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Federalism and Union–State Relations — lesson overview

The constitutional idea: divided authority within one political community

Federalism distributes public authority between levels of government so that each possesses a constitutionally recognised sphere. India has a Union and states, a written supreme Constitution, a distribution of powers, and judicial institutions capable of adjudicating relevant constitutional disputes. States are therefore not merely municipal agents to whom the Union may delegate or withdraw every power at will.

At the same time, the Indian Constitution gives the Union important powers to preserve national coordination and integrity. Article 1 describes India as a Union of States. Article 3 permits specified changes to state areas, boundaries, and names through the constitutional procedure; states do not possess an independent constitutional right to secede.

The analytical task is to explain both distribution and integration. Calling India simply federal or simply unitary without examining the arrangement hides important features. A useful answer shows how constitutional autonomy operates alongside national institutions, unequal representation in the Rajya Sabha, emergency provisions, and mechanisms for cooperation.

Articles 245 and 246: territory and subject-matter competence

Article 245 concerns the territorial extent of legislative power. Parliament may make laws for the whole or any part of India, while a state legislature may make laws for the whole or any part of its state, subject to the Constitution. Article 246, read with the Seventh Schedule, distributes legislative subject-matter competence through the Union, State, and Concurrent Lists.

The distinction matters. A law can raise a question about its territorial connection and a separate question about whether its subject belongs to the legislature’s field. Merely showing that an activity occurs within a state does not automatically establish that only the state legislature can regulate it; the relevant entry and constitutional provisions must also be identified.

Union List examples include defence and major national subjects; State List examples include public order and police; the Concurrent List includes fields such as criminal law, marriage, and education subject to their precise entries. Avoid learning list headings as if they replace the detailed entries or later constitutional changes.

Residuary power and the special position of GST

Article 248, read with Union List Entry 97 and subject to Article 246A, assigns residuary legislative power to Parliament, including residuary taxation. Residuary means a matter not enumerated in the Concurrent or State List within the applicable constitutional inquiry; it is not a power to ignore an existing State List entry merely because a subject is politically important.

The Constitution’s GST scheme includes a special allocation under Article 246A. Parliament and state legislatures have legislative power concerning GST, with Parliament’s exclusive power for supplies in the course of inter-state trade or commerce under the specified clause. Articles 269A and 279A address related inter-state and council arrangements.

This illustrates why an aspirant must read the Seventh Schedule together with special provisions. Saying that every taxation question is completely answered by one ordinary list mnemonic misses the GST framework. Identify whether the question concerns legislative competence, levy and collection, apportionment, or recommendations for coordination.

Pith and substance and colourable legislation

Where a law appears to touch more than one field, pith and substance asks about its true nature and dominant character. Incidental overlap with another field does not necessarily invalidate legislation whose substance lies within the enacting legislature’s competence. The doctrine helps a workable distribution avoid collapse whenever complex activities cross list boundaries.

Colourable legislation asks whether a legislature has, in substance, attempted something beyond its constitutional power while disguising it in a permitted form. The issue is legal competence, not simply whether the legislature acted with an unpopular political motive. A lawful objective cannot create a power the Constitution does not confer.

Hypothetical: a statute’s title uses a State List label, but its operative provisions are really directed at a subject exclusively assigned to Parliament. Courts examine the substance rather than accepting the label. Conversely, a valid state law is not necessarily invalid merely because its practical operation incidentally affects a Union field. Explain the dominant subject and degree of overlap before drawing a conclusion.

Articles 249 and 250: national interest and emergency

Article 249 permits Parliament to legislate on a State List matter when the Rajya Sabha passes the prescribed national-interest resolution by not less than two-thirds of members present and voting. The resolution operates for a specified period not exceeding one year and can be renewed by the prescribed process. Its special rationale is the states’ representation through the Council of States, not an ordinary Lok Sabha majority acting alone.

Article 250 enables parliamentary legislation on State List matters while a national emergency is in operation. The triggering condition is therefore different: an emergency rather than the Article 249 national-interest resolution. The constitutional treatment of the duration and continuation of laws must be read separately from the duration of the triggering event.

Under both arrangements, the relevant parliamentary law ceases to have effect, to the extent of the exceptional competence, after six months following the end of the relevant resolution or emergency authority, with protection for things already done or omitted. Do not confuse a one-year resolution period with a permanent transfer of a subject out of the State List.

Articles 252 and 253: state requests and treaty implementation

Article 252 applies when two or more state legislatures pass resolutions that it is desirable for Parliament to regulate a State List matter for those states. Other states may subsequently adopt the law by resolution. Once enacted through this route, amendment or repeal is through parliamentary legislation in the constitutional manner described, not unilateral repeal by the participating state legislature.

Article 253 concerns parliamentary legislation to implement treaties, agreements, conventions, and decisions made at international conferences, associations, or other bodies in its terms. It operates notwithstanding the preceding legislative-distribution provisions of the chapter. It is not dependent on every state first passing an Article 252 resolution.

These are different exceptions with different justifications: consensual common legislation requested by states, and national implementation of international commitments. In an objective question, identify the trigger. “Parliament can never legislate on a State List matter” is false, but so is “the Union can always legislate on any such matter without identifying a constitutional route.”

Article 254: concurrent-law repugnancy and the assent exception

Article 254 addresses inconsistency between relevant parliamentary and state laws in the Concurrent field. The general rule gives precedence to parliamentary law, with the state law void to the extent of the repugnancy in the circumstances specified. This is not a universal rule that every difference between any Union and state law automatically invokes Article 254.

