Functions and Responsibilities of Union and States, issues and challenges pertaining to the federal structure

Federalism in India: Powers, Challenges, and Conflicts

India is the world’s largest democracy, and at the heart of its political and administrative structure lies federalism — a system of government in which powers are divided between a central authority and regional governments. The Indian Constitution envisions a quasi-federal structure, blending features of federal and unitary systems to accommodate the country’s diversity in language, culture, geography, and economy.

Division of Powers: Union, State, and Concurrent Lists

The Constitution of India provides a clear division of powers between the Union and States through three lists in the Seventh Schedule:

1. Union List – Subjects under the exclusive jurisdiction of the central government, such as defense, foreign affairs, currency, and atomic energy.
2. State List – Subjects where states have autonomy, including police, public health, agriculture, and local government.
3. Concurrent List – Subjects shared by both Union and State governments, such as education, forests, and marriage laws. In case of conflict, Union law prevails.

This distribution ensures that both the Union and the States have defined spheres of authority. Additionally, the residuary powers — those not mentioned in any list — lie with the Union, further emphasizing the centralizing tendency in critical matters.

Responsibilities of the Union and States

The Union government primarily focuses on national interests, including defense, foreign policy, fiscal management, and large-scale infrastructure. States, on the other hand, manage local governance, law and order, primary education, agriculture, and public health. In practice, these responsibilities often overlap, requiring coordination mechanisms such as the Inter-State Council and Finance Commission.

The Constitution also envisions cooperative federalism, encouraging both levels of government to work together on shared challenges like poverty alleviation, disaster management, and economic development. Schemes like the National Rural Employment Guarantee Act (NREGA) and centrally sponsored programs exemplify such collaboration.

Challenges in India’s Federal Structure

Despite its well-defined framework, Indian federalism faces multiple challenges:

1. Centralization vs Autonomy
   While the Constitution provides states with autonomy, the Union often exercises power through Article 356 (President’s Rule) or centrally sponsored schemes with strict conditions. This has sometimes been criticized as undermining true federalism.
2. Fiscal Imbalance
   States rely heavily on the Union for funds, primarily through tax devolution and grants. This dependency reduces their fiscal autonomy and limits their ability to make independent policy decisions. Disputes over GST compensation, loan waivers, and resource allocation have frequently strained centre-state relations.
3. Interstate Conflicts
   Conflicts over water sharing, border disputes, and resource allocation are common. Examples include disputes over the Cauvery River between Karnataka and Tamil Nadu, or the Krishna and Godavari River disputes among multiple states.
4. Regionalism and Identity Politics
   India’s diversity sometimes leads to regional assertions of identity, creating pressure on the federal system. Movements for statehood, linguistic recognition, and special status — such as in Telangana, Gorkhaland, or the demand for Article 370 autonomy — reflect this dynamic.
5. Implementation Gaps
   Often, policies meant for cooperative governance fail due to bureaucratic hurdles, lack of coordination, or political differences. The challenge lies in harmonizing national priorities with regional needs.

Conflicts Between Union and States

Conflicts between the Union and States have taken multiple forms:

• Legislative Conflicts: Disputes over the Concurrent List or interpretation of laws.
• Financial Conflicts: Issues like delayed GST compensation, centrally imposed taxes, or funding conditionalities for welfare schemes.
• Political Conflicts: Differences in party control at the Centre and state level can lead to confrontational politics, affecting policy execution.
• Administrative Conflicts: Conflicts arise in the implementation of central schemes in states that have different priorities.

Mechanisms to Resolve Conflicts

The Indian Constitution provides institutional mechanisms to manage these tensions:

1. Inter-State Council – Promotes coordination and discussion between Centre and states.
2. Finance Commission – Recommends distribution of revenue between Union and states to address fiscal imbalance.
3. Judiciary – The Supreme Court and High Courts resolve disputes arising out of division of powers or constitutional interpretation.

These mechanisms, however, depend on mutual trust and cooperation, which political rivalries often undermine.

The Way Forward

Indian federalism is a living experiment that continues to evolve. Strengthening cooperative federalism, ensuring fiscal autonomy, and respecting states’ autonomy while maintaining national unity are crucial for stability. In the 21st century, challenges like economic inequality, environmental crises, and social disparities require both Union and State governments to work in partnership rather than in conflict.

The success of Indian federalism lies in balance: allowing diversity while promoting integration, providing autonomy while ensuring accountability, and maintaining unity while accommodating regional aspirations. It is not just a constitutional arrangement but a continuous negotiation between powers and responsibilities, reflecting the democratic ethos of India.

Note: Topic important for UPSC IAS Exam, HPAS, State PCS