INTRODUCTION
The classification of political systems may be done on the basis of the distribution of powers exercised by the government, and they may be unitary or federal. Under the unitary form, all powers are concentrated in the hands of one sovereign, whereas in the federal form, all powers are distributed among several units to be governed. Federalism[1] remains one of the basic constituents of the Indian Constitution, aiming to allocate balanced powers to the Union as well as to the States. The Indian federation remains unique, taking into consideration the history, diversity, and complexity of the country. Additionally, in this enormous nation, federalism acts as one of the basic unifying agents, thereby averting chaos. However, the growing tensions between the Centre and States in recent times have brought to the centre stage the working of the federative elements. The paper intends to examine the federative elements in the Constitution of India in terms of its evolution, working of cooperative federalism, and competitive federalism.
HISTORY OF FEDERALISM IN INDIA
The Indian federal system has its beginning during colonial times, where British colonialism brought about massive centralisation in administration. The control of important issues like defence, foreign affairs, and law and order rested in the hands of the colonialists, but provincial autonomy was restricted. This state of affairs[2], as efficient as it was, did not have space for the regional and social diversities of India. Increasing demands by the masses for political autonomy and self-Government brought about changes in constitutions. One of the major achievements of the Constituent Assembly during the preparation of the Indian Constitution was the incorporation of the provisions of the Government of India Act of 1935.[3] This Act introduced the federal element through the Division of Legislative Powers between the Centre and the Provinces. While preparing the Indian Constitution, the Constituent Assembly considered the Federation Pattern of other countries, like the U.S., Canada, and Australia.
KEY FEATURES OF THE INDIAN FEDERAL SYSTEM
Indian federalism is often described as flexible and quasi-federal, reflecting the dominant position of the Centre in specific constitutional situations. The Union exercises extensive authority during emergencies, holds residuary legislative powers, and may dismiss State governments under Article 356[4]. The system also exhibits asymmetry, as special provisions under Article 370[5] (now abrogated) and 371[6] were intended to address regional and historical differences. It establishes a division of powers through the Union, State, and Concurrent Lists; provides for dual governance; adopts a written and supreme Constitution with limited rigidity; ensures an independent judiciary; and creates a bicameral legislature with State representation in the Rajya Sabha. Article 1 declares that “India, that is Bharat, shall be a Union of States. The Supreme Court, in Ganga Ram Moolchandani v. State of Rajasthan[7], reaffirmed that the Indian Constitution is federal in nature, emphasising constitutional supremacy, division of powers, and the existence of an independent judiciary. In Kesavananda Bharati v. State of Kerala (1973),[8] federalism was affirmed as a basic structure, preserving constitutional balance between the Union and the States.
DIVISION OF POWERS: THE THREE LISTS
During exceptional situations such as national emergencies or President’s Rule, the Centre is empowered to assume greater control over State matters. Legislative powers in India are divided under Schedule VII.[9] of the Constitution into three distinct lists, establishing the distribution of authority between the Union and the States and thereby creating a federal structure with delineated responsibilities.
Union List: This list comprises subjects of national and international importance, where only the Parliament of India is empowered to make laws. It includes defence, foreign affairs, atomic energy, currency, and inter-state trade and commerce
State List: This list encompasses areas of regional or local significance, falling primarily within the legislative competence of the State Legislatures. Subjects include police, public health, public order, agriculture, irrigation, and local government. States have the autonomy to frame laws addressing local needs and conditions.
Concurrent List: This list contains subjects on which both Parliament and State Legislatures may legislate, such as education, marriage and divorce, bankruptcy and insolvency, and population control. In cases of conflict between Union and State law, Article 254 provides that Union law prevails, thereby maintaining national uniformity while allowing states some flexibility. Thus, Schedule VII ensures a structured federal division of powers, balancing the need for central authority in matters of national interest with state autonomy in regional affairs, while providing a framework for coordination and conflict resolution through the Concurrent List.
UNION–STATE RELATIONS
The Constitution provides detailed provisions governing relations between the Union and the States. Part XI addresses legislative and administrative relations, while Part XII. [10]regulates financial relations.
Legislative Relations (Articles 245–255)[11]: Legislative powers are divided between the Union and the States based on subject matter and territorial jurisdiction, ensuring that both levels of government operate within defined constitutional limits.
