Chapter 14: Centre-State Relations
Introduction
Centre-State relations form the heart of Indian federalism.
The Constitution clearly defines how powers and responsibilities are shared between the Centre and States.
However, due to India’s strong centralizing structure, Centre often has dominance over States, though recent trends show growing cooperative federalism.
Constitutional Provisions
- Part XI (Articles 245–263): Legislative and Administrative relations.
- Part XII (Articles 268–293): Financial relations.
- Part XIII (Articles 301–307): Trade, commerce, and intercourse.
- Part XVIII (Articles 352–360): Emergency provisions (impacting federal relations).
Three Types of Centre-State Relations
| Type | Meaning |
|---|---|
| 1. Legislative Relations | Making of laws. |
| 2. Administrative Relations | Implementation of laws, coordination. |
| 3. Financial Relations | Division of money and financial powers. |
Let’s study each separately:
1. Legislative Relations (Articles 245–255)
Distribution of Legislative Powers
Three Lists under 7th Schedule:
| List | Subjects | Power |
|---|---|---|
| Union List | 100 subjects | Parliament exclusive |
| State List | 61 subjects | State Legislatures exclusive |
| Concurrent List | 52 subjects | Both can legislate; Centre prevails if conflict |
Parliament’s Powers Over State Subjects
Parliament can legislate on State List under following conditions:
| Condition | Example |
|---|---|
| 1. Rajya Sabha Resolution (Art 249) | If RS passes 2/3 majority resolution that it’s necessary in national interest. |
| 2. During National Emergency (Art 353) | Parliament gets power to legislate on any State subject. |
| 3. With Consent of States (Art 252) | Two or more States pass resolutions requesting Parliament. |
| 4. To Implement International Treaties (Art 253) | Parliament can make laws on State subjects to fulfill international obligations. |
Doctrine of Repugnancy (Art 254)
- If a State law conflicts with a Union law on a Concurrent List subject, Union law prevails.
2. Administrative Relations (Articles 256–263)
Obligations of States
- States must exercise executive powers to ensure compliance with Parliamentary laws.
- Centre can give directions to states for proper governance (Art 256).
Centre’s Control Over States
| Provision | Centre’s Control |
|---|---|
| Art 256 | Direction for implementing Union laws. |
| Art 257 | Control over state activities that may affect national interests. |
| Art 355 | Duty of Centre to protect states against external aggression and internal disturbance. |
Example:
- Centre sending advisory teams for disaster management coordination in states.
All-India Services (Art 312)
- IAS, IPS, IFS — recruited and controlled jointly by Centre and States.
- Promotes uniformity and coordination.
Grants-in-Aid
- Centre provides financial assistance to states under Art 275.
Inter-State Council (Art 263)
- Set up for:
- Resolving Centre-State or inter-State disputes.
- Coordination of policies.
- Promoting cooperative federalism.
Chairman: Prime Minister.
3. Financial Relations (Articles 268–293)
Division of Taxation Powers
| Tax | Collected by | Retained by |
|---|---|---|
| Union Taxes (e.g., Customs, Excise, Income Tax) | Centre | Some shared with States (based on Finance Commission recommendations) |
| State Taxes (e.g., Sales Tax, State Excise, Land Revenue) | States | States |
Finance Commission (Art 280)
- Appointed every 5 years.
- Recommends:
- Distribution of taxes between Centre and States.
- Principles governing Grants-in-Aid.
Types of Financial Transfers
| Type | Details |
|---|---|
| Tax Devolution | Share of states in central taxes. |
| Grants-in-Aid | Additional funds for weaker states. |
| Centrally Sponsored Schemes (CSS) | Centre gives funds with conditions (e.g., MNREGA). |
GST and Centre-State Relations
- GST (Goods and Services Tax) introduced in 2017.
- GST Council formed to ensure Centre and States jointly decide rates and policies.
- Example of cooperative federalism.
Special Provisions for Certain States
- Jammu and Kashmir (before 2019):
Special status under Article 370 (now abrogated). - North-Eastern States:
Special powers and protection under Articles 371A–371J.
