Indian Federalism, Explained

Federalism is the division of power between a national government and regional governments, each with its own sphere of authority. The Indian Constitution distributes subjects across three lists, namely the Union, State, and Concurrent lists, in the Seventh Schedule. Because the centre holds the residuary powers and can override the states in key situations, scholars call India 'quasi-federal' or a 'federation with a unitary bias.'

The framers chose a strong centre deliberately, with Partition and the integration of 500-plus princely states fresh in memory. The States Reorganisation Act of 1956 redrew state boundaries on linguistic lines, settling a major early tension. The Sarkaria Commission (1988) and later the Punchhi Commission examined centre-state friction and recommended restraint in using central powers.

Federal questions dominate today's politics: the GST Council pools taxing power between centre and states; Finance Commission awards determine how revenue is shared; and the roles of Governors and Article 356 (President's Rule) are recurring flashpoints, especially in opposition-ruled states. The abrogation of Article 370 in 2019 and the reorganisation of Jammu and Kashmir into Union Territories raised the question of how far the centre can alter a state's status.

• Centralists argue a strong Union is necessary for national unity, security, and coordinated economic policy in a vast, diverse country.
• Federalists argue that states are closer to citizens, that fiscal centralisation (post-GST) has weakened state autonomy, and that institutions like the Governor's office are misused for political ends.

Comparison sharpens what makes India distinctive. The United States practises 'dual federalism': residuary powers rest with the states (Tenth Amendment), the opposite of India, where they rest with the centre. Germany runs 'cooperative federalism': its states (Länder) shape national law through the Bundesrat, and a fiscal-equalisation system (Finanzausgleich) redistributes revenue much as India's Finance Commission does.

Political scientists distinguish 'coming-together' federations like the US and Switzerland, where independent states pooled sovereignty, from 'holding-together' federations like India, Canada, and Spain, where a diverse country devolved power from a strong centre to stay united. That origin explains India's centralising tilt: it was designed to hold a fragile, newly partitioned nation together, not to bind pre-existing states.

Federalism connects to nearly every contested topic: GST and fiscal devolution, language policy, the delimitation of Lok Sabha seats (which pits high-growth southern states against the populous north), and the centre's control over agencies and appointments.