Cooperative Federalism in India: Centre–State Imbalance and the Case for Structural Reform

Cooperative Federalism in India: Centre–State Imbalance and the Case for Structural Reform 17 Feb 2026

Cooperative Federalism in India: Centre–State Imbalance and the Case for Structural Reform

Tamil Nadu Chief Minister M.K. Stalin argues that India’s federalism is currently ailing and requires structural surgery to address a growing imbalance between the Centre and the states.

Historical Context

  • Post-Partition Environment: Between 1947 and 1950, the Constitution was drafted amidst the chaos of partition and the need to integrate over 500 princely states.
  • Centrifugal Fears: To prevent centrifugal forces from breaking the country apart, the founders borrowed heavily from the Government of India Act 1935, creating a centralising bias in which the Centre was intentionally made strong and the states relatively weak.
  • Quasi-Federalism: This led scholars like K.C. Wheare to describe India as “quasi-federal,” suggesting a federal structure but a “unitary soul”.
  • Vision of K. Santhanam: Emphasised that true federalism requires both positive and negative delimitation of powers. The Union must also refrain from encroaching beyond its sphere.
  • Principle of Subsidiarity: Authority is most effective when exercised closest to the people, ensuring accountability and contextual responsiveness.

The Three Phases of Federalism

  • One-Party Dominance (1950s–60s): Under Congress rule, a “high-command culture” emerged in Delhi where Chief Ministers were treated as subordinates rather than autonomous leaders.
  • The Coalition Era (1990s): The rise of alliances balanced federalism and strengthened national unity.
  • The Current Scenario (2026): While states are now politically and linguistically mature, the Centre refuses to relinquish control, maintaining habits formed during the emergency-like conditions of the 1940s.

Modern Encroachments on State Autonomy

  • Legislative Overreach: Although the 7th Schedule divides powers, the Centre frequently uses the Concurrent List to interfere in state subjects. Example: Passing the 2020 Farm Laws, even though agriculture is a state subject.
  • Financial Control: The Finance Commission often attaches strict conditions to grants, forcing states to implement “Centrally Sponsored Schemes (CSS)” that may not meet local needs.
  • Bureaucratic Subordination: Federal bureaucrats often create subordinate legislation (rules and notifications) that override laws passed by state legislatures.
  • Dilution of Autonomy: Policies such as GST and “One Nation, One Election” are cited as further eroding states’ autonomy.

Reframing the Federal Debate

  • Myth of the Zero-Sum Game: A strong State does not weaken the Centre; cooperative partnership strengthens national unity and governance outcomes.
  • Diversity Requires Decentralisation: Uniform national policies cannot equally address varied regional realities — from Punjab’s agrarian economy to Kerala’s coastal livelihoods.
  • States as Laboratories of Innovation: Several national programmes originated as State initiatives, such as Tamil Nadu’s Mid-Day Meal Scheme, Kerala’s public health model, and Maharashtra’s Employment Guarantee Scheme.
  • Flawed Capacity Argument: Claims of inadequate technical capacity overlook that competence is built through responsibility. Many states have economies comparable to those of sovereign nations.
  • Risk of Over-Centralisation: Excessive Union intervention, justified on the grounds of uniformity or efficiency, progressively erodes State autonomy and weakens the spirit of federal balance.

Judicial Position on Federalism

  • S.R. Bommai v. Union of India: The Supreme Court declared federalism is a part of the Basic Structure and affirmed that States are supreme within their allotted spheres; they are partners, not appendages or tails of the Centre.
  • Basic Structure Doctrine: Federalism is not administrative convenience but a constitutional principle rooted in India’s diversity.

Institutional Responses to Imbalance

  • Rajamannar Committee (1969–71): First systematic State-level review of Union–State relations advocating greater autonomy.
  • Sarkaria Commission (1983–88): Recommended cooperative federalism and restraint in Article 356 use.
  • Punchhi Commission (2007–10): Called for clearer demarcation of powers and institutional strengthening of inter-governmental mechanisms.
  • Justice Kurian Joseph Committee: Formed in April 2025, this committee was tasked with reviewing the role of Governors, language policy, delimitation, and GST to strengthen federalism.

Way Forward

  • Right-Size the Union: There is a need to limit the Centre’s functional domain to core national responsibilities such as defence, currency, and foreign affairs, while devolving operational subjects to States.
  • Restore Fiscal Balance: The Centre should increase untied tax devolution, rationalise centrally sponsored schemes, and grant States greater discretion in designing and funding sectoral programmes.
  • Strengthen Constitutional Morality: There is a need to align executive and legislative practice with the spirit of federalism affirmed in S.R. Bommai (1994), recognising States as equal constitutional partners.

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Conclusion

With India’s unity secure, a focused Union and empowered States are essential for genuine cooperative federalism.

Mains Practice

Q. India’s quasi-federal structure, shaped by post-Partition anxieties, now requires a structural reset. Examine the need to recalibrate Centre–State relations in contemporary India. (10 Marks, 150 Words)

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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