Key facts

  • Union of States — Not a Federation — Article 1 describes India as "Union of States" — not "Federation of States"
  • 7th Schedule — Three Legislative Lists — Union List (List I): 100 subjects — exclusive Parliament — State List (List II): 61 subjects
  • Centre's Five Overriding Legislative Powers — Article 249 — RS resolution by 2/3 majority: Parliament legislates on State List (national interest)
  • Financial Federalism — Finance Commission — Finance Commission (Article 280) recommends Centre–State tax division
  • Sarkaria Commission (1983–87) — Set up by Rajiv Gandhi government to review Centre–State relations

Key Points at a Glance

  1. 1

    Union of States — Not a Federation

    • Article 1 describes India as "Union of States" — not "Federation of States"
    • Signals no compact between states; states cannot secede
    • Parliament can create new states or alter boundaries by simple majority (Articles 2, 3)
  2. 2

    7th Schedule — Three Legislative Lists

    • Union List (List I): 100 subjects — exclusive Parliament
    • State List (List II): 61 subjects — exclusive State Legislatures
    • Concurrent List (List III): 52 subjects — both; Centre prevails on repugnancy
    • Residuary powers vest with Parliament (Article 248) — unlike USA/Australia where residue is with states
  3. 3

    Centre's Five Overriding Legislative Powers

    • Article 249 — RS resolution by 2/3 majority: Parliament legislates on State List (national interest)
    • Article 250 — during National Emergency
    • Article 252 — on request by two or more states
    • Article 253 — to implement international treaties
    • Article 356 — Parliament makes laws for state during President's Rule
  4. 4

    Financial Federalism — Finance Commission

    • Finance Commission (Article 280) recommends Centre–State tax division
    • 15th Finance Commission (2020–26): recommended 41% of divisible pool to states
    • Cesses and surcharges excluded from divisible pool — a persistent state grievance
  5. 5

    Sarkaria Commission (1983–87)

    • Set up by Rajiv Gandhi government to review Centre–State relations
    • Recommended against misuse of Article 356; emphasised cooperative federalism
    • Called for a more effective Inter-State Council
    • Governor should be an eminent person from outside the state
  6. 6

    Punchhi Commission (2007–10)

    • Article 356 should be a last resort; "Constitutional breakdown" defined more precisely
    • CM should be consulted before appointing Governor
    • Proposed Lokpal at state level
    • Favoured giving constitutional status to the Inter-State Council
  7. 7

    S.R. Bommai v. Union of India (1994)

    • Landmark 9-judge bench ruling restricting misuse of Article 356
    • Floor test in assembly must be done before dismissing government
    • President's Rule proclamation is subject to judicial review
    • Assembly placed under suspended animation — not dissolved — until Parliament approves
  8. 8

    GST — Landmark Cooperative Federalism

    • GST (101st Amendment 2016) subsumed 17+ central and state taxes
    • Created GST Council (Article 279A): joint Centre–State decision-making body
    • Decisions require 3/4 weighted majority — Centre: 1/3 weight; States: 2/3 collectively
    • First time Constitution directly created a joint Centre–State policy body
  9. 9

    NITI Aayog (2015) — Replacing Planning Commission

    • Operates on cooperative federalism principles — no direct fund allocation
    • All Chief Ministers on its Governing Council
    • Facilitates bottom-up planning through state-level development plans
    • Key difference: Planning Commission allocated funds; NITI Aayog only advises
  10. 10

    Inter-State Council — Article 263

    • Consultative body for disputes and matters of common interest between states
    • President may establish it; constituted in 1990, reconstituted in 2016
    • Punchhi Commission: recommended mandatory meetings and constitutional body status
  11. 11

    Governor's Role in Centre–State Relations

    • Articles 153–167: constitutional head of state + Centre's representative
    • Can reserve bills for Presidential consideration
    • Sends reports to President about constitutional breakdown (basis for Article 356)
    • Appointment by President on PM's advice — area of consistent friction
  12. 12

    Competitive Federalism — NITI Aayog Indices

    • States compete for investment and ranking through NITI Aayog performance indices
    • Key indices: Ease of Doing Business State Rankings, SDG India Index, Water Management Index
    • Performance-based incentives replace passive waiting for central allocations

Introduction and Context

Indian federalism is a strong-Centre federal system that combines constitutional centralisation with an increasingly assertive federal political culture. According to the RPSC Mains examination scheme, the General Studies paper relevant to this topic carries 200 marks.

The Federal Character of India

Indian federalism is best described as a federal system with a strong unitary tilt — or, in Granville Austin's words, a "cooperative federalism." Unlike classical federal systems (USA, Australia) where the federal compact is between co-equal sovereign units, India's federation is a deliberate construct in which the Centre has been given extensive powers to ensure national unity and integrity.

The makers of the Constitution — deeply influenced by the partition of India and the near-chaos of princely state integration — deliberately designed a system with the following features:

  • States are not constitutionally indestructible (Parliament can redraw boundaries by simple majority)
  • Residuary powers vest with the Centre (not states)
  • The Centre can legislate on state subjects in multiple circumstances
  • The Governor is appointed by the Centre and remains its agent in the state

Evolution Over Seven Decades

Yet over seven decades, judicial interpretation, political evolution, and interstate negotiations have produced a robustly federal culture. States assert their rights, the Supreme Court has curtailed Article 356 misuse, and the GST Council represents an unprecedented model of joint Centre-State governance.

For RPSC 2026, focus areas: 7th Schedule's three lists, Centre's five overriding legislative powers, Sarkaria and Punchhi Commissions, Bommai case, Governor's role, and the GST/NITI Aayog dimension of cooperative federalism. A good answer should not call India either purely unitary or purely federal; it should show how the constitutional text gives the Centre strong powers while courts, coalitions, finance and state politics keep the federal balance alive.

PREDICTED Predicted RAS Questions

Based on PYQ trends and 2026 syllabus analysis

1 5M What is the difference between cooperative federalism and competitive federalism? 5 marks · 50 words

Model Answer

Cooperative federalism involves Centre and states working together on shared goals — the GST Council (Article 279A), Finance Commission devolution, and NITI Aayog Governing Council are examples. Competitive federalism involves states competing against each other for investment and performance rankings — NITI Aayog's SDG Index, Ease of Doing Business rankings, and performance-based Central scheme transfers operationalise this. Both are essential to India's federal architecture under the 2015 post-Planning Commission framework.

(60 words)

~50 words • 5 marks