Federalism in India: Study Notes

What is Federalism?

• Federalism is a system of government in which power is divided between a central authority and various constituent units of the country.
• Typically, a federation has two levels of government: a national government and state/regional governments.
  • The central (national) government handles subjects of common national interest.
  • The state/provincial governments handle day-to-day administration of their regions.
• Key feature: Both levels enjoy power independent of the other and are answerable to the people.
• In contrast to unitary systems, the central government in federalism cannot simply order a state government to do something; state governments have powers of their own.

Why federalism? Core objectives

• Dual objectives of federal systems:
  • Safeguard and promote the unity of the country.
  • Accommodate regional diversity.
• For federalism to work well, two crucial ingredients are needed:
  • Rules of power-sharing that govern relations between levels of government.
  • Mutual trust that each level will abide by its part of the agreement.
• An ideal federal system combines: mutual trust and formal agreement to live together.
• The balance of power between central and state governments varies across federations and depends on historical context.

Two kinds of federation (routes through which federations form)

• Coming Together Federations (shared sovereignty): independent states come together to form a bigger unit.
  • Features: Constituent states usually have equal power and are strong vis-à-vis the federal government.
  • Examples: USA, Switzerland, Australia.
• Holding Together Federations (division of power by a large country): a large country divides power between constituent states and national government.
  • Features: Central government tends to be more powerful vis-à-vis states; unequal powers among states; some units granted special powers.
  • Examples: India, Spain, Belgium.

What is the difference between federation and unitary systems?

• In a unitary system, there may be only one level of government, or sub-units are subordinate to the central government.
• In a federal system, the central government cannot order the state government to do something; state governments have autonomous powers.

Key concepts and terminology

• Jurisdiction: the area or subject-matter over which a government has legal authority. In federations, jurisdiction is constitutionally defined and cannot be unilaterally changed by one level of government.
• Independent powers: both levels are independently answerable to the people.

Key features of federalism (as listed in the text)
1) There are two or more levels (tiers) of government.
2) Different tiers govern the same citizens, but each tier has its own jurisdiction over specific matters of legislation, taxation, and administration.
3) The jurisdictions of each level are specified in the constitution.
4) Fundamental provisions of the constitution cannot be unilaterally changed by one level of government; changes require consent from both levels.
5) Courts interpret the constitution and the powers of different levels; the highest court acts as an umpire in disputes between levels.
6) Sources of revenue for each level are clearly specified to ensure financial autonomy.

What makes India a federal country?

• India’s constitution describes the country as a Union of States; the word federation is not used, but federal principles are embedded.
• India has a three-tier structure: Union Government (Central), State Governments, and a later-added third tier: local self-government (Panchayats and Municipalities).
• Threefold distribution of legislative powers (the three lists):
  • Union List (subject matters of national importance): defence, foreign affairs, banking, communications, currency; Union Government alone can make laws on these subjects.
  • State List (subjects of state/local importance): police, trade, commerce, agriculture, irrigation; State Governments alone can make laws on these subjects.
  • Concurrent List (subjects of common interest): education, forest, trade unions, marriage, adoption, succession; both Union and State Governments can legislate; if there is a conflict, Union law prevails.
• Residual powers: Union Government has the power to legislate on residuary subjects not listed in the three lists.
• Special provisions for some states: certain states have special powers under Article 371 (e.g., Assam, Nagaland, Arunachal Pradesh, Mizoram) to protect land rights, culture, and certain employment preferences; non-permanent residents may face land restrictions.
• Union Territories: areas too small to be states but not merged into existing states; central government exercises special powers here.
• Constitutional framework for sharing power is difficult to alter; changes to the power-sharing arrangement require a two-thirds majority in both Houses of Parliament and ratification by at least half of the state legislatures.
• Judiciary plays a crucial role in upholding federal provisions and settling disputes between levels of government.
• Revenue: both levels have powers to raise resources via taxation; the distribution is constitutionally specified to maintain autonomy.

