Federalism in India divides power between the Union and the states under a single Constitution, yet tilts towards the Centre: Article 1 calls India a “Union of States”, Parliament can redraw state boundaries, Governors are appointed by the President, and residuary powers lie with the Union. K. C. Wheare called the result “quasi-federal”; the Supreme Court in S. R. Bommai (1994) held that federalism is nonetheless part of the basic structure.
Federalism has appeared in the 66th, 67th and 69th BPSC Mains papers. These notes give the concepts, the unitary and federal features, the areas of Centre–State tension (with Bihar’s special category demand), the Centrally Sponsored Scheme debate, the commissions, and the newer ideas of cooperative, competitive and combative federalism.
Important questions for mains
- Critically examine the Indian model of federalism in light of cultural diversity and national unity. [69th BPSC]
- Discuss Centre–State relations, especially Bihar’s position, and suggest ways to strengthen cooperative federalism. [67th BPSC]
- Explain why India’s federal structure is constitutionally oriented towards the Central Government. [66th BPSC]
- Discuss the controversy surrounding Centrally Sponsored Schemes with relevant examples. [65th BPSC, 2019]
- Analyse emerging trends in Indian federalism and whether states need greater autonomy.
- Why is the Indian Constitution described as quasi-federal?
- Analyse areas of tension between the Centre and states.
Important quotes
- A. V. Dicey: “Federalism is a political contrivance among units which desire unity without uniformity.”
- B. R. Ambedkar: The Constitution can operate as both unitary and federal according to circumstances.
- Supreme Court: “Federalism is the basic feature of the constitution.”
- K. C. Wheare: India is “quasi-federal”, a unitary state with subsidiary federal features rather than a federal state with subsidiary unitary features.
- Granville Austin: The Indian model exemplifies cooperative federalism.
Meaning and features of federalism
Federalism is a system of government in which constitutional powers are divided between the central government and regional governments.
Essential features
- Division of powers: A dual polity consisting of the Centre and states.
- Written Constitution: Establishes the distribution of powers and constitutional supremacy.
- Independent judiciary: Resolves disputes over the division of powers.
Why do countries adopt federalism?
- Security: Units may be unable to defend themselves independently.
- Economic benefits: A larger common market generates economies of scale.
- Diversity: Decentralisation accommodates cultural, linguistic and regional differences.
Types of federalism
| Type | Meaning |
|---|---|
| Dual federalism | Centre and states operate within relatively independent spheres. |
| Cooperative federalism | Centre and states depend on one another, particularly in finance and implementation. |
| Symmetrical federalism | States enjoy broadly similar constitutional status and autonomy. |
| Asymmetrical federalism | Certain states or regions receive special powers or protections. |
Limitation of cooperative federalism: The Centre may dominate states and behave like a “big brother.”
Unique features of Indian federalism
Union of States
- Article 1 describes India as a Union of States.
- The Constitution does not use the term “Federation” in Article 1.
- The Indian Union is not the result of an agreement among states.
- States do not have a constitutional right to secede from the Union.
Flexible federal structure
Ambedkar explained that India’s constitutional system can operate in a federal or unitary manner according to the needs of the time and circumstances.
Sui generis model
Granville Austin described Indian federalism as a unique model shaped by India’s own historical and political circumstances.
Demos-enabling federalism
Alfred Stepan’s concept highlights how federal arrangements can accommodate democratic representation across diverse regions.
Holding-together federation
- India’s federal structure is described as a holding-together model.
- It has a centripetal tendency, meaning powers and authority are often concentrated towards the Centre.
- The US is commonly described as a coming-together federation.
Asymmetrical federalism
India grants different levels of autonomy and special constitutional protections to certain regions.
Examples include:
- Union Territories with different legislative arrangements.
- Special provisions under Articles 371A–371J for specified states.
- Fifth and Sixth Schedules for scheduled and tribal areas.
- Inner Line Permit arrangements in certain northeastern regions.
- Special funding patterns for some northeastern and Himalayan states under Centrally Sponsored Schemes.
Delhi and Puducherry have legislatures with constitutionally defined powers and restrictions. Jammu and Kashmir also has a distinct constitutional and administrative arrangement.
Importance of federalism
- Balances power between the Centre and states.
- Prevents excessive concentration of authority.
- Protects against tyranny through the distribution of power across levels of government.
- Enables better management of regional and social conflicts.
- Strengthens national unity and integrity.
- Promotes social capital and accommodates regional aspirations.
Emerging trends in Indian federalism
Two developments stand out:
- Rise of regional parties and state governments: Regional political forces have become important participants in national governance.
