A study of major challenges to Federalism under the Indian Constitution over the past seven decades

Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(V)| September 2025 90 A study of major challenges to Federalism under the Indian Constitution over the past seven decades Sandhya Sharad Sathe Research Scholar, Shivaji University Kolhapur Email: sandhyark23 @gmail.com Manuscript ID: JRD -2025-170922 ISSN: 2230-9578 Volume 17 Issue 9 (V) Pp. 90-94 Sept. 2025 Submitted:15 Aug. 2025 Revised: 25 Aug. 2025 Accepted: 10 Sept. 2025 Published: 30 Sept. 2025 Abstract India's federal structure, a unique blend of unitary and federal features, was meticulously crafted to accommodate a vast and diverse nation while ensuring its unity and integrity. Characterized as 'quasi-federal' with a strong central bias, this arrangement has evolved significantly since its inception. This paper delves into the major challenges confronting Indian federalism in the 21st century. It examines issues ranging from political centralization and the erosion of state autonomy to fiscal imbalances, interstate disputes, administrative complexities, and the implications of asymmetric federalism. By analyzing these multi-faceted challenges, the paper argues that while India's federal framework has demonstrated remarkable resilience, persistent tensions threaten its cooperative spirit, necessitating continuous reform and re-evaluation to foster a more balanced and equitable power-sharing arrangement crucial for national development and cohesion. Keywords: Indian Federalism, Quasi-Federal, Centralization, State Autonomy, Fiscal Federalism, InterState Disputes, Asymmetric Federalism, Cooperative Federalism, Unitary Bias, Constitutional Challenges. Introduction India, a nation of unparalleled diversity in language, culture, religion, and geography, adopted a federal system of governance upon achieving independence in 1947. However, its federalism is not a conventional one, often described as 'sui generis' or 'quasi-federal' by scholars like K.C. Wheare. As a constitutional expert, he called the Indian model"quasi-federal with a strong unitary bias”.The framers of the Indian Constitution, deeply conscious of the Indian diversities andneed of national unity, opted for a system that combines the advantages of both federal and unitary polities, with a pronounced tilt towards the Centre. This 'unitary bias' is evident in provisions such as the strong central government, a single constitution, emergency provisions, and the extensive Concurrent List. Over the past seven decades, India's federal structure has been continuously tested by political exigencies, economic transformations, social movements, and technological advancements. While it has largely succeeded in holding the nation together and enabling democratic participation, it faces a growing constellation of challenges that strain the delicate balance of power between the Union and the States. Understanding these challenges is crucial for appreciating the dynamic nature of Indian polity and for charting a path toward a more robust and responsive federal system. This paper aims to meticulously analyse these major challenges, categorizing them into political, fiscal, administrative, and socio-cultural dimensions, and explores their implications for the future of Indian federalism. Concept: Indian Federalism Core characteristics of Indian federalism are discussed as under:  Division of Powers: The Constitution delineates legislative, executive, and financial powers between the Union and the States through the Seventh Schedule, comprising the Union List (exclusive central powers), State List (exclusive state powers), and Concurrent List (both can legislate). Residuary powers rest with the Centre. Quick Response Code: Website: https://jrdrvb.org/ DOI: Creative Commons (CC BY-NC-SA 4.0) This is an open access journal, and articles are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Public License, which allows others to remix, tweak, and build upon the work noncommercially, as long as appropriate credit is given and the new creations ae licensed under the idential terms. Address for correspondence: Sandhya Sharad Sathe, Research Scholar, Shivaji University Kolhapur How to cite this article: Sandhya Sharad Sathe (2025).A study of major challenges to Federalism under the Indian Constitution over the past seven decades. Journal of Research & Development, 17(9), 90-94 Original Article Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(V)| September 2025 91  Written Constitution: A detailed and supreme written constitution forms the bedrock of power distribution.  Independent Judiciary: The Supreme Court acts as the interpreter of the Constitution and the arbiter of disputes between the Centre and States.  Dual Polity but Single Citizenship: States have their own governmental machinery, but citizens hold only Indian citizenship.  