Article 254(2) permits a state law reserved for the President’s consideration and receiving assent to prevail in that state over the earlier parliamentary or existing law in the specified concurrent-law situation. However, Parliament can subsequently enact legislation overriding, amending, varying, or repealing that state law. Presidential assent is therefore not a permanent constitutional shield against future parliamentary legislation.

Worked distinction: if the real issue is whether a legislature had power to enter the subject at all, begin with legislative competence. If both act within the Concurrent field and there is an irreconcilable inconsistency or relevant occupation of the field, repugnancy becomes central. A conflict analysis should identify the specific inconsistency rather than merely note that two laws discuss a related subject.

Administrative relations: autonomy and lawful coordination

Articles 256 and 257 address state compliance with parliamentary laws and the relationship between state executive power and Union executive functions, including directions in the terms of the provisions. Their existence shows that federalism includes coordination and obligations, not only separated legislative lists.

This does not reduce every state department to the Union’s unrestricted command. Identify the constitutional or legal basis, subject, and limits of a direction. Political disagreement does not itself demonstrate either a valid direction or a constitutional breakdown. The executive distribution must be studied with the legislative fields and relevant special provisions.

All-India Services also connect administration across levels: officers serve within a framework involving both Union and state institutions. Such mechanisms can support common standards and national integration while raising questions about accountability and autonomy. A good answer explains the tension and the legal design rather than treating integration as proof that federalism does not exist.

Fiscal federalism: power, resources, and dependence

Fiscal federalism concerns who can raise revenue, how revenues are shared, and which government carries expenditure responsibilities. A state may have substantial service-delivery duties but limited access to the most productive tax bases. This mismatch helps explain tax devolution, grants, borrowing rules, and intergovernmental negotiations.

Article 280 provides for a Finance Commission to recommend matters including distribution of specified tax proceeds and principles governing grants-in-aid. Its recommendations are not identical to the Union’s ordinary annual policy announcements. Distinguish constitutional tax sharing, grants, centrally sponsored programmes, and borrowing permission instead of treating every flow as the same type of assistance.

Article 293 is important for state borrowing, including the requirement of Union consent in the circumstances involving outstanding Union loans or guarantees specified there. Do not say that states never borrow, or that every borrowing is entirely independent of constitutional conditions. Fiscal autonomy depends on both the legal power to raise funds and the practical room to determine expenditure.

Cooperative and competitive federalism: mechanisms, not magic words

Cooperative federalism refers to coordination among governments in pursuing shared goals. Examples include intergovernmental consultation, joint implementation, and institutionally structured negotiation. Competitive federalism refers to governments seeking improved outcomes or investment through comparison and policy competition. The terms describe modes of interaction, not separate Parts of the Constitution.

The Inter-State Council under Article 263 can support discussion and coordination in the circumstances described. The GST Council under Article 279A provides a specific constitutional forum. In Mohit Minerals (2022), the Supreme Court explained that the Council’s recommendations are not binding on the Union and states in the sense argued in that case; their significance includes cooperative decision-making and persuasive value within the constitutional scheme.

Neither cooperation nor competition automatically guarantees fairness. Cooperation can become coercive if one level has overwhelming fiscal leverage; competition can encourage innovation or produce a race to lower standards. A serious mains answer identifies the institution, incentives, evidence, and limits rather than merely recommending “more cooperative federalism” as an unexplained conclusion.

Important qualification: the ruling about the Council’s constitutional recommendations should not be read as permission to ignore every statutory condition. Where the GST Acts require a Council recommendation for a particular exercise of delegated notification power, that statutory requirement remains relevant. Distinguish the legislature’s primary law-making competence from a government’s exercise of a specific power under an enacted statute.

Federal disputes, Article 356, and S.R. Bommai

Article 131 gives the Supreme Court original jurisdiction in specified disputes between governments involving the existence or extent of a legal right. Not every political disagreement between ministers is therefore an Article 131 case. Article 262 separately permits parliamentary arrangements for inter-state water disputes, including exclusion of court jurisdiction in the terms of legislation made under it.

Article 356 permits President’s Rule when the government of a state cannot be carried on in accordance with the Constitution, subject to the constitutional process. It is not a general device to replace a state government because the Union disagrees with its policies or because a Governor prefers another party.

S.R. Bommai (1994) is central to judicial review of Article 356, the importance of a floor test where majority is disputed, and recognition of federalism and secularism as basic features. A temporary central intervention should not be confused with permanent abolition of states’ constitutional status. Explain the safeguards and review mechanism, not only the existence of the emergency power.

Worked analysis: state reorganisation and state autonomy

Hypothetical: Parliament proposes to alter a state boundary. Article 3 requires the bill’s introduction on the President’s recommendation and reference to the affected state legislature for its views in the circumstances specified. The state legislature’s consent is not the same legal requirement as the opportunity to express its views.

This is evidence of a strong Union in territorial organisation, but it does not prove that states have no constitutionally protected spheres in ordinary legislation or governance. Territorial reorganisation, legislative autonomy, fiscal arrangements, and emergency intervention are separate dimensions. A correct federalism answer can recognise central strength in one dimension while explaining state autonomy in another.

In a 250-word response, organise the analysis around distribution, coordination, and safeguards. Use Article 246 for the distribution, Articles 249–253 for specified exceptions, and S.R. Bommai for restraint on misuse of intervention. The conclusion should explain how unity is maintained through constitutionally structured diversity rather than through an assertion that one level is always superior on every subject.