Evolution of Center-State Relations and Federalism in the Post-Independence Period

Post-Independence Period: Early Years (1947-1960)

• The Constitution of India established a federal system, with the Union and the States having distinct powers and responsibilities.
• The early years saw a centralizing trend, with the Centre exercising greater control over the States.
• The State Reorganization Act of 1956 led to the creation of 14 major States and nine Union Territories, which helped to address regional imbalances and improve center-state relations.

Key Features of the Federal System (1960-1980)

• Separation of Powers: The Constitution ensured separation of powers between the Legislature, Executive, and Judiciary at both the Centre and the States.
• Federal Distribution of Powers: The Constitution divided powers between the Centre and the States, with the Centre having more powers in certain areas, such as foreign affairs, defense, and communication.
• Cooperative Federalism: The Constitution emphasized cooperative federalism, encouraging inter-state cooperation and collaboration.

Changes and Challenges (1980-2000)

• Decentralization: The 73rd and 74th Constitutional Amendments (1992) introduced decentralization, empowering local bodies to function more effectively.
• Economic Liberalization: The economic liberalization policies of the 1990s led to increased competition and decentralized decision-making, which further eroded the centralizing tendencies of the early years.
• Regionalism and Identity Politics: The rise of regional parties and identity politics led to increased demands for greater autonomy and self-governance.

Recent Trends and Developments (2000-Present)

• Devolution of Powers: The 14th Finance Commission (2015) recommended a significant increase in the share of funds allocated to States, marking a shift towards greater decentralization.
• Federalism 2.0: In recent years, there has been a renewed focus on strengthening federalism through reforms such as the Goods and Services Tax (GST) and the Aadhaar system.
• National Populism: The rise of national populism has led to increased tensions between the Centre and States, with some States demanding greater autonomy and others pushing for more centralized control.