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17 Feb 2026·Source: The Hindu
4 min
Polity & GovernanceEDITORIAL

Rebalancing Indian Federalism: A Call for Structural Reset and State Autonomy

Tamil Nadu report advocates for recalibration of Union-State relations, emphasizing state autonomy.

Editorial Analysis

The author advocates for a structural reset in India's federalism, emphasizing the need to empower states and recalibrate Union-State relations. The author believes that empowering states is essential for effective governance and that the Union should focus on national responsibilities while trusting the states with autonomy.

Main Arguments:

  1. India's federal structure, designed with a centralizing bias, needs a reset to address over-centralization and empower states.
  2. Excessive centralization breeds fragility by overburdening the Union with tasks that it cannot efficiently discharge, hindering effective governance.
  3. Empowering states enables parallel experimentation, allowing them to design and test policies at a manageable scale, contain failures, and diffuse successful innovations nationally.
  4. Centralization has not delivered superior outcomes, leading to regulatory complexity, chronic underfunding, blurred accountability, and erosion of state capacity.
  5. Recalibration of Union-State relations is essential for effective governance, aligning authority with responsibility and deepening national unity.

Counter Arguments:

  1. Centralists argue that states lack administrative or technical capacity and require Union intervention.
  2. Some argue that the Union becomes stronger by diminishing the states.

Conclusion

India stands at a constitutional juncture that calls for recalibration rather than complacency. The objective is not to weaken the Union but to right-size it, allowing it to concentrate on genuinely national responsibilities while restoring to States the autonomy essential for effective governance.

Policy Implications

The author advocates for recalibrating Union-State relations to restore balance and empower states. This includes addressing issues ranging from the role of Governors and language policy to delimitation, elections, education, health, and Goods and Services Tax.

The article discusses the need for a structural reset in India's federalism, arguing that over-centralization has weakened states and hindered effective governance. Drawing from the Constitution, it highlights the importance of balancing power between the Union and the States.

The article references a report by the Government of Tamil Nadu advocating for greater state autonomy and a recalibration of Union-State relations. It emphasizes that empowering states is essential for effective governance and national progress, calling for a shift towards a more balanced federal structure where the Union focuses on national responsibilities and states have the autonomy to govern effectively.

Key Facts

1.

India’s federalism is in need of a structural reset.

2.

The Constitution of India was designed with a pronounced centralising bias.

3.

Centralisation, once defended as a necessity, has hardened into habit.

4.

The Government of Tamil Nadu constituted a High-Level Committee on Union-State Relations in April 2025.

UPSC Exam Angles

1.

GS Paper II: Federal structure, functions and responsibilities of the Union and the States

2.

Connects to syllabus topics like devolution of powers and finances up to local levels

3.

Potential question types: analytical, statement-based, critical evaluation

In Simple Words

Imagine India as a team where the central government is the captain, and state governments are the players. Right now, the captain controls everything, which isn't working well. The article suggests giving states more freedom to make their own plays, so they can better address local needs.

India Angle

Think of a farmer needing specific help with irrigation in Maharashtra versus Tamil Nadu. A single plan from Delhi might not fit both, but if the states have more power, they can create solutions that work best for their farmers.

For Instance

It's like when your family decides on a vacation. If only one person makes all the plans, others might not enjoy it. But if everyone gets a say, the vacation becomes more fun and suits everyone's needs.

If states have more power, they can create better policies for your schools, hospitals, and roads. This means your daily life can improve because the government is more responsive to your needs.

Strong states make a strong India – give states more power to improve people's lives.

Visual Insights

States Advocating for Greater Autonomy

This map highlights states that have been vocal about the need for greater autonomy and a recalibration of Union-State relations. It shows the geographical distribution of these demands.

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📍Tamil Nadu
More Information

Background

Indian federalism, as enshrined in the Constitution of India, divides powers between the Union and the States. This division is intended to ensure both a strong center and autonomous states. The Seventh Schedule of the Constitution details this division through the Union List, State List, and Concurrent List. Over time, there has been a perceived shift towards centralization, with the Union government increasingly influencing matters traditionally under state purview. Several factors have contributed to this trend. These include the increasing role of centrally sponsored schemes, the Union's greater financial resources, and the influence of national policies on state-level governance. The Goods and Services Tax (GST), while intended to streamline taxation, has also impacted state fiscal autonomy by centralizing indirect taxation. This has led to debates about the need for greater state autonomy and a rebalancing of powers. The Sarkaria Commission (1983-1988) and the Punchhi Commission (2007-2010) were set up to review Union-State relations and recommend measures for a more balanced federal structure. These commissions highlighted the importance of consultation and cooperation between the Union and the States to maintain the integrity and unity of the nation while respecting state autonomy.

