StudyPulse
StudyPulse.online
CoursesExam Information Hub
← Back to UPSC Civil Services Notes

Federalism and Centralisation

UPSC Civil Services• POLITY• Contemporary Constitutional Issues• Federalism and Centralisation
# Federalism and Centralisation — Summary ## Core Idea India: > Federal structure + strong Centre. ## Article 1 > "Union of States." ## Federal Features - Dual polity. - Written Constitution. - Constitutional supremacy. - Division of powers. - Independent judiciary. - Bicameralism. - Financial distribution. - State role in certain amendments. ## Centralising Features - Strong Union. - Residuary powers. - Article 3. - Emergency provisions. - Article 356. - Governor. - All India Services. - Integrated judiciary. - Single citizenship. ## Legislative Lists Union List → Parliament. State List → States, subject to exceptions. Concurrent List → Both. ## Residuary Powers Article 248: > Parliament. ## Union Entry into State Field Article 249 → National interest. Article 250 → National Emergency. Article 252 → State requests. Article 253 → International obligations. ## Article 3 Parliament can: > Alter State area, boundaries or names. State views: > Must be sought but are not binding. ## Article 356 > President's Rule. S.R. Bommai: > Judicial review. > Federalism is Basic Structure. ## Governor > Appointed by President. Major federal controversy: > Political neutrality. ## All India Services Article 312: > Nationally integrated services. ## Fiscal Federalism Finance Commission: > Article 280. ## GST 101st Amendment: > GST framework. Article 279A: > GST Council. Represents: > Cooperative federalism. ## Inter-State Council Article 263: > Centre-State and inter-State coordination. ## Sarkaria Commission > Strong Centre + cooperative federalism. ## Punchhi Commission > Consultation + restraint + clearer Centre-State relations. ## Cooperative Federalism > Union + States cooperate. ## Competitive Federalism > States compete in governance and development. ## Asymmetric Federalism Special arrangements: > Fifth/Sixth Schedules + Article 371 series. ## Major Centralising Forces > Residuary powers. > Article 3. > Article 249. > Article 250. > Article 252. > Article 253. > Article 356. > Governor. > All India Services. ## Major Federalising Forces > State List. > Rajya Sabha. > Finance Commission. > GST Council. > Inter-State Council. > State governments. > Independent judiciary. ## Centralisation — Benefits - Unity. - Security. - Uniformity. - Economic integration. - Crisis response. ## Centralisation — Risks - State autonomy erosion. - Fiscal dependence. - Political tensions. - Administrative overreach. ## Federalism — Benefits - Regional representation. - Local responsiveness. - Diversity. - Policy experimentation. ## Key Cases S.R. Bommai → Federalism + Article 356. Rameshwar Prasad → Bihar Assembly dissolution. Nabam Rebia → Governor's discretion. ## Top Prelims Traps ❌ India is a classic dual-sovereignty federation. ✅ Strong Centre within federal constitutional structure. ❌ Residuary powers belong to States. ✅ Parliament. ❌ State views under Article 3 are binding. ✅ Not binding. ❌ Article 249 permanently transfers State List power. ✅ It permits Parliament to legislate during specified circumstances. ❌ Article 356 is beyond judicial review. ✅ Subject to judicial review. ❌ GST gives only Union the power to tax. ✅ GST involves shared Union-State taxing powers. ❌ Finance Commission is a statutory body. ✅ Constitutional body under Article 280. ## Final Memory 1 → Union of States. 7th Schedule → Legislative distribution. 248 → Residuary Union power. 249 → National interest. 250 → Emergency. 252 → State requests. 253 → International obligations. 280 → Finance Commission. 279A → GST Council. 356 → President's Rule. Bommai → Federalism. ## UPSC Core Insight "Indian federalism deliberately combines State autonomy with a strong Union. The constitutional challenge is not to eliminate centralisation, but to ensure that national integration does not become unnecessary erosion of State autonomy."

Federalism and Centralisation

1. Meaning of Federalism

Federalism is a system in which:

Constitutional powers are divided between the Union and constituent States.