Constitutional provisions and practical governance in India

• The three lists (Union, State, Concurrent) frame the division of powers and are central to how federalism functions in India.
• The creation of linguistic states (and the related language policy) tested Indian democracy and became a major method for managing diversity.
• Language policy: no single national language; Hindi identified as official language, but 22 languages are recognized as Scheduled Languages; English continues to be used officially after 1965 due to protests from non-Hindi-speaking states; many government functions operate in the language of the state; safeguards exist to protect non-Hindi languages.
• Language-based states and the cautious approach to spreading Hindi helped maintain national cohesion and avoid Sri Lanka-like ethnic tensions.
• Centre-State relations evolved significantly after 1990 with the rise of regional parties and coalition governments at the Centre; this era marked a shift toward greater power-sharing and autonomy for states.
• A key Supreme Court judgment reinforced a more cooperative model of federalism and limited the Central Government’s ability to dismiss state governments arbitrarily.

Centre-State relations and the era of coalitions

• Historically, when the same party controlled both Centre and states, states often did not exercise autonomy fully; central governments sometimes dismissed rival-state governments.
• Since 1990, regional parties gained influence, leading to coalition governments at the Centre and more negotiated power-sharing with states.
• Coalition governments require that partners in the alliance share a common programme and balance diverse interests, enhancing intergovernmental coordination.
• Cartoons illustrate the tensions in Centre-State relations and the challenges of running coalitions, underscoring the need for mutual respect and collaboration between levels of government.

Decentralisation and local self-government (the third tier)

• Rationale: India’s large and diverse states require power-sharing within states to manage internal diversity and closely involve people in decision making.
• Decentralisation became constitutionally mandatory in 1992:
  • Regular elections to local bodies (panchayats and municipalities).
  • Reservations: seats for Scheduled Castes, Scheduled Tribes, Other Backward Classes; at least one-third of positions reserved for women.
  • State Election Commissions: independent bodies to conduct local elections.
  • States are required to share some powers and revenue with local governments; the extent of sharing varies by state.
• Local government structure (rural):
  • Gram Panchayat: village-level council; consists of ward members (panch) and a president (sarpanch); directly elected by all adults in the ward; works under the gram sabha (village assembly).
  • Gram Sabha: voters in the village; approves annual budget and reviews performance.
  • Panchayat Samiti (Mandal/Block): district-level coordination body; members elected by panchayat members.
  • Zilla Parishad (District Council): district-level body; includes elected members from Lok Sabha/State Legislative Assembly plus other district officials; chaired by a Zilla Parishad chairperson.
• Local government structure (urban):
  • Municipalities (towns)
  • Municipal Corporations (larger cities)
  • Elected councils govern these bodies; chairpersons and mayors/head of council lead.
• The decentralisation revolution is the largest democratic experiment globally; estimates suggest around $3.6 imes 10^{6}$ elected representatives across panchayats and municipalities.
• Constitutional status for local government deepens democracy, increases women's representation, and enhances local voice; but challenges persist:
  • Gram sabhas are not always held regularly.
  • Limited transfer of powers and resources to local bodies by many states.
  • Real self-government is still distant in many places.
• Notable examples and experiments:
  • Porto Alegre, Brazil: parallel participatory budgeting alongside the municipal council; about 1.3 million residents participate; around 20,000 participants in budget decisions annually; decisions affect allocation to poorer neighborhoods and slum resettlements.
  • Kerala, India: scale and scope of participatory planning at local levels.

Linguistic diversity and the Indian languages landscape

• Language diversity is extremely high in India; census data (2011) record more than 1300 distinct mother tongues.
• These languages are grouped into major language families; 121 major languages identified after grouping.
• 22 languages are recognized as Scheduled Languages; others are non-Scheduled languages.
• Hindi is the mother tongue of about $43.63\%$ of Indians; when including second/third language speakers, a large portion of the population still uses Hindi, but not the majority as a mother tongue.
• English is spoken by a small fraction natively (about $0.02\%$ as mother tongue) but widely used as an associate official language; many non-Hindi-speaking states demanded continued use of English for official purposes beyond 1965, which was granted.
• Policy takeaway: language policy sought to balance promotion of Hindi with protection and use of other languages; this flexibility helped maintain unity in a diverse nation and avoided language-based sectarian tensions.

