Key Terms & Concepts — UPSC Mains
Federalism
GS2
"A system of government where power is constitutionally divided between a central authority and constituent units"
Definition
Federalism is a system of governance in which sovereignty is constitutionally divided between two levels of government — the central (Union) government and the state governments. Each level has defined powers and operates independently within its domain, yet both co-exist and coordinate on matters of common concern.
⭐ Significance for UPSC
India follows a federal structure with unitary bias. The Indian Constitution uses the term 'Union of States' (Article 1), not 'Federal State', deliberately. UPSC regularly tests Centre-State relations, cooperative federalism, and financial federalism in GS2.
Key Points
- 1 India's federalism is asymmetric — states do not have equal powers (special provisions for J&K repealed; North-East states under Article 371)
- 2 The Seventh Schedule divides subjects into Union List (97), State List (66), and Concurrent List (47)
- 3 Governor's role often seen as Centre's representative, raising questions of federal balance
- 4 Finance Commission (Article 280) is the key mechanism for fiscal federalism
- 5 NITI Aayog replaced Planning Commission — shift from centralised to cooperative federalism
Example / Context
The GST Council is an example of cooperative federalism — both Centre and states have representation and must reach consensus on tax rates.
Related Terms
Mains GS Relevance
GS Paper 2
Polity, Governance, IR, Social Justice
Subject