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The effective working of the Indian federal system relies not only on smooth relations and close collaboration between the Centre and the states but also among the states themselves. Therefore, the Constitution includes some provisions for inter-state cooperation which are Resolving disputes over inter-state water, Coordinating through inter-state councils, Recognizing each other's public acts, records, and judicial proceedings, and Ensuring freedom of inter-state trade, commerce, and interaction.

Additionally, Parliament has established zonal councils to enhance cooperation and coordination among states.

Inter-State RelationsInter-State Relations

Inter-State Water Disputes

Article 262 

this article of the Constitution deals with the resolution of inter-state water disputes, outlining two key provisions:

  •  Parliament can pass laws to settle disputes related to the use, distribution, and control of waters in inter-state rivers and valleys.
  • Parliament has the authority to stipulate that neither the Supreme Court nor any other court can exercise jurisdiction over such disputes.

In line with these provisions, Parliament has enacted two laws:

River Boards Act (1956)

This Act facilitates the creation of river boards, established by the Central government at the request of concerned state governments, to offer advice on the regulation and development of inter-state rivers and valleys.

Inter-State River Water Disputes Act (1956)

empowers the Central government to establish ad hoc tribunals for resolving disputes between two or more states regarding the waters of inter-state rivers or valleys. The tribunal's decision is final and binding on the disputing parties, with no jurisdiction granted to the Supreme Court or any other court in such matters. To date, the Central government has set up various tribunals to address inter-state water disputes.

Laxmikanth Summary: Inter-State Relations | Indian Polity for UPSC CSE

Pennaiyar Water Dispute

Inter-State Councils 

Article 263

 It outlines the creation of an Inter-State Council to facilitate coordination among states and between the Centre and states. The President can establish this council if deeming it beneficial for the public interest and determines its duties, organization, and procedures. While the President can define the council's duties, Article 263 specifies potential assignments as follows:

  •  Resolving disputes between states.
  •  Investigating and discussing matters of common interest between states or between the Centre and states.
  •  Offering recommendations on such subjects, especially for improved policy and action coordination.

The council's role in investigating and advising on inter-state disputes complements the Supreme Court's jurisdiction under Article 131, which provides a legal resolution for government disputes. However, the council's function is advisory, unlike the court's binding decisions. In accordance with Article 263, the President has established councils to enhance policy coordination in various areas, including the Central Council of Health and Family Welfare, the Central Council of Local Government, and four Regional Councils for Sales Tax in the Northern, Eastern, Western, and Southern Zones.

The Sarkaria Commission on Centre-State Relations (1983-88)

It strongly advocated for creating a permanent Inter-State Council under Article 263 of the Constitution. To distinguish it from other bodies established under the same article, the Commission proposed naming it the Inter-Governmental Council. The Commission suggested that the Council should be assigned the responsibilities outlined in clauses (b) and (c) of Article 263 (refer to the previous part). In line with the Sarkaria Commission's recommendations, the Janata Dal Government, led by V. P. Singh, established the Inter-State Council in 1990. The council includes the following members:
  • Prime Minister as the Chairman
  • Chief Ministers of all states
  • Chief Ministers of union territories with legislative assemblies
  • Administrators of union territories without legislative assemblies
  • Governors of States under the President's rule
  • Six Central Cabinet ministers, including the home minister, were nominated by the Prime Minister.

Laxmikanth Summary: Inter-State Relations | Indian Polity for UPSC CSE

Five Ministers of Cabinet rank or Minister of State (independent charge), nominated by the Council Chairman (i.e., Prime Minister), are permanent invitees to the Council. The council serves as a recommending body on matters related to inter-state, Centre-state, and Centre-union territory relations. Its goal is to enhance coordination by examining, discussing, and deliberating on such issues. Its detailed duties include:

  •  Investigating and discussing subjects of common interest to states or the centre.
  • Making recommendations for better coordination of policy and action on such subjects.
  • Deliberating on other matters of general interest to states as referred by the chairman.

The Council meets at least three times a year, with closed-door meetings and decisions made by consensus.

A Standing Committee was made in 1996

It was for ongoing consultation and processing of matters for the Council's consideration. It comprises:
  • Union Home Minister as the Chairman
  •  Five Union Cabinet Ministers
  •  Nine Chief Ministers

The Council is supported by the Inter-State Council Secretariat, formed in 1991 and led by a Secretary to the Government of India. Since 2011, it has also functioned as the secretariat for the Zonal Councils.

Potential of Inter-State CouncilPotential of Inter-State Council

Public Acts, Records And Judicial Proceedings

In the Constitution, each state's authority is limited to its territory, potentially causing acts and records from one state to not be acknowledged in another. To address this, the Constitution includes the "Full Faith and Credit" clause, which stipulates the following:
  • Full faith and credit must be given across India to public actsrecordsand judicial proceedings of both the Centre and every state. "Public acts" encompass legislative and executive actions, while "Public records" include official books, registers, or records maintained by a public servant in the course of their official duties.
  • The method and conditions for proving and determining the effect of such acts, records, and proceedings will be governed by the laws enacted by Parliament. This implies that the general rule mentioned earlier is subject to Parliament's authority to establish the mode of proof and the impact of such acts, records, and proceedings of one state in another.
  • Final judgements and orders of civil courts in any part of India can be executed anywhere within the country without the need for a fresh lawsuit on the judgement. This rule applies exclusively to civil judgements and does not extend to criminal judgements, meaning that it does not compel the courts of one state to enforce the penal laws of another state.