- Creation of new states: State reorganisation has been used to address regional aspirations and demands for separate political representation.
These developments illustrate the continuing negotiation between national unity and regional autonomy.
Unitary and federal features of the Indian Constitution
| Unitary features | Federal features |
|---|---|
| Strong Centre | Dual polity: Centre and states |
| Single Constitution | Written Constitution |
| Single citizenship under Articles 5–11 | Constitutional supremacy |
| Governor appointed by the President under Article 155 | Division of powers under the Seventh Schedule |
| Parliament can alter state boundaries under Article 3 | Independent judiciary |
| All India Services under Article 312 | Bicameral Parliament |
| Emergency provisions under Articles 352, 356 and 360 | Partly rigid amendment procedure under Article 368 |
| Parliament can legislate on State List subjects in specified circumstances | Distribution of legislative powers |
| Residuary powers belong to Parliament | States have constitutionally protected powers |
Supreme Court’s position: S. R. Bommai v. Union of India (1994)
- Greater powers for the Centre do not make states mere appendages.
- States have an independent constitutional existence.
- States are not satellites or agents of the Centre.
- Federalism is part of the basic structure of the Constitution.
Is India quasi-federal?
View 1: Yes, India is quasi-federal
Associated with K. C. Wheare.
- Strong Centre.
- Single Constitution and citizenship.
- Governors appointed by the Centre.
- Parliament’s power to reorganise states.
- Emergency provisions that strengthen central authority.
- Residuary powers vested in Parliament.
View 2: India is a unique federal model
Associated with Granville Austin.
- India’s model is sui generis, meaning unique.
- It accommodates asymmetrical arrangements for states and Union Territories.
- It has essential federal features: a written Constitution, division of powers and an independent judiciary.
- Federalism is dynamic; there is no single ideal model.
Conclusion: India combines federal principles with a strong central government. Its structure cannot be understood entirely through the conventional categories of federal and unitary systems.
Why does India have asymmetrical federalism?
- Historical necessity: Integration of princely states required special arrangements and concessions.
- National integrity: Cultural autonomy can reduce secessionist tendencies. Example: Article 371A for Nagaland.
- Administrative requirements: Tribal regions need special governance arrangements under the Fifth and Sixth Schedules.
- Geographical inequality: Hill states often have weaker industrial bases and need additional financial support.
- Security and development: Special arrangements can address backwardness and help reduce extremism.
Concerns about asymmetrical federalism
- Special provisions can be difficult to withdraw once introduced.
- One concession may encourage similar demands elsewhere.
- Perceived unequal treatment may create inter-state tensions.
- Poorly managed autonomy demands may intensify secessionist tendencies.
Major areas of Centre–State tension
- Party politics: Relations become contentious when different parties govern at the Centre and in a state.
- Division of powers: States may demand greater autonomy under the Seventh Schedule.
- Article 3: Parliament can alter state boundaries and names.
- Governor’s role: Allegations of partisanship in appointment, removal and government formation.
- Article 200: Delays in Governors’ decisions on state Bills and reservation of Bills for the President.
- Article 356: Alleged misuse of President’s Rule.
- Fiscal centralisation: Important taxation powers, including customs and central income tax, rest with the Centre; GST has also reshaped fiscal relations.
- Delimitation: Southern states fear that population-based seat allocation could reduce their relative representation.
- Special Category Status: Bihar has long sought special financial treatment.
- Investigative agencies: Allegations of political misuse of the ED, CBI and Income Tax Department.
- Centrally Sponsored Schemes: Central conditions can restrict states’ operational flexibility.
- Discretionary grants: Concerns about political bias in the allocation of funds under Article 275.
Specific concerns affecting Bihar
- Unfulfilled demand for Special Category Status.
- Financial pressure arising from centrally sponsored programmes.
- Allegations of delayed or blocked funds, including for Samagra Shiksha Abhiyan.
- Disputes over central investigative agencies.
- Allegations of political interference in government formation and stability.
Centrally Sponsored Schemes versus Central Sector Schemes
| Feature | Centrally Sponsored Schemes (CSS) | Central Sector Schemes |
|---|---|---|
| Implementation | State governments | Central government |
| Funding | Shared between Centre and states | Fully funded by Centre |
| Typical funding pattern | 60:40; 90:10 for some northeastern and Himalayan states | 100% central funding |
| Main areas | Often State List or Concurrent List domains | Usually Union List domains |
| Example | MGNREGA | Schemes implemented and financed directly by the Union government |
Problems with CSS
- Rigid conditions limit flexibility for local needs.