The defining feature is:

Constitutionally protected distribution of powers.

2. Indian Federalism

India is often described as:

A federal system with a strong Centre.

The Constitution combines:

Federal features

with:

Strong centralising features.

3. Constitutional Description

Article 1 describes India as:

"India, that is Bharat, shall be a Union of States."

4. "Union of States"

The expression:

Union of States

was deliberately preferred over:

Federation of States.

5. Why "Union"?

The term reflects that:

  • The Union is not the product of an agreement among States.
  • States do not have a constitutional right to secede.
  • The Union is constitutionally indestructible as a political entity.

6. Federal Features of India

Major federal features include:

  • Dual polity.
  • Constitutional supremacy.
  • Written Constitution.
  • Distribution of powers.
  • Supremacy of Constitution.
  • Independent judiciary.
  • Bicameralism at Union level.
  • Financial distribution.
  • Constitutional amendment procedure involving States in specified matters.

7. Unitary/Centralising Features

Major centralising features include:

  • Strong Union Government.
  • Single Constitution for most of the country.
  • Single citizenship.
  • Integrated judiciary.
  • All India Services.
  • Residuary powers with Union.
  • Emergency provisions.
  • Governor appointed by President.
  • Parliament's power to alter State boundaries.
  • Union control in specified circumstances.

8. Core Character

India therefore represents:

Federalism + Centralisation.

9. Federalism as Basic Structure

The Supreme Court has recognised:

Federalism

as part of the:

Basic Structure of the Constitution.

10. Kesavananda Bharati

1973

The Basic Structure Doctrine protects:

Essential constitutional features.

Federalism became firmly established as a:

Basic Structure principle

through subsequent constitutional jurisprudence.

11. S.R. Bommai

1994

S.R. Bommai is one of the most important federalism cases.

The Supreme Court recognised:

Federalism as a Basic Structure feature.

12. Bommai and Article 356

The Court held that:

President's Rule is subject to judicial review.

13. Centralisation Concern

Article 356 can become a tool of:

Central intervention in State government.

Bommai imposed:

Constitutional restraints on its use.

14. Federalism and Democracy

Federalism protects:

Regional political representation.

It allows:

Different political parties to govern different States within the constitutional framework.

15. "Holding Together" Federation

India is often described as:

A holding-together federation.

It was designed to:

Accommodate diversity within a single constitutional Union.

16. Legislative Distribution

The Seventh Schedule divides legislative subjects into:

  • Union List.
  • State List.
  • Concurrent List.

17. Union List

Parliament has:

Exclusive legislative power

over subjects in the:

Union List.

18. State List

States have:

Primary legislative authority

over subjects in the:

State List,

subject to specified constitutional exceptions.

19. Concurrent List

Both:

Parliament + State Legislatures

can legislate on:

Concurrent List subjects.

20. Repugnancy

Article 254 provides the basic framework for:

Conflict between Parliamentary and State laws

on Concurrent List matters.

21. Parliamentary Supremacy in Conflict

Where a valid Parliamentary law conflicts with a State law on a Concurrent List matter:

The Parliamentary law generally prevails,

subject to the constitutional framework.

22. Residuary Powers

In India:

Residuary legislative powers

belong to:

Parliament.

23. Article 248

Article 248 gives Parliament:

Exclusive power over residuary matters.

24. Comparison

India

Residuary powers → Union.

United States

Residual powers → States under the constitutional framework.

25. Centralising Effect

Union residuary powers:

Strengthen centralisation.

26. Parliament and State Boundaries

Parliament can:

Alter the area, boundaries or names of States

under:

Article 3.

27. State Legislature's View

The views of the concerned State Legislature:

Must be sought.

But:

They are not binding on Parliament.

28. Centralising Feature

Article 3 demonstrates:

Strong Union authority over territorial organisation.

29. Constitutional Amendment

Certain constitutional amendments require:

Ratification by at least half of the State Legislatures.

30. Federal Safeguard

This provides States with a role in amendments affecting:

  • Federal distribution of powers.
  • Representation of States.
  • Certain constitutional institutions.

