Context: The issue in federalism is not about Centre versus states but is co-produced by the political culture in both.
Factors that help in sustaining India’s Federalism:
Accommodating linguistic Identities: The States Reorganisation Act allowed India to use federalism to accommodate linguistic diversity, as it could become a source of resistance to centralisation.
Actual distribution of political power: Rise of coalition governments, economic liberalisation, regional parties, has provided a favourable ground for political federalism.
Political and institutional culture: It includes the role of the supreme court in defending federalism and the role of Institutions like finance commission in creating create bi-partisan consensus
Asymmetrical nature: Under which special exemptions are given to various states.
Problems associated with Federalism in India:
Opportunistic nature of constitution: According to B R Ambedkar: “India’s Draft Constitution can be both unitary as well as federal according to the requirements of time and circumstances.”
Imperatives of security, state-building, and economic development are always allowed to trump federal pieties.
Union government use the extreme interpretation of flexible federalism:
Citing procedural impropriety: to oust opponents.
Union often ignoring the will of the state legislature: E.g. Bifurcation of erstwhile Andhra was done against the resolution of the state legislature, Stripping statehood of Kashmir.
Curtailing the powers of States: Though Centre enables states to suspend labour laws if necessary, but is unwilling to do that in the case of agriculture.
Pressures associated with asymmetrical federalism:
In cases of Kashmir and North East, asymmetrical federalism is seen as a source of security threat.
No clarity over compatibility with Article 14 (Equality before law) of the Indian Constitution.
Increasing presidentialisation of national politics: a single-party dominance with powerful messaging power, and change in forms of communication, might diminish the stature of chief ministers.
Constitutional amendments undermining federalism: Amendments to introduce Goods and Services act is seen as a step to increase centralisation in the system.
Problems associated with states: Focussed more on political federalism rather than true financial and administrative federalism:
Most states are reluctant to honour more decentralisation within, to rural and urban bodies.
Failed to make a council of chief ministers a more robust forum.
They ask for a Central Minimum support price(MSP) guarantee and defend federalism.
Very few states have shown a zeal to increase their own financial headroom by utilising whatever powers they might have on taxation.