Unitary Bias: Several features give the Centre an upper hand: o Emergency Provisions (Articles 352, 356, 360): Allow the Centre to assume extensive powers during emergencies, effectively transforming the system into a unitary one. Article 356 (President's Rule) has historically been a major point of contention. o Appointment of Governors: The Governor, appointed by the President, acts as the constitutional head of the state but also as a link between the Centre and the State, often perceived as a central agent. o Parliament's Power to alter State Boundaries: Article 3 empowers Parliament to form new states, alter areas, boundaries, or names of existing states without the consent of the concerned state. o Integrated Judiciary and All India Services: These institutions ensure uniformity and central control. o Financial Dependence of States: States have limited independent revenue sources and largely depend on central transfers. Major Challenges to Indian Federalism The challenges confronting India's federal structure are multifaceted and deeply intertwined, stemming from both constitutional design and political practice. 1. Political Centralisation and Erosion of State Autonomy One of the most persistent criticisms against Indian federalism is the perceived overreach of the Centre and the consequent erosion of state autonomy.  Misuse of Article 356 (President's Rule): Historically, Article 356, which allows the Centre to dismiss state governments and impose President's Rule, has been widely misused for political purposes. Despite landmark Supreme Court judgments (e.g., S.R. Bommai case, 1994) is one of the landmark judgment that curtailed arbitrary use of Article 356,the underlying potential for central intervention remains a concern, particularly in states governed by opposition parties.  Role of the Governor: Appointed by the President, the Governor often acts as an agent of the Centre rather than a neutral constitutional head. Their discretionary powers, especially in recommending President's Rule, reserving state bills for Presidential assent, or inviting parties to form the government, have frequently been challenged as partisan and detrimental to state autonomy and democratic principles.  Centrally Sponsored Schemes (CSS) and Central Sector Schemes: While designed to address national priorities, the proliferation of CSS often dictates state policy, reduces their fiscal flexibility, and sometimes imposes uniform solutions on diverse local contexts. States become implementers of central agendas, diluting their own policy-making space.  Dominance of National Parties and One-Party Rule at the Centre: Periods of strong one-party rule at the Centre, especially when coupled with a weaker opposition at the state level, can tilt the balance heavily towards the Union. Policy decisions, even those impacting state subjects, tend to be driven from the national capital, marginalizing regional concerns.  Overlapping Jurisdictions and Concurrent List: While the Concurrent List aims at cooperative legislation, the Centre's power to legislate on any item in the Concurrent List, and for its law to prevail in case of a conflict, often restricts state legislative initiatives and undermines their functional autonomy. Recent contentious laws like the farm laws (now repealed) or amendments to the National Capital Territory (NCT) Act are prime examples. 2. Fiscal Imbalances and Resource Distribution Fiscal federalism in India is characterized by significant vertical and horizontal imbalances, leading to states' overreliance on central transfers and a perpetual debate over fair resource distribution.  Vertical Imbalance: The Union government commands a disproportionately larger share of revenue-raising powers (e.g., corporate tax, income tax, customs, excise duties), while states bear primary responsibility for welfare functions like health, education, and law and order, which are expenditure-intensive. This structural imbalance makes states heavily dependent on central grants and tax devolutions.  Horizontal Imbalance: Significant disparities exist among states in terms of economic development, per capita income, and revenue-generating capacity. Poorer states often demand greater transfers from the Centre and more developed states, leading to tensions. The criteria used by Finance Commissions for devolution are constantly debated.  Impact of Goods and Services Tax (GST): While GST aimed for a unified national market, its implementation has presented new challenges to fiscal federalism. States surrendered their autonomy to levy various indirect taxes for a share of revenue determined by the GST Council (a federal body). Issues such as: Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(V)| September 2025 92 o Compensation Cess: The guaranteed compensation mechanism for revenue loss to states, initially for 5 years, expired in 2022, leaving states vulnerable to revenue shortfalls. o GST Council's Functioning: While a federal body, the Centre often holds significant sway, and decisions sometimes reflect central priorities rather than collective state consensus. o Reduced Fiscal Space: States have lost significant independent revenue-raising powers, limiting their ability to tailor tax policies to local needs.  