Answer: 

Introduction:

India’s federal system is shaped by a complex interplay of cooperation, competition, and confrontation between the central and state governments. Cooperation plays a significant role in fostering collaborative planning and policy-making. An example is the establishment of the NITI Aayog, which promotes cooperative federalism by facilitating dialogue and coordination between the center and the states in matters of economic planning and development.

Body:

Cooperation:

• The Indian federal system is designed to facilitate cooperation between the center and the states.
• The Goods and Services Tax (GST) is a prime example of cooperative federalism, where both the center and the states have pooled their powers to create a unified tax system.
• Another example is the NITI Aayog, which replaced the Planning Commission, fostering collaborative planning and policy-making between the center and the states.

Enroll now for UPSC Online Course

Competition:

• Competitive federalism encourages states to improve their performance and policies to attract investment, businesses, and resources.
• In recent years, the center has adopted a competitive approach to allocate resources, which has prompted states to streamline their regulations and policies.
• The ‘Ease of Doing Business’ rankings have created healthy competition among states to improve their business environments.
• The Smart Cities Mission is another example where competition is used as a driving force to encourage cities to develop innovative solutions for urban development.

Confrontation:

• Despite the cooperative and competitive aspects of the Indian federation, confrontations between the center and the states have occurred.
• These confrontations can arise due to political, administrative, or legal issues.
• Recent examples include the conflict between the central government and the West Bengal government over the CBI’s jurisdiction and the tussle between the central government and the Delhi government over administrative control.
• The Citizenship Amendment Act (CAA) also led to confrontations between some state governments and the center, with some states refusing to implement the Act.

Conclusion:

India’s federal system has been shaped by cooperation, competition, and confrontation. Cooperation and competition foster efficient policy-making and resource allocation, while confrontation can uphold federal principles. Balancing these elements is vital for the federation’s smooth functioning and addressing India’s diverse needs.