Dr.

RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY

2019-20

Final Draft
of

Indian Federalism
on

Impediments in achieving the Federal Dream

SUBMITTED BY: UNDER THE GUIDANCE OF:

PRAKHAR AGARWAL Ms. ANKITA YADAV
Enrolment Number : 160101107 Assistant Professor
Section ‘B’ Dr. RMLNLU
B.A.LL.B. (Hons.)
Semester - VIII
  
Dr. Ram Manohar Lohiya National Law University, Lucknow 

TABLE OF CONTENTS

Table of Contents 2
Acknowledgement 3
Certificate 4
India as a true Federation 5
Unitary features of the Constitution 6
Issues and challenges faced by Indian Federalism 7
Should India continue with Federal form of Government? 14
Critical Assessment of Federal System in India 15
Bibliography 16

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them.

I am highly indebted to Ms. Ankita Yadav for her guidance and constant supervision as well
as for providing necessary information regarding the project & also for her support in
completing the project.

I would like to express my gratitude towards my parents & members of ‘Dr. Ram Manohar
Lohia National Law University’ for their kind cooperation and encouragement which helped
me in completion of this project.

My thanks and appreciation also goes to my colleagues in developing the project and people
who have willingly helped me out with their abilities.

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Dr. Ram Manohar Lohiya National Law University, Lucknow 

CERTIFICATE

This is to certify that the project entitled, Impediments in achieving the Federal Dream
submitted by Prakhar Agarwal in complete fulfillment of the requirements for the project in
B.A.LL.B.(Hons.) at the Dr. Ram Manohar Lohiya National Law University is an
authentic work carried out by him under my supervision and guidance.

To the best of my knowledge, the matter embodied in the project is original and due care has
been taken by him for its completion.

Ms. Ankita Yadav

Assistant Professor (Dr. RMLNLU)

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INDIA AS A TRUE FEDERATION

Federalism is a system of government in which power is divided between a central authority

and constituent political units. Indian Federalism is different from the type of Federalism
practiced in the countries like the United States of America. In this project, we analyse in
detail the issues/challenges that are prevalent pertaining to Indian Federalism.

Indian model of federalism is called quasi-federal system as it contains major features of

both a federation and union. It can be better phrased as ‘federation sui generis’ or federation
of its own kind.

Article 1 of the Constitution of India states that ‘India that is Bharat shall be a union of
states’.

Indian federation was not a product of coming together of states to form the federal union of
India. It was rather a conversion of a unitary system into a federal system. It is a compromise
between two conflicting considerations such as autonomy enjoyed by states within the
constitutionally prescribed limit (State List) and the need for a strong centre in view of the
unity and integrity of the country (Union List).

Federal Features of the India Union

● Two governments i.e. Union Government and State governments

● Division of powers between the union and its constituents (Seventh Schedule of the
Constitution contains three lists such as the Union List, State List, and Concurrent List)
● Supremacy of the Constitution (Basic structure of the Constitution is made
indestructible by the Judiciary)
● Partial rigidity of the Constitution
● Independent Judiciary
● Bicameralism

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UNITARY FEATURES OF THE CONSTITUTION

A strong centre – The Union Government becomes all powerful in certain times like
emergencies. Article 200 of the Constitution of India demands that the States must comply
with the central laws. Other features include -

● Single Constitution
● Single citizenship
● Flexibility of Constitution
● Integrated judiciary
● Appointment of the Centre
● All India Services
● Emergency provisions

Importance of Federalism in India

Federalism is the most relevant factor of modern constitutionalism. The core objectives of
Indian federalism are unity in diversity, devolution in authority, and decentralization in
administration. Through federalism, the State pursues the goal of common welfare in the
midst of wide diversity in socio-cultural, economic spheres.

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ISSUES AND CHALLENGES FACED BY INDIAN FEDERALISM

1. Regionalism

● It is considered one of the significant challenges to federalism in India.

