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Chapter 2: Federalism

This chapter explains what federalism is, how power is shared between the Central and State governments in India, how India's federal structure was formed and has evolved, and how decentralisation brought power even closer to the people through Panchayats and Municipalities. This is one of the highest-scoring chapters in Civics.

The Big Picture This chapter covers three levels of power-sharing:
Three tiers of government in India
FEDERALISM: KEY CONCEPTS & FEATURES

1. WHAT IS FEDERALISM?

Balance scale showing Centre and State powers
  • Federalism is a system of government in which power is divided between a central authority and various constituent units (states or provinces).
  • Unitary System vs Federal System: In a unitary system, there is only one level of government or sub-units are subordinate to the centre. In a federal system, state governments have their own powers guaranteed by the Constitution.

2. KEY FEATURES OF FEDERALISM

Constitution book with a glowing padlock
  • Multiple Tiers: Two or more levels of government.
  • Distinct Jurisdictions: Each tier has separate authority in making laws, taxing, and administration.
  • Constitutional Guarantee: Powers of each tier are constitutionally protected.
  • Mutual Consent: Fundamental constitutional provisions cannot be changed unilaterally.
  • Independent Judiciary: Courts settle disputes between different tiers.
  • Financial Autonomy: Revenue sources for each tier are clearly specified.

3. ROUTES TO FEDERALISM

Hands joining puzzle pieces into a globe
  • "Coming Together" Federation: Independent states voluntarily form a bigger nation. States are highly powerful. Examples: USA, Australia, Switzerland.
  • "Holding Together" Federation: A large country divides power to accommodate diversity. Centre tends to be more powerful. Examples: India, Spain, Belgium.

4. THE THREE LISTS (DIVISION OF POWERS)

Union, State, and Concurrent folders
  • Union List (100 subjects): Only the Central Government makes laws. Matters of national importance needing uniformity. Examples: Defence, Foreign Affairs, Currency, Banking.
  • State List (61 subjects): Only State Governments make laws. Matters of local importance. Examples: Police, Agriculture, Trade within state, Local Government.
  • Concurrent List (52 subjects): Both Central and State can make laws. Central law prevails if there is a conflict! Examples: Education, Forests, Marriage.
  • Residual Powers: Subjects not in any list (e.g. Computer Software, Internet) fall under the Central Government in India.

5. PRACTICE OF FEDERALISM IN INDIA

People from different Indian states with speech bubbles
  • Linguistic States: States created based on language (e.g., Andhra Pradesh in 1953) strengthened national unity instead of dividing it.
  • Language Policy: No single national language. Hindi is the official language, but 22 scheduled languages are recognised. English continues for official use to accommodate non-Hindi states.
  • Centre-State Relations: Post-1989, the rise of regional parties led to Coalition Governments, making power-sharing more cooperative and states more assertive.

6. DECENTRALISATION (1992 AMENDMENTS)

Village Panchayat meeting under a banyan tree
  • Decentralisation transfers power to local governments (Panchayats & Municipalities) because "local people know local problems best".
  • 1992 Constitutional Amendments (73rd & 74th) made local govt powerful:
    1. Mandatory regular elections for local bodies.
    2. Seats reserved for SCs, STs, and OBCs.
    3. One-third (33%) seats reserved for women.
    4. Independent State Election Commission created.
    5. State governments must share power and revenue with local bodies.

7. India — Is It Federal or Not?

Some people argue India is not truly federal because the Centre is too powerful. The NCERT acknowledges that India's Constitution has features of both a federal and a unitary system.

Conclusion India is federal in spirit but with a strong centre. It is a unique model — described as a "quasi-federal" or "cooperative federal" system — where the Centre is powerful enough to keep the country united, but states have enough autonomy to govern their local affairs effectively.

8. Key Terms and Definitions (Glossary)

TermSimple Definition
FederalismA system where power is divided between a central authority and constituent state units.
Unitary SystemA system where only one (central) government has real power.
Union List100 subjects on which only the Central Government can make laws (Defence, Currency).
State List61 subjects on which only State governments can make laws (Police, Agriculture).
Concurrent List52 subjects on which both Central and State governments can make laws.
Residual PowersPower to make laws on subjects not in any list — belongs to the Central Government in India (e.g., internet, software).
Gram PanchayatThe elected local governing body at the village level.
Coalition GovernmentA government formed by an alliance of two or more political parties.

9. Important Previous Year Questions (PYQs)

Q & A (1 Mark) Q1. Under which list does the subject of "Education" fall in India?
Ans: Education falls under the Concurrent List — both the Central and State governments can make laws on it. If they conflict, the Central law prevails.
Q & A (3 Marks) Q2. What measures were taken to make local self-government more effective after the 1992 Constitutional Amendments?
Ans:
  • Mandatory Regular Elections: It became constitutionally compulsory to hold regular elections to Panchayats and Municipalities.
  • Reservation for Marginalised Groups & Women: Seats reserved for SCs, STs, and OBCs. Crucially, at least one-third of all seats are reserved for women.
  • State Election Commission and Revenue Sharing: Every state established an independent State Election Commission. States must also share power and revenue with local bodies.
Q & A (5 Marks) Q3. Describe the three-fold distribution of legislative powers between the Central and State governments in India.
Ans: The Indian Constitution divides law-making power through three lists:

1. Union List (100 subjects): Only Central Government makes laws. (e.g. Defence, currency, banking). Used for national matters needing uniformity.

2. State List (61 subjects): Only State governments make laws. (e.g. Police, agriculture). Used for local matters needing flexibility.

3. Concurrent List (52 subjects): Both Central and State governments can make laws. (e.g. Education, forests). If laws conflict, the Central law prevails.

Residual Powers: Matters not in any list (e.g. internet) are governed by the Central Government.
A-R Type Q4. Assertion (A): The creation of linguistic states strengthened Indian democracy rather than weakening it.
Reason (R): It gave people pride in their language, improved administrative efficiency, and reduced resentment among linguistic minorities.

Ans: (a) — Both A and R are true, and R correctly explains A.

10. Common Mistakes to Avoid in Board Exams

Exam Tips
  1. Do NOT say Hindi is the "national language" of India. India has NO official national language. Hindi is the official language of the Union Government.
  2. Residual Powers in India belong to the CENTRE — unlike the USA where residual powers are with the states.
  3. The 1992 amendments were the 73rd and 74th — not 71st or 75th.
  4. One-third reservation for women in local bodies — not half (unless specified by a particular state).