Federalism

Also called: Federal system · Topic: Federalism and Centre-State Relations · NCERT: Class 7, Ch 6 "The State, the Government, and You"; Class 8, Ch 6 "The Parliamentary System: Legislature and Executive"; Class 9, Ch 6 "Democracy"; Class 10, Ch 1 "Power-sharing"; Class 10, Ch 2 "Federalism"; Class 11, Ch 7 "Federalism"

Meaning

Federalism is a system in which a supreme written constitution divides power between a national (central) government and regional governments (states or provinces). Each level is free in its own area, and independent courts settle disputes between them. India is a federation with a strong Centre. Its Constitution calls it a "Union of States" [2].

Federalism matters because it helps a big, diverse country stay united while letting its regions run their own affairs. It also works only when the levels trust each other, not just when the law says so.

Explanation

How federalism works

• A supreme written constitution. It gives power to both governments. Neither government hands power down to the other.
• An independent judiciary as umpire. Courts explain the constitution and settle fights between the levels.
• A culture of trust. Laws alone are not enough. The levels must trust each other and agree to live together.
• Two identities. A citizen belongs to two political communities at the same time. For example, a person is both Gujarati and Indian.
• In general terms, federalism joins separate units into one larger structure, and each unit keeps its own identity [7].

Seven key features (NCERT Class 10)

1. Two or more tiers. There are at least two levels of government, such as Union and state. India later added local government as a third.
2. Same citizens, separate jurisdictions. Each tier governs the same people, but only in its own fixed area of laws, taxes and administration. Jurisdiction means the area where a body has legal power.
3. Constitutional guarantee. The constitution writes down each tier's powers. Neither tier can take them away alone.
4. Joint consent for core changes. The basic rules can change only if both levels agree.
5. Courts as umpire. Courts settle disputes between tiers.
6. Specified revenue sources. Each tier has its own taxes, so it has financial autonomy, meaning the freedom to raise and spend its own money.
7. Dual objective. Federalism protects national unity and also makes room for regional diversity. - How common it is: only 25 of 193 countries are federal, but they hold about 40% of the world's population (NCERT).

Two routes to federation

Point	Coming-together	Holding-together
How it forms	Independent states pool their sovereignty (share their supreme power) to make a bigger unit	A large country divides its own power between the centre and its units
Main purpose	Common security, a common economy, a bigger market	Keeping a diverse country together
Centre vs units	Units are equal and strong	Centre is stronger, and units may be unequal
Examples	USA, Switzerland, Australia	India, Spain, Belgium, Nepal (2015)

• Asymmetric federalism means that some units get special or unequal treatment. It is common in holding-together federations.
• Nepal is a recent holding-together case:
• Its constitution was promulgated (formally brought into force) on 20 September 2015 [6].
• It made Nepal a secular federal democratic republic with a bicameral Federal Parliament (a parliament with two houses) [6].
• It has 7 provinces, 77 districts and 753 local units [6].

Limits: why federations fail

• Too much central control. The USSR broke up after 1989 because of central control and Russian dominance over the other republics.
• Weak centre and rival units. The West Indies Federation (1958-62) had a weak centre, separate economies and rival leaders.
• It was dissolved in 1962.
• The islands later formed the Caribbean Community under the Treaty of Chaguaramas (1973).

• The lesson: the units "could neither live together nor separately".

• A federal constitution without trust. Nigeria chose a federal form at the Ibadan Conference (1950).

• Rivalry among the Yoruba, Igbo and Hausa-Fulani led to military rule.

• Police power went from a joint subject (1960) to no state police at all (1979).

• Near splits and break-ups. Quebec voted on leaving Canada in 1980 and 1995, and both times the people who wanted to leave lost. Czechoslovakia, Yugoslavia and Pakistan (Bangladesh broke away in 1971) also divided.

In the Constitution and practice

• Article 1 says "India, that is Bharat, shall be a Union of States". The word "federation" is not used. The states and their territories are listed in the First Schedule [2].
• Why "Union"?
• On 4 November 1948, Dr B.R. Ambedkar told the Constituent Assembly that "the use of the word Union is deliberate" [3].
• India's federation was "not the result of an agreement by States to join the federation". So states have no right to secede, meaning no right to break away [3].

