Answer

Introduction

India’s Constitution created a quasi-federal system with a centralising tilt, shaped by Partition-era insecurities. While this design ensured unity, contemporary political maturity, economic complexity, and regional diversity necessitate recalibration. Federalism, affirmed as part of the Basic Structure in S.R. Bommai v. Union of India, demands renewed balance.

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Need to Recalibrate Centre–State Relations

• Restoring Legislative Balance: Expansive Union legislation on Concurrent List subjects narrows State autonomy.
  Eg: Central farm laws (2020, later repealed) triggered federal concerns.
• Correcting Fiscal Centralisation: Growing reliance on cesses/surcharges reduces divisible pool share to States.
  Eg: 15th Finance Commission noted rising non-shareable cesses.
• Reducing Conditional Transfers: Centrally Sponsored Schemes impose rigid templates, limiting contextual flexibility.
  Eg: States seek greater flexibility under schemes like PMAY and NHM.
• Strengthening Institutional Federalism: Bodies like the Inter-State Council remain underutilised.
  Eg: Sarkaria Commission recommended regular activation.
• Encouraging Policy Innovation: Decentralisation fosters experimentation and diffusion.
  Eg: Tamil Nadu’s noon meal scheme inspired the national Mid-Day Meal Programme.

Challenges in Recalibration

• National Integration Concerns: Fear that greater autonomy may fuel regionalism.
• Fiscal Imbalances: Vertical and horizontal imbalances complicate revenue distribution.
  Eg: GST compensation disputes between Union and States.
• Political Centralisation: Dominance of national parties may weaken cooperative federal spirit.
  Eg: Allegations of partisan use of Governors in State politics.
• Administrative Capacity Variations: Some States lag in institutional capacity.
  Eg: Punchhi Commission highlighted uneven governance standards.
• Judicial and Legislative Overlaps: Expansive interpretation of Union powers in Concurrent subjects.
  Eg: Increasing central regulations overriding plenary State laws.

Conclusion

Recalibration requires cooperative, not competitive, federalism. Revitalising the Inter-State Council, rationalising cesses, granting fiscal flexibility, respecting legislative spheres, and institutionalising consultation in Concurrent subjects can “right-size” the Union. A strong India must rest on autonomous, accountable States bound by trust, not tutelage.

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