4 minConstitutional Provision
Constitutional Provision

Federalism and State Government Powers

What is Federalism and State Government Powers?

Federalism is a system of government where power is divided between a central authority and various constituent units (like states or provinces). In India, federalism is enshrined in the Constitution. It ensures that both the Union Government and the State Governments have clearly defined powers and responsibilities. This division prevents the concentration of power and promotes regional autonomy. The Constitution establishes a dual polity with the Union at the center and the States at the periphery, each endowed with sovereign powers to be exercised in the field assigned to them respectively by the Constitution. This division is crucial for a large and diverse country like India to ensure effective governance and address regional needs. The Seventh Schedule of the Constitution contains three lists: Union List, State List, and Concurrent List, which specify the subjects on which the Union and State Governments can make laws.

Historical Background

The concept of federalism in India has evolved over time. Before independence, the British government gradually introduced elements of federalism through various acts like the Government of India Act, 1919 and the Government of India Act, 1935. These acts aimed to decentralize power to some extent. After independence in 1947, the framers of the Indian Constitution adopted a federal structure, drawing inspiration from various models, including the Canadian model. The initial focus was on a strong center due to concerns about national unity and security. However, over the years, there has been a gradual shift towards greater decentralization and increased state autonomy. The establishment of the Inter-State Council in 1990 was a significant step towards promoting cooperative federalism. Various constitutional amendments, such as the 73rd and 74th Amendments, further strengthened local self-government and promoted decentralization at the grassroots level.

Key Points

12 points
  • 1.

    The Constitution of India establishes a federal system with a division of powers between the Union and the States through three lists: the Union List, the State List, and the Concurrent List.

  • 2.

    The Union List contains subjects on which only the Parliament can make laws, such as defense, foreign affairs, and currency. There are 100 subjects in the Union List.

  • 3.

    The State List contains subjects on which the State Legislatures can make laws, such as public order, police, and local government. There are 61 subjects in the State List.

  • 4.

    The Concurrent List contains subjects on which both the Parliament and the State Legislatures can make laws, such as education, criminal law, and economic planning. There are 52 subjects in the Concurrent List.

  • 5.

    In case of a conflict between a law made by the Parliament and a law made by a State Legislature on a subject in the Concurrent List, the law made by the Parliament prevails.

  • 6.

    Article 246 of the Constitution deals with the subject matter of laws made by Parliament and by the Legislatures of States.

  • 7.

    The Governor of a State is appointed by the President and acts as the constitutional head of the State. The Governor has certain discretionary powers.

  • 8.

    The State Legislature consists of the Governor and one or two Houses (Legislative Assembly and Legislative Council).

  • 9.

    The State Government is responsible for maintaining law and order, providing public services, and implementing development programs within the State.

  • 10.

    Financial resources are also divided between the Union and the States, with the Union having greater revenue-raising powers. The Finance Commission recommends the principles governing the distribution of tax revenues between the Union and the States.

  • 11.

    The concept of cooperative federalism emphasizes the importance of cooperation and coordination between the Union and the States in various matters.

  • 12.

    The Inter-State Council, established under Article 263, provides a forum for discussion and consultation between the Union and the States on matters of common interest.

Recent Developments

8 developments

Increased demands for greater state autonomy and financial devolution from various states in 2023 and 2024.

Ongoing debates about the role of the Governor and the exercise of discretionary powers.

The Union Government's emphasis on cooperative federalism through initiatives like the NITI Aayog.

Supreme Court judgments clarifying the division of powers between the Union and the States in specific cases.

Discussions on reforming the Goods and Services Tax (GST) to address concerns about revenue sharing between the Union and the States.

Increased use of centrally sponsored schemes, which can sometimes lead to conflicts between the Union and the States regarding implementation and funding.

The 15th Finance Commission recommendations, which have implications for the distribution of financial resources between the Union and the States.

Formation of new states (e.g., Telangana in 2014) and the reorganization of existing states, which can impact the federal structure.

This Concept in News

3 topics

Assam CM predicts Assamese minority status after 2027 Census

20 Feb 2026

The news highlights the aspect of federalism related to the protection of regional identities and cultures within a diverse nation. The Assam CM's statement suggests a perceived threat to the Assamese community's identity due to demographic changes, raising questions about the state government's role in safeguarding its cultural and linguistic heritage. This news event applies the concept of federalism in practice by showing how demographic shifts can create tensions between different communities within a state and how the state government must navigate these tensions while upholding constitutional principles. The news reveals that demographic changes can be a significant challenge to the stability of a federal system, requiring careful management and inclusive policies. The implications of this news for the concept's future are that federal systems must be adaptable and responsive to changing demographic realities. Understanding federalism is crucial for properly analyzing and answering questions about this news because it provides a framework for understanding the division of powers and responsibilities between the Union and the States, as well as the challenges of balancing national unity with regional autonomy.

