GS-II · Polity · Centre–State Relations

Federalism in India — a union, not a contract.

The single most current chapter in polity — Governors, GST, delimitation and Centre–state tension make news every week. This is the whole framework in one place: why India is called "quasi-federal", the federal-vs-unitary features UPSC loves to test, the 7th Schedule, the three tracks of Centre–State relations, and the 2025 Supreme Court verdicts that redrew the Governor's role.

The direct answer

India is "quasi-federal" — federal in form, with a strong centralising tendency. Article 1 calls it a "Union of States", which Ambedkar said means the federation is not an agreement and no state can secede. Powers are divided by the 7th Schedule into Union, State and Concurrent Lists, with residuary powers held by the Centre (Art 248).

The idea

Federal in form, central in spirit.

A true federation, like the United States, is a compact among states that agreed to unite. India was the reverse — a single country that devolved power to states for administrative convenience, keeping the Centre strong enough to hold a diverse, newly-partitioned nation together. That is why scholars call it "quasi-federal" (K.C. Wheare) or a federation "with a strong unitary bias". The genius, and the perpetual tension, is that the same Constitution can look federal in normal times and unitary in an emergency.

Why "Union of States" · a favourite quote

Dr B.R. Ambedkar chose the phrase deliberately: "The Drafting Committee wanted to make it clear that though India was to be a federation, the federation was not the result of an agreement by the States… and that no State has the right to secede." The country is one integral whole, divided into states only for convenience.

The distinction UPSC tests most

Federal features vs unitary features.

The exam asks you to sort a feature into the right bucket. Learn both columns.

AspectFederal featuresUnitary features
PowersDivision via the 7th Schedule (Union/State/Concurrent)Residuary powers with the Centre (Art 248)
ConstitutionWritten & supreme; rigid amendment for federal partsSingle constitution for Centre and states
CitizenshipSingle citizenship for the whole country
JudiciaryIndependent judiciary with judicial reviewSingle integrated judiciary (SC at apex)
LegislatureBicameralism — Rajya Sabha represents statesParliament can legislate on the State List (Art 249, 250, 252, 253)
ExecutiveGovernor appointed by the Centre; all-India services
EmergencyEmergency provisions can turn the system unitary (Art 352, 356, 360)
The division of powers

The 7th Schedule — three lists.

Which government makes which law. In a Concurrent conflict, Union law prevails (Art 254).

Union List

Only Parliament

Subjects of national importance — defence, armed forces, foreign affairs, atomic energy, railways, banking, currency, citizenship. The longest list.

State List

Only state legislatures

Subjects of local/state importance — public order, police, public health and sanitation, agriculture, prisons, local government, State taxes.

Concurrent List

Both — Union prevails

Shared subjects — criminal law, marriage & divorce, education, forests, electricity, economic and social planning. If laws conflict, the Union law prevails (Art 254).

Residuary powers · a Prelims staple

Any subject not listed in any of the three lists — the "residuary" power — belongs to the Union Parliament under Article 248 (unlike the USA, where residuary powers rest with the states). This is one of the strongest unitary tilts in the Constitution.

Three tracks

Centre–State relations, three ways.

The Constitution organises the relationship along legislative, administrative and financial lines.

245–255Legislative relations — territorial and subject-wise distribution of law-making; Parliament's power to legislate on State subjects in the national interest (249), during an emergency (250), by consent of states (252), or to implement treaties (253).
256–263Administrative relations — obligation of states to comply with Union laws, Centre's directions to states, all-India services, and the Inter-State Council (Art 263) for coordination.
268–293Financial relations — distribution of taxes, grants-in-aid, borrowing, and the Finance Commission (Art 280) as the arbiter of fiscal federalism. GST (Art 279A) reshaped this track.
The machinery

The institutions of cooperative federalism.

Where the Centre and states actually meet — each a favourite Mains and Prelims hook.