Administrative Relations (Articles 256–263): The Constitution promotes administrative coordination between the Centre and the States. Article 256 [12]requires States to exercise executive power in conformity with parliamentary laws. The President may delegate Union functions to States with consent, while Article 312 establishes All India Services to ensure administrative uniformity.[13]
Financial Relations (Articles 268–293); Financial relations are structured through provisions governing taxation, revenue sharing, grants, and loans. Certain taxes are levied by the Union but collected by the States, while others are shared between both levels. The Goods and Services Tax (GST) represents a jointly administered tax regime. The Finance Commission, constituted under Article 280, recommends revenue distribution. During emergencies, financial arrangements may be altered to meet national requirements.
EVOLUTIONS AND CHALLENGES IN INDIAN FEDERALISM
The concept of federalism originates from the Latin term foedus, meaning agreement or covenant. In India, federalism evolved not through a formal compact but through historical and political processes. From early struggles for autonomy to colonial resistance and constitutional negotiations, Indian federalism has continuously adapted to changing conditions. In recent years, adherence to federal principles has been increasingly questioned. Tensions between the Union and the States, legislative dominance over judicial independence, and expanding central control have strained the federal framework. Key concerns include the deployment of central investigative agencies without State consent, delays in GST compensation, the politicisation of gubernatorial offices, reduced judicial autonomy, infrequent Inter-State Council meetings, and legal challenges by States against fiscal restrictions. Broader challenges include strained intergovernmental relations, regional economic disparities, politically driven Centre–State conflicts, and a growing tendency toward centralisation.
COOPERATIVE AND COMPETITIVE FEDERALISM
Indian federalism operates through both cooperative and competitive models. Cooperative federalism emphasises collaboration between the Union and the States in policy formulation and implementation. Competitive federalism, which gained prominence after the economic reforms of the 1990s, encourages States to compete for investment, resources, and economic growth. While competition has promoted development in some regions, it has also weakened cooperative mechanisms, intensified inequalities, and strained Centre–State relations.[14]
CONCLUSION
India’s federal system represents a distinctive blend of strong central authority and limited State autonomy, tailored to its social, cultural, and regional diversity. The Constitution provides a robust framework through the division of powers, an independent judiciary, and structured fiscal arrangements. However, evolving political and economic dynamics have placed increasing pressure on the federal balance. Compared to classical federations such as the United States and Canada, Indian States function under greater central oversight, particularly during emergencies. Despite these challenges, Indian federalism continues to uphold the principle of unity in diversity. In S.R. Bommai v. Union of India (1994)[15] and State of West Bengal v. Union of India (1963)[16]. The courts protected State autonomy by curbing arbitrary central control and limiting parliamentary encroachment, highlighting the importance of federalism.
Author’s Name: Afreen Fathima Sathar (National University of Advanced Legal Studies, Kochi)
[1] Malik MA, ‘Changing Dimensions of Federalism in India: An Appraisal’ (2019) 1 ILI Law Review <https://ili.ac.in/pdf/mam.pdf> accessed 25 December 2025
[2] Paled DAV, ‘Review of Research’ (2023) Review of Research <https://oldror.lbp.world/UploadedData/15339.pdf >accessed 25 December 2025
[3] Government of India Act 1935 (26 Geo 5 c 2)
[4] Constitution of India 1950, art 356.
[5] Constitution of India 1950, art 370.
[6] Constitution of India 1950, art 371(2)
[7] Ganga Ram Moolchandani v State of Rajasthan AIR 2001 SC 2616
[8] Kesavananda Bharati v State of Kerala 1973) 4 SCC 225
[9] Constitution of India 1950, art 246
[10] Constitution of India 1950, pt XI
[11] Constitution of India 1950, arts 245–255.
[12] Constitution of India 1950, art 256
[13] Constitution of India 1950, art 312
[14] Drishti IAS, ‘Cooperative and Competitive Federalism in India’ Drishti IAS (19 June 2019) https://www.drishtiias.com/to-the-points/Paper2/cooperative-and-competitive-federalism-in-india accessed 27 December 2025
[15] S R Bommai v Union of India (1994) 3 SCC 1
[16] State of West Bengal v Union of India (1963) 2 SCR 933