• In his words, "Federation is a Union because it is indestructible". He noted that the USA had to fight a civil war to settle this question [3].

• Seventh Schedule. It has three lists (Union, State, Concurrent) that divide law-making subjects [4].

• Union side: defence, foreign affairs, currency [4].

• State side: law and order, public health, local government [4].

• States are co-equal in their own sphere. On 25 November 1949, Ambedkar said that power is divided "by the Constitution itself", not by a central law. On this point the Centre and the states are "co-equal" [5].

• Landmark cases:
• S.R. Bommai v. Union of India (1994):
  • States are not "mere appendages" (add-on parts) of the Centre [5].
  • "Within the sphere allotted to them, States are supreme" [5].
  • Courts should not read the Constitution in a way that cuts down state powers [5].

• Mineral Area Development Authority v. SAIL (2024): a nine-judge bench gave these rulings.

  • It held that federalism is a basic feature of the Constitution [5].
  • Basic structure means the core features that Parliament cannot destroy, even by an amendment [5].
  • It called Indian federalism asymmetric because it leans towards a strong Centre. It added that this "has not necessarily resulted in weak State governments" [5].
  • It treated fiscal federalism as an important part of Indian federalism. Fiscal federalism means each tier has its own taxes and money to carry out its duties [5].

• In practice, India accommodated diversity by creating linguistic states (1956). It moved towards cooperative federalism, where the Centre and states work together, through NITI Aayog (2015).

Don't confuse with

• Unitary system: there is only one level of government, or the sub-units sit below the centre. The centre gives sub-units their powers and can take them back alone. Examples are the UK, France and Sri Lanka. In a federation, the constitution guarantees the units' powers.
• Dual polity: this describes the federal structure, where two governments with their own legislature and executive govern the same people (USA, India). Federalism is the wider principle, which also includes the umpire courts, separate revenue and mutual trust.
• Coming-together vs holding-together: India, Spain and Belgium are holding-together federations. The USA, Switzerland and Australia are coming-together federations. Belgium is a frequent trap.
• Asymmetric federalism vs a weak federation: in asymmetry, the Centre leans stronger or some units get special treatment. The Supreme Court says this has not made Indian states weak [5].

Prelims Hooks

• Article 1 says "India, that is Bharat, shall be a Union of States". The word "federation" does not appear anywhere in it [2].
• Ambedkar (4 Nov 1948) said "Union" was deliberate. The states never signed an agreement to join, so they have no right to secede [3].
• In S.R. Bommai (1994), the Court held that "within the sphere allotted to them, States are supreme". In MADA v. SAIL (2024), it held that federalism is a basic feature [5].
• Belgium turned federal in 1993, but Sri Lanka is still unitary. Belgium is a holding-together federation, not a coming-together one.
• 25 of 193 countries are federal, and they hold about 40% of the world's population (NCERT).
• Nepal's Constitution (20 Sept 2015) created 7 provinces, 77 districts and 753 local units [6]. The West Indies Federation lasted from 1958 to 1962.

Mains Points

• "An indestructible Union of destructible states."
• Under India's holding-together design, Parliament can redraw state boundaries and states cannot secede [2][3].
• Yet Bommai (1994) and MADA (2024) protect the states' own sphere as part of the basic structure [5].

• So India is best described as federal with a strong Centre, rather than simply "quasi-federal" or unitary.

• Trust matters as much as law.

• The USSR, Yugoslavia, the West Indies and Nigeria all had federal forms on paper. They failed because of over-centralisation, a weak centre, or ethnic and regional rivalry.

• India held together by accommodating diversity, for example through linguistic states (1956). This supports cooperative federalism, such as NITI Aayog (2015).

• Asymmetry and money: tools with limits.

• Unequal arrangements help keep diverse regions inside one country. But too much central tilt can feed alienation, as the USSR and Quebec warn.
• A federation is real only if each tier has its own revenue. The Supreme Court treats fiscal federalism as an important part of Indian federalism [5]. This links to the debates on GST and on sharing tax money with states.

Related concepts

• Features of federalism
• Unitary system
• Coming-together federation
• Holding-together federation
• West Indies Federation
• Nigerian federation

Read more

• What federalism is: features, forms and routes to federation