NCERT Textbook: Federalism | Indian Polity for UPSC CSE PDF Download

 Page 1


Federalism
13
Chapter 2
Federalism
Overview
In the previous chapter, we noted that vertical division of power among 
different levels of government is one of the major forms of power-sharing 
in modern democracies. In this chapter, we focus on this form of power-
sharing. It is most commonly referred to as federalism. We begin by 
describing federalism in general terms. The rest of the chapter tries to 
understand the theory and practice of federalism in India. A discussion 
of the federal constitutional provisions is followed by an analysis of the 
policies and politics that has strengthened federalism in practice. Towards 
the end of the chapter, we turn to the local government, a new and third 
tier of Indian federalism. 
Chapter 2.indd   13 08-04-2022   12:30:48
2024-25
Page 2


Federalism
13
Chapter 2
Federalism
Overview
In the previous chapter, we noted that vertical division of power among 
different levels of government is one of the major forms of power-sharing 
in modern democracies. In this chapter, we focus on this form of power-
sharing. It is most commonly referred to as federalism. We begin by 
describing federalism in general terms. The rest of the chapter tries to 
understand the theory and practice of federalism in India. A discussion 
of the federal constitutional provisions is followed by an analysis of the 
policies and politics that has strengthened federalism in practice. Towards 
the end of the chapter, we turn to the local government, a new and third 
tier of Indian federalism. 
Chapter 2.indd   13 08-04-2022   12:30:48
2024-25
14
Democratic Politics
What is federalism? 
I am confused. 
What do we 
call the Indian 
government? Is it 
Union, Federal or 
Central?
Though only 25 of the world’s 193 countries have federal political systems, their citizens make up 40 per cent of the 
world’s population. Most of the large countries of the world are federations. Can you notice an exception to this rule in 
this map?
Source: Montreal and Kingston, Handbook of Federal Countries: 2002, McGill-Queen’s University Press, 2002.
Federal
political systems
Canada
United States
of America
Mexico
PaCiFiC OCean
Micronesia
Argentina
Venezuela
atlanti C
OCean
Brazil
St. Kitts
and Nevis
Belgium
Switzerland
Spain
Nigeria
Ethiopia
Comoros
Bosnia and
Herzegovina
Austria
Pakistan
Russia
India
Malaysia
Australia
indian
OCean
South Africa
PaCiFiC OCean
United
Arab
Emirates
Germany
Let us get back to the contrast 
between Belgium and Sri Lanka 
that we saw in the last chapter. You 
would recall that one of the key 
changes made in the Constitution 
of Belgium was to reduce the 
power of the Central Government 
and to give these powers to the 
regional governments. Regional 
governments existed in Belgium 
even earlier. They had their roles 
and powers. But all these powers 
were given to these governments 
and could be withdrawn by the 
Central Government. The change 
that took place in 1993 was that the 
regional governments were given 
constitutional powers that were 
no longer dependent on the central 
government. Thus, Belgium shifted 
from a unitary to a federal form of 
government. Sri Lanka continues 
to be, for all practical purposes, a 
unitary system where the national 
government has all the powers. 
Tamil leaders want Sri Lanka to 
become a federal system.
Federalism is a system of 
government in which the power is 
divided between a central authority 
and various constituent units of the 
country. Usually, a federation has 
two levels of government. One is the 
government for the entire country 
that is usually responsible for a 
few subjects of common national 
interest. The  others are governments 
at the level of provinces or states 
that look after much of the day-
to-day administering of their state. 
Both these levels of governments 
enjoy their power independent of 
the other. 
Chapter 2.indd   14 08-04-2022   12:30:50
2024-25
Page 3


Federalism
13
Chapter 2
Federalism
Overview
In the previous chapter, we noted that vertical division of power among 
different levels of government is one of the major forms of power-sharing 
in modern democracies. In this chapter, we focus on this form of power-
sharing. It is most commonly referred to as federalism. We begin by 
describing federalism in general terms. The rest of the chapter tries to 
understand the theory and practice of federalism in India. A discussion 
of the federal constitutional provisions is followed by an analysis of the 
policies and politics that has strengthened federalism in practice. Towards 
the end of the chapter, we turn to the local government, a new and third 
tier of Indian federalism. 
