Federalism in India

Federalism in the Indian Constitution is a cornerstone of the nation’s governance structure, reflecting a delicate balance of power between the central government and the states. Enshrined in the Constitution, federalism embodies the principles of unity, diversity, and decentralization, aiming to accommodate the vast cultural, linguistic, and geographical diversity of the country while ensuring national unity and integrity. Understanding federalism in the Indian context is crucial for aspirants preparing for the UPSC exam, as it underpins the distribution of powers, responsibilities, and relationships between the center and the states, shaping the functioning of the country’s political, administrative, and legal systems. In this blog, we will delve into the nuances of federalism as enshrined in the Indian Constitution.

What is Federalism?

Federalism is a governmental system where authority is divided between various levels, such as the central government and state or provincial governments, allowing for regional autonomy within a larger political entity.

The Indian Constitution establishes a federal framework with certain unitary characteristics, often referred to as a quasi-federal system. It delineates the allocation of legislative, administrative, and executive powers between the central and state governments. These powers are categorized into Union, State, and Concurrent Lists, outlining the jurisdiction of the respective governments. Additionally, the Constitution outlines a multilayered federation, enabling diverse modes of political power distribution.

Indian federalism has a unique trajectory, evolving from a unitary system during British colonial rule to a federal structure post-independence. It has encountered various challenges, including the integration of princely states, linguistic state reorganization, regional movements for autonomy, center-state relations, fiscal federalism, and inter-state coordination.

Features of Federalism

• Division of powers: Federalism entails the allocation of authority between a central government and regional governments, each with distinct responsibilities and areas of jurisdiction.
• Supremacy of the Constitution: Federalism is grounded in a written Constitution that delineates the powers and duties of both central and regional governments, establishing mechanisms of checks and balances to prevent the concentration of power in either.
• Independent judiciary: Federal systems typically incorporate an independent judiciary tasked with interpreting the Constitution and settling disputes between various levels of government.
• Bicameral legislature: Federalism often includes a bicameral legislative body, with one chamber representing the populace and the other representing regional governments.
• Flexibility: Federalism allows for adaptable power-sharing arrangements between central and regional authorities, permitting adjustments as circumstances evolve.

Federal Features of Indian constitution

• Indian Constitution establishes dual polity: Article 1, along with Parts V and VI, delineates the dual polity framework and division of powers between the Centre and the States.
• Division of legislative subjects: Article 246, in conjunction with the 7th Schedule, outlines the distribution of legislative subjects between the Union and the State governments, categorized under the Union List, State List, and Concurrent List.
• Constitution of Parliament: Article 79 establishes Parliament with two chambers, the Lok Sabha and the Rajya Sabha, with the latter representing the states in the Indian federal system.
• Role of the Supreme Court: Article 131 empowers the independent Supreme Court as the sole adjudicator of disputes between federal constituents of the Centre and the States.
• Amendment process: Article 368 specifies two types of amendment processes, reflecting the Constitution’s unique blend of rigidity and flexibility. Additionally, federal provisions can be amended with the concurrence of at least half of the state legislatures.

Unitary features of Indian constitution

• State Formation Provisions: Article 3 grants Parliament the authority to create new states by separating, uniting, or altering the boundaries and names of existing states.
  
• Emergency Provisions: Article 352 allows the President to declare a national emergency in case of threats to the country’s security due to war, external aggression, or armed rebellion.
  Article 356 enables the imposition of President’s rule in states where the federal relationship between the Centre and the states becomes unitary.
  
• Strong Union Legislative: Article 248 vests the Parliament with residual legislative powers.
  Article 249 empowers Parliament to legislate on matters in the State List if the Rajya Sabha deems it necessary in the national interest.
  Article 254 stipulates that Parliament laws prevail over conflicting state laws in the Concurrent List.
  
• Strong Union Executive: Article 256 mandates states to ensure compliance with Parliament laws, with the Union having the authority to issue directions to the states.
  
• Single Citizenship: India follows a system of single citizenship, ensuring equal rights for all citizens across the country, irrespective of their state of origin or residence.
  
• All-India Services: The Indian Administrative Service, Indian Police Service, and Indian Forest Service enable the Union government’s involvement in the state executive apparatus.
  
• Integrated Judiciary: India has an integrated judiciary led by the Supreme Court, whose decisions are binding on all courts in the country.

Why is India Quasi-Federal?