31. Financial Federalism

Federalism is not only:

Legislative.

It is also:

Fiscal.

32. Tax Distribution

The Constitution divides:

Taxation powers

and:

Revenue-sharing mechanisms

between Union and States.

33. Finance Commission

Article 280 provides for:

Finance Commission.

34. Finance Commission

It recommends:

Distribution of certain tax revenues

between:

Union and States.

It also recommends:

Grants-in-aid principles.

35. Vertical Devolution

Vertical devolution refers to:

Distribution of resources between Union and States.

36. Horizontal Devolution

Horizontal devolution refers to:

Distribution among States.

37. Fiscal Centralisation

The Union has:

Greater taxation capacity

while States have:

Significant expenditure responsibilities.

This creates:

Vertical fiscal imbalance.

38. GST

The:

101st Constitutional Amendment, 2016

introduced:

Goods and Services Tax framework.

39. GST and Federalism

GST created:

Shared taxation powers

between:

Union + States.

40. GST Council

Article 279A provides for:

GST Council.

41. GST Council

The Council represents:

Cooperative federalism.

42. GST Council Composition

It includes representatives of:

  • Union Government.
  • State Governments.

43. GST and Centralisation Debate

GST has been viewed both as:

Cooperative federalism

and as:

A partial reduction in independent State taxation autonomy.

44. Cooperative Federalism

Cooperative federalism means:

Union and States work together in shared policy domains.

45. Competitive Federalism

Competitive federalism involves:

States competing to improve governance, investment, infrastructure and service delivery.

46. Centralisation

Centralisation means:

Greater concentration of decision-making, legislative or financial authority at the Union level.

47. Constitutional Sources of Centralisation

Centralisation is reinforced through:

  • Residuary powers.
  • Emergency powers.
  • Concurrent List.
  • Union control over certain State matters.
  • Governor system.
  • All India Services.
  • Financial powers.
  • Article 249.
  • Article 250.
  • Article 252.
  • Article 253.

48. Article 249

Parliament can legislate on a:

State List matter

if Rajya Sabha passes a resolution by:

Two-thirds of members present and voting

declaring it necessary in the:

National interest.

49. Article 250

During a:

National Emergency,

Parliament can legislate on:

State List matters.

50. Article 252

Parliament can legislate on a State List matter if:

Two or more State Legislatures request it.

Other States may later adopt the law.

51. Article 253

Parliament has power to legislate for:

Implementing treaties, agreements or international decisions.

52. Centralising Effect

These provisions allow:

Temporary or exceptional Union intervention

in areas normally belonging to States.

53. Article 356

Article 356 permits:

President's Rule

where constitutional machinery in a State has failed.

54. Article 355

Article 355 imposes a duty on the Union to:

Protect States and ensure constitutional government.

55. Article 355 vs 356

Article 355

Constitutional duty.

Article 356

Exceptional intervention mechanism.

56. Bommai Safeguards

President's Rule:

Cannot be used merely for political disagreement.

The Governor's report:

Is not conclusive.

Presidential satisfaction:

Is judicially reviewable.

57. Governor

The Governor is:

Appointed by the President.

58. Federal Controversy

Because the Governor is appointed by the Union, concerns may arise regarding:

Political neutrality.

59. Governor and State Government

The Governor normally acts:

On the aid and advice of the State Council of Ministers,

except in constitutionally recognised discretionary situations.

60. Nabam Rebia

2016

The Supreme Court emphasised:

Constitutional limits on gubernatorial discretion.

61. Rameshwar Prasad

2006

The Supreme Court invalidated the:

Dissolution of the Bihar Legislative Assembly

in circumstances where the Governor's report lacked sufficient constitutional basis.

62. Governor and Centralisation

The Governor therefore represents a constitutional link between:

Union and State.

63. Risk

The office can become controversial when:

Constitutional discretion is perceived as political intervention.

64. All India Services

All India Services include:

IAS, IPS and Indian Forest Service.

They are services:

Common to Union and States.