Chapter 2.indd   13 08-04-2022   12:30:48
2024-25
14
Democratic Politics
What is federalism? 
I am confused. 
What do we 
call the Indian 
government? Is it 
Union, Federal or 
Central?
Though only 25 of the world’s 193 countries have federal political systems, their citizens make up 40 per cent of the 
world’s population. Most of the large countries of the world are federations. Can you notice an exception to this rule in 
this map?
Source: Montreal and Kingston, Handbook of Federal Countries: 2002, McGill-Queen’s University Press, 2002.
Federal
political systems
Canada
United States
of America
Mexico
PaCiFiC OCean
Micronesia
Argentina
Venezuela
atlanti C
OCean
Brazil
St. Kitts
and Nevis
Belgium
Switzerland
Spain
Nigeria
Ethiopia
Comoros
Bosnia and
Herzegovina
Austria
Pakistan
Russia
India
Malaysia
Australia
indian
OCean
South Africa
PaCiFiC OCean
United
Arab
Emirates
Germany
Let us get back to the contrast 
between Belgium and Sri Lanka 
that we saw in the last chapter. You 
would recall that one of the key 
changes made in the Constitution 
of Belgium was to reduce the 
power of the Central Government 
and to give these powers to the 
regional governments. Regional 
governments existed in Belgium 
even earlier. They had their roles 
and powers. But all these powers 
were given to these governments 
and could be withdrawn by the 
Central Government. The change 
that took place in 1993 was that the 
regional governments were given 
constitutional powers that were 
no longer dependent on the central 
government. Thus, Belgium shifted 
from a unitary to a federal form of 
government. Sri Lanka continues 
to be, for all practical purposes, a 
unitary system where the national 
government has all the powers. 
Tamil leaders want Sri Lanka to 
become a federal system.
Federalism is a system of 
government in which the power is 
divided between a central authority 
and various constituent units of the 
country. Usually, a federation has 
two levels of government. One is the 
government for the entire country 
that is usually responsible for a 
few subjects of common national 
interest. The  others are governments 
at the level of provinces or states 
that look after much of the day-
to-day administering of their state. 
Both these levels of governments 
enjoy their power independent of 
the other. 
Chapter 2.indd   14 08-04-2022   12:30:50
2024-25
Federalism
15
7 The federal system thus has dual 
objectives: to safeguard and promote 
unity of the country, while at the 
same time accommodate regional 
diversity. Therefore, two aspects 
are crucial for the institutions and 
practice of federalism. Governments 
at different levels should agree to 
some rules of power-sharing. They 
should also trust that each would 
abide by its part of the agreement. 
An ideal federal system has both 
aspects : mutual trust and agreement 
to live together. 
The exact balance of power 
between the central and the state 
government varies from one 
federation to another.  This balance 
depends mainly on the historical 
context in which the federation was 
formed. There are two kinds of routes 
through which federations have been 
formed. The first route involves 
independent States coming together 
on their own to form a bigger unit, 
so that by pooling sovereignty and 
retaining identity, they can increase 
their security. This type of ‘coming 
together’ federations include the 
USA, Switzerland and Australia. In 
this first category of federations, all 
the constituent States usually have 
equal power and are strong vis-à-vis 
the federal government.
The second route is where a 
large country decides to divide its 
power between the constituent 
States and the national government. 
India, Spain and Belgium are 
examples of this kind of ‘holding 
together’ federations. In this second 
category, the Central Government 
tends to be more powerful vis-à-
vis the States. Very often different 
constituent units of the federation 
have unequal powers. Some units 
are granted special powers.
If federalism 
works only in 
big countries, 
why did Belgium 
adopt it?
Jurisdiction: The 
area over which 
someone has legal 
authority. The area 
may be defined in 
terms of geographical 
boundaries or in terms 
of certain kinds of 
subjects.
In this sense, federations are 
contrasted with unitary governments. 
Under the unitary system, either 
there is only one level of government 
or the sub-units are subordinate to 
the central government. The central 
government can pass on orders to the 
provincial or the local government. 
