About
Federalism is derived from the Latin word foedus, which means agreement. A federation is an agreement between two types of governments sharing power and controlling their respective spheres. Thus, a federal system is a system of national and local governments combined under a joint sovereignty, with both national and federating units having autonomous spheres assigned to them by the constitution.
- India opted for a quasi-federal system after independence. The term “federal” has not been mentioned in the constitution, but the workings of Indian democracy are essentially federal in structure. However, it is the practical working style of federalism which brought the concept of cooperative federalism and competitive federalism in India.
- The present government stresses the need to leverage the potential of cooperative and competitive federalism to achieve inclusive development in India. In this context, the concepts of cooperative and competitive federalism need to be examined.
Cooperative vs Competitive Federalism
Based on the relationship between the central and state government–the concept of federalism is divided into Co-operative federalism and Competitive federalism.
- In Cooperative federalism, the Centre and states share a horizontal relationship, where they “cooperate” in the larger public interest.
- It is an important tool to enable states’ participation in the formulation and implementation of national policies.
- Union and the states are constitutionally obliged to cooperate with each other on the matters specified in Schedule VII of the constitution.
- In Competitive federalism, the relationship between the Central and state governments is vertical, and between state governments is horizontal.
- This idea of Competitive federalism gained significance in India post 1990s economic reforms.
- In a free-market economy, the endowments of states, available resource base and their comparative advantages all foster a spirit of competition. Increasing globalisation, however, increased the existing inequalities and imbalances between states.
- In Competitive federalism States need to compete among themselves and also with the Centre for benefits.
- States compete with each other to attract funds and investment, which facilitates efficiency in administration and enhances developmental activities.
- The investors prefer more developed states for investing their money. Union government devolves funds to the states on the basis of usage of previously allocated funds.
- Healthy competition strives to improve physical and social infrastructure within the state.
- Competitive federalism is not part of the basic structure of the Indian constitution. It is the decision of the executives.
Indian Constitution
- The Indian constitution clearly defines Federalism in India. There have been many opinions that said that the Indian constitution is unitary. However, it is proved by the reports of the Sarkaria Commission that the system is Federalist in nature.
- The supreme court also clearly said that there is a federal nature in the Kesavananda Bharati Case. It is thus proved that federal nature is one of the fundamental constitutional features.
Key Features of Federal System in India
Federalism in India is an essential feature of the constitution that limits the government. The Supreme Court of India put down conditions that are necessary to be fulfilled for the constitution to be federal. This was through a ruling in the case of the State of West Bengal vs the Union of India. These conditions are:
- A contract with the princely states to cede to the Union. The powers are generally shared between the states and the center.
- The Constitution is said to be supreme, and only the Parliament has the authority to alter it.
- Distribution of the powers between the center and the state in their respective areas.
- Courts have the final authority in interpreting the constitution, and they would invalidate any action that would violate it.
Features of Federalism
There are six important features of Federalism in India. They are:
- Division of Power: This is one of the important features of the federal constitution. The Division of Power is done by the constitution itself. The Constitution identifies the powers that rested with the union and the states. Both the governments of the union and states are independent in their charge. Items of national importance like defence, foreign affairs, the currency of the country, etc., are union or central subjects, and subjects like health; land agriculture fall under the domain of the states.
- Constitution being supreme: The constitution is said to be the main power source to all the three wings of Indian democracy – the legislative, the executive, and the Judiciary. Supremacy of the constitution is important for the coordinated and smooth functioning of democracy.
- Written Constitution: The federal constitution must be written and unambiguous. Without the written constitution, the demarcation of powers between the union and the states would be immensely difficult. It would be a tough challenge to maintain constitutional supremacy if there cannot be a reference to a written text. Federal Polity is indeed immensely complex, and clarity is essential.
- Constitutional Rigidity: If the constitution is immensely rigid, it is easy to amend it. Also, since it is rigid, it is easy to maintain supremacy. Amendments to the constitution can be made by simple majority, special majority, or special majority along with a ramification of the Union.
- Judiciary: It is clear that in a federal structure consisting of the state and the center, there would obviously be contentious issues. To adjudicate in case of disputes there is a need for an independent authority who can interpret the constitution authoritatively. This role is played by the Judiciary, and in case of any constitutional disputes, the stance taken by the judiciary is binding on all the parties
- Bi-cameral legislature: India has bi-cameral legislature – it is one of the essential features of Federalism in India. The Indian Parliament has the lower house (Lok Sabha) and the upper house (Rajya Sabha). Any amendments need the approval of both houses. Few of the states also follow the bi-cameral legislature. Examples of these states are Telangana, Andhra Pradesh, Karnataka, Bihar, among others.
