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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  • 1 India's federalism is asymmetric, states do not have equal powers (special provisions for J&K repealed; North-East states under Article 371)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 (52)
  • 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
Polity
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