But in a federal system, the central 
government cannot order the state 
government to do something. State 
government has powers of its own 
for which it is not answerable 
to the central government. Both 
these governments are separately 
answerable to the people.
Let us look at some of the key 
features of federalism : 
1 There are two or more levels (or 
tiers) of government.
2 Different tiers of government 
govern the same citizens, but 
each tier has its own jurisdiction 
in specific matters of legislation, 
taxation and administration. 
3 The jurisdictions of the respective 
levels or tiers of government are 
specified in the constitution. So the 
existence and authority of each tier 
of government is constitutionally 
guaranteed. 
4 The fundamental provisions 
of the constitution cannot be 
unilaterally changed by one level of 
government. Such changes require 
the consent of both the levels of 
government.
5 Courts have the power to 
interpret the constitution and 
the powers of different levels of 
government. The highest court 
acts as an umpire if disputes arise  
between different levels of 
government in the exercise of their 
respective powers.
6 Sources of revenue for each level 
of government are clearly specified 
to ensure its financial autonomy. 
Chapter 2.indd   15 08-04-2022   12:30:50
2024-25
Page 4


Federalism
13
Chapter 2
Federalism
Overview
In the previous chapter, we noted that vertical division of power among 
different levels of government is one of the major forms of power-sharing 
in modern democracies. In this chapter, we focus on this form of power-
sharing. It is most commonly referred to as federalism. We begin by 
describing federalism in general terms. The rest of the chapter tries to 
understand the theory and practice of federalism in India. A discussion 
of the federal constitutional provisions is followed by an analysis of the 
policies and politics that has strengthened federalism in practice. Towards 
the end of the chapter, we turn to the local government, a new and third 
tier of Indian federalism. 
Chapter 2.indd   13 08-04-2022   12:30:48
2024-25
14
Democratic Politics
What is federalism? 
I am confused. 
What do we 
call the Indian 
government? Is it 
Union, Federal or 
Central?
Though only 25 of the world’s 193 countries have federal political systems, their citizens make up 40 per cent of the 
world’s population. Most of the large countries of the world are federations. Can you notice an exception to this rule in 
this map?
Source: Montreal and Kingston, Handbook of Federal Countries: 2002, McGill-Queen’s University Press, 2002.
Federal
political systems
Canada
United States
of America
Mexico
PaCiFiC OCean
Micronesia
Argentina
Venezuela
atlanti C
OCean
Brazil
St. Kitts
and Nevis
Belgium
Switzerland
Spain
Nigeria
Ethiopia
Comoros
Bosnia and
Herzegovina
Austria
Pakistan
Russia
India
Malaysia
Australia
indian
OCean
South Africa
PaCiFiC OCean
United
Arab
Emirates
Germany
Let us get back to the contrast 
between Belgium and Sri Lanka 
that we saw in the last chapter. You 
would recall that one of the key 
changes made in the Constitution 
of Belgium was to reduce the 
power of the Central Government 
and to give these powers to the 
regional governments. Regional 
governments existed in Belgium 
even earlier. They had their roles 
and powers. But all these powers 
were given to these governments 
and could be withdrawn by the 
Central Government. The change 
that took place in 1993 was that the 
regional governments were given 
constitutional powers that were 
no longer dependent on the central 
government. Thus, Belgium shifted 
from a unitary to a federal form of 
government. Sri Lanka continues 
to be, for all practical purposes, a 
unitary system where the national 
government has all the powers. 
Tamil leaders want Sri Lanka to 
become a federal system.
Federalism is a system of 
government in which the power is 
divided between a central authority 
and various constituent units of the 
country. Usually, a federation has 
two levels of government. One is the 
government for the entire country 
that is usually responsible for a 
few subjects of common national 
interest. The  others are governments 
at the level of provinces or states 
that look after much of the day-
to-day administering of their state. 
Both these levels of governments 
enjoy their power independent of 
the other. 
