The term federalism originated from the Latin word “foedus”, which means

treaty or agreement. Therefore, a federation is a new state policy

combining the principle of centralisation and power of non-centralised

units.

India comprises different states with diverse cultures where adaptation of

federalism is pivotal. The idea of Cooperative Federalism in India enhances

the centre-state relationship as well as relationships between states and

local governments.

Federalism is a system of government in which powers have been divided

between the centre and its constituent parts such as states or provinces.

What Is Cooperative Federalism in India?

Cooperative Federalism in India reflects an ideology of a stable

relationship between the centre and other units. It guides all the governing

bodies to come forward and cooperate to resolve common social, political,

economic and civic problems.

Background of Cooperative Federalism in India

• This idea of federalism may be something new to the world, but it existed in
India since ancient times. The central power used to adapt a non-intervention
policy in local matters due to the diversity of this subcontinent.
• However, tendencies to centralise power was partly evident during some
Mughal monarch rule. But after the Revolt of 1857, the British Government
terminated its intervention policy.
 • The origin of cooperative federalism in modern India was rooted in the
Regulating Act of 1773. Herein, the Crown rule of England supervised the East
India Company and left the governing power to the local government.
• The Government of India Act of 1919 anticipated a dual government system
called ‘dyarchy’. According to this, the power will be divided between the
hands of a British governor and local government. The Government of India Act
of 1935 was made to attain this dual government system.
• The responsibility of the constitutional framework from 1946 to 1950 lied upon
the eminent leaders of Indian Independence. They formed a Constituent
Assembly to frame the draft of India’s constitution. They aimed to build a
political idea to unite a disintegrated and subdivided society. The Assembly’s
members, therefore, opted for an intense centre with residual power.
• The principle of centralising power became prominent during the 1980s.
However, the distribution of power from union to state and state to panchayat
was later escalated. This is how India’s cooperative federalism met the
constitution’s objectives like unity, social justice, and democracy.

Cooperative Federalism in India: Articles of the

Constitution

The Constitution makers endeavoured to create synergistic governance by

distributing essential powers and responsibilities to the Centre and states.

Nevertheless, they vested power on the decision of Parliament and

judgement of the Supreme Court. Thus, the Centre is provided with more

specific powers keeping the essence of Cooperative Federalism.

7th Schedule

The 7th Schedule of Indian Constitution divided all the power between

central, state and concurrent lists giving some residual powers to the

Centre. Article 249(5) authorises the Indian parliament to amend those

subjects of the state list. However, the resolution must pass an in-state

council with a 2/3 majority to make a change.

All India Services

All India Services caters for a unified judicial system to establish the Centre

and state laws. Article 312 of the Indian constitution manifests this provision

that works on integration under cooperative federalism in India. Article 263

talks about an inter-state council to consider common interest factors

between the states and the Centre.

Full Faith and Credit Clause

Article 261 emphasises full faith and credit to all records, public acts and

judicial proceedings of the Union and states throughout the Indian territory.

This step encourages faith and cooperation between the Centre and

states.

Zonal Council

There are 5 zonal councils for each zone like central, north, south, east and

west to promote coordination. These are designed under the State

Reorganization Act of 1956 while the northeast zonal council is made under

a distinct act.
NITI Aayog

The Planning Commission was replaced with NITI Aayog to attain more

cooperative federalism. This organisation advises the Centre and states to

look after the discussion and coordination between these 2 powers.

GST

101st Amendment Act of Indian Constitution passed unified taxation called

GST. It is a unique tax that manufacturers impose directly on the consumer

which obtains a “one nation, one tax” goal.

Several organisations have tried and failed to settle centre-state feuds

making cooperative federalism in India difficult. Some ways to strengthen

Cooperative Federalism can be states’ independence on making laws,

fiscal support from the centre and decentralisation of power.

This article covers all the necessary points on this topic to help aspirants in

their UPSC and IAS exam. Nevertheless, they must not pass over any

current affairs related to this that can amplify their preparation.

Cooperative federalism is a concept of federalism in which national, state, and local

governments increasingly interact cooperatively and collectively to solve common
problems.