Conditional Grants and Tied Aid: The Centre often provides grants tied to specific schemes or objectives, limiting the financial discretion and policy choices of states.  State Debt and Borrowing Limits: While states can borrow, their access to capital markets and borrowing limits are often regulated by the Centre (under Article 293), particularly if they are indebted to the Centre, further restricting their fiscal autonomy. 3. Inter-State Disputes and Regionalism The diverse nature of India inevitably gives rise to disputes among states, often influenced by regional identities and resource scarcity.  Boundary Disputes: Several inter-state border disputes persist (e.g., Maharashtra-Karnataka, Assam-Nagaland), sometimes result into violent confrontations, challenging national cohesion.  River Water Disputes: The sharing of inter-state river waters (e.g., Cauvery dispute between Karnataka, Tamil Nadu, Kerala, and Pondicherry; Krishna water dispute) remains a major challenge due to increasing water scarcity and competing demands. Despite constitutional provisions and tribunals, these disputes are often protracted and politically charged.  Linguistic and Cultural Identity Movements: Demands for new states based on linguistic or ethnic identity (e.g., Telangana's creation, ongoing demands for Gorkhaland, Vidarbha, etc.) highlight the tension between national integration and strong regional identities. While often legitimate, the process of state reorganization can be politically fraught and resource-intensive.  Migration and "Sons of the Soil" Syndrome: Internal migration for employment and opportunities sometimes leads to conflicts between migrant workers and local populations, fanning nativist sentiments and undermining the spirit of national integration. 4. Administrative Discrepancies and Law & Order The administrative machinery, particularly in areas like law and order, poses unique federal challenges.  All India Services (AIS): Officers of the IAS, IPS, and IFS are recruited by the Union but serve in state cadres. While envisioned as a unifying force, their dual accountability to both the Centre and the State can create tensions, especially when the Centre and the State are governed by different parties. Allegations of central interference via transfers or disciplinary action against state cadre officers are not uncommon.  Law and Order: A state subject, law and order is crucial for governance. However, the Centre often has powers to deploy central armed police forces in states without prior consent (though usually in consultation). Managing internal security, especially during communal riots or insurgency, requires high levels of Centre-State coordination, which can be hampered by political differences.  Disaster Management: While disaster response is primarily a state responsibility, the Centre plays a critical role in providing financial and logistical support. The COVID-19 pandemic highlighted the need for `Centre-State coordination in public health emergencies, exposing challenges in data sharing, resource allocation, and policy implementation across states. 5. Asymmetric Federalism and Socio-Economic Disparities India's federalism is not perfectly symmetrical; certain states enjoy special provisions or status, which while necessary for integration, can also be a source of tension.  Special Provisions (Article 371 & others): Articles 370 (now largely abrogated for Jammu & Kashmir) and 371 (A-J) grant special provisions to states like Nagaland, Mizoram, Arunachal Pradesh, Goa, Maharashtra, Gujarat, etc., to protect their unique cultural identity, tribal rights, or address regional disparities. While these are essential for integrating diverse populations, they can sometimes lead to perceptions of differential treatment or demands for similar status from other regions.  Developmental Disparities: The vast economic and social disparities among states pose a significant challenge. Regions with low human development indices, inadequate infrastructure, and high poverty rates demand greater central attention and resources, often leading to political mobilization and accusations of neglect.  Regional Imbalances in Representation: The delimitation of LokSabha constituencies based on population (frozen until 2026) has led to concerns from South Indian states, which have controlled their population growth, that they will be under-represented compared to North Indian states with higher population growth, impacting their voice in national policy-making. Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(V)| September 2025 93 Discussion and Analysis: The Evolving Dynamics The challenges outlined above collectively paint a picture of a federal system constantly in flux. The initial 'cooperative federalism' envisioned by the Constitution, where the Centre and States worked in tandem, has often been overshadowed by 'competitive federalism', where states vie for resources and investment, and sometimes 'confrontational federalism', especially when different political parties govern at the Centre and in states. The nature of these challenges suggests that the unitary bias, while initially deemed essential for national unity, has often been exploited for political ends, leading to distrust and resentment among states. The economic liberalization since the 1990s and the rise of powerful regional parties have empowered states, making them more assertive in demanding greater autonomy and a fairer share of resources. However, this assertion is met with a Centre often keen to maintain its pre-eminence, leading to a perennial tug-of-war. The role of institutions like the Inter-State Council, conceptualized to facilitate Centre-State and inter-state coordination, has often been underutilized, leading to ad-hoc solutions rather than institutionalized dialogue. Similarly, the NITI Aayog (formerly Planning Commission), while transforming into a think tank, has yet to fully realize its potential as a platform for genuine federal dialogue and consensus-building. The judiciary has played a crucial role in safeguarding federal principles, particularly against the arbitrary use of Article 356. However, constitutional interpretation alone cannot resolve the deep-seated political and fiscal tensions that plague the system. Recommendations and Path Forward Addressing these challenges requires a multi-pronged approach that strengthens both the letter and spirit of Indian federalism:  Reforming Article 356 and the Governor's Office: Strict adherence to the recommendations of the Sarkaria Commission and Punchhi Commission on Article 356, and ensuring gubernatorial appointments are non-political and uphold constitutional neutrality, are paramount.  Strengthening Fiscal Federalism: o Increasing the share of divisible pool of taxes for states. o Revisiting the GST framework to ensure stable and equitable revenue for states, potentially extending the compensation mechanism or finding alternative solutions for revenue shortfalls. o Enhancing states' revenue-generating capacity and greater fiscal autonomy in borrowing and expenditure. o Ensuring Finance Commission recommendations are fully implemented and their criteria reviewed to address horizontal imbalances more effectively.  Empowering Inter-State Council: Regular and meaningful meetings of the Inter-State Council and its standing committee should be institutionalized to provide a genuine forum for dialogue, dispute resolution, and policy coordination.  Promoting Rational Policy-Making: Reducing the proliferation of narrowly defined Centrally Sponsored Schemes and allowing states greater flexibility in implementing national programs, or shifting to block grants, can enhance state autonomy and accountability.  Judicial Vigilance: The judiciary must continue to play its role as the guardian of the Constitution, ensuring that the federal balance is not undermined by executive overreach.  Decentralization beyond States: Further devolution of powers and resources to local self-governing bodies (Panchayats and Municipalities) would strengthen democracy at the grassroots and make governance more responsive to local needs, indirectly reinforcing federal principles.  Foster a Culture of Cooperation: Political leadership at both levels must prioritize national interest and cooperative spirit over partisan gains, engaging in constructive dialogue to resolve disputes. Conclusion India's federal structure, a remarkable constitutional experiment, has been instrumental in preserving unity amidst unparalleled diversity. However, it continues to navigate a complex labyrinth of challenges, from the ingrained unitary bias and political centralization to persistent fiscal inequities and inter-state tensions. These challenges are not mere administrative hurdles; they strike at the heart of democratic governance, resource distribution, and national cohesion. The future vitality of Indian federalism hinges on the willingness of both the Union and State governments to engage in genuine dialogue, adhere to constitutional proprieties, and prioritize cooperative mechanisms. By addressing the deep-seated issues of fiscal imbalance, reining in the arbitrary use of central powers, strengthening institutional safeguards for state autonomy, and effectively managing inter-state disputes, India can evolve a more balanced, equitable, and resilient federal system. Such a transformation is not merely an academic ideal but an essential prerequisite for India's continued progress, democratic consolidation, and the realization of its vast developmental potential in the 21st century. Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(V)| September 2025 94 References: 1. D.D. Basu. (1989 )Introduction to the Constitution of India · 2. M.P .Jain –(2020) Outlines of Indian Legal and Constitutional History. LexisNexis. 3. Bombwall, K. R. (2009). The Foundations of Indian Federalism. 4. Dhavan, R., & Singh, M. P. (Eds.). (2016). Indian Federalism: A Constitutional Study. LexisNexis. 5. Sarkaria Commission Report. (1988). Report of the Commission on Centre-State Relations. Government of India. 6. Punchhi Commission Report. (2010). Report of the Commission on Centre-State Relations. Government of India. 7. Rao, M. 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