65. Article 312

Parliament can create:

All India Services

if Rajya Sabha passes a resolution by:

Two-thirds of members present and voting

declaring it necessary in the national interest.

66. Centralising Effect

All India Services create:

Administrative integration

between:

Union + States.

67. Defence of All India Services

They promote:

  • National administrative standards.
  • Administrative continuity.
  • Inter-State mobility.
  • Professional bureaucracy.

68. Concern

States may view excessive Union influence over:

Service administration

as:

A federal autonomy concern.

69. Integrated Judiciary

India has:

A single integrated judicial system.

70. Contrast

Some federations have:

Separate federal and State court systems.

71. Centralising Effect

An integrated judiciary:

Promotes uniform constitutional and legal standards.

72. Advantage

It strengthens:

National legal unity.

73. Single Citizenship

India provides:

Single citizenship.

74. Contrast

In some federal systems:

State citizenship

exists alongside:

Federal citizenship.

75. Centralising Feature

Single citizenship promotes:

National unity and mobility.

76. Single Constitution

India generally operates under:

One Constitution for Union and States.

Important Historical Qualification

The constitutional arrangement concerning:

Jammu and Kashmir

changed significantly after the:

Constitutional changes of 2019.

77. Parliament and State List

Parliament may enter the State List under:

  • Article 249.
  • Article 250.
  • Article 252.
  • Article 253.
  • Certain emergency/constitutional situations.

78. Centralisation Through Concurrent List

The Concurrent List creates:

Shared legislative competence.

Because Parliament enjoys:

Supremacy in case of many repugnancy situations,

it strengthens the Union's role.

79. Centrally Sponsored Schemes

Financial schemes involving:

Union funding + State implementation

can promote:

Policy coordination.

But can also generate:

State autonomy concerns.

80. Centrally Sponsored Schemes — Federal Debate

States may argue that:

Central conditions attached to funding constrain policy flexibility.

81. Centrally Funded Institutions

Union funding can increase:

Central influence

in sectors primarily implemented by:

State governments.

82. Planning and Federalism

Historically, centralised planning strengthened:

Union influence over State development priorities.

83. NITI Aayog

NITI Aayog promotes:

Cooperative + competitive federalism.

84. Governing Council

Its Governing Council includes:

Chief Ministers of States

and:

Union leadership.

85. Inter-State Council

Article 263 provides for:

Inter-State Council.

86. Purpose

It promotes:

  • Coordination.
  • Discussion of inter-State disputes.
  • Policy cooperation.
  • Centre-State dialogue.

87. Sarkaria Commission

Established to examine:

Centre-State relations.

88. Sarkaria Approach

It broadly favoured:

Strong Union

but:

Greater consultation and restraint in central intervention.

89. Important Principle

Sarkaria did not advocate:

Weakening the Union.

It advocated:

Cooperative and consensual federalism.

90. Punchhi Commission

The:

Punchhi Commission

further examined:

Centre-State relations.

91. Major Themes

Included:

  • Governor.
  • Article 356.
  • Fiscal relations.
  • Inter-State relations.
  • Emergency powers.
  • Cooperative federalism.

92. Centralisation vs Federalism

Centralisation can be justified by:

  • National security.
  • Economic integration.
  • Uniform national standards.
  • Inter-State coordination.
  • Crisis management.

93. Excessive Centralisation

Can lead to:

  • Weak State autonomy.
  • Political tensions.
  • Regional alienation.
  • Administrative dependence.
  • Fiscal dependence.

94. Federalism and Diversity

Federalism allows:

Regional diversity

to coexist with:

National unity.

95. Indian Model

Therefore:

Strong Centre does not mean absence of federalism.

96. "Quasi-Federal"

India has often been described as:

Quasi-federal.

But this term should be used carefully.

97. Why "Quasi-Federal"?

Because India combines:

Federal power distribution

with:

Significant centralising provisions.

98. Modern View

Indian federalism is better understood as:

Dynamic and cooperative rather than mechanically classified as purely federal or unitary.