Ethical, philosophical, and practical implications

• Federalism embeds diversity within unity, raising questions about representation, minority rights, and regional development.
• Language policy raises debates about national unity vs. cultural autonomy and linguistic equality.
• Decentralisation raises practical questions about resource allocation, capacity, and local governance effectiveness.
• The Centre’s power vs. state autonomy has implications for democratic legitimacy, administrative efficiency, and the ability to respond to local needs.
• The role of judiciary as a constitutional umpire emphasizes the importance of rule of law in resolving power-sharing disputes.

Important terms and concepts to remember

• Union List, State List, Concurrent List
• Residual powers
• Article 371 (special provisions for certain states)
• Union Territories
• Three-tier federalism: Union, State, Local (Panchayats/municipalities)
• Gram Panchayat, Gram Sabha, Panchayat Samiti, Zilla Parishad
• Municipalities, Municipal Corporations, Mayor/Chairperson
• Decentralisation and participatory democracy
• Coalition government (definition and implications)
• Centre-State relations (historical evolution and modern dynamics)
• Linguistic States and language policy
• Port Alegre model of participatory budgeting

Connections to foundational principles and real-world relevance

• Federalism in India is a living experiment shaped by history, language, culture, and regional diversity; the structure of governance is designed to promote unity while respecting local differences.
• The Indian model shows how formal constitutional provisions interact with political practice (coalitions, regional party dynamics) to produce a flexible, albeit challenging, system of power-sharing.
• Local governance reforms demonstrate how democratic participation at the grassroots level can alter resource allocation, development priorities, and social equity.

Table data and figures (selected references)

• Global federal prevalence: $rac{25}{193} \approx 0.13$ of countries are federal; about $40\%$ of the world population lives in federal countries.
• Population scale comparisons: Indian states are as large as many European countries (e.g., Uttar Pradesh larger than many nations; Maharashtra comparable to Germany).
• Local government scale: approximately $3.6 imes 10^{6}$ elected representatives across panchayats and municipalities in India.
• Language data (Scheduled Languages): languages with official recognition and approximate share of speakers are listed in the text; notable values include
  • Assamese: $1.26\%$
  • Bengali: $8.03\%$
  • Hindi: $43.63\%$
  • Marathi: $6.86\%$
  • Tamil: $5.70\%$
  • Telugu: $6.70\%$
• Other numerics: about $1.3\times 10^{6}$ people participate in Porto Alegre’s participatory budgeting; roughly $2.0\%$–$?$ of city budget involves citizen input (contextual figures in the text).

Practice and reflection prompts (from the exercises section)

• Identify and locate states on a blank map: Manipur, Sikkim, Chhattisgarh, Goa.
• Name three federal countries besides India.
• Compare features of India’s federalism with Belgium’s practice (similarities and differences).
• Explain the main difference between federal and unitary systems with an example.
• Describe two differences in Indian local government before and after the 1992 constitutional amendment.
• Classify subjects into Union List, State List, and Concurrent List.
• Explain the rationale for a three-tier system in large, diverse countries like India and discuss its practical challenges.
• Discuss the language policy debate in India using the given positions and provide arguments and examples.
• Assess the statement: Government power is divided between different levels of government. (Choose the correct option among provided pairs.)

Summary takeaway

• Indian federalism is a composite system built on constitutional provisions (three lists, residuary powers, Article 371, Union Territories) and political practice (coalitions, regional parties) that aims to balance national unity with regional autonomy.
• Decentralisation through local government represents a major enhancement of democracy, with significant benefits for representation and local accountability, but requires robust implementation and resource support to achieve genuine self-government.