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MPPSC MainsGeneral Studies Paper IIIndian PolityPractice question

Federalism and Coalition Politics in India

What is federalism? Do you agree with the view that federalism flourishes under coalition politics? Suggest solutions to strengthen the Indian federal structure.

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How to approach

Define federalism with relevant constitutional provisions and landmark judicial recognition. Then, critically evaluate the role of coalition politics as a catalyst for federalism. Finally, provide practical solutions spanning fiscal, institutional, and cooperative mechanisms to strengthen the Indian federal structure.

Model answer

345 words

Introduction

Federalism is a dual-polity system featuring a constitutional division of legislative, executive, and financial powers between the Union and the States under Article 246 and the Seventh Schedule. Reaffirmed as an inviolable component of the 'Basic Structure' of the Constitution in the landmark S.R. Bommai case (1994), Indian federalism aims to balance national unity with regional autonomy.

Coalition Politics as a Catalyst for Federalism

The advent of multi-party coalition governments, particularly post-1989, significantly altered India's political landscape, transitioning the polity from centralized federalism to a bargaining and cooperative model:

  • Curbing Unilateralism: Dependence on regional allies drastically reduced the arbitrary dismissal of state governments under Article 356 (President's Rule), reinforcing stability for states.
  • Elevation of Regional Agendas: Regional parties gained substantial bargaining leverage at the Centre, ensuring that state-specific socio-economic priorities entered national policy formulation.
  • Transition to Cooperative Negotiation: Coalition imperatives necessitated consensus-building, thereby compelling the Union to consult states and fostering both cooperative and competitive federalism.

Solutions to Strengthen the Indian Federal Structure

To deepen federal governance and address persistent frictions between the Union and the States, targeted institutional and fiscal measures are required:

  • Enhancing Fiscal Federalism: Uphold state tax autonomy under Article 246A in light of the Supreme Court's ruling in Union of India v. Mohit Minerals (2022), which held that GST Council recommendations are recommendatory and non-binding. Ensure transparent and timely tax devolution under Article 280 to help states maintain fiscal sustainability, as seen in Madhya Pradesh managing its fiscal deficit at 4.7% of GSDP in the FY 2025-26 Budget.
  • Revitalizing Inter-State Institutions: Institutionalize the Inter-State Council under Article 263 as a permanent, regularly convening consultative body for preemptive dispute resolution and policy harmonisation.
  • Collaborative Development and Resource Sharing: Replicate cooperative tripartite models like the Ken-Betwa Link Project (Centre, Madhya Pradesh, and Uttar Pradesh) to constructively resolve inter-state resource disputes and tackle regional imbalances.

Conclusion

While coalition politics historically created operational space for decentralized governance, long-term federal resilience requires robust institutionalization rather than political contingency. Deepening fiscal devolution and regularizing consultative forums will ensure that Indian federalism remains genuinely cooperative and structurally resilient.

Key facts to remember

definition
Federalism

A dual-polity system of governance featuring a constitutionally demarcated division of powers between the central authority and constituent regional units.

case study
S.R. Bommai v. Union of India (1994)

A nine-judge Supreme Court bench held that federalism is part of the basic structure of the Constitution and subjected the Union's power to impose President's Rule under Article 356 to strict judicial review.

case study
Union of India v. Mohit Minerals (2022)

The Supreme Court clarified that recommendations of the GST Council are not legally binding on either the Union or the states, thereby safeguarding states' fiscal legislative autonomy under Article 246A.

example
Ken-Betwa Link Project

A river-interlinking initiative undertaken through a tripartite agreement between the Central Government, Madhya Pradesh, and Uttar Pradesh, serving as a template for cooperative federal resource management.

statistic

Madhya Pradesh projected its fiscal deficit at 4.7% of Gross State Domestic Product (GSDP) in its FY 2025-26 state budget.

— Madhya Pradesh State Budget FY 2025-26

Frequently asked questions

How did coalition politics reduce the misuse of Article 356?

Because national governing coalitions depended on the legislative support of regional parties, unilateral central intervention against state governments became politically unsustainable, leading to a marked decline in arbitrary dismissals.

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