GST CouncilArticle 279A · 101st AmendmentThe joint Centre–state body that decides GST rates — the "fiscal federal bargaining table", and a live test of cooperative federalism.
Finance CommissionArticle 280Constituted every five years to recommend the sharing of taxes between the Centre and states — the arbiter of fiscal federalism.
Inter-State CouncilArticle 263A body to investigate and discuss subjects of common interest between the Centre and states, and among states.
NITI Aayog2015 · executive bodyReplaced the Planning Commission; promotes cooperative and competitive federalism through state indices and shared strategy.
Current affairs · why this topic stays fresh

The Governor question — 2025's federalism flashpoint.

A "static" chapter that produced two of the year's biggest constitutional rulings. Exactly the polity + current-affairs overlap UPSC now rewards.

Apr 2025Tamil Nadu v. GovernorA two-judge Bench held the Governor cannot sit indefinitely on Bills under Article 200; using Article 142 it deemed twelve long-pending Bills to have received assent and indicated timelines.
Nov 2025Presidential ReferenceA five-judge Constitution Bench then held that courts cannot fix rigid timelines and that "deemed assent" is constitutionally alien — but reaffirmed the Governor must act within a "reasonable time", and inaction is reviewable.
1994S.R. BommaiThe classic: made the imposition of President's Rule under Article 356 subject to judicial review, curbing its misuse against state governments — a landmark for federalism.
LiveThe recurring themesGovernor's discretion, GST compensation, delimitation and the north–south revenue debate — each a Centre–state fault line that returns to the exam.

Every new Centre–state development lands mapped to this topic on the daily current-affairs feed — static and current, one system.

Prelims · test yourself

Practice the exact trap-style.

Consider the phrase "Union of States" in Article 1. Which is correct? 1) It implies the federation is an agreement among states. 2) It implies no state has the right to secede.
  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither
Answer: B

Ambedkar said "Union of States" means precisely the opposite of statement 1 — the federation is NOT an agreement among states, and no state can secede. Statement 2 is correct.

Where do residuary legislative powers lie under the Indian Constitution?
  • A. With the states
  • B. With the Union Parliament (Article 248)
  • C. Shared equally
  • D. With the Finance Commission
Answer: B

Residuary powers rest with the Union under Article 248 — a key unitary feature, and the opposite of the US model. A common trap swaps this with the states.

Which body is established under Article 279A?
  • A. Finance Commission
  • B. Inter-State Council
  • C. GST Council
  • D. NITI Aayog
Answer: C

The GST Council is a constitutional body under Article 279A (101st Amendment). The Finance Commission is Article 280, the Inter-State Council is Article 263, and NITI Aayog is a non-constitutional executive body.

Questions

Federalism, answered straight.

Is India federal or unitary?

Quasi-federal — federal in form with a strong central tilt. Article 1 calls it a "Union of States". It has federal features (division of powers, independent judiciary, bicameralism) and unitary ones (strong Centre, single citizenship, appointed Governor, emergency provisions, residuary powers with the Union).

Why "Union of States"?

Ambedkar's phrase — the federation is not an agreement among states, and no state can secede. The country is one integral whole, divided for administrative convenience.

What is the 7th Schedule?

The division of law-making powers into the Union List (Parliament only), State List (state legislatures) and Concurrent List (both, Union prevailing in conflict). Residuary powers go to the Union (Article 248).

What did the 2025 Governor verdicts decide?

April 2025 (TN v Governor) me court ne 12 pending bills ko "deemed assent" de diya tha; November 2025 ki Presidential Reference me 5-judge bench ne "deemed assent" ko constitutionally alien maan ke usse disapprove kiya — par Governor ko "reasonable time" me act karna hi hoga, inaction reviewable hai.

Cooperative vs competitive federalism?

Cooperative = Centre and states working as partners (GST Council, Inter-State Council, NITI Aayog). Competitive = states competing on indices to attract investment. Fiscal federalism = division of financial resources, arbitrated by the Finance Commission.

The most current chapter
in the Constitution.

Governor, GST, delimitation — sab daily feed pe is topic se mapped.