Chapter 2.indd   14 08-04-2022   12:30:50
2024-25
Federalism
15
7 The federal system thus has dual 
objectives: to safeguard and promote 
unity of the country, while at the 
same time accommodate regional 
diversity. Therefore, two aspects 
are crucial for the institutions and 
practice of federalism. Governments 
at different levels should agree to 
some rules of power-sharing. They 
should also trust that each would 
abide by its part of the agreement. 
An ideal federal system has both 
aspects : mutual trust and agreement 
to live together. 
The exact balance of power 
between the central and the state 
government varies from one 
federation to another.  This balance 
depends mainly on the historical 
context in which the federation was 
formed. There are two kinds of routes 
through which federations have been 
formed. The first route involves 
independent States coming together 
on their own to form a bigger unit, 
so that by pooling sovereignty and 
retaining identity, they can increase 
their security. This type of ‘coming 
together’ federations include the 
USA, Switzerland and Australia. In 
this first category of federations, all 
the constituent States usually have 
equal power and are strong vis-à-vis 
the federal government.
The second route is where a 
large country decides to divide its 
power between the constituent 
States and the national government. 
India, Spain and Belgium are 
examples of this kind of ‘holding 
together’ federations. In this second 
category, the Central Government 
tends to be more powerful vis-à-
vis the States. Very often different 
constituent units of the federation 
have unequal powers. Some units 
are granted special powers.
If federalism 
works only in 
big countries, 
why did Belgium 
adopt it?
Jurisdiction: The 
area over which 
someone has legal 
authority. The area 
may be defined in 
terms of geographical 
boundaries or in terms 
of certain kinds of 
subjects.
In this sense, federations are 
contrasted with unitary governments. 
Under the unitary system, either 
there is only one level of government 
or the sub-units are subordinate to 
the central government. The central 
government can pass on orders to the 
provincial or the local government. 
But in a federal system, the central 
government cannot order the state 
government to do something. State 
government has powers of its own 
for which it is not answerable 
to the central government. Both 
these governments are separately 
answerable to the people.
Let us look at some of the key 
features of federalism : 
1 There are two or more levels (or 
tiers) of government.
2 Different tiers of government 
govern the same citizens, but 
each tier has its own jurisdiction 
in specific matters of legislation, 
taxation and administration. 
3 The jurisdictions of the respective 
levels or tiers of government are 
specified in the constitution. So the 
existence and authority of each tier 
of government is constitutionally 
guaranteed. 
4 The fundamental provisions 
of the constitution cannot be 
unilaterally changed by one level of 
government. Such changes require 
the consent of both the levels of 
government.
5 Courts have the power to 
interpret the constitution and 
the powers of different levels of 
government. The highest court 
acts as an umpire if disputes arise  
between different levels of 
government in the exercise of their 
respective powers.
6 Sources of revenue for each level 
of government are clearly specified 
to ensure its financial autonomy. 
Chapter 2.indd   15 08-04-2022   12:30:50
2024-25
16
Democratic Politics
Isn’t that 
strange? Did 
our constitution 
makers not 
know about 
federalism? Or 
did they wish 
to avoid talking 
about it? 
Some Nepalese citizens were discussing the proposals on the 
adoption of federalism in their new constitution. This is what some of 
them said:
Khag Raj: I don’t like federalism. It would lead to reservation of seats for 
different caste groups as in India. 
Sarita:  Ours in not a very big country. We don’t need federalism.
Babu Lal: I am hopeful that the Terai areas will get more autonomy if they get 
their own state government.
Ram Ganesh: I like federalism because it will mean that powers that were earlier 
enjoyed by the king will now be exercised by our elected representatives.
If you were participating in this conversation, what would be your response to each 
of these? Which of these reflect a wrong understanding of what feder alism is?
What makes India a federal country?
We have earlier seen how small 
countries like Belgium and Sri Lanka 
face so many problems of managing 
diversity. What about a vast country 
like India, with so many languages, 
religions and regions? What are 
the power sharing arrangements in  
our country?
Let us begin with the Constitution. 
India had emerged as an independent 
nation after a painful and bloody 
partition. Soon after Independence, 
several princely states became a part 
of the country. The Constitution 
declared India as a Union of States. 
