A renewed debate on Indian federalism has emerged due to issues such as delimitation, fiscal transfers, increasing Centre–State tensions, and concerns regarding the decline of cooperative federalism. These developments have raised important questions about the balance between a strong Union government and the autonomy of states in India.
What is Federalism?
- Federalism refers to the division of powers between different levels of government through a written Constitution.
- In India, powers are constitutionally divided between:
- the Union Government
- the State Governments
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Why India Adopted a Strong Centre?
- Historical Context
- After Independence, India faced fears of fragmentation, separatism, and national disintegration.
- Therefore, the Constitution makers created a relatively strong Union government to preserve national unity and stability.
Historical Challenges to Federalism
- Planning Commission Era
- The former Planning Commission centralized major fiscal powers in the hands of the Union government.
- States became heavily dependent on the Centre for financial allocations and development funds.
- Misuse of President’s Rule
- During the 1960s and 1970s, Article 356 was frequently misused to dismiss opposition-ruled state governments.
- This weakened the spirit of democratic federalism.
- Misuse of Governors: Governors were often accused of acting in favour of the Union government rather than functioning as neutral constitutional authorities.
- This created repeated tensions between the Centre and states.
S.R. Bommai Judgment
Importance of the Judgment
- The S. R. Bommai v. Union of India judgment declared that:
- Federalism is part of the Basic Structure of the Constitution.
- Arbitrary imposition of President’s Rule is unconstitutional.
- The judgment significantly strengthened Indian federalism and limited misuse of Article 356.
Contemporary Challenges to Federalism
- Delimitation: Delimitation refers to the redrawing of constituency boundaries based on the principle of “One Vote, One Value” to ensure equal political representation.
- Southern states fear that after the latest Census, they may lose parliamentary seats while northern states gain more seats, effectively penalizing states that successfully controlled population growth.
- Fiscal Federalism Disputes : Under fiscal federalism, economically stronger states such as Maharashtra and several southern states contribute a larger share of taxes but often receive comparatively lower fiscal transfers from the Centre.
- This has created resentment over unequal resource distribution, lack of incentives for good governance, and widening developmental imbalances between states.
- Decline of Cooperative Federalism: States increasingly complain about the lack of consultation before major legislation and the growing trend of excessive centralized policymaking by the Union government.
- Laws such as the Farm Laws and the Citizenship Amendment Act (CAA) intensified debates over the decline of cooperative federalism in India.
- Cooperative vs Combat Federalism: Cooperative federalism refers to a system where the Centre and states work together through dialogue, consensus, and collaboration for effective governance.
- In contrast, combat federalism reflects increasing political confrontation between the Centre and states, resulting in trust deficits, governance conflicts, and weakening cooperative decision-making.
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GST Council as a Positive Example
- During a 2018 GST Council meeting, concerns raised by Kerala regarding gambling-related taxation were addressed through consensus-building rather than unilateral decision-making.
- The episode demonstrated that accommodation, dialogue, and cooperative decision-making strengthen Indian federalism and reflect democratic maturity.
Leadership and Federal Spirit
- An example involving P. V. Narasimha Rao and Shanta Kumar highlight the spirit of cooperative federalism and statesmanship in governance.
- It reinforces the constitutional principle that while governments may belong to political parties, governance must ultimately remain national in character and guided by larger public interest.
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Conclusion
- Indian federalism is inherently a cooperative model, but it is increasingly threatened by fiscal imbalances and a lack of political consultation.
- To sustain the country’s unity, leaders must move past “Combative Federalism” and return to the “First Principle”—where the national interest and the constitutional rights of states are prioritized over narrow political ideologies.
20 May 2026
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