Introduction
Federalism is a system of governance where powers are divided between the central government and various regional governments. In the Indian context, federalism is enshrined in the Constitution, with a unique blend of unitary and federal features. The functioning of the Indian federal system has evolved over the years, reflecting the complexities of governance in a large and diverse nation.
Constitutional Provisions
India’s federal structure is defined in Part XI and XII of the Constitution. It establishes a three-tiered division of power among:
- The Union Government
- State Governments
- Local Self-Governments (after the 73rd and 74th Amendments)
Division of Powers
- Union List: Subjects of national importance like defence, foreign affairs, atomic energy.
- State List: Police, public health, agriculture, local governance.
- Concurrent List: Education, forests, trade unions – both Union and State can legislate, but Union law prevails in case of conflict.
Features of Indian Federalism
- Strong Centre: The Union government has overriding powers in emergencies and on subjects in the Concurrent List.
- Single Constitution and Citizenship: Unlike countries like the USA, India has one Constitution and citizenship.
- Independent Judiciary: The Supreme Court acts as the guardian of the Constitution and arbitrates disputes.
- Financial Relations: The Finance Commission recommends distribution of financial resources between Union and States.
Functioning of Indian Federalism
The actual working of Indian federalism is shaped by political, economic, and administrative factors.
1. Centre-State Relations
- The Union often dominates, especially through financial leverage and legislation.
- During President’s Rule (Article 356), state governments can be dismissed by the Centre.
2. Fiscal Federalism
- The Union controls major sources of revenue (e.g., income tax, customs), while States depend on grants.
- GST has further centralized revenue but has a GST Council with equal representation.
3. Intergovernmental Cooperation
- Institutions like NITI Aayog promote cooperative federalism.
- Inter-State Council and Zonal Councils address regional issues and coordination.
4. Political Factors
- Same-party governments at Centre and State often result in smoother relations.
- Federal tensions rise when opposition parties govern the States.
Challenges
- Centralization of Power: Especially during national emergencies and with the rise of dominant-party politics.
- Resource Imbalance: Economically weaker states face difficulties in managing public services.
- Demand for Autonomy: Regional movements for more power or even secession (e.g., Kashmir, Northeast).
- Political Misuse: Article 356 has often been used to destabilize State governments.
Recent Developments
- GST Implementation: A major step in fiscal federalism with both Centre and States involved in tax policy.
- COVID-19 Pandemic: Revealed coordination gaps and the need for robust Centre-State collaboration.
- Revocation of Article 370: Raised debates on the federal autonomy of Jammu and Kashmir.
Conclusion
The Indian federal system is a dynamic and evolving model. While it is designed to maintain unity in diversity, the balance between central authority and state autonomy remains a constant negotiation. Strengthening cooperative and competitive federalism is key to inclusive and effective governance in India’s complex polity. Ensuring fiscal equity, political neutrality, and institutional dialogue will further enhance the federal structure’s functionality.