Federalism in India: A dynamic balance of cooperation, competition & confrontation

Federalism refers to a system of government in which powers are constitutionally divided between two levels, usually the Union (Central Government) and the states, so that each functions within its own sphere of authority. In India, federalism is unique. The Constitution establishes a federal structure with a strong unitary bias. This means that while powers are distributed between the Union and states under the Seventh Schedule (Union List, State List and Concurrent List), the Centre enjoys greater authority in certain circumstances, such as emergencies.For civil services aspirants preparing for General Studies Paper 2 (Indian Constitution and Polity), it is essential to understand that Indian federalism is not static. It has evolved through three broad processes: cooperation, competition and confrontation. These forces have shaped both constitutional provisions and political practice. Cooperation: The foundation of Indian federalismCooperative federalism refers to a collaborative relationship between the Union and the states, where both work together to achieve national goals.A significant example is the creation of the NITI Aayog in 2015, which replaced the Planning Commission. Unlike its predecessor, NITI Aayog includes the Chief Ministers of states in its governing council, encouraging dialogue and joint decision-making on development policies.Another landmark example is the introduction of the goods and services tax (GST). The GST Council, consisting of Union and state finance ministers, decides tax rates and policies collectively. This institutional mechanism reflects “pooled sovereignty,” where both levels share fiscal powers.Similarly, schemes like Aspirational Districts Programme and centrally-sponsored schemes require coordination between Centre and states. During crises such as the Covid-19 pandemic, coordinated action under the disaster management framework highlighted cooperative mechanisms, even though tensions existed.Thus, cooperation has strengthened fiscal federalism, policy harmonization and inclusive governance. Competition: Driving development and innovationCompetitive federalism encourages states to compete in attracting investment, improving governance and delivering public services.Economic reforms post-1991 liberalisation reduced central control and empowered states to frame investment-friendly policies. States such as Gujarat, Tamil Nadu and Karnataka have competed in ease of doing business, infrastructure development and industrial growth.The ranking of states under the Ease of Doing Business index and NITI Aayog’s Health and School Education indices foster performance-based governance. This healthy competition pushes states toward innovation, better service delivery and economic growth.However, competition also has risks. It can widen regional disparities, as economically stronger states may advance faster than weaker ones. Therefore, fiscal transfers through the Finance Commission remain essential to maintain equity.In this way, competition has injected dynamism into Indian federalism, shifting it from dependency to performance orientation. Confrontation: Testing the limits of federalismConfrontation has equally shaped Indian federalism by defining constitutional boundaries.One recurring area of conflict is the misuse of Article 356, which allows President’s Rule in states. During the 1970s and 1980s, the Centre often dismissed state governments ruled by opposition parties. This led to judicial intervention in the landmark SR Bommai vs Union of India case, where the Supreme Court limited arbitrary use of Article 356 and strengthened federalism by making such proclamations subject to judicial review.Recent tensions over the role of Governors, control over services in the National Capital Territory and disputes over fiscal devolution also show continuing friction. Water-sharing disputes, such as the Cauvery issue, further illustrate Centre–State and inter-State confrontations.Confrontation, while politically contentious, has clarified constitutional norms and reinforced checks and balances.A living and evolving federal structureIndian federalism has been shaped equally by cooperation, competition and confrontation. Cooperation institutionalised shared governance (GST Council, NITI Aayog). Competition encouraged developmental innovation. Confrontation led to judicial safeguards and constitutional maturity.For civil services preparation, it is important to remember that Indian federalism is described as “quasi-federal” or “cooperative with a unitary tilt”. However, over time, political pluralism, coalition governments and judicial activism have strengthened the federal spirit.In essence, federalism in India is not merely a constitutional design; it is a continuous negotiation between unity and diversity. Understanding this dynamic interplay is crucial for analysing Centre–State relations in GS Paper 2 and for writing balanced, example-rich answers in the UPSC examination.Probable questions“Indian federalism is shaped as much by political practice as by constitutional design.” Discuss in the context of cooperative, competitive and confrontational federalism. (250 words)Examine the role of judicial intervention in strengthening federalism in India. Illustrate your answer with relevant constitutional provisions and landmark judgments. (250 words)

Federalism in India: A dynamic balance of cooperation, competition & confrontation

How inter-governmental relations have shaped India’s constitutional design and political practice

Ivninder Pal Singh

Tribune News Service

Federalism in India: A dynamic balance of cooperation, competition & confrontation

How inter-governmental relations have shaped India’s constitutional design and political practice

Ivninder Pal Singh

Tribune News Service

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