Indian federalism is often described as a quasi-federal system due to its incorporation of elements from both federal and unitary systems of governance. While the Constitution of India does establish a federal structure by dividing powers between the central government and the state governments, it also includes unitary features that grant the central government additional authority in certain scenarios.
This unique combination of federal and unitary characteristics enhances the flexibility and adaptability of the Indian federal structure to suit varying circumstances and needs.
As articulated by Dr. B.R. Ambedkar, the Chairman of the Drafting Committee, “The Constitution of India is designed to operate as both unitary and federal depending on the exigencies of time and situations”.

Challenges Before Indian Federalism

Regionalism:

• Emergence of regional parties and movements based on linguistic, ethnic, religious, or cultural identities has challenged India’s national integration.
• Some regions or groups have sought greater autonomy, special status, or even secession from the Indian union, as seen in the demands for Gorkhaland in West Bengal and Bodoland in Assam.

Division of Powers:

• The delineation of powers between the Centre and the states lacks clarity and equilibrium.
• The Centre holds more authority and resources compared to the states, enabling interference in state affairs through mechanisms like President’s rule, Governor’s role, and central legislation.
• States possess limited autonomy and fiscal capacity to pursue their development and welfare policies, exemplified by instances like the imposition of President’s rule in Arunachal Pradesh and Uttarakhand in 2016, later overturned by the Supreme Court.

Absence of Fiscal Federalism:

• Fiscal relations between the Centre and states lack equity and transparency, with the Centre predominantly collecting taxes and allocating funds at its discretion.
• States rely on the Centre for financial assistance, facing constraints in taxation and borrowing capabilities, as evidenced by grievances regarding inadequate compensation for GST-related revenue losses.

Unequal Representation of Units:

• Representation of states in Parliament and federal institutions does not correlate with factors like population, area, or contribution.
• Some states are overrepresented, while others are underrepresented, affecting their influence in national decision-making and resource allocation. For instance, Uttar Pradesh’s 80 Lok Sabha seats contrast with Sikkim’s solitary representation.

Centralized Amendment Power:

• The Parliament holds exclusive authority to amend the Constitution, with minimal involvement or consultation with states.
• Decisions such as the abrogation of Article 370 and the bifurcation of Jammu and Kashmir into two union territories in 2019 were made without consulting the state government or stakeholders.

Ways to strengthen federalism

Enhancing Devolution of Powers and Resources: Strengthening federalism entails devolving powers and resources to states and local bodies through constitutional revisions, increasing states’ share in central taxes, and granting more fiscal autonomy and flexibility.

Ensuring Greater Representation and Participation: To bolster federalism, states should have greater representation and participation in national decision-making, engaging them in formulating and executing national policies and programs, and granting them more influence in federal bodies like the GST Council and NITI Aayog.

Fostering Cooperative and Competitive Federalism: Federalism can be reinforced by promoting cooperative and competitive federalism among states, encouraging collaboration on common issues, sharing best practices, and providing incentives for improved performance and innovation.

Addressing Regional Imbalances and Inequalities: Strengthening federalism involves addressing regional imbalances and inequalities by offering special assistance to disadvantaged regions, ensuring equitable resource allocation, and establishing regional development councils or authorities.

Respecting Federal Principles and Spirit: Upholding federal principles and spirit is essential for fortifying federalism, adhering to constitutional provisions, avoiding unilateral actions by the Centre or states, and resolving disputes through dialogue or legal means.

Implementing 2nd ARC Recommendation: Implementing Recommendations of the Second Administrative Reforms Commission on Centre-State Relations

1. Establishment of an Inter-State Council under Article 263 of the Constitution.
2. Delegation of maximum powers to states, including financial and legislative authority.
3. Enhancement of financial resources for states through fiscal transfers from the central government.
4. Appointment of non-partisan individuals with extensive experience in public life and administration as Governors of states.
5. Placing residuary fields, apart from taxation, on the concurrent list.
6. Resolution of differences between the Union and states through mutual consultation.
7. Support for states’ demand for increased financial resources.
8. Advocating economic liberalization and appropriate constitutional amendments to improve Centre-State relations.

It is imperative for policymakers to seriously consider and implement these suggestions to promote harmonious Centre-State relations and ensure effective governance for the benefit of all citizens which will strengthen federal relation between centre and state.

Also read about parliamentary system in India.