India has a government at the Centre and governments in every State. How power is shared between them is the subject of federalism. The Indian Constitution creates a federation with a strong Centre, which is why it is often called quasi-federal. Over time, the ideas of cooperative federalism and competitive federalism have also become important. Exams ask about federal and unitary features, key Articles, bodies like the GST Council and NITI Aayog, and important commissions. This post explains them in simple words. It ends with 15 previous year questions.
Key Points (Quick Revision)
- Article 1 calls India a "Union of States", not a federation.
- India has federal features with a strong unitary bias - often called quasi-federal (K.C. Wheare).
- Powers are divided through the Seventh Schedule into the Union, State and Concurrent Lists.
- Residuary powers lie with the Union (Article 248).
- In the S.R. Bommai case (1994), federalism was held to be part of the basic structure.
1. What is federalism?
In a federation, power is divided between a central government and regional governments by a written constitution, and each works in its own sphere. In a unitary system, power is concentrated at the centre.
India chose a federation with a strong Centre because of the need for unity after Partition, its large size and diversity, and the need for planned development.
2. Federal features of the Constitution
- Dual polity - a Union government and State governments.
- Written constitution that both levels must follow.
- Division of powers - the Union List, State List and Concurrent List in the Seventh Schedule.
- Supremacy of the Constitution and a partly rigid amendment process for federal provisions.
- Independent judiciary to settle Centre-State disputes (Article 131).
- Bicameral Parliament, with the Rajya Sabha representing the States.
3. Unitary features
- Strong Centre - the Union List has more and more important subjects; residuary powers are with the Union.
- Single constitution and single citizenship.
- Parliament can change State boundaries and names (Article 3).
- Emergency provisions (Articles 352, 356, 360) can make the system almost unitary.
- Governors are appointed by the President.
- All India Services and an integrated judiciary.
- Parliament can make laws on State subjects in some cases (Articles 249, 250, 252, 253).
- Unequal representation of States in the Rajya Sabha, based on population.
4. Cooperative federalism
Cooperative federalism means the Centre and States work together as partners to solve common problems. Key institutions:
| Body | Basis | Role |
|---|---|---|
| GST Council | Article 279A (101st Amendment, 2016) | Centre and States decide GST rates and rules together |
| NITI Aayog | Set up in 2015 by an executive resolution | Policy think tank; all Chief Ministers are in its Governing Council |
| Inter-State Council | Article 263; set up in 1990 | Discusses common issues between Centre and States |
| Zonal Councils | States Reorganisation Act, 1956 | Regional cooperation among neighbouring States |
| Finance Commission | Article 280 | Recommends sharing of central taxes with States |
5. Competitive federalism
Competitive federalism means States compete with each other to attract investment and improve governance. Examples include rankings of States on ease of doing business, health, education and the SDG index. Healthy competition pushes States to reform, while cooperation ensures no State is left behind.
6. Commissions on Centre-State relations
| Commission | Set up | Key point |
|---|---|---|
| Administrative Reforms Commission | 1966 | Studied Centre-State relations among other issues |
| Sarkaria Commission | 1983 | Recommended a permanent Inter-State Council and careful use of Article 356 |
| Punchhi Commission | 2007 | Re-examined Centre-State relations, including the role of Governors |
Some States also set up their own committees, such as Tamil Nadu's Rajamannar Committee (1969), which called for more State autonomy.
7. Federalism and the courts
- In the S.R. Bommai case (1994), the Supreme Court held that federalism is part of the basic structure and limited the misuse of Article 356.
- The Court has said that India is federal but with a tilt towards the Centre, and that States are not mere agents of the Union.
8. Previous year questions
- Which Article describes India as a Union of States? – Article 1
- Who described India as quasi-federal? – K.C. Wheare
- Which Schedule contains the three lists of subjects? – Seventh Schedule
- Which Article gives residuary powers to the Union? – Article 248
- Which Article gives the Supreme Court original jurisdiction in Centre-State disputes? – Article 131
- Which Article allows Parliament to change State boundaries? – Article 3
- Which Article provides for the Inter-State Council? – Article 263
- In which year was the Inter-State Council set up? – 1990
- Which Article provides for the GST Council? – Article 279A
- In which year was NITI Aayog set up? – 2015
- Under which Act were Zonal Councils set up? – States Reorganisation Act, 1956
- In which year was the Sarkaria Commission set up? – 1983
- In which year was the Punchhi Commission set up? – 2007
- Which case held federalism to be part of the basic structure? – S.R. Bommai case (1994)
- Which State committee of 1969 called for State autonomy? – Rajamannar Committee (Tamil Nadu)
9. How to revise this topic
Start with the nature: Union of States (Article 1), quasi-federal (K.C. Wheare), strong Centre.
Next, make two lists - federal features (dual polity, division of powers, Rajya Sabha, Article 131) and unitary features (Article 3, emergencies, Governors, single citizenship, residuary powers with Union).
Then learn the cooperative bodies: GST Council (279A), NITI Aayog (2015), Inter-State Council (263, 1990), Zonal Councils (1956), Finance Commission (280).
Finally, remember the commissions and case: ARC 1966, Rajamannar 1969, Sarkaria 1983, Punchhi 2007, S.R. Bommai 1994.
10. Frequently Asked Questions
Is India a federal country?
India is a federation with a strong Centre. The Constitution calls India a Union of States, and scholars like K.C. Wheare describe it as quasi-federal.
What is cooperative federalism?
Cooperative federalism means the Centre and States work together as partners. Bodies like the GST Council, NITI Aayog and the Inter-State Council are examples.
What is competitive federalism?
Competitive federalism means States compete with each other to attract investment and improve governance, for example through rankings on ease of doing business and the SDG index.
Who has residuary powers in India?
Residuary powers - subjects not mentioned in any list - belong to the Union under Article 248.
Is federalism part of the basic structure?
Yes. In the S.R. Bommai case of 1994, the Supreme Court held that federalism is part of the basic structure of the Constitution.
For more Polity topics in simple language, see our Centre-State Relations, Inter-State Council and Zonal Councils and Finance Commission posts, or browse the Polity section. Preparing for a civil services exam? Start with the UPSC Civil Services guide or join the 100 Hour GS Course.