• The Indian model of federalism is predominantly ‘cooperative’ as laid down by

the Supreme Court in State of Rajasthan v. Union of India,1977.
• The most essential precondition for the effective functioning of cooperative
federalism is robust institutions and mechanisms for promoting
intergovernmental relations.
 • The Constitution of India does not explicitly contain the phrase ‘cooperative
federalism,’ but the functioning of the Constitution implicitly resulted in
‘cooperative federalism.’
• While India does not entirely mimic a pure federal system, it follows a quasi-
federal system of governance. And for a smooth functioning federation, there
needs to be cooperation and collaboration between the federal units.
• Sarkaria Commission Report (1988) on Centre-state relations stated that by
the middle of the twentieth century, federalism had come to be understood as
a dynamic process of cooperation and shared action between two or more
levels of government.

Need for Cooperative Federalism in India

India takes pride in describing itself as the world's largest democracy, and this
democracy is significantly meaningful because it is encapsulated in a federal
structure.

• Promoting social justice: While democracy represents the majority opinion,

federalism accommodates and links it to the voice of the minority, lending a
flavor of social justice.
• Ensuring accommodation: Cooperative Federalism, along with cultural and
ethnic pluralism, has given the country's political system great flexibility and,
therefore, the capacity to withstand stress through accommodation.
• Ensuring stability and growth: In the turbulent circumstances prevailing at
that time and in the wake of India's partition, only a cooperative federal setup
could ensure the needs of security, defense, urge for a welfare state, and
meeting the situation of economic crisis.
• Contemporary issues: Also, the current trends ( like Covid-19) emphasize
cooperation and coordination rather than the demarcation of powers between
different levels of government.

What are the constitutional provisions which

uphold the spirit of Cooperative Federalism?
Article Provision
Representation of states in the President’s election where the
Article 54
members of legislative assemblies are part of the Electoral college.
 Provides for the Council of States, representing states in the union
Article 80
legislative process.

It demarcates the subject matters upon which the Centre and states
Article 246, may enact laws.
read with
Schedule VII For the matters listed in the Concurrent List, the Centre and the
state may legislate.

It allows the Parliament to adjudicate inter-state water disputes.

Further, In T.N. Cauvery Sangam v. Union of India(1990), the
Article 262
Supreme Court clarified that the Parliament could appoint a Tribunal
for such adjudication.
It provides for the establishment of Inter-State Councils, which are
Article 263 empowered to investigate those matters that interest both the
Centre and states.

What are the recent measures to promote

Cooperative Federalism in India?
In recent years, several measures have been taken by the Indian government to
promote cooperative federalism. Here are some examples:

NITI Aayog:

• NITI Aayog has been constituted to actualize the important goal of

cooperative federalism and to enable good governance in India.
• Niti Aayog’s Governing Council comprises Chief Ministers of states and
Administrators or Lieutenant Governors of Union Territories.
• NITI Aayog acts as the quintessential platform for the Government of India by
bringing States together as ‘Team India’ to work towards the national
development agenda.
• It also established models and programmes for the development of
infrastructure and to reignite and establish private-public partnership, such as
the Centre-state partnership model Development Support Services to States
and Union Territories (DSSS) and the Sustainable Action for Transforming
Human Capital (SATH) programme.
• Other initiatives include Policy support and capacity development of State/UT
functionaries and Launching of the Aspirational Districts Programme for
development of backward districts.
Goods and Services Tax (GST):

• The introduction of the GST in 2017 is considered one of the most significant
steps towards promoting cooperative federalism in India.
• It is a unified tax system that replaced various state-level taxes, creating a
common market across the country.
• The GST Council, consisting of representatives from the central and state
governments, is responsible for making decisions related to the tax system.
• This has ensured a high degree of collaboration and cooperation between the
central and state governments.

Centrally Sponsored Schemes:

• Centrally Sponsored Schemes (CSS) are initiatives implemented by the

central government in partnership with the state governments.
• Under CSS, the central government provides a significant portion of the
funding for the scheme, while the state government is required to contribute
the rest.
• The central government also provides guidelines and standards for the
implementation of the scheme, while the state government has the flexibility
to adapt the scheme to local needs and priorities.
• According to a report by the Ministry of Finance, there are currently 28 CSS in
operation, covering a wide range of areas, including rural development,
education, health, and skill development.