Although it did not use the word 
federation, the Indian Union is based 
on the principles of federalism. 
Let us go back to the seven 
features of federalism mentioned 
above. We can see that all these 
features apply to the provisions 
of the Indian Constitution. The 
Constitution originally provided 
for a two-tier system of government, 
the Union Government or what 
we call the Central Government, 
representing the Union of India 
and the State governments. Later, 
a third tier of federalism was added 
in the form of Panchayats and 
Municipalities. As in any federation, 
these different tiers enjoy separate 
jurisdiction.  The Constitution 
clearly provided a three-fold 
distribution of legislative powers 
between the Union Government 
and the State Governments. Thus, 
it contains three lists: 
? Union List includes subjects 
of national importance, such as 
defence of the country, foreign 
affairs, banking, communications 
and currency. They are included 
in this list because we need a 
uniform policy on these matters 
throughout the country. The Union 
Government alone can make laws 
relating to the subjects mentioned 
in the Union List.
? State List contains subjects 
of State and local importance, 
such as police, trade, commerce, 
agriculture and irrigation. The State 
Governments alone can make laws 
relating to the subjects mentioned 
in the State List.
? Concurrent List includes 
subjects of common interest to 
both the Union Government as 
well as the State Governments, such 
What makes India a federal country?
Chapter 2.indd   16 08-04-2022   12:30:52
2024-25
Page 5


Federalism
13
Chapter 2
Federalism
Overview
In the previous chapter, we noted that vertical division of power among 
different levels of government is one of the major forms of power-sharing 
in modern democracies. In this chapter, we focus on this form of power-
sharing. It is most commonly referred to as federalism. We begin by 
describing federalism in general terms. The rest of the chapter tries to 
understand the theory and practice of federalism in India. A discussion 
of the federal constitutional provisions is followed by an analysis of the 
policies and politics that has strengthened federalism in practice. Towards 
the end of the chapter, we turn to the local government, a new and third 
tier of Indian federalism. 
Chapter 2.indd   13 08-04-2022   12:30:48
2024-25
14
Democratic Politics
What is federalism? 
I am confused. 
What do we 
call the Indian 
government? Is it 
Union, Federal or 
Central?
Though only 25 of the world’s 193 countries have federal political systems, their citizens make up 40 per cent of the 
world’s population. Most of the large countries of the world are federations. Can you notice an exception to this rule in 
this map?
Source: Montreal and Kingston, Handbook of Federal Countries: 2002, McGill-Queen’s University Press, 2002.
Federal
political systems
Canada
United States
of America
Mexico
PaCiFiC OCean
Micronesia
Argentina
Venezuela
atlanti C
OCean
Brazil
St. Kitts
and Nevis
Belgium
Switzerland
Spain
Nigeria
Ethiopia
Comoros
Bosnia and
Herzegovina
Austria
Pakistan
Russia
India
Malaysia
Australia
indian
OCean
South Africa
PaCiFiC OCean
United
Arab
Emirates
Germany
Let us get back to the contrast 
between Belgium and Sri Lanka 
that we saw in the last chapter. You 
would recall that one of the key 
changes made in the Constitution 
of Belgium was to reduce the 
power of the Central Government 
and to give these powers to the 
regional governments. Regional 
governments existed in Belgium 
even earlier. They had their roles 
and powers. But all these powers 
were given to these governments 
and could be withdrawn by the 
Central Government. The change 
that took place in 1993 was that the 
regional governments were given 
constitutional powers that were 
no longer dependent on the central 
government. Thus, Belgium shifted 
from a unitary to a federal form of 
government. Sri Lanka continues 
to be, for all practical purposes, a 
unitary system where the national 
government has all the powers. 
Tamil leaders want Sri Lanka to 
become a federal system.
Federalism is a system of 
government in which the power is 
divided between a central authority 
and various constituent units of the 
country. Usually, a federation has 
two levels of government. One is the 
government for the entire country 
that is usually responsible for a 
few subjects of common national 
interest. The  others are governments 
at the level of provinces or states 
that look after much of the day-
to-day administering of their state. 
Both these levels of governments 
enjoy their power independent of 
the other. 