Kerala Cabinet approves Nativity Card Bill for state services

19 Feb 2026

The Kerala Nativity Card Bill highlights the dynamic tension inherent in Indian federalism. (1) It demonstrates the State government's power to create policies that cater to the specific needs and identity of its residents, an aspect of State autonomy. (2) The Bill's definition of 'native' and its potential impact on access to state services raises questions about the balance between State rights and the fundamental rights of citizens, potentially challenging the Union's role in ensuring equality and non-discrimination. (3) This news reveals the evolving interpretation of federalism in India, where States are increasingly asserting their autonomy while navigating the boundaries set by the Constitution and Union laws. (4) The implications of this news for the future of federalism include potential debates about the scope of State powers and the need for greater clarity on the division of responsibilities between the Union and the States. (5) Understanding federalism is crucial for analyzing this news because it provides the framework for understanding the powers and limitations of both the State and Union governments, and the potential conflicts that can arise from their interactions. Without this understanding, it's impossible to assess the legality, constitutionality, and potential consequences of the Kerala Nativity Card Bill.

Maharashtra Government Reinstates Minority Status for 75 Schools Post-Pawar Demise

17 Feb 2026

This news highlights the practical application of state government powers within the framework of Indian federalism. The decision to grant or revoke minority status to schools falls under the state government's purview, specifically related to education and the administration of institutions within the state. The initial revocation, followed by the reinstatement, demonstrates how political considerations and changes in leadership can influence policy decisions at the state level. This event underscores the importance of understanding the scope of state government powers and the potential for these powers to be used in ways that can impact various communities. It also raises questions about the stability and consistency of state policies, particularly when they are subject to political pressures. Analyzing this news requires understanding the constitutional provisions that define the relationship between the Union and the States, as well as the specific laws and regulations governing education and minority rights within Maharashtra. Understanding federalism is crucial for analyzing this news because it provides the context for understanding the state government's authority and the potential implications of its decisions.

Frequently Asked Questions

12
1. What is federalism and what is its constitutional basis in India?

Federalism is a system of government that divides power between a central authority and constituent units like states. In India, federalism is enshrined in the Constitution, ensuring both the Union and State Governments have defined powers and responsibilities. The Constitution establishes a dual polity with the Union at the center and the States at the periphery, each with sovereign powers in their assigned areas.

Exam Tip

Remember that federalism aims to prevent the concentration of power and promote regional autonomy.

2. What are the key provisions that define the division of powers between the Union and the States?

The Constitution of India divides powers between the Union and the States through three lists: * The Union List: Parliament can make laws on subjects like defense and foreign affairs. * The State List: State Legislatures can make laws on subjects like public order and police. * The Concurrent List: Both Parliament and State Legislatures can make laws on subjects like education and criminal law. If there is a conflict, the law made by Parliament prevails.

  • Union List: Parliament makes laws (e.g., defense)
  • State List: State Legislatures make laws (e.g., police)
  • Concurrent List: Both can make laws (e.g., education); Union law prevails in conflict

Exam Tip

Memorize the three lists and examples of subjects under each for prelims.

3. What are the important articles related to federalism and state government powers?

Important articles related to federalism and state government powers include Part XI (Articles 245-263) of the Constitution, which deals with relations between the Union and the States. Also, the Seventh Schedule, which contains the Union List, State List, and Concurrent List, is crucial.

Exam Tip

Focus on Articles 245-263 and the Seventh Schedule for Mains.

4. How has the concept of federalism evolved in India over time?

The concept of federalism in India evolved gradually. Before independence, the British government introduced elements of federalism through acts like the Government of India Act, 1919 and the Government of India Act, 1935. After independence in 1947, the framers of the Indian Constitution adopted a federal structure, drawing inspiration from various models, including the Canadian model.

Exam Tip

Note the influence of the Government of India Acts and the Canadian model.

5. How does federalism work in practice in India?

In practice, federalism in India involves the division of powers and responsibilities between the Union and the States. Each level of government has the autonomy to legislate and administer within its assigned sphere. However, the Union Government often plays a coordinating role and can intervene in certain situations, especially those outlined in the Constitution.

6. What is the difference between cooperative and competitive federalism?

Cooperative federalism emphasizes collaboration and coordination between the Union and the States to achieve common goals. Competitive federalism encourages states to compete with each other to attract investment and improve governance. NITI Aayog promotes cooperative federalism.

7. What are the challenges in the implementation of federalism in India?

Challenges include: * Demands for greater state autonomy and financial devolution. * Debates about the role of the Governor and the exercise of discretionary powers. * Ensuring effective coordination and cooperation between the Union and the States.