Important Judicial Interpretations
| Case | Judgment |
|---|---|
| S.R. Bommai Case (1994) | President’s Rule under Art 356 must be subject to judicial review. |
| West Bengal vs Union of India (1963) | Parliament has exclusive power to acquire private property; no agreement needed with States. |
Recent Developments and Trends
- Rise of Cooperative Federalism:
- GST Council, NITI Aayog’s approach.
- Rise of Competitive Federalism:
- States competing for better governance, investment, rankings.
- Greater assertion by States:
- Demands for more financial autonomy.
- Supreme Court Activism:
- Protecting state autonomy (e.g., Delhi vs Lt. Governor case, 2018).
Challenges in Centre-State Relations
- Financial Inequality:
States dependent on Centre for funds. - Political Differences:
Friction when Centre and State governments belong to rival parties. - Use/Misuse of Governor’s Office:
Centre using Governor’s role to influence State politics. - Demands for Greater Autonomy:
E.g., Tamil Nadu, Punjab, North-East demands.
Committees and Commissions on Centre-State Relations
| Commission/Committee | Key Recommendations |
|---|---|
| Sarkaria Commission (1983) | Greater autonomy to states; restrict misuse of Art 356. |
| Punchhi Commission (2007) | Strengthen Inter-State Council; Clear roles of Governors; Rationalize financial devolution. |
Conclusion
Centre-State relations are the lifeline of Indian federalism.
India’s strength lies in balancing unity with diversity.
Strengthening cooperation, dialogue, respect for states’ autonomy, and true fiscal federalism is essential for the future.
“Strong Centre, empowered States — that’s the essence of Indian federalism.“
Important Quick Facts for Prelims & Mains
| Fact | Detail |
|---|---|
| Centre-State Relations Part | Part XI (Art 245–263) |
| Finance Commission Article | Art 280 |
| GST Council established under | Art 279A |
| Inter-State Council Article | Art 263 |
| Key case restricting misuse of Art 356 | S.R. Bommai Case (1994) |
Chapter 15: Inter-State Relations
Introduction
The Indian Constitution not only deals with Centre-State relations but also lays down the framework for relations between states themselves.
To maintain national unity, economic integrity, and avoid conflicts, certain provisions regulate inter-state cooperation and disputes.
Constitutional Provisions on Inter-State Relations
Articles 261 to 263 of the Constitution deal with Inter-State Relations.
They mainly cover:
- Full faith and credit to public acts and records.
- Inter-State trade and commerce.
- Disputes between states.
- Coordination through Inter-State Councils.
Key Aspects of Inter-State Relations
Let’s understand them one by one:
1. Full Faith and Credit (Article 261)
- Public acts, records, and judicial proceedings of one State shall be recognized by other States.
Meaning:
- A judgment given in Punjab High Court will be valid and enforceable in Tamil Nadu without re-litigation.
Includes:
- Laws.
- Court judgments.
- Official records.
2. Inter-State Trade and Commerce (Articles 301–307)
Article 301:
- Freedom of trade, commerce, and intercourse throughout India.
Objective:
- Create an economic union.
- Prevent internal trade barriers (no customs between states).
Restrictions on Freedom (Art 302–304)
| Article | What it says |
|---|---|
| Art 302 | Parliament can impose restrictions in public interest. |
| Art 303 | No discrimination between states in trade. |
| Art 304 | States can impose reasonable restrictions with legislative approval. |
Example:
- State cannot impose extra taxes on goods from another state just to protect its own industries.
Important Points:
- No customs duties between states.
- Parliament can regulate trade in public interest.
- State laws imposing restrictions must get Presidential assent.
3. Adjudication of Inter-State Water Disputes (Article 262)
Problem:
- Rivers like Krishna, Cauvery, Godavari flow across states.
- States often fight over water-sharing.
Provisions under Art 262:
- Parliament can make laws for:
- Adjudication of disputes relating to waters of inter-State rivers and valleys.
- Excluding the jurisdiction of courts (including Supreme Court) over such disputes.