● Federalism best thrives as a democratic system when it mitigates the centralization of
power sharing between the centre and the states.
● The pluralist character of India gives rise to many factors including regionalism.
People from far northeast sometimes feel themselves at a formidable distance from
New Delhi and people in southern part of the country with bigger states feel neglected
having been within larger states.
● Regionalism or love for one’s area, despite India’s tradition of successful federal rule
over the years since independence, still raises its head in different parts of the country.
● The voice for the demand of more states has become more prominent in recent times,
especially after the formation of Telangana in 2014. Recent demands like four-fold
division of Uttar Pradesh and the creation of Gorkhaland from West Bengal are
instances of aggressive regionalism that pose a threat to the federal structure of India.
● The agitations for Gorkhaland, Bodoland, and KarbiAnglong have been revived. This
is apart from the new demands for a separate Vidarbha State in Maharashtra, and Harit
Pradesh and Poorvanchal in Uttar Pradesh. The more the number of states the more the
centre will be held hostage to state parties on matters of national importance.
● For instance, West Bengal threatened India’s Teesta river waters treaty with Bangladesh
because of its possible potential costs for West Bengal. Even growing regional powers
may affect effective foreign policy as the federal government may bow to the will of an
individual state. India had to vote in favour of UNHRC resolution for Sri Lanka in
2012 for a backlash from Tamil Nadu.

2. Division of Powers

● Unlike the USA and Australia, in India distribution of power is made under Three Lists
found in the Seventh Schedule of the Constitution. The powers of both the Central and

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State Governments are specifically enumerated in the Union list and State list
respectively while powers mentioned in the Concurrent list are enjoyed by the two sets
of governments. The residuary powers are vested in the Central government.
● The general principle underlying the division of powers is that all matters of national
importance, e.g. defence, foreign affairs, railways, currency are allotted to the Central
government while matters that are primarily of local or regional importance e.g.,
education, public health, police, local administration are assigned to regional
governments. Some matters which require the involvement of both the centre and states
like criminal law, forest, economic and social planning are assigned in the Concurrent
List. However, in the case of conflict over the legislation on any of the subjects
mentioned in the Concurrent List, the Centre supersedes the States.
● Article 200 (reservation of State Bills by the Governor for consideration of the
President), emergency provisions under Article 352, 356 and 360 and compulsory
compliance by the States with the executive power of the Centre under Article 256 and
257 amount to centralisation of power which has been the major concern among the
states. Centralisation is as such a threat to Indian federalism.

3. Absence of Fiscal Federalism

● The Indian Constitution, while expressly vesting the Centre with greater powers of
taxation, also provides for an institutional mechanism — the Finance Commission —
to determine the share of the States in the Central tax revenues by way of correcting
this imbalance.
● While deciding the devolution of taxes and the provisions of grants the Finance
Commission is required to address both the vertical imbalance between the Centre and
the States and the horizontal imbalance between states.
● At present, about 40 percent of Central revenues (tax and non-tax) is transferred to the
States, and this includes the grants they get from the Planning Commission and the
Central Ministries.
● Despite the enlargement of the shareable pool under the 80th Amendment which
includes all central taxes, the revenue accruals of the Centre and the States have not
seen any major changes.

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● Asymmetrical sharing of revenue and resource crunch at the periphery results in

uneven development across the country. The current Goods and Services Tax measure
is feared by many states to be against fiscal federalism in India. It has amalgamated the
various taxes into a single tax, procurement of which will then be divided among states
in a prescribed ratio. Many states in India demand for more financial autonomy in
India.

4. Unequal Representation of Units

● With a view to preventing the evil of predominant influence of larger units over smaller
units in a federation, most federations in the world have resorted to some constitutional
mechanism like an equal representation of units or states in the Second Chamber and
ratification of all amendments to the Constitution by states.
● In India, there is no such provision of an equal representation of states in the Rajya
Sabha, the Second Chamber and nor the states have any substantial say over the
amendments done to the Constitution from time to time.

5. Centralized Amendment Power

In a typical federation, the power of amendment to the Federal Constitution lies on a shared
basis between the federation and its units. In India, the power of constitutional amendment
lies with the Centre under Article 368 and other provisions. Although ratification of half of
the states is sought for in some limited areas, the states in the Indian Union have virtually no
power in this critical area of governance.

