Federalism in India: Federal and Unitary Features, Cooperative Federalism and UPSC PYQs

Background: a Union, not a league

India’s federal design began with the Government of India Act, 1935, which created provinces with their own lists of subjects and a Federal Court. The Constituent Assembly first planned a weak Centre to keep the Muslim League on board, but Partition and the integration of princely States changed the mood. Article 1 therefore calls India a “Union of States“. Ambedkar explained the choice: the Union is not the result of an agreement among States, and no State has the right to secede. That is why Parliament can redraw State boundaries under Article 3 without the consent of the State concerned, something unthinkable in a classic federation like the United States.

What is federalism?

In a federation the Constitution, not the Centre, gives powers to the regional governments, and neither level can abolish the other on its own. Classic federations like the USA were formed by independent states coming together. India’s federation was created by dividing a unitary British India into States, which partly explains its strong Centre.

Federal features of the Indian Constitution

• Two sets of governments: Union and States (plus local bodies since 1992).
• Division of powers in the Seventh Schedule: Union, State and Concurrent Lists (Art. 246).
• Written and supreme Constitution; laws contrary to it are void.
• Rigidity: amendments affecting federal provisions need ratification by half the State legislatures (Art. 368(2)).
• Independent judiciary to settle Centre–State disputes (original jurisdiction, Art. 131).
• Bicameralism: the Rajya Sabha represents the States.

Unitary features: why India is called “quasi-federal”

• Strong Centre: residuary powers with the Union (Art. 248); Union law prevails in a Concurrent List conflict (Art. 254).
• Parliament can create States and change boundaries by a simple law (Art. 3). The Union is “indestructible”, States are not.
• Single Constitution, single citizenship, integrated judiciary, All India Services (Art. 312).
• Governors appointed by the Centre; emergency provisions; Rajya Sabha resolution under Art. 249.

K.C. Wheare called the Indian Constitution “quasi-federal”. In S.R. Bommai (1994) the Supreme Court held federalism to be part of the basic structure.

Cooperative and competitive federalism

Cooperative federalism means the Union and States work together on shared problems. Its institutions include the Inter-State Council (Art. 263, set up in 1990), Zonal Councils (States Reorganisation Act, 1956), the Finance Commission (Art. 280), NITI Aayog (2015, replacing the Planning Commission) and the GST Council (Art. 279A, 101st Amendment, 2016), where the Union and States pool taxing powers. Competitive federalism means States competing for investment and development outcomes, for example through rankings.

Why federalism is important in India

A country of India’s size and diversity needs regional governments to accommodate language, culture and local needs. The linguistic reorganisation of States in 1956 is the standard example of federalism managing diversity rather than threatening unity. Current debates (GST compensation, Governors and State Bills, central agencies, divisible-pool devolution) keep federalism a Mains favourite.

Federal and unitary features side by side

Asymmetric federalism

Indian States are not identical units. Articles 371 and 371A-371J give special arrangements to several States, such as protection of Naga customary law and land in Nagaland and development boards in Maharashtra and Gujarat. The Fifth and Sixth Schedules provide special administration for tribal areas, with autonomous district councils in parts of Assam, Meghalaya, Tripura and Mizoram. Union Territories and Delhi, with its own Article 239AA, add more layers. Jammu and Kashmir’s special status under Article 370 ended in 2019, and the Supreme Court upheld this in December 2023. Asymmetry lets the Constitution hold diverse regions together without forcing one model on all.

Fiscal federalism

States carry most of the spending on health, police, agriculture and education, but the larger taxes sit with the Union. This “vertical imbalance” is bridged by the Finance Commission (Article 280), which recommends how the divisible pool of central taxes is shared, and by grants under Articles 275 and 282. The 101st Amendment (2016) created the GST Council (Article 279A), where the Centre has one-third of the votes and all States together two-thirds, and decisions need a three-fourths majority. It is the clearest example of pooled sovereignty in the Constitution.

What the courts have said

• State of West Bengal v Union of India (1962): the Constitution is not truly federal; States are not sovereign.
• S.R. Bommai (1994): federalism is part of the basic structure; States are not mere appendages of the Centre.
• Kuldip Nayar (2006): domicile is not essential for Rajya Sabha membership; the Upper House does not have to mirror State identity.
• Union of India v Mohit Minerals (2022): GST Council recommendations are persuasive, not binding.

Challenges and way forward

• Friction over Governors, the use of central agencies and delays in releasing funds.
• Growing use of cesses and surcharges, which are not shared with States.
• A largely dormant Inter-State Council, which met rarely after 1990.
• Way forward: regular Inter-State Council meetings, more untied funds, and implementation of Sarkaria and Punchhi recommendations.

Federalism: UPSC angle

Federalism UPSC PYQs (Prelims)

Questions UPSC has actually asked, from the official papers. Pick an option to check yourself.

Mains PYQs on this topic

Questions from the official UPSC Mains papers (2023-2026 in the Battle IAS Mains bank), newest first. Each links to a model answer.

1. UPSC Mains 2026 · GS Paper II · Q13 · 15 marks

   How far has the Indian federal framework been successful in accommodating regional and cultural diversities? Highlight the role of asymmetric federalism and suggest measures to make dispute resolution mechanisms more effective.

   Model answer and approach

2. UPSC Mains 2024 · GS Paper II · Q13 · 15 marks

   What changes has the Union Government recently introduced in the domain of Centre-State relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.

   Model answer and approach

3. UPSC Mains 2023 · GS Paper II · Q15 · 15 marks

   Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism ?

   Model answer and approach

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