What are the factors that hinder Cooperative

Federalism?
• Over-centralization: The Centre enjoys more power than the states, and the
most important subjects of the country are listed in the Union List. This often
results in conflicts of interest between the Centre and states, as the Centre
imposes rules and regulations that many states find discriminatory. For
example:
o Article 356 related to the imposition of the President’s Rule in a state
which is frequently prone to misuse by the Centre.
• Limitations of Inter-state Council: While Article 263 allows the Inter-State
Council to make recommendations, It does not empower it to enforce or
implement them.
• Regionalism: A strong feeling of regionalism makes it difficult for the
Government to ensure cooperation because regionalism gives rise to
 secessionist forces, which threaten the very existence and identity of the
country.
• Uniform approach: The Centre, while framing policies, fails to take into
account the heterogeneity of India. The one size fits all approach doesn’t work
in a diverse country like India. This makes cooperation between the centre
and the state very difficult.
• Fiscal federalism: One of the major challenges is the unequal distribution of
financial resources between the Centre and states. The lack of adequate
financial resources can hamper the ability of states to deliver essential
services and implement development programs.
• Administrative challenges: This includes issues such as inadequate staffing
and training, lack of communication and coordination, and bureaucratic red
tape.

What steps could help promote cooperative

federalism in India?
Sarkaria and Punchhi Commission

The Sarkaria Commission (1987) and Punchhi Commission (2010) gave several
recommendations to cultivate cooperative federalism and suggested actionable
steps. Some of them include

• The office of the Governor should be apolitical, and the terms of his removal
should be altered.
• Restricting the use of the President’s rule under Article 356 to prevent
excessive misuse by the Centre.
• Extending the mandate of the Inter-State Council beyond advice and
recommendations.
• Laying down guidelines to prevent misuse of the President’s veto of the
legislation.
• Including states when the Centre enters into any international agreements.

General recommendations

• Strengthening Inter-Governmental mechanisms: Utilizing the constitutional

and statutory institutions set up adequately to resolve the conflicts between
the union and the state government and further the welfare of the people.
• Promoting fiscal federalism: Promoting fiscal federalism can help in
promoting greater fiscal autonomy for state governments, which can in turn
 help in promoting greater coordination and cooperation between the central
government and state governments.
• Strengthening institutional frameworks: This can be achieved by enhancing
the role of institutions such as the NITI Aayog, the Inter-State Council, and the
Finance Commission.
• Regular Inter-Governmental meetings: Regular meetings between the central
government and the state governments can help in sharing information,
discussing issues of mutual concern, and arriving at a consensus on policy
matters.
• Avoiding the ‘One size fits all’ approach: This is crucial for promoting
cooperative federalism because it recognizes the diversity of the States in
terms of their socio-economic, political, and cultural contexts.
• Empowering local governments: Empowering local governments can help
promote cooperative federalism by giving them greater decision-making
powers and financial resources.

How has Cooperative Federalism helped deal with

the COVID-19-induced pandemic in India?
Intergovernmental cooperation is key to effectively responding to any crisis or
disaster like the recent Covid-19 pandemic.

• Health is a subject in the State List, and infectious disease control is a

subject in the Concurrent list, and combating the Covid-19 pandemic
necessitated a joint effort of the Union and the state governments.
• The Epidemic Diseases Act 1897 and Disaster Management Act 2005
allowed joint efforts between the central and state governments to control the
spread of infectious diseases.
• The National Disaster Management Authority and State Disaster
Management Authorities worked together to achieve the objectives of the DM
Act.
• The virtual conferences between the Prime Minister and the Chief Ministers
showed a spirit of cooperation at all levels of government.
• The collaborative efforts towards Covid-19 vaccination have been praised by
the UN and WHO. Overall, the pandemic has renewed cooperative federalism
in India and promises collaborative governance in the future.