99. Federalism and Basic Structure

The Constitution's federal character:

Cannot be destroyed through amendment.

100. Constitutional Amendments

Parliament's power is limited by:

Basic Structure Doctrine.

101. Federalism and Constitutional Amendment

An amendment cannot:

Destroy India's essential federal structure.

102. I.R. Coelho and Federalism

The broader Basic Structure doctrine limits:

Attempts to place constitutional arrangements beyond judicial scrutiny.

103. Judicial Role

The judiciary acts as:

Constitutional umpire

in disputes involving:

  • Union-State powers.
  • Legislative competence.
  • Article 356.
  • Federal constitutional provisions.

104. Supreme Court Original Jurisdiction

Article 131 provides:

Original jurisdiction of the Supreme Court

in specified disputes between:

  • Union and States.
  • States and States.

105. Article 131

It is an important:

Federal dispute-resolution mechanism.

106. Inter-State Water Disputes

The Constitution provides a separate framework under:

Article 262.

107. Federal Conflict

Water disputes demonstrate:

Tension between State interests and national coordination.

108. Centralising vs Federal Forces

Centralising Forces

  • Article 3.
  • Article 249.
  • Article 250.
  • Article 252.
  • Article 253.
  • Article 356.
  • Residuary powers.
  • Governor.
  • All India Services.
  • Financial dependence.

109. Federalising Forces

  • Seventh Schedule.
  • State List.
  • Rajya Sabha.
  • State governments.
  • Finance Commission.
  • GST Council.
  • Inter-State Council.
  • Independent judiciary.
  • Constitutional amendment ratification.

110. Rajya Sabha

Rajya Sabha represents:

States in Parliament.

111. Federal Role

It provides:

Institutional representation of State interests at Union level.

112. Money Bills

The limited Rajya Sabha role in Money Bills:

Strengthens Lok Sabha's dominance

and:

Can raise federal/bicameral concerns.

113. Money Bill Controversy

Broad use of the:

Money Bill route

can reduce:

Rajya Sabha's legislative scrutiny.

114. Federalism and Finance

The greater the:

State fiscal autonomy,

the stronger:

Fiscal federalism.

115. Vertical Fiscal Imbalance

States often undertake:

Major expenditure responsibilities

while the Union has:

Greater revenue-raising capacity.

116. Horizontal Imbalance

States differ in:

  • Population.
  • Income.
  • Tax capacity.
  • Geography.
  • Development.

117. Finance Commission

The Finance Commission attempts to:

Correct vertical and horizontal fiscal imbalances.

118. GST Council

The GST framework attempts:

Shared decision-making

rather than unilateral taxation.

119. Centralisation Through Conditional Grants

Union grants may contain:

Conditions.

This can increase:

Union policy influence.

120. Cooperative Federalism

Cooperative federalism requires:

Consultation rather than unilateral command.

121. Competitive Federalism

States compete for:

  • Investment.
  • Innovation.
  • Infrastructure.
  • Business environment.
  • Development outcomes.

122. Cooperative + Competitive

Modern Indian federalism combines:

Cooperation

with:

Competition.

123. Climate and Disaster Management

Certain national issues require:

Union-State coordination.

Examples:

  • Disaster management.
  • Public health.
  • Climate action.
  • Internal security.

124. Federalism and National Security

Security concerns can legitimately require:

Strong Union coordination.

But:

Constitutional federal boundaries remain relevant.

125. Centralisation During Crisis

Emergency provisions demonstrate:

Temporarily strengthened Union authority.

126. National Emergency

Article 352 can significantly:

Centralise governmental authority.

127. President's Rule

Article 356 can:

Shift State governance toward Union control.

128. Financial Emergency

Article 360 provides:

Financial Emergency.

It has never been proclaimed in India.

129. Centralisation and Internal Security

Union powers relating to:

Defence and national security

are primarily centralised.

130. Federalism and Local Government

73rd and 74th Amendments created:

Constitutional local-government institutions.

131. Third Level

Indian governance therefore includes:

Union + State + Local Government.

