Indian Federalism: Division of Powers in India

Indian federalism involves a division of powers between the central government and the states. Division of power ensures a balanced sharing of responsibilities, with the central government overseeing defense, foreign affairs, and key national issues, while states manage areas like education, healthcare, and local governance. 

Constitutional Framework of Indian Federalism

There are two sets of government created by the Indian Constitution:

• One for the entire nation called the union or central government.
• One for each unit or State called the State government under the system of Indian federalism.
• Both of these have a constitutional status and clearly identified division of power by the constitution itself. 
• If there is any dispute about power distribution between the center and states, this can be resolved by the Judiciary on the basis of the constitutional provisions.
• One of the important aspects of this division of powers is that economic and financial powers are centralized in the hands of the central government, whereas states have immense responsibilities but very meager revenue sources.

Has Indian Federalism Established a Strong Central Government?

• It is generally accepted that the Indian Constitution has created a strong central government. 

Unity through Diversity:  A  Strong Central Government in Indian Federalism

• To accommodate Diversities and ensure the Unity of nation.

• Further, makers of the Constitution also believed that the socio-economic problems of the country needed to be handled by a strong central government in cooperation with the States. 

Thus, concerns for unity and socio-economic development prompted the makers of the Constitution to create a strong central government.

Indian Federalism: Building a Strong Central Government

• Constitutional Emergencies: Key Provisions
  • Indian Federal polity, under the system of Indian federalism turns into a Centralised System once the emergency is declared.
  • Parliament also assumes the power to make laws on subjects within the jurisdiction of the States.
• Financial Centralization in Indian Federalism
  • Revenue-generating items are under the control of the central government. Thus, the central government has many revenue sources, and the states are mostly dependent on grants and financial assistance from the center.
  • Erstwhile Planning under Planning Commission led to considerable centralisation of economic decision-making. 
  • Discretion used by the Union government to give grants and loans to states.
• Governor’s Role in Indian Federalism
  • She can recommend the dismissal of the State Government and the dissolution of the Assembly. 
  • She can reserve a bill passed by the State legislature for the assent of the President.  This gives the central government an opportunity to delay the State legislation and also to examine such bills, and veto them completely. 
• Power Play: Central Legislation Over State Subjects

• • Central government can legislate on matters from the State list. This is possible if the move is ratified by the Rajya Sabha. The Constitution clearly states that the executive powers of the center are superior to the executive powers of the States. 

• Directives in Action: Understanding Centre-State Relationship

• • Center can give instructions to the State government in the framework of Indian federalism. The following extract from Article 257 of the Constitution makes this clear:

• • Article 257 (1):  The executive power of every State shall be so exercised as not to impede or prejudice the exercise of the executive power of the Union, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose.

• Parliament’s Authority: State Formation and Territorial Changes

• • The parliament is empowered to ‘form a new State by separation of territory from any State or by uniting two or more States….’ 
  • It can also alter the boundary of any State or even its name. 
  • The Constitution provides for some safeguards by way of securing the view of the concerned State legislature.

• Uniformity in Administrative Services: Centralized Control in Indian Federalism
  • These are common to the entire territory of India under the system of Indian federalism and officers chosen for these services serve in the administration of the States.  For example, an IAS officer who becomes the collector or an IPS officer who serves as the Commissioner of Police, are under the control of the central government.
  •  States can neither take disciplinary action nor can they remove these officers from service.
• Ensuring Order in Crisis: Rights  under Articles 33 and 34
  • These Rights authorize the Parliament to protect persons in the service of the union or a state in respect of any action taken by them during martial law to maintain or restore order.  The Armed Forces Special Powers Act has been made on the basis of these provisions. 

Evolution of Centre-State Relations in Indian Federalism

• Stable Relations: During the 1950s and early 1960s, Congress dominated in both centre and states, resulting in stable relations between both entities.
• Changing Landscape: By the mid-1960s, Congress’ dominance waned, as opposition parties gained State power, leading to demands for enhanced State Autonomy.
• Shift in Dominance: Since the 1990s, Congress’ dominance decreased, ushering in an era of coalition politics, particularly at the National Level.
• Empowerment of States: States, both national and regional, gained prominence, resulting in a more pluralistic and mature federal structure.
• Growing Recognition of Diversity: The shift led to a stronger acknowledgement of diversity’s importance in governance.

Relevance of Autonomy: The phase of increased State empowerment has amplified the political significance of the autonomy debate.