Chapter 2.indd   14 08-04-2022   12:30:50
2024-25
Federalism
15
7 The federal system thus has dual 
objectives: to safeguard and promote 
unity of the country, while at the 
same time accommodate regional 
diversity. Therefore, two aspects 
are crucial for the institutions and 
practice of federalism. Governments 
at different levels should agree to 
some rules of power-sharing. They 
should also trust that each would 
abide by its part of the agreement. 
An ideal federal system has both 
aspects : mutual trust and agreement 
to live together. 
The exact balance of power 
between the central and the state 
government varies from one 
federation to another.  This balance 
depends mainly on the historical 
context in which the federation was 
formed. There are two kinds of routes 
through which federations have been 
formed. The first route involves 
independent States coming together 
on their own to form a bigger unit, 
so that by pooling sovereignty and 
retaining identity, they can increase 
their security. This type of ‘coming 
together’ federations include the 
USA, Switzerland and Australia. In 
this first category of federations, all 
the constituent States usually have 
equal power and are strong vis-à-vis 
the federal government.
The second route is where a 
large country decides to divide its 
power between the constituent 
States and the national government. 
India, Spain and Belgium are 
examples of this kind of ‘holding 
together’ federations. In this second 
category, the Central Government 
tends to be more powerful vis-à-
vis the States. Very often different 
constituent units of the federation 
have unequal powers. Some units 
are granted special powers.
If federalism 
works only in 
big countries, 
why did Belgium 
adopt it?
Jurisdiction: The 
area over which 
someone has legal 
authority. The area 
may be defined in 
terms of geographical 
boundaries or in terms 
of certain kinds of 
subjects.
In this sense, federations are 
contrasted with unitary governments. 
Under the unitary system, either 
there is only one level of government 
or the sub-units are subordinate to 
the central government. The central 
government can pass on orders to the 
provincial or the local government. 
But in a federal system, the central 
government cannot order the state 
government to do something. State 
government has powers of its own 
for which it is not answerable 
to the central government. Both 
these governments are separately 
answerable to the people.
Let us look at some of the key 
features of federalism : 
1 There are two or more levels (or 
tiers) of government.
2 Different tiers of government 
govern the same citizens, but 
each tier has its own jurisdiction 
in specific matters of legislation, 
taxation and administration. 
3 The jurisdictions of the respective 
levels or tiers of government are 
specified in the constitution. So the 
existence and authority of each tier 
of government is constitutionally 
guaranteed. 
4 The fundamental provisions 
of the constitution cannot be 
unilaterally changed by one level of 
government. Such changes require 
the consent of both the levels of 
government.
5 Courts have the power to 
interpret the constitution and 
the powers of different levels of 
government. The highest court 
acts as an umpire if disputes arise  
between different levels of 
government in the exercise of their 
respective powers.
6 Sources of revenue for each level 
of government are clearly specified 
to ensure its financial autonomy. 
Chapter 2.indd   15 08-04-2022   12:30:50
2024-25
16
Democratic Politics
Isn’t that 
strange? Did 
our constitution 
makers not 
know about 
federalism? Or 
did they wish 
to avoid talking 
about it? 
Some Nepalese citizens were discussing the proposals on the 
adoption of federalism in their new constitution. This is what some of 
them said:
Khag Raj: I don’t like federalism. It would lead to reservation of seats for 
different caste groups as in India. 
Sarita:  Ours in not a very big country. We don’t need federalism.
Babu Lal: I am hopeful that the Terai areas will get more autonomy if they get 
their own state government.
Ram Ganesh: I like federalism because it will mean that powers that were earlier 
enjoyed by the king will now be exercised by our elected representatives.
If you were participating in this conversation, what would be your response to each 
of these? Which of these reflect a wrong understanding of what feder alism is?
What makes India a federal country?
We have earlier seen how small 
countries like Belgium and Sri Lanka 
face so many problems of managing 
diversity. What about a vast country 
like India, with so many languages, 
religions and regions? What are 
the power sharing arrangements in  
our country?
Let us begin with the Constitution. 