132. Centralisation Concern

Even after constitutional decentralisation:

Fiscal and administrative control may remain concentrated at Union/State levels.

133. Asymmetric Federalism

India contains:

Asymmetrical federal arrangements.

Different regions may have:

Different constitutional/statutory arrangements.

134. Fifth and Sixth Schedules

These provide:

Special governance arrangements

for specified tribal areas.

135. Article 371 Series

Several States have:

Special constitutional provisions

reflecting:

  • Regional identity.
  • Historical circumstances.
  • Administrative requirements.

136. Asymmetry and Unity

Asymmetric arrangements help:

Accommodate diversity

without:

Fragmenting the Union.

137. Federalism and Language

India's linguistic reorganisation demonstrates:

Federal adaptation to regional demands.

138. States Reorganisation

The Constitution allows:

Reorganisation of States

through Parliamentary legislation.

139. Federal Stability

Federalism can reduce:

Regional alienation

by allowing:

Regional political autonomy within national constitutional boundaries.

140. Centralisation — Benefits

  • National unity.
  • Uniform standards.
  • Crisis response.
  • Economic integration.
  • Infrastructure coordination.
  • National security.
  • Inter-State coordination.

141. Centralisation — Risks

  • State autonomy erosion.
  • Political conflict.
  • Fiscal dependence.
  • Administrative overreach.
  • Regional dissatisfaction.

142. Federalism — Benefits

  • Regional representation.
  • Policy experimentation.
  • Local responsiveness.
  • Diversity accommodation.
  • Democratic participation.

143. Federalism — Risks

  • Inter-State disputes.
  • Uneven development.
  • Coordination failures.
  • Policy fragmentation.

144. S.R. Bommai — Core Memory

Federalism is Basic Structure.

Article 356 is reviewable.

Floor test is preferred for majority.

Governor's report is not conclusive.

145. Sarkaria — Core Memory

Strong Centre + cooperative federalism.

146. Punchhi — Core Memory

Greater clarity, consultation and restraint in Centre-State relations.

147. Mains Analytical Insight

Do not write:

"India is unitary."

or:

"India is a classic federation."

Better:

"India has a federal constitutional structure with a deliberate centralising bias designed to preserve national unity while accommodating regional diversity."

148. Mains Answer Framework

Introduction

Indian federalism combines constitutionally distributed powers between the Union and States with substantial centralising provisions. The Constitution therefore creates a strong Union while preserving State autonomy, making Indian federalism a dynamic system of federalism with a centralising bias.

Body

Federal Features

  • Dual polity.
  • Seventh Schedule.
  • Independent judiciary.
  • Constitutional supremacy.
  • State governments.
  • Rajya Sabha.
  • Financial devolution.
  • State role in constitutional amendments.

Centralising Features

  • Residuary powers.
  • Article 3.
  • Articles 249, 250, 252, 253.
  • Article 356.
  • Governor.
  • All India Services.
  • Integrated judiciary.
  • Single citizenship.
  • Financial concentration.

Cooperative Federalism

  • GST Council.
  • Finance Commission.
  • Inter-State Council.
  • NITI Aayog.
  • Centrally sponsored schemes.

Landmark Cases

S.R. Bommai → Federalism + Article 356.

Rameshwar Prasad → Governor/Assembly dissolution.

Nabam Rebia → Gubernatorial discretion.

Commissions

  • Sarkaria Commission.
  • Punchhi Commission.

Challenges

  • Fiscal dependence.
  • Governor controversies.
  • Central agency concerns.
  • Article 356.
  • Legislative overlap.
  • Inter-State disputes.

Way Forward

  • Strengthen Inter-State Council.
  • Greater fiscal autonomy.
  • Consultative law-making.
  • Respect Governor neutrality.
  • Reduce unnecessary centralisation.
  • Strengthen cooperative institutions.

Conclusion

Indian federalism is best understood not as a choice between Centre and States but as a constitutional partnership. A strong Union is necessary for national unity, but durable federalism requires State autonomy, fiscal fairness, institutional consultation and constitutional restraint.