Important Laws Passed:
| Act | Purpose |
|---|---|
| Inter-State Water Disputes Act, 1956 | Special tribunals set up for river disputes. |
| River Boards Act, 1956 | Central government can establish boards for regulation and development of inter-state rivers (but rarely used). |
Examples of Major Inter-State Water Disputes:
| Dispute | States Involved |
|---|---|
| Cauvery Water Dispute | Tamil Nadu, Karnataka, Kerala, Puducherry |
| Krishna Water Dispute | Maharashtra, Karnataka, Andhra Pradesh, Telangana |
| Godavari Water Dispute | Maharashtra, Andhra Pradesh, Telangana, Madhya Pradesh, Odisha |
| Ravi-Beas Dispute | Punjab, Haryana, Rajasthan |
Cauvery Water Dispute Tribunal
- Established in 1990.
- Final award in 2007.
- Supreme Court judgment in 2018 re-allocated the share between Tamil Nadu and Karnataka.
4. Inter-State Council (Article 263)
Purpose:
- Promote coordination between Centre and States and among States.
Functions:
- Inquire into inter-State disputes.
- Discuss common interests.
- Make recommendations for better policy coordination.
Constitution of Inter-State Council:
- Established in 1990 (based on Sarkaria Commission recommendation).
- Chairman: Prime Minister.
- Members: Chief Ministers of all States and Union Territories with Legislatures, and Union Ministers.
Standing Committee of ISC:
- Headed by Union Home Minister.
- Focuses on follow-up action.
Other Mechanisms for Inter-State Cooperation
- Zonal Councils: (Set up under States Reorganisation Act, 1956)
- North, South, East, West, and Central Zones.
- Promote cooperation in matters like border disputes, economic planning, security.
- Northern Zonal Council: Punjab, Haryana, Himachal Pradesh, Delhi, Jammu and Kashmir, Ladakh, Chandigarh, Rajasthan.
Recent Developments
- Growing importance of Inter-State Council and Zonal Councils.
- Need for permanent River Management Boards to avoid water disputes escalation.
- Greater emphasis on Cooperative Federalism — Centre and States working together.
Challenges in Inter-State Relations
- Water Disputes:
Prolonged litigation and political tensions. - Boundary Disputes:
Assam-Mizoram border clash (recent example). - Regionalism:
States competing aggressively for resources, jobs (sometimes leading to friction). - Fiscal Imbalances:
Richer states vs. poorer states debate (e.g., Southern states vs. Northern states regarding GST share, Finance Commission grants).
Way Forward
- Strengthening institutions like Inter-State Council.
- Speedy resolution of water disputes through efficient tribunals.
- Promoting cooperative and competitive federalism together.
- Transparent allocation of resources and grievance redressal mechanisms.
“Unity in diversity is not possible without harmony among States.“
Important Quick Facts for Prelims & Mains
| Fact | Detail |
|---|---|
| Articles dealing with Inter-State Relations | Articles 261–263 |
| Inter-State Water Disputes Act | 1956 |
| Article ensuring Freedom of Inter-State Trade | Article 301 |
| Inter-State Council Setup Year | 1990 |
| Chairman of Inter-State Council | Prime Minister |
Chapter 16: Emergency Provisions
Introduction
Emergency provisions in the Indian Constitution allow the Centre to assume greater powers during times of crisis to protect the nation.
During emergencies:
- Normal federal structure is temporarily suspended,
- Fundamental Rights may be restricted or suspended,
- Governance becomes highly centralized.
Thus, the Indian system is federal under normal circumstances, but becomes unitary during emergencies.
Types of Emergencies in India
The Constitution recognizes three types of emergencies:
| Type | Articles Covered | Also Called |
|---|---|---|
| 1. National Emergency | Art 352 | External/Internal Threat Emergency |
| 2. President’s Rule (State Emergency) | Art 356 | Constitutional Breakdown in State |
| 3. Financial Emergency | Art 360 | Financial Instability Emergency |
1. National Emergency (Article 352)
Grounds:
- War,
- External Aggression,
- Armed Rebellion (earlier “internal disturbance” — changed by 44th Amendment, 1978).
Example:
- Indo-China War (1962),
- Indo-Pak War (1971),
- Internal Emergency (1975) — declared by Indira Gandhi Government.
Procedure for Declaration:
- President can declare after written advice of the Cabinet (not just PM).
- Must be approved by Parliament within 1 month.
- Once approved, continues for 6 months and can be extended indefinitely with further Parliamentary approvals.
