Chapter 13: Federal System
Introduction
Federalism means a system of government where powers are divided between a central authority and various regional units (like states).
Though the word “federal” is not mentioned anywhere in the Constitution, India is considered a federal polity with a unitary bias.
Article 1 describes India as a “Union of States“, not a federation of states.
Thus, India is called a quasi-federal state — a mix of federal and unitary features.
Definition of Federation
A federal government is one where sovereignty is constitutionally divided between a central authority and constituent units (states/provinces).
Examples: USA, Canada, Australia.
Why India Adopted Federal System?
- Large Size and Population: Needed decentralization for efficiency.
- Regional Diversity: Language, culture, religion, ethnicity differences.
- Historical Experience: Provinces under British rule already had separate identities.
- Unity with Diversity: Needed strong unity but flexible local governance.
Federal Features of Indian Constitution
India has several typical federal features:
| Federal Feature | Explanation |
|---|---|
| 1. Dual Polity | Centre and State governments. |
| 2. Division of Powers | Clear distribution of legislative, administrative, and financial powers (7th Schedule). |
| 3. Written Constitution | Detailed, codified document — source of powers. |
| 4. Supremacy of Constitution | Both Centre and States operate under the Constitution. |
| 5. Rigid Constitution | Special majority needed for constitutional amendments affecting Centre-State relations. |
| 6. Independent Judiciary | Supreme Court safeguards federal distribution of powers. |
| 7. Bicameral Legislature | Rajya Sabha represents states. |
Unitary Features of Indian Constitution
Unlike a “pure federation” like the USA, India has strong central features:
| Unitary Feature | Explanation |
|---|---|
| 1. Strong Centre | Union List larger and more powerful than State List. |
| 2. Single Constitution | No separate State constitutions (except J&K earlier). |
| 3. Single Citizenship | All Indians are citizens of India only. |
| 4. Flexibility of Constitution | Centre can reorganize states (Art 3). |
| 5. Appointment of Governors | Centre appoints State Governors. |
| 6. All-India Services | IAS, IPS serve both Centre and States. |
| 7. Emergency Provisions | Centre becomes very powerful during emergencies (Art 352, 356, 360). |
Why India is Called “Quasi-Federal”?
- India is federal in structure but unitary in spirit.
- Federal normally:
- Normal distribution of powers, elected governments at Centre and States.
- Unitary during emergencies:
- Centre can take over state functions.
Thus, India is a unique federation with strong centralizing tendencies — not strictly federal or unitary.
Dr. B.R. Ambedkar said:
“India is a federal system in normal times but becomes unitary in times of emergency.“
Important Provisions Related to Federalism
| Article | Provision |
|---|---|
| Art 1 | India is a Union of States. |
| Art 245 | Distribution of legislative powers. |
| Art 246 | Union, State, Concurrent Lists (7th Schedule). |
| Art 256–263 | Centre-State administrative relations. |
| Art 352–360 | Emergency provisions altering Centre-State balance. |
Comparison: Indian vs American Federalism
| Feature | India | USA |
|---|---|---|
| Constitution | Single Constitution | Separate Federal and State Constitutions |
| Citizenship | Single | Dual (US + State Citizenship) |
| Distribution of Powers | Centre stronger | Centre and States coordinate |
| Amendment Process | Partly rigid | Very rigid |
| Emergencies | Central dominance during emergencies | No such centralization |
Centre-State Relations in India
Three main types:
1. Legislative Relations
- Division of subjects into:
- Union List (97 subjects) — Centre exclusive.
- State List (66 subjects) — States exclusive.
- Concurrent List (47 subjects) — Both Centre and States can legislate (but Union law prevails in conflict).
- In certain conditions, Parliament can legislate on State List (e.g., national interest, emergencies).
2. Administrative Relations
- Normally, State Governments administer their own laws.
- Centre can issue directions to states (e.g., proper functioning of constitutional machinery).
- During emergencies, Centre can control State administration directly.
3. Financial Relations
- States depend heavily on Centre for funds (grants-in-aid, tax-sharing).
- Finance Commission (Art 280) recommends division of revenues.
Important Institutions for Federal Cooperation
- Inter-State Council (Art 263):
Discusses Centre-State coordination issues. - Zonal Councils:
Promote regional cooperation (North, South, East, West Zones). - Finance Commission:
Decides financial sharing between Centre and States. - Goods and Services Tax (GST) Council:
Federal body where both Centre and States decide on GST matters.
Challenges to Indian Federalism
- Centralization Tendency:
Excessive use of President’s Rule (Art 356) in past. - Financial Dependence of States:
Limited sources of revenue for states. - Regionalism and Demands for Autonomy:
Movements for more state powers (e.g., Gorkhaland, Bodoland). - Political Competition:
Different parties at Centre and State level often create friction.
Recent Trends in Indian Federalism
- Cooperative Federalism:
Centre and States work together (e.g., GST Council, COVID-19 management). - Competitive Federalism:
States compete for investments, ease of doing business, welfare delivery. - Judicial Support for Federalism:
- S.R. Bommai Case (1994):
Restricted misuse of President’s Rule, strengthened federalism. - Delhi Govt. vs Lt. Governor Case (2018):
SC upheld elected government’s powers in Union Territories.
- S.R. Bommai Case (1994):
Conclusion
The Indian Federal System is flexible, adaptable, and dynamic.
It combines the advantages of a strong Centre with local autonomy of States.
Indian federalism continues to evolve —
sometimes facing tensions, but overall strengthening India’s unity in diversity.
“Federalism is not a weakness but the secret of India’s strength.” — B.R. Ambedkar
Important Quick Facts for Prelims & Mains
| Fact | Detail |
|---|---|
| Word ‘Federation’ in Constitution? | No (only “Union of States” in Art 1) |
| Federal Features | Dual polity, division of powers, written Constitution |
| Unitary Features | Strong Centre, single citizenship, emergency powers |
| Key Case Strengthening Federalism | S.R. Bommai Case (1994) |
| GST Council Example of | Cooperative Federalism |