Key Institutions: NITI Aayog promotes cooperative federalism by involving states in economic planning.

2. Competitive Federalism

• States compete with each other to attract investments and improve governance.
• Example: The Ease of Doing Business Rankings, where states compete to attract businesses.

Challenges to Indian Federalism

1. Financial Imbalance

• The Centre collects more taxes than states, leading to fiscal dependency.
• Finance Commission recommendations help distribute financial resources but often favor the Centre.

2. Role of Governors

• Governors are often seen as agents of the Centre, influencing state politics.
• Example: Political crises in Maharashtra, Karnataka, and Puducherry.

3. Implementation of Laws

• Some Central laws impose a uniform approach, ignoring regional diversity.
• Example: Farm Laws faced opposition from states, leading to protests.

Strengthening Federalism in India: The Way Forward

• Greater Financial Autonomy: More direct tax collection by states can reduce dependence on the Centre.
• Stronger State Representation: States should have a greater say in national policymaking through institutions like the Inter-State Council.
• Reforming Governor’s Role: The role of the Governor should be redefined to ensure political neutrality.
• Decentralization: More powers should be given to local governments (Panchayati Raj and Municipalities) to strengthen grassroots democracy.

Conclusion

Federalism in India is dynamic and evolving. While it retains strong unitary features, the growth of regional parties, economic reforms, and cooperative federalism models are making it more inclusive and participatory. A balanced approach that ensures both national unity and state autonomy is crucial for the future of Indian democracy.