Approval Requirements:
- Special majority needed:
(50% of total membership + 2/3rd of members present and voting).
Effects of National Emergency:
| Effect | Description |
|---|---|
| Centre becomes powerful | Can legislate on State List subjects. |
| Executive power | Centre can give directions to States. |
| Duration of Lok Sabha/State Assemblies | Extended beyond 5 years (during emergency). |
| Fundamental Rights | Art 19 suspended automatically. Other FRs (except Arts 20, 21) can be suspended via Presidential order. |
2. President’s Rule (Article 356)
Also called State Emergency or Constitutional Emergency.
Grounds:
- If President is satisfied that governance of a state cannot be carried on in accordance with the Constitution.
- Based on Governor’s report or otherwise.
Examples:
- President’s Rule in Jammu and Kashmir (2018–2019),
- Punjab (1980s),
- Arunachal Pradesh (2016).
Procedure for Declaration:
- Proclamation must be approved by Parliament within 2 months.
- Can continue for 6 months at a time.
- Maximum Duration:
3 years (special conditions and Parliament approval every 6 months).
44th Amendment (1978) Restrictions:
- Beyond 1 year only if:
- National Emergency is in operation OR
- Election Commission certifies that elections cannot be held.
Effects of President’s Rule:
| Effect | Description |
|---|---|
| State Legislative Assembly | May be suspended or dissolved. |
| State Council of Ministers | Removed. |
| President | Administers State through Governor. |
| Parliament | Takes over legislative functions of State Legislature. |
3. Financial Emergency (Article 360)
Grounds:
- If President believes that the financial stability or credit of India or any part is threatened.
(No Financial Emergency has been declared so far in India’s history.)
Procedure:
- Proclamation must be approved by Parliament within 2 months.
Effects of Financial Emergency:
| Effect | Description |
|---|---|
| Central control | Over State financial matters. |
| Reduction of salaries | Including those of Supreme Court and High Court judges. |
| Money Bills | State Money Bills may require President’s approval. |
Comparison Between the Three Emergencies
| Feature | National Emergency | President’s Rule | Financial Emergency |
|---|---|---|---|
| Article | 352 | 356 | 360 |
| Applies to | Whole country or part | Particular state | Whole country or part |
| Reason | War, External aggression, Armed rebellion | Failure of constitutional machinery | Threat to financial stability |
| FR Impact | Art 19 suspended automatically | No FR suspended | No FR suspended |
| Examples | 1962, 1971, 1975 | Many (e.g., Punjab, Arunachal) | Never declared |
Safeguards Against Misuse of Emergency Powers
- Cabinet advice in writing needed (44th Amendment).
- Parliamentary approval required within time limits.
- Judicial Review:
Supreme Court can examine if the proclamation is mala fide (after S.R. Bommai Case, 1994). - Periodic Review:
Extensions must be renewed periodically (every 6 months).
Important Judicial Rulings
| Case | Importance |
|---|---|
| Minerva Mills Case (1980) | Limited the use of Art 356; emergency power subject to judicial review. |
| S.R. Bommai Case (1994) | Strict conditions for imposition of President’s Rule; must prove floor test majority. |
Criticism of Emergency Provisions
- Excessive Centralization:
Damages federal balance. - Threat to Fundamental Rights:
During 1975-77, abuses occurred (censorship, mass arrests). - Political Misuse:
President’s Rule used against opposition-ruled states in the past.
Recent Reforms and Suggestions
- Use President’s Rule only in extreme cases.
- Conduct floor tests to check assembly majority instead of dissolving governments.
- Judicial review should continue to act as protector of democracy.
Conclusion
Emergency provisions are essential to protect the nation in exceptional circumstances,
but they must be used responsibly to avoid misuse and damage to democracy.
True federalism and constitutionalism demand that emergency powers are exercised sparingly and wisely.
“Eternal vigilance is the price of liberty.” — Thomas Jefferson
Important Quick Facts for Prelims & Mains
| Fact | Detail |
|---|---|
| National Emergency declared so far | 3 times (1962, 1971, 1975) |
| Financial Emergency declared? | Never |
| President’s Rule maximum duration | 3 years |
| Article for President’s Rule | Article 356 |
| Article for Financial Emergency | Article 360 |