India had emerged as an independent 
nation after a painful and bloody 
partition. Soon after Independence, 
several princely states became a part 
of the country. The Constitution 
declared India as a Union of States. 
Although it did not use the word 
federation, the Indian Union is based 
on the principles of federalism. 
Let us go back to the seven 
features of federalism mentioned 
above. We can see that all these 
features apply to the provisions 
of the Indian Constitution. The 
Constitution originally provided 
for a two-tier system of government, 
the Union Government or what 
we call the Central Government, 
representing the Union of India 
and the State governments. Later, 
a third tier of federalism was added 
in the form of Panchayats and 
Municipalities. As in any federation, 
these different tiers enjoy separate 
jurisdiction.  The Constitution 
clearly provided a three-fold 
distribution of legislative powers 
between the Union Government 
and the State Governments. Thus, 
it contains three lists: 
? Union List includes subjects 
of national importance, such as 
defence of the country, foreign 
affairs, banking, communications 
and currency. They are included 
in this list because we need a 
uniform policy on these matters 
throughout the country. The Union 
Government alone can make laws 
relating to the subjects mentioned 
in the Union List.
? State List contains subjects 
of State and local importance, 
such as police, trade, commerce, 
agriculture and irrigation. The State 
Governments alone can make laws 
relating to the subjects mentioned 
in the State List.
? Concurrent List includes 
subjects of common interest to 
both the Union Government as 
well as the State Governments, such 
What makes India a federal country?
Chapter 2.indd   16 08-04-2022   12:30:52
2024-25
Federalism
17
as education, forest, trade unions, 
marriage, adoption and succession. 
Both the Union as well as the State 
Governments can make laws on 
the subjects mentioned in this list. 
If their laws conflict with each 
other, the law made by the Union 
Government will prevail. 
What about subjects that do not 
fall in any of the three lists? Or subjects 
like computer software that came up 
after the constitution was made?  
According to our constitution, the 
Union Government has the power to 
legislate on these ‘residuary’ subjects. 
We noted above that most 
federations that are formed by 
‘holding together’ do not give equal 
power to its constituent units. Thus, 
all States in the Indian Union do not 
have identical powers. Some States 
enjoy a special status. States such 
as Assam, Nagaland, Arunachal 
Pradesh and Mizoram enjoy special 
powers under certain provisions of 
the Constitution of India (Article 
371) due to their peculiar social 
and historical circumstances. These 
special powers are especially enjoyed 
in relation to the protection of 
land rights of indigenous peoples, 
their culture and also preferential 
employment in government services.  
Indians who are not permanent 
residents of this State cannot buy 
land or house here. Similar special 
provisions exist for some other States 
of India as well.
Listen to one national and one regional news bulletin broadcast by All India 
Radio daily for one week. Make a list of news items related to government 
policies or decisions by classifying these into the following categories:
? News items that relate only to the Central Government,
? News items that relate only to your or any other State Government,
? News items about the relationship between the Central and State Governments.
There are some units of the 
Indian Union which enjoy very little 
power. These are areas which are 
too small to become an independent 
State but which could not be merged 
with any of the existing States. 
These areas, like Chandigarh, or 
Lakshadweep or the capital city of 
Delhi, are called Union Territories. 
These territories do not have the 
powers of a State. The Central 
Government has special powers in 
running these areas.
This sharing of power between 
the Union Government and the State 
Governments is basic to the structure 
of the Constitution. It is not easy to 
make changes to this power sharing 
arrangement. The Parliament cannot 
on its own change this arrangement.  
Any change to it has to be first passed 
by both the Houses of Parliament 
with at least two-thirds majority. 
Then it has to be ratified by the 
legislatures of at least half of the 
total States. 
The judiciary plays an important 
role in overseeing the implementation 
of constitutional provisions and 
procedures. In case of any dispute 
about the division of powers, the 
High Courts and the Supreme Court 
make a decision. The Union and 
State Governments have the power 
to raise resources by levying taxes in 
order to carry on the government 
and the responsibilities assigned to 
each of them. 
If agriculture and 
commerce are 
state subjects, 
why do we have 
ministers of 
agriculture and 
commerce in the 
Union cabinet?
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