Latest Developments

In recent years, there has been increasing discussion on the financial relations between the Union and the States, particularly concerning the distribution of tax revenues. The Fifteenth Finance Commission made recommendations on the vertical and horizontal distribution of taxes, taking into account the needs of both the Union and the States. These recommendations have been a subject of debate, with some states expressing concerns about their fiscal space. Several states have been advocating for greater autonomy in various sectors, including agriculture, education, and health. They argue that centrally designed schemes often do not adequately address the specific needs and priorities of individual states. This has led to calls for a review of the existing framework of Union-State relations and a move towards greater decentralization. Looking ahead, the issue of Union-State relations is likely to remain a key focus of Indian politics and governance. The ongoing debates on fiscal federalism, state autonomy, and the role of centrally sponsored schemes suggest a need for continuous dialogue and negotiation between the Union and the States to ensure a balanced and effective federal structure.

Frequently Asked Questions

1. What is the core issue regarding Indian federalism?

The core issue is a perceived over-centralization of power, weakening states and hindering effective governance. There is a call for a structural reset to balance power between the Union and the States.

2. What are the key facts about the Government of Tamil Nadu's stance on Union-State relations for UPSC Prelims?

The Government of Tamil Nadu constituted a High-Level Committee on Union-State Relations in April 2025. They advocate for greater state autonomy and a recalibration of Union-State relations.

3. What is the historical background to the debate on Indian federalism?

The debate has roots in the Government of India Act, 1935, and was further emphasized in 1967 when C.N. Annadurai observed the need for balance. The first independent Committee on Union-State Relations was formed in 1969 under Justice P.V. Rajamannar.

4. How does the current discussion on federalism relate to the recommendations of the Fifteenth Finance Commission?

The discussion relates to the financial relations between the Union and the States, particularly concerning the distribution of tax revenues. The Fifteenth Finance Commission made recommendations on the vertical and horizontal distribution of taxes, which have been a subject of debate.

5. What are the potential benefits of greater state autonomy in India?

Empowering states is considered essential for effective governance and national progress. It allows states to govern effectively, addressing local needs and promoting development tailored to their specific contexts.

6. What is the constitutional basis for the division of powers between the Union and the States?

The Seventh Schedule of the Constitution details the division of powers through the Union List, State List, and Concurrent List. This division is intended to ensure both a strong center and autonomous states.

7. Why is the topic of rebalancing Indian federalism currently in the news?

The topic is in the news due to increasing discussions on the financial relations between the Union and the States, and the Government of Tamil Nadu advocating for greater state autonomy.

8. What are the pros and cons of a strong central government versus greater state autonomy in the Indian context?

A strong center can ensure national unity and uniform policies, but may neglect regional needs. Greater state autonomy can address local issues effectively but might lead to disparities and weaken national cohesion.

9. What are some common misconceptions about state autonomy in India?

A common misconception is that greater state autonomy necessarily weakens the Union. The aim is to achieve a balanced federal structure where both the Union and the States can function effectively within their spheres.

10. What reforms are needed to rebalance Indian federalism?

Reforms should focus on recalibrating Union-State relations, ensuring states have the autonomy to govern effectively, and the Union focuses on national responsibilities. This may involve changes in financial resource allocation and legislative powers.

Practice Questions (MCQs)

1. Consider the following statements regarding the distribution of legislative powers between the Union and the States in India: 1. The Union List contains subjects over which only the Parliament can make laws. 2. The State List contains subjects over which only the State Legislatures can make laws, except under certain circumstances. 3. The Concurrent List contains subjects over which both the Parliament and the State Legislatures can make laws, but the Union law prevails in case of conflict. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct regarding the distribution of legislative powers in India. Statement 1 is correct because the Union List indeed contains subjects where only the Parliament can legislate. Statement 2 is correct as the State List empowers State Legislatures to make laws on listed subjects, barring exceptional circumstances like national emergency. Statement 3 is also correct because the Concurrent List allows both Union and State to legislate, but Union law prevails in case of conflict, as per Article 254 of the Constitution.

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