FEDERALISM IN INDIAN POLITY

What is Federalism?

Federalism refers to the system of governance in which authority is shared between the central government & various regional or constituent units such as states or provinces. This structure allows for balance of power between the central & regional levels ensuring that each level retains autonomy over certain aspects of governance.

Characteristics of Federalism

• Federalism divides power between central as well as regional governments. Each has its own domain of authority preventing any single entity from dominating the entire system.
• Federalism operates under a written Constitution that delineates the powers & responsibilities of both central & state governments. The Constitution also creates a system of checks & balances to maintain equilibrium between two.
• An independent judiciary plays a pivotal role in resolving disputes between the central & state governments ensuring that both adhere to constitutional provisions.
• A bicameral legislature (Rajya Sabha & Lok Sabha) exists with Rajya Sabha functioning as a representative body for the states.
• The system allows for adjustments as circumstances grow offering flexibility to modify power sharing arrangements when necessary.

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Evolution of Federalism in India

Pre-Independence Federalism:

The Simon Commission Report (1930) &  First Round Table Conference (1930) played important roles in advocating for federal form of government. The Government of India Act 1935 laid foundations for a federal structure by proposing a division of power between the Centre & provinces. However implementation of this system was incomplete & it was not until the Constitution of India in 1950 that a federal framework was formally established.

Post-Independence Federalism:

At independence, India was a highly centralized state but growing regional identities & autonomy demands led to an evolving federal structure. The creation of new states (1960s–70s) & rise of regional parties reshaped dynamic. Decentralization gained momentum with 73rd & 74th Amendments (1990s) empowering local governments.

Significance of Indian Federalism

• Federalism allows states to address local needs such as cultural, linguistic & economic differences ensuring that unique requirements of each state are met.
• A federal system enables more localized decision making.
• Federalism ensures that citizens have a greater say in governance fostering participatory democracy.
• Federalism promotes protection of individual & minority rights by allowing states to enact laws that address local issues while ensuring national unity.

Federal Provisions in  Indian Constitution

• Article 1: Declares India as a Union of States.
• Article 79: Establishes bicameral Parliament with  Rajya Sabha representing
• Article 131: Confirms that Supreme Court has  authority to resolve disputes between  Centre &
• Article 246: Outlines division of legislative powers between  Union &
• Article 368: Describes process of amending  Constitution, which can only be done with  approval of a majority of states.

Unitary Features of  Indian Constitution:

• Emergency Provisions (Articles 352, 356): In event of war external aggression or armed rebellion President can declare a national emergency, giving  central government more control over states.
• Residuary Powers (Article 248): The Parliament has exclusive authority to legislate on matters not listed in Union or State List.
• Single Citizenship: Unlike federal systems in other countries India has a single citizenship, which further centralizes national identity.
• Integrated Judiciary: The Indian judiciary is a unified system with Supreme Court as  final arbiter of constitutional matters.

Quasi-Federal Nature of Indian Federalism:

Indian federalism is often described as quasi-federal because it blends both federal & unitary features. The system is flexible with  Centre holding more authority in some situations particularly during emergencies or national crises.

Comparison of Indian federalism

What is Cooperative Federalism?

Cooperative federalism refers to a system where national, state & local governments work together to solve common issues. In India this model has evolved into a dynamic, collaborative process through which different levels of government align their policies & actions.

The Supreme Court ruling in State of Rajasthan v. Union of India (1977) affirmed that India federalism is cooperative in nature.

Need for Cooperative Federalism in India:

1. Article 54 – Ensures  representation of states in  Presidential election through members of  state legislative assemblies.
2. Article 80 – Establishes  Council of States which allows states to be represented in  legislative process.
3. Article 246 with Schedule VII – Defines  distribution of legislative powers between  Centre & states with provisions for joint legislation on concurrent matters.
4. Article 262 – Provides a mechanism for resolving inter-state water disputes through Parliament appointed tribunals.
5. Article 263 – Allows for  establishment of Inter-State Councils to discuss matters of mutual interest to  Centre & states.

Recent Measures to Promote Cooperative Federalism:

1. Established as platform for collaborative governance NITI Aayog plays a vital role in promoting federal cooperation by bringing together states as Team India. Its initiatives such as  Aspirational Districts Programme & Development Support Services focus on inclusive development.
2. The introduction of GST is one of  landmark reforms in cooperative federalism as it replaced multiple state-level taxes with a unified system. The GST Council comprising representatives from both  Centre & states ensures that policy decisions are made collaboratively.
3. Centrally Sponsored Schemes involve shared responsibilities between  Centre & states. The Centre funds a major portion while states tailor  schemes to local needs ensuring  effective implementation of national programs like rural development, education & healthcare.

