Cooperative federalism

Polity & Governance glossary

Topic: Federalism and Centre-State Relations · NCERT: Class 11, Ch 7 "Federalism"

Meaning

Cooperative federalism is a model where the Union and the states work as partners, not rivals. They share goals, plan together and solve common problems jointly, through consultation and shared bodies.

It matters because India has a strong Union, but the Union depends on the states to carry out its policies. Neither level can govern well alone. That is why Class 11 NCERT says Centre-state relations in India are "based on cooperation".

Explanation

How it works

  • Shared goals, joint action: the Union and the states plan together instead of acting in separate boxes.
  • A strong centre that needs the states:
  • The Constitution gives the Union more power than the states.
  • But the states are the ones who carry out most policies on the ground.

  • So historian Granville Austin called the Indian system cooperative federalism.

  • Unity with diversity: NCERT uses the image of a "rainbow". Many regional identities form one union. A cooperative federation keeps the country united and still gives room to each region.

Its tools

  • Shared law-making: the Concurrent List (Seventh Schedule, List III) lets both the Union and the states make laws on the same subjects.
  • Forums for discussion:
  • Inter-State Council (Article 263). The President can set it up to discuss subjects that concern more than one level.

  • Zonal Councils, set up under the States Reorganisation Act, 1956.

  • Shared decision on taxes: the GST Council (Article 279A, 101st Amendment, 2016).

  • It is an example of pooled sovereignty. The Union and the states each give up part of their separate tax powers.

  • In return, they decide GST rates together.

  • Joint planning: the NITI Aayog Governing Council, where the PM and the Chief Ministers meet as equals to plan national goals.

Limits

  • Advisory, not binding:
  • NITI Aayog has no power to give grants, unlike the old Planning Commission.

  • The Inter-State Council meets rarely.

  • Conditions from the top: under centrally sponsored schemes (CSS: schemes the Union designs and part-funds, and the states carry out), states must accept Union conditions and pay a share to get the money.

  • Low trust: boycotts of the Governing Council, such as in 2024, show that trust between the two levels has weakened.
  • Critics say the reality is different:
  • "Confrontational federalism": open fights over Governors, central agencies and funds.
  • "Bargaining federalism": states bargain with the Union for money and powers.

In the Constitution and practice

  • Constitutional base:
  • Article 263 (Inter-State Council);
  • Seventh Schedule, List III (Concurrent List);

  • Article 279A (GST Council, 101st Amendment, 2016).

  • Law outside the Constitution: Zonal Councils (States Reorganisation Act, 1956).

  • NITI Aayog Governing Council:
  • Members: the Prime Minister (Chairperson); Chief Ministers of all states and of UTs with legislatures (Delhi, Puducherry, J&K); Lieutenant Governors of the other UTs; plus ex-officio members, the Vice-Chairperson and special invitees.
  • First meeting: 8 February 2015.
  • 9th meeting (27 July 2024): several opposition Chief Ministers boycotted it. They said the Union Budget 2024–25 was unfair to their states.

  • 10th meeting (24 May 2025): held at Bharat Mandapam, New Delhi, with the theme "Viksit Rajya for Viksit Bharat@2047" (developed states for a developed India by 2047) [2]. Chief Ministers and Lieutenant Governors of 24 states and 7 UTs attended [2]. The PM said Viksit Bharat is "not the agenda of any party" but the wish of 140 crore Indians [2].

  • Sub-groups of Chief Ministers (2015): NITI set up groups of CMs. One group studied how to rationalise CSS. Its advice cut the number of schemes and changed how the Union and the states share costs.

  • Aspirational Districts Programme (January 2018):
  • It covers 112 of the most backward districts.
  • It follows the "3Cs": Convergence of schemes, Collaboration among Union, state and district officers, and Competition among districts on monthly ranks.

  • So it mixes cooperative and competitive federalism.

  • COVID-19 (2020):

  • The National Disaster Management Authority, chaired by the PM, ordered the national lockdown on 24 March 2020 under the Disaster Management Act, 2005.
  • The states enforced it through their own disaster authorities and the Epidemic Diseases Act, 1897.

  • Video meetings between the PM and the CMs set the rules for each phase.

  • Court rulings:

  • Government of NCT of Delhi v. Union of India (2018, Constitution Bench): the court used the idea of collaborative federalism. The Union and the Delhi government must work in harmony. The Lieutenant Governor must usually act on the advice of Delhi's ministers and should not block them over every difference.
  • Union of India v. Mohit Minerals (2022): GST Council recommendations are persuasive, not binding. Federalism is a "dialogue" that includes both cooperative and uncooperative forms. States may disagree and bargain.

Don't confuse with

  • Competitive federalism: states compete with each other, and sometimes with the Union, for investment, funds and better results, pushed by rankings such as BRAP and the SDG India Index. Cooperative federalism is about working together, not competing.
  • Collaborative federalism: this is the term the Supreme Court used in GNCTD v. Union of India (2018) for the relationship between the Union and Delhi. It comes from a court judgment, not from NCERT or Granville Austin.
  • Pooled sovereignty: this is a form of cooperative federalism, not another name for it. It means both levels give up part of their separate powers to one joint body, as in the GST Council.
  • Decentralisation: this moves power down to local government (the 73rd and 74th Amendments, 1992). Cooperative federalism is about the relationship between the Union and the states.

Prelims Hooks

  • Inter-State Council: Article 263. GST Council: Article 279A (101st Amendment, 2016). Do not mix up the two articles.
  • The NITI Aayog Governing Council has Chief Ministers of UTs with legislatures (Delhi, Puducherry, J&K) but Lieutenant Governors of the other UTs. This is a common trap.
  • The Governing Council first met on 8 February 2015. Its 10th meeting (24 May 2025) had the theme "Viksit Rajya for Viksit Bharat@2047" [2].
  • Mohit Minerals (2022): GST Council recommendations are not binding, and federalism is a "dialogue". GNCTD (2018): "collaborative federalism".
  • Zonal Councils were created by an Act, the States Reorganisation Act, 1956. They are not set up by the Constitution.
  • The Aspirational Districts Programme (2018) covers 112 districts. Its 3Cs are Convergence, Collaboration and Competition.

Mains Points

  • Words versus practice:
  • NITI Aayog cannot give grants, and the Inter-State Council meets rarely.
  • Conditional CSS and the 2024 Governing Council boycott point to "confrontational" and "bargaining" federalism.

  • Reforms: hold regular Inter-State Council meetings, as the Sarkaria and Punchhi Commissions recommended; have fewer and more flexible CSS; and give NITI a real role in sharing funds.

  • Balance with competitive federalism:

  • Rankings push states to improve, but they can start a race to the bottom on tax breaks and freebies, and widen gaps between regions.

  • The answer is to compete on outcomes and cooperate on resources, as the Aspirational Districts model does.

  • The GST Council as a test case:

  • It shows pooled sovereignty at work.
  • But Mohit Minerals (2022) shows that cooperation needs room for disagreement and bargaining. Good federalism is a dialogue, not just agreement with the Union.

Related concepts

Read more

Sources

  1. 1Class 11, Ch 7 "Federalism" (primary)
  2. 2PM chairs 10th Governing Council Meeting of NITI Aayog (PIB)pib.gov.in · tier 1