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Inter-State Trade and Commerce 


Articles 301 to 307 in Part XIII

The freedom guaranteed by Article 301 encompasses not only inter-state trade but also intra-state trade. Violations can occur at state borders or at any preceding or subsequent stage of trade and commerce.

This freedom is absolute, except for the restrictions outlined in other provisions (Articles 302 to 305) of Part XIII of the Constitution:

  • Parliament can impose restrictions on trade, commerce, and intercourse between states or within a state in the public interest. However, it cannot show preference or discrimination between states unless there is a scarcity of goods in any part of India.
  • State legislatures can impose reasonable restrictions on trade, commerce, and intercourse within the state in the public interest. Such restrictions require prior sanction from the president. Additionally, state legislatures cannot favor one state over another or discriminate between states.
  • State legislatures can impose taxes on goods imported from other states or union territories, but these taxes cannot be discriminatory.
  • The freedom under Article 301 is subject to nationalisation laws, allowing Parliament or state legislatures to pass laws for the government's exclusive or partial control of trade, business, industry, or service.

Zonal Councils

The Zonal Councils are statutory bodies, established not constitutionally but by an Act of Parliament, specifically the States Reorganisation Act of 1956. The act divided the country into five zones (Northern, Central, Eastern, Western, and Southern) and provided a zonal council for each zone. The formation of these zones considered various factors, including natural divisions, river systems, means of communication, cultural and linguistic affinities, as well as requirements for economic development, security, and law and order.

Laxmikanth Summary: Inter-State Relations | Indian Polity for UPSC CSE

Each zonal council comprises the following members:

  • Home Minister of the Central Government
  • Chief Ministers of all the states in the zone
  • Two other ministers from each state in the zone
  • The administrator of each union territory in the zone 
Additionally, the following persons can serve as advisors to the zonal council (without the right to vote in meetings):
  • A person nominated by the NITI Aayog.
  • Chief Secretary of the government of each state in the zone.
  • Development Commissioner of each state in the zone.

The Home Minister of the Central Government serves as the common chairman of the five zonal councils. Each Chief Minister acts as a vice-chairman in rotation, holding office for one year at a time. The primary purpose of the zonal councils is to promote cooperation and coordination among states, union territories, and the Centre. They discuss and make recommendations on various matters, including economic and social planning, linguistic minorities, border disputes, interstate transport, and more. However, they are purely deliberative and advisory bodies.

The detailed objectives (or functions) of the zonal councils include:

  •  Achieving emotional integration of the country.
  • Helping curb the growth of acute state consciousness, regionalism, linguism, and particularistic trends.
  •  Aiding in mitigating the after-effects of separation in some cases, synchronizing the processes of reorganization, integration, and economic advancement.

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North-Eastern Council Act of 1971

  • Additionally, alongside the Zonal Councils, a North-Eastern Council was established by a distinct Act of Parliament, namely the North-Eastern Council Act of 1971
  • Its members consist of Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Sikkim. 
  • The functions of this council are similar to those of the zonal councils, with a few additions.
  • It is tasked with formulating a unified and coordinated regional plan covering matters of common importance
  • Furthermore, it is required to periodically review the measures taken by the member states to maintain security and public order in the region.
The document Laxmikanth Summary: Inter-State Relations | Indian Polity for UPSC CSE is a part of the UPSC Course Indian Polity for UPSC CSE.
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FAQs on Laxmikanth Summary: Inter-State Relations - Indian Polity for UPSC CSE

1. What are Inter-State Water Disputes?
Ans. Inter-State Water Disputes refer to conflicts between two or more states over the sharing of river waters. These disputes often arise when states have competing interests and needs for water resources, leading to disagreements and legal battles.
2. What is the role of Inter-State Councils in resolving disputes between states?
Ans. Inter-State Councils act as advisory bodies that facilitate communication and cooperation between states, helping to address issues such as water disputes and other inter-state conflicts through dialogue and negotiation.
3. How do Public Acts, Records, and Judicial Proceedings impact inter-state relations?
Ans. Public Acts, Records, and Judicial Proceedings serve as legal mechanisms that ensure transparency and accountability in inter-state dealings, helping to resolve disputes and maintain peace and order between states.
4. What is the significance of Inter-State Trade and Commerce in fostering cooperation between states?
Ans. Inter-State Trade and Commerce play a crucial role in promoting economic growth and mutual benefit between states, fostering cooperation and goodwill that can help in resolving conflicts and promoting harmony.
5. How do Zonal Councils contribute to enhancing inter-state relations in India?
Ans. Zonal Councils serve as platforms for states to come together and discuss common issues, fostering collaboration and coordination in various areas such as infrastructure development, resource-sharing, and conflict resolution, thereby enhancing inter-state relations.
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