- States bear part of the cost of centrally designed programmes.
- Spending priorities may have to be changed to meet matching-fund requirements.
- Objectives and service-delivery standards may lack clarity.
- A uniform approach may not suit India’s diverse states.
Emerging trends in Indian federalism
Cooperative federalism
- Cooperation between the Centre and states.
- States treated as partners in governance.
- The idea of “Team India.”
Competitive federalism
- States compete to attract investment and improve governance.
- Emphasis on minimum government and maximum governance.
- NITI Aayog initiatives compare state performance in areas such as ease of doing business, investment and social indicators.
Decentralisation
Panchayati Raj Institutions and urban local bodies are increasingly important in delivering services and strengthening democratic governance.
Para-diplomacy
States engage directly with foreign countries to promote investment, trade, tourism and cultural relations.
Centralisation
- A dominant-party system can strengthen the central axis of governance.
- Louise Tillin links the period since 2014 with deeper centralisation.
- Examples include “One Nation, One Tax” through GST and the proposal for “One Nation, One Election.”
Fiscal federalism after GST
- The 101st Constitutional Amendment Act, 2016, established the GST framework.
- GST is described as a “grand bargain” between the Centre and states.
- Yamini Aiyar’s analysis highlights a widening trust deficit in fiscal federalism.
Combative federalism
Increasing disputes and mutual distrust can undermine cooperation between the Centre and states.
Judicial intervention
The judiciary helps resolve federal disputes and define constitutional limits, including in cases concerning Governors and state legislation.
Important commissions and recommendations
| Committee or commission | Key recommendations |
|---|---|
| Rajamannar Committee | Consult the Inter-State Council on decisions affecting states. |
| Sarkaria Commission | Promote cooperative federalism, limit Article 356, strengthen the Inter-State Council, consult states on Concurrent List matters and minimise CSS. |
| Punchhi Commission | Appoint eminent Governors from outside the state, provide a fixed five-year tenure and establish a proper removal procedure; strengthen consultation on Concurrent List subjects. |
| N. K. Singh Committee | Keep general government debt at or below 60% of GDP. |
Additional measures
- Strengthen Panchayats and municipalities.
- Institutionalise consultation between the Centre and states.
- Improve fiscal transparency and predictability.
- Encourage states to participate in policy design, not merely implementation.
Conclusion
India is an evolving federal nation. The Supreme Court, Finance Commission and NITI Aayog have contributed to the development of federalism.
Federalism is deeply embedded in India’s political culture and has helped sustain unity in diversity. The way forward is to strengthen consultation, fiscal fairness, institutional accountability and decentralisation so that the Centre and states can function as Team India.
Frequently asked questions
Why is India called a quasi-federal state?
Because it combines federal features (a written Constitution, division of powers under the Seventh Schedule, an independent judiciary) with strong unitary features: a single Constitution and citizenship, Governors appointed by the Centre, Parliament’s power to alter state boundaries under Article 3, emergency provisions and residuary powers with the Union. The term is K. C. Wheare’s.
What did the Supreme Court say about federalism in S. R. Bommai?
In S. R. Bommai v. Union of India (1994) the Court held that federalism is a basic feature of the Constitution, that states are not mere appendages of the Centre, and that the use of Article 356 is open to judicial review.
What is the difference between cooperative and competitive federalism?
Cooperative federalism is the Centre and states working as partners, through bodies such as the GST Council and NITI Aayog. Competitive federalism is states competing with one another to attract investment and improve governance, measured through rankings such as ease of doing business.
Why does Bihar demand Special Category Status?
Special Category Status brings a higher central share (90:10) in Centrally Sponsored Schemes and other concessions. Bihar argues that its low per-capita income, the loss of industry and minerals to Jharkhand in 2000, and its flood burden justify it; the 14th Finance Commission’s framework ended new SCS grants, so the demand remains unmet.
Related pages
- BPSC previous year question papers, 56th to 71st, with answer keys
- BPSC exam pattern and syllabus 2026
- 40 Polity topics for BPSC Mains GS Paper II
- Panchayati Raj in India and Bihar
- Separation of powers in India
- Constitution, constitutionalism and constitutional morality
- President of India: powers and functions
- BPSC essay topics, 68th to 71st Mains
Sources
Checked 31 October 2026.
- Constitution of India (Articles 1, 3, 155, 245–263, 275, 352–360, Seventh Schedule)
- S. R. Bommai v. Union of India (1994), Supreme Court
- Sarkaria Commission report, Inter-State Council Secretariat
- Punchhi Commission report (2010)