Challenges Hindering Cooperative Federalism:

1. Union List which includes key subjects such as defense & foreign policy gives  Centre important power sometimes overshadowing state interests. This imbalance can lead to conflicts particularly in areas where states feel their autonomy is being undermined.
2. While  Inter State Council provides a platform for dialogue its recommendations are not binding limiting its impact in resolving disputes.
3. Strong regional identities & demands for autonomy sometimes hinder cooperation leading to tensions & disputes that affect national governance.
4. Unequal financial resources between  Centre & states coupled with state dependence on central funding can lead to governance challenges & skewed development priorities.

Recommendations to Strengthen Cooperative Federalism:

The Sarkaria & Punchhi Commissions have provided actionable steps to strengthen cooperative federalism:

• Stronger role of  Inter State Council: Expanding its mandate beyond mere recommendations can affect its impact in resolving conflicts & promoting cooperation.
• Fiscal Reforms: Promoting fiscal autonomy for states through transparent & equal financial distribution & ensuring greater financial decentralization.
• Institutional Framework: Enhancing roles of institutions like NITI Aayog,  Finance Commission &  Inter-State Council can better facilitate cooperation.
• Regular Inter-Governmental Dialogues: Promoting continuous communication between Centre & states through regular meetings to resolve issues & align policies.

Competitive Federalism in India

Competitive federalism refers to  dynamic interaction among states &  central government where states compete to attract resources, investments & improve their governance. The idea is based on decentralization where both central & state governments have substantial self-governing powers.

Need for Competitive Federalism in India:

Although  Indian Constitution originally emphasized cooperative federalism through provisions like  Inter-State Council & Zonal Council competitive federalism became increasingly relevant after  LPG (Liberalization, Privatization, Globalization) reforms of  1990s. The states began competing to attract investment, capital & skilled labor fostering economic growth. Competitive federalism encourages resource usage, infrastructure development & improves economic activity.

Factors Contributing to Competitive Federalism in India:

1. Transfer of decision making powers to states has allowed them to cusotmise policies to their needs thereby increasing competition to attract resources & investment.
2. The reforms of  1990s led to a liberalized economy providing states with more autonomy to foster business & attract investment.
3. States are now empowered with more fiscal autonomy enabling them to implement policies that support investment attraction.
4. The adoption of technology has helped states promote their strengths attract investment & create better governance.
5. States that focus on developing their human capital with strong education & skill development initiatives are better positioned to attract industries in knowledge-based sectors.

Manifestations of Competitive Federalism in India:

• The Centre & states compete in providing welfare schemes like Ayushman Bharat at national level & various state-level schemes such as Tamil Nadu health insurance.
• States like Telangana & Andhra Pradesh compete to implement better agricultural policies in addition to national schemes like PM-KISAN.
• States have increasingly engaged in para-diplomacy, promoting trade, investment & international collaborations. For example Gujarat Vibrant Gujarat Summit attracts global investors.
• States compete to promote tourism through cultural & natural attractions improving infrastructure & services.
• States offer tax holidays, land subsidies & other incentives to attract investment. Andhra Pradesh Global Investors Summit is an example of this competition.
• Joint projects between Centre & states such as  Delhi-Mumbai Industrial Corridor promote industrial growth.
• Programs like Telangana T-Hub & Kerala Startup Mission are designed to foster innovation & support startups.

Measures Taken to Promote Competitive Federalism:

Role of  Union Government:

• Union government has introduced various indices like Good Governance Index &  State Ranking Index for NFSA to assess & encourage states to improve in governance, welfare & other areas.
• Centre rewards states for performance in urban development, infrastructure & other key areas with financial schemes like AMRUT.

Role of  Finance Commission:

• The 15th Finance Commission recommends criteria-based allocations & performance incentives for states that carry out reforms such as in agriculture, land laws & power sector improvements.

Role of NITI Aayog:

• NITI Aayog has created various indices, including School Education Quality Index, State Health Index & India Innovation Index to rank states & promote healthy competition. It also publishes monthly delta rankings for Aspirational Districts.

Asymmetric Federalism in India

• India is a country with deep cultural as well as regional diversity necessitating a federal system that respects as well as accommodates this variety. Asymmetric federalism provides a framework for balancing these pluralities.
• This system allows regions to maintain autonomy while still being part of broader national framework balancing self-rule & shared rule.
• It is aligned with principle of differentiated equality where each state has powers tailored to its unique needs.
• Asymmetric federalism protects minority groups by granting more autonomy to states or regions with a high concentration of these groups.

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