8. What reforms have been suggested to improve federal relations in India?

Suggested reforms include: * Greater financial devolution to the States. * Clarifying the role and powers of the Governor. * Strengthening inter-state coordination mechanisms like the Inter-State Council.

9. How does India's federal system compare with other countries?

India's federal system is unique. It is often described as a 'quasi-federal' system because the Union Government has more powers compared to the States. This is different from countries like the United States, where the states have more autonomy. India drew inspiration from the Canadian model.

10. What is the significance of federalism in Indian democracy?

Federalism is crucial for Indian democracy because it: * Accommodates the diversity of the country. * Prevents the concentration of power. * Promotes regional autonomy and development. * Ensures that the government is closer to the people.

11. What are frequently asked aspects related to Federalism and State Government Powers in UPSC?

Frequently asked aspects include the division of powers between the Union and the States, the role of the Governor, cooperative federalism, and issues related to state autonomy. Questions often test your understanding of the constitutional provisions and recent developments.

12. What is your opinion on the increasing demands for greater state autonomy and financial devolution?

Increased demands for state autonomy and financial devolution reflect the evolving nature of Indian federalism. While greater autonomy can empower states to address local needs effectively, it is important to ensure that such devolution does not undermine national unity and the ability of the Union Government to address national challenges. A balanced approach is needed to strengthen both the Union and the States.

Source Topic

Kerala Cabinet approves Nativity Card Bill for state services

Polity & Governance

UPSC Relevance

Federalism and state government powers are highly relevant for the UPSC exam. It is important for GS-2 (Governance, Constitution, Polity, Social Justice and International relations). Questions are frequently asked about the division of powers, the role of the Governor, cooperative federalism, and inter-state relations.

In Prelims, factual questions about articles and schedules are common. In Mains, analytical questions about the challenges to federalism, the need for reforms, and the balance between the Union and the States are often asked. Recent years have seen questions on cooperative federalism and fiscal federalism.

For essay papers, federalism can be a relevant theme. When answering questions, focus on providing a balanced perspective, citing relevant constitutional provisions, and analyzing current developments.

This Concept in News

3 news topics

3

Assam CM predicts Assamese minority status after 2027 Census

20 February 2026

The news highlights the aspect of federalism related to the protection of regional identities and cultures within a diverse nation. The Assam CM's statement suggests a perceived threat to the Assamese community's identity due to demographic changes, raising questions about the state government's role in safeguarding its cultural and linguistic heritage. This news event applies the concept of federalism in practice by showing how demographic shifts can create tensions between different communities within a state and how the state government must navigate these tensions while upholding constitutional principles. The news reveals that demographic changes can be a significant challenge to the stability of a federal system, requiring careful management and inclusive policies. The implications of this news for the concept's future are that federal systems must be adaptable and responsive to changing demographic realities. Understanding federalism is crucial for properly analyzing and answering questions about this news because it provides a framework for understanding the division of powers and responsibilities between the Union and the States, as well as the challenges of balancing national unity with regional autonomy.

Kerala Cabinet approves Nativity Card Bill for state services

19 February 2026

The Kerala Nativity Card Bill highlights the dynamic tension inherent in Indian federalism. (1) It demonstrates the State government's power to create policies that cater to the specific needs and identity of its residents, an aspect of State autonomy. (2) The Bill's definition of 'native' and its potential impact on access to state services raises questions about the balance between State rights and the fundamental rights of citizens, potentially challenging the Union's role in ensuring equality and non-discrimination. (3) This news reveals the evolving interpretation of federalism in India, where States are increasingly asserting their autonomy while navigating the boundaries set by the Constitution and Union laws. (4) The implications of this news for the future of federalism include potential debates about the scope of State powers and the need for greater clarity on the division of responsibilities between the Union and the States. (5) Understanding federalism is crucial for analyzing this news because it provides the framework for understanding the powers and limitations of both the State and Union governments, and the potential conflicts that can arise from their interactions. Without this understanding, it's impossible to assess the legality, constitutionality, and potential consequences of the Kerala Nativity Card Bill.

Maharashtra Government Reinstates Minority Status for 75 Schools Post-Pawar Demise

17 February 2026

This news highlights the practical application of state government powers within the framework of Indian federalism. The decision to grant or revoke minority status to schools falls under the state government's purview, specifically related to education and the administration of institutions within the state. The initial revocation, followed by the reinstatement, demonstrates how political considerations and changes in leadership can influence policy decisions at the state level. This event underscores the importance of understanding the scope of state government powers and the potential for these powers to be used in ways that can impact various communities. It also raises questions about the stability and consistency of state policies, particularly when they are subject to political pressures. Analyzing this news requires understanding the constitutional provisions that define the relationship between the Union and the States, as well as the specific laws and regulations governing education and minority rights within Maharashtra. Understanding federalism is crucial for analyzing this news because it provides the context for understanding the state government's authority and the potential implications of its decisions.