How Is Federalism Practiced In India?

Federalism is a system of government in which power is divided between a central authority and various constituent units. In India, federalism plays a key role in the country's governance, but it is a unique form of federalism, often described as "quasi-federal" or "cooperative federalism." This reflects both the flexibility of the system and the balance of power between the Union (central) government and the states. Let's explore how federalism is practiced in India.

The Constitution As The Backbone Of Indian Federalism

The Indian Constitution, adopted in 1950, establishes the federal structure of governance in India. However, it has several unitary features that differentiate it from a pure federal system like that of the United States. In India, federalism is designed with a strong central government in mind, while also providing significant autonomy to states.

The Constitution of India distributes legislative, executive, and financial powers between the Union and the states. The division of powers is laid out in three lists in the Seventh Schedule:

a. Union List - Subjects like defense, foreign affairs, and atomic energy are exclusive to the Union government.

b. State List - Subjects such as police, public health, and agriculture fall under the domain of state governments.

c. Concurrent List - Both the Union and state governments can legislate on subjects like education, criminal law, and marriage, though Union law prevails in case of conflict.

This division of responsibilities ensures a balance of power, allowing states to govern their own affairs while the Union handles matters of national importance.

Also Read : Salient Features Of Indian Constitution

Asymmetrical Federalism

India's federalism is not entirely symmetrical. Some states enjoy special provisions and autonomy under the Constitution. For example, Article 370 (prior to its abrogation in 2019) granted special status to Jammu and Kashmir, allowing it to have its own Constitution and considerable autonomy. Similarly, states in the northeast like Nagaland and Mizoram have been granted special rights to protect their unique cultural and tribal identities.

This form of asymmetrical federalism ensures that India's diversity is respected and protected. It allows states with distinct identities to operate with more flexibility than others.

Cooperative Federalism

India’s federalism functions largely through a system of cooperation between the Union and state governments, known as cooperative federalism. This is evident in various intergovernmental bodies and institutions that facilitate collaboration between the two levels of government. For example:

a. The Inter-State Council - Established to promote cooperation and coordination between states and the central government.

b. NITI Aayog (National Institution for Transforming India) - It replaced the Planning Commission and encourages cooperative federalism by involving states in the process of national development.

While the Constitution provides the framework for federalism, the actual practice often involves collaboration between the central and state governments to address national issues, ensure development, and implement policies.

Also Read : Federalism In India

Financial Federalism

An important aspect of federalism is the division of financial powers between the Union and state governments. Indian federalism allows the central government to retain significant control over major sources of revenue. However, a portion of the Union’s revenues is shared with the states through Finance Commissions, which are constituted every five years. The Finance Commission determines how tax revenues are distributed between the Union and states, ensuring that states receive an equitable share based on their needs and resources.

In addition, states are allowed to levy taxes on subjects in the State List, like excise duties on alcohol and taxes on agriculture. However, the Goods and Services Tax (GST), introduced in 2017, has streamlined the taxation system in India, further enhancing the cooperative nature of fiscal federalism. GST is a unified tax regime where both the Union and states share revenue from goods and services taxes.

Political Federalism

In practice, Indian federalism also reflects the country’s political dynamics. The nature of federalism often shifts depending on the political landscape. When the same political party controls both the central government and multiple state governments, there is generally smoother cooperation between the two levels of governance. Conversely, when opposing political parties are in power, tensions can arise.

Despite these tensions, the federal structure has proven flexible. Over time, political federalism in India has strengthened due to regional parties gaining prominence in state elections.

Challenges To Federalism In India

The Union government’s intervention in state matters has led to tensions between the two levels of government. Some of the key challenges include:

a. Governor's Role - Appointed by the Union government, governors are the ceremonial heads of states but often act as representatives of the central government. This has led to accusations of partisanship, especially when governors dismiss state governments or delay decisions at the Union's behest.

b. President’s Rule - The Union government can impose President’s Rule under Article 356 if a state government fails to function according to constitutional norms. While this provision is meant as a last resort, it has been used controversially in the past to dismiss state governments controlled by opposition parties.

c. Financial Imbalance - The central government controls a larger share of tax revenues, while states bear a greater responsibility for implementing welfare schemes. This imbalance often makes states dependent on the Union for financial aid.

d. Tensions over Law and Order - Law and order is a state subject, but the central government has special powers to intervene in case of national security concerns. Disputes have arisen over the deployment of central security forces in states without their consent, raising questions about the autonomy of states. Read more about how India balances diversity and unity through federalism.

Conclusion

Federalism in India is a dynamic and evolving system shaped by its historical context, diversity, and political framework. The practice of federalism in India ensures a balance between a strong central government and considerable autonomy for states to manage their internal affairs. Mechanisms like cooperative governance, financial arrangements, and judicial oversight play a crucial role in addressing the complexities of a diverse and populous nation.

As India grows and tackles new challenges, how federalism is practiced in India will remain central to its democratic framework. This system continues to adapt to the nation’s needs, ensuring unity in diversity while fostering progress and inclusivity.