The federal system in India, as enshrined in the Constitution, divides powers and responsibilities between the central government and the state governments. This system is characterized by the distribution of legislative, executive, and financial powers between the two levels of government, with the aim of promoting unity, diversity, and cooperative federalism.

Legislative Powers: India operates a dual system of legislation, where the central government has authority over subjects listed in the Union List, such as defense, foreign affairs, and currency, while the state governments have authority over subjects listed in the State List, such as public health, education, and agriculture. Concurrent List subjects, such as criminal law and marriage, allow both levels of government to legislate, with the central law prevailing in case of conflict.

Executive Powers: The executive powers of the federal system are vested in the President at the central level and the Governors at the state level, acting on the advice of the Council of Ministers. The central government is responsible for the administration of Union territories and matters of national importance, while the state governments are responsible for the administration of their respective states.

Financial Powers: The federal system includes provisions for the distribution of financial resources between the central government and the state governments through mechanisms such as tax revenue sharing, grants-in-aid, and finance commissions. The Finance Commission of India plays a crucial role in recommending the distribution of financial resources between the center and the states based on principles of equity, efficiency, and fiscal discipline.

Inter-governmental Relations: The federal system promotes cooperation and coordination between the central government and the state governments through mechanisms such as inter-governmental conferences, councils, and forums. These platforms facilitate dialogue, consensus-building, and the resolution of inter-governmental disputes, ensuring effective governance and service delivery.

Challenges: Despite its constitutional framework, the federal system in India faces challenges such as vertical imbalance, where the central government dominates resource allocation and policy-making, and horizontal imbalances, where disparities exist in the capacity and resources of different states. Addressing these challenges requires efforts to strengthen fiscal federalism, empower state governments, and promote cooperative federalism through dialogue, consensus-building, and institutional reforms.

Overall, the federal system in India reflects the country’s commitment to democratic governance, pluralism, and decentralization, while also recognizing the need for national unity and integration. By balancing the autonomy of states with the authority of the central government, India’s federal system seeks to promote inclusive and sustainable development across the diverse regions of the country.


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