UPSC MainsPOLITICAL-SCIENCE-INTERANATIONAL-RELATIONS-PAPER-I201510 Marks150 Words
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Q19.

Cooperative Federalism in India

How to Approach

This question requires a nuanced understanding of Cooperative Federalism in the Indian context. The answer should define cooperative federalism, trace its evolution, highlight its key features, and discuss the challenges it faces. Structure the answer by first defining the concept, then outlining its historical context and constitutional basis, followed by examples of cooperative mechanisms, and finally, addressing the current challenges and the way forward. Focus on recent developments and government initiatives.

Model Answer

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Introduction

Cooperative Federalism, a concept gaining prominence in Indian governance, signifies a horizontal relationship between the Union and the States, and amongst the States themselves. It moves beyond the strictly defined division of powers outlined in the Constitution, emphasizing collaboration and consensus-building. While the Indian Constitution inherently leans towards a quasi-federal structure with a strong centre, the spirit of cooperative federalism has been increasingly invoked, particularly since the 1990s with economic liberalization and the rise of coalition governments. Recent examples like the GST Council and the NITI Aayog demonstrate a conscious effort to foster this collaborative approach, though tensions remain.

Historical Evolution and Constitutional Basis

The initial phase of Indian federalism (1950-1990) was characterized by a ‘coercive federalism’ where the Centre exerted significant control over the States, particularly through financial mechanisms like planning and resource allocation. The 1990s witnessed a shift towards cooperative federalism due to:

  • Political factors: Rise of regional parties and coalition governments at the Centre necessitated consensus-building with States.
  • Economic reforms: Liberalization required greater State participation in economic policy implementation.
  • Constitutional provisions: Articles 268, 269, 270, 275, 282 provide for fiscal federalism and cooperative mechanisms. The Inter-State Council (Article 263) is a constitutional body intended to promote coordination.

Mechanisms of Cooperative Federalism

Several institutional mechanisms promote cooperative federalism in India:

  • GST Council: Established under Article 246A, it exemplifies cooperative federalism by requiring consensus on GST rates and policies.
  • NITI Aayog: Replaced the Planning Commission in 2015, aiming to foster a collaborative approach to policy-making with States as equal partners.
  • Inter-State Council: Though underutilized for a long time, it has been revived to address inter-state disputes and promote coordination.
  • Zonal Councils: Established under the States Reorganisation Act, 1956, these councils address issues of common interest among States