Definition
The constitutional arrangement by which governmental powers are divided and distributed between the Union (Central Government) and the States, each being supreme within its own sphere defined by the Constitution.
India's federalism is 'quasi-federal' — the Constitution distributes legislative powers among three Lists (Union List, State List, Concurrent List under Schedule VII), but gives the Union substantial overriding powers in certain situations. The Union has residual powers (Article 248), can legislate on State subjects in national interest (Article 249), during Emergency (Articles 352-360), on request of States (Article 252), and can override State legislation on Concurrent List subjects. The Supreme Court in S.R. Bommai (1994) declared federalism a basic structure principle — it cannot be abolished even by constitutional amendment.
Statutory Definition
Article 246, Constitution of India: 'Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the Union List).' Schedule VII sets out the three lists dividing legislative powers.
Etymology & Origin
From Latin 'foedus/foederis' (treaty, covenant, compact). A federal system is one founded on a compact between constituent units — in India, the compact between the Centre and the States. The word 'federal' appears nowhere in the Indian Constitution — India is a 'Union of States' (Article 1).
Full Legal Analysis
Federalism: India as a Union of States
India is described as 'quasi-federal' — it has a federal structure (division of powers between Centre and States) but with a strong unitary bias (Centre can override States in multiple situations). The framers deliberately chose this design given the need for national unity after Partition and the diversity of India's regions. While the States have independent legislative and executive domains, the Centre has a variety of mechanisms to override or integrate State action when national interest demands.
Three-List System: Schedule VII
(a) Union List (List I): 98 subjects on which Parliament alone can legislate — defence, foreign affairs, atomic energy, currency, railways, banking, communications. (b) State List (List II): 59 subjects on which State Legislatures alone can legislate — law and order, police, public health, land, agriculture, local government. (c) Concurrent List (List III): 52 subjects on which both Parliament and State Legislatures can legislate — education, labour, family law, forests, electricity. In case of inconsistency, Central law prevails on Concurrent List subjects (Article 254).
Unitary Bias in Indian Federalism
India's federal system has a strong central tilt: (a) Residual powers vest in Union (Article 248); (b) Governor is appointed by Centre and can reserve State bills for Presidential assent; (c) Article 249 — Parliament can legislate on State List subject if Rajya Sabha passes a resolution by 2/3rd majority; (d) Article 356 — President's Rule allows Centre to take over State; (e) Integrated All-India Services (IAS, IPS) appointed by Centre, serving in States. These features make India 'indestructible Union of destructible States' (Dr. B.R. Ambedkar).
GST and Cooperative Federalism
The Goods and Services Tax (Constitution 101st Amendment Act, 2016) created a new paradigm of 'cooperative federalism' — the GST Council (Article 279A) brings together Union Finance Minister and all State Finance Ministers to jointly determine tax rates. The Council decides by weighted voting (Centre has 1/3 vote weight, States collectively have 2/3). GST Council decisions require 3/4th majority, ensuring no State or the Centre can be overridden by simple majority.
“India is not a Federal State in the traditional sense. It is a Union — a union of States that share sovereignty but acknowledge the supremacy of the national interest as defined by a national Constitution.” — Dr. B.R. Ambedkar, Constituent Assembly Debates
This Term in Indian Statutes
Constitution of India, 1950
"Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the Union List)."
Three-list division of legislative powers — Parliament (List I), State (List II), Concurrent (List III)
