Federalism is a system of government in which powers have been divided between the Centre and its constituent parts such as states within a country. Though the word federation is not mentioned in the Indian Constitution, the country has a federal system having a rigid Constitution, bicameralism, independent Judiciary, division of powers between various levels of government, etc. However, it has been often argued that the Indian model of federalism has centralization tendencies. Centralized nature of the Indian federalism:

• Legislation by the Centre in ‘state subjects’: Under the Seventh Schedule, the legislative powers of the Centre and States are delineated in the Union List, State List, and Concurrent List.
  • In case of a deadlock between the Union and states over subjects in the Concurrent list, the Union law prevails.
  • The Union List contains more subjects than the State List.
  • Under Article 249 of the Indian Constitution, the Parliament has power to legislate with respect to a matter in the State List in the national interest.
• President’s Rule: Under Article 356 of the Constitution, the President can dismiss state governments and dissolve Legislative Assemblies, leading to central control of the states.
• Central agencies and institutions: The existence of central agencies like the Central Bureau of Investigation (CBI) and the National Investigation Agency (NIA) signifies the control of the Central government in matters of investigation and law enforcement.
• Other features:
  • The Union Parliament has been given unilateral discretion to reconstruct the boundaries of the states.
  • The Union government has the power of appointing Governors in the states and dissolving state governments by proclaiming President’s Rule if the Centre deems fit.

However, in the Indian model of federalism, states have been given adequate space and autonomy, as can be discerned through the following examples:

• State List: Under the Seventh Schedule, states have exclusive legislative rights on matters in the State List. Even when the Parliament makes a law under Article 249 of the Constitution, the state law can prevail if there is the consent of the President.
• Executive and financial powers: The state governments have the power to administer programmes and policies in their respective states, and they are responsible for rolling out the budget, and collecting and spending revenue.
• The Indian Constitution also provides for a system of fiscal federalism, which ensures that the states receive a share of revenue from the Central government.
• Special status and autonomy: The Sixth Schedule of the Indian Constitution provides for special provisions for tribal areas in the North-Eastern states allowing them a degree of autonomy in governance.
• Cooperative federalism: Different forums are established for promotion of cooperative federalism, such as the Niti Aayog, GST Council, Inter-State Council, etc. to promote the participation of state governments in the policy-making process.
• Others: One of most important moments for federalism in recent times is the revelation of the vital role of state governments in managing the COVID-19 crisis. After initial challenges, the Union government ceded adequate space and autonomy to the states for strengthening their healthcare facilities and managing localised lockdowns.

Indian federalism is a dynamic model that has witnessed a unique interplay of centralization and decentralization. While the Central government maintains significant control over the states, there are instances where autonomy has been granted to accommodate regional aspirations and promote cooperative federalism. The ongoing evolution of Indian federalism should ensure that the needs of a diverse country are effectively addressed.