6. The Indestructible Union with Destructible Units

● Unlike successful federations, India Constitution doesn’t have the provision for the
secession of states from the Union of India. The Union has been made
indestructible with a view to protecting unity and integrity in a country like India.
● However, this typical Indian arrangement checks the growing demand for secession
from the Indian Union. The simmering demand for ‘Dravida Nadu’ comprising

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southern States and voice of separation in the eastern and western part of India pose a
great threat to the unity and sovereignty of India.
● Even if it appears anti-federal in content, it has proved a blessing in disguise for if
states would have given plenary power in deciding their geographical territory, there
would have been much chaos and impasses leading to serious law and order problems
in the country.
● All major federal democracies have in their Constitutions the provision that a state
cannot be divided or merged with another state without its prior consent. This is the
essence of federalism. However, the power of making, remaking states lies with the
Union Parliament.
● Our nation-builders were wise in drafting the Constitution to suit our requirements.
While prior consent of the state was not necessary under the Constitution, in practice
every state has been formed with prior consent, in most cases after a detailed, impartial
examination by an independent commission.
● However, in certain cases, states concerned are often being ignored by the Union
Government in a matter of division of their geographical territory. The recent formation
of the State of Telangana is a case in point.
● The resolute efforts of the Union government and its frequent declarations that Andhra
Pradesh would be divided irrespective of the legislature’s views pose a grave danger to
Indian federalism and unity.
● In the sensitive matters like redrawing the territory of a state in India the views of
concerned states should be given due weightage by the Centre. Any arbitrary decision
of the Centre without the consent of the State and a negotiated settlement in this regard
will effectively convert states into municipalities, and India into a unitary state. Neither
the Constitution-makers nor nation-builders intended such an outcome. India’s future
will be in danger if such an effort is made to make the nation effectively unitary at this
stage.

7. Office of the governor

● The office of the Governor for each state in India has been a sensitive issue as it
sometimes poses a threat to the federal character of Indian Union. Centre’s visible

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arbitrariness in misusing such constitutional office has been the subject of acrimonious
debates and divergent opinions in the country.
● The imposition of President’s Rule in Arunachal Pradesh in January 2016, while there
was an elected government in the State, created a bizarre incidence in the constitutional
history of India. The Supreme Court on July 13 termed Governor’s decision
unconstitutional ordered restoration of Congress government in Arunachal Pradesh.
● The overt support of the Central Government to the Governor in this critical matter
speak volume of the inbuilt weakness in India’s quasi-federal structure. The abuse of
the power under Article 356 by the Central Government is replete in the political
history of the country. This has resulted in cementing of centralized forces and
disaffection of constituent states towards the federal character of the Indian Polity.

8. Single Constitution and Citizenship

● Unlike the Constitution of the USA, the Constitution of India lays down the
constitution for the States as well and no state except Jammu and Kashmir has right to
decide its own constitution.
● The Indian Constitution, unlike the other federal constitutions of the world, introduces
single citizenship. It is based upon the idea of ‘one nation one citizenship’. All are
citizens of India irrespective of whichever state he/she lives in. The States don’t confer
any separate status as a citizen of the State.

9. Integrated Services

The integrated judiciary is a typical feature of Indian federation. Unlike typical federations, in
India Supreme Court is the apex court and all other courts are subordinate to it. The States
don’t have separate independent courts dealing specially with state matters. Also, the
machinery for election, accounts, and audit in India is integrated.

The All Indian Services and central services are also considered by many states and critics as
anti-federal. However, considering the nature and scope of administration in India, such

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services are essential as they impart all India character to governance. These services are
meant for the administration of the affairs of the Union Government.

10. Centralised Planning

Although economic and social planning is found in the Concurrent List of the Seventh
Schedule to the Constitution, the Union Government enjoys unbridled authority over national
and regional planning in India. Centralised planning, through the Planning Commission,
now NITI Aayog appointed by the Centre, considerable preponderance in legislative power
for the Union, the financial dependence of the states on the Centre’s mercy, the administrative
inferiority of the states make the states meek and weak. The States only fill the blank spaces
meant for in the text for planning. There is no special planning commission for the states in
India. It also adds to the misery of states and poses smooth functioning of federal spirit across
the country.

11. Language Conflicts

Diversity in languages in India sometimes causes a blow the federal spirit of the Constitution.
There are 22 languages constitutionally approved in India. Besides, hundreds of dialects are
spoken across the country. Trouble arises when the strongest unit of the federation attempts to
force a particular language on others. The tussle for official language in India is still a
burning issue. The southern states’ opposition to Hindi as the official language of India has
led to deep-seated language crisis in India.

12. Issue of Religion

India is a fine example of religious heterogeneity that sometimes gives rise to turmoil to
weaken the federation. But the religious process need not be always divisive. So long as there
is a reasonable tolerance on the part of the people and a genuine secular policy on the part of
the government, religion may not cause imbalances in a federation.

13. Economic Incompatibilities of the units

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Differences economic standards and relative economic and fiscal incompatibilities among the
constituent states also pose a threat to a federation. The forces of imbalances in the field are
demands for economic planning and development and for regional economic equality and
financial autonomy of states. Demand for a financial equality of a region creates problems in
a federation.

In India, some states are declared as poor and on the principle of equalization, are getting
grants-in-aid. But the dilemma in a federation emerges that if the principle of equalization is
adhered to, the national income and the total income growth will suffer. Again, if much
attention is paid to economic development, equalization of all units cannot be attained.

14. Physical Environment

Physical environment may also create hurdles for a federation by affecting communication. A
federation in which the lines of communication are long and difficult has to face the difficulty
of keeping in touch with all the units. It is easy for creating misunderstanding and conflict
and perhaps this was one of the important causes for the separation of the east wing from
Pakistan. Moreover, in the absence of good communication, the poorer units tend to develop
a complex of neglect and feel that they are receiving less than their fair share of resources for
development. In India, the North- Eastern states are having similar feelings and creating
problems for the federation.

15. External forces

External forces also create hindrances for a federation. The tension in the North Eastern
States in India is due to the interference of neighbouring countries. China’s claim on some
portion of the territory of Arunachal Pradesh on LAC threats the territorial integrity of India.
The Tamil issue in Sri Lanka creates disruptive forces in India. The alleged Pak hand in
Khalistan movement in the past also has a say in weakening the Indian federation.

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SHOULD INDIA CONTINUE WITH FEDERAL FORM OF

GOVERNMENT?

Federalism or federal form of government is the most suitable form for a vast and pluralistic
country like India. It tries to facilitate the socio-political cooperation between two sets of
identities through various structural mechanisms of ‘shared rule’.

But because of the above reasons, center- state relations and the state autonomy have become
the cardinal issues of the Indian federalism. The union government appointed Sarkaria
Commission in 1983 to examine and review the working of the Indian Federalism. But many
recommendations of this Commission are still to be implemented properly.

The Union government also took in a very easy approach some of the recommendations made
by this commission. This shows that even though our constitution is said to be federal, but
this overemphasis on the power of the federal government makes incapable of dealing
effectively with socioeconomic challenges and strengthening national unity. Hence, it is
appropriate to restructure Indian Federalism to make it more effective and promote center –
state relation.

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CRITICAL ASSESSMENT OF FEDERAL SYSTEM IN INDIA

The temperament of federalism in India during the coalition era has been changed
discernibly. Political deliberation seems to surpass the administrative and financial aspects of
the Union-state relations in India. The states having the governments of those parties that
form part of the central coalition give the impression that to have little conflict with the
Centre. Their complaint is submissive or subdued and the general awareness is that they get
particular contemplation and hold in matters of resources approved by the Centre. As a
consequence, it is raising that noise sometimes that the Centre is being partial against the
states having governments of the opposition parties. However, when one becomes aware of
the allocations of the Central plan fund released by the Planning Commission on an annual
basis, it appears that there is no such obtrusive discrimination. There is called for a more
widespread perception of even-handedness and fairness.

There has been a steady requirement of the National Development Council, that is a delegate
institution of the Centre and the states, should become more energetic and effective. It may be
brought to mind that the First Administrative Reforms Commission had suggested that the
NDC be supposed to meet twice a year. Even after more than forty years, this proposal has
not been put into practice. In a true federal spirit, the NDC, instead of becoming a mere
routinized rubber stamp, should re-emerge as a verbal and effectual gadget of Centre-state
discourse in matters of development. Here is an organization that has the potentiality of
making the Indian federal economic structure more powerful and therefore, this
instrumentality ought not to become a superfluous union.

A linked problem pertains to the role played by the state planning system. Most of the
socio-economic plans calculated at the state level are an upshot and replicas of the priority
structures and store management projects of the Central government, more particularly of the
Planning Commission. Hence, in order to make the planning process truly federal, “planning
from below” be supposed to become the established doctrine of the Indian expansion state of
affairs.

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BIBLIOGRAPHY

● Kenneth Wheare, Federal Government, 2nd Edition, Oxford University Press.

● Mahendra P. Singh & Rekha Saxena, Federalizing India in the Age of Globalization,
1st Edition, 2013.

● www.thehindu.com

● www.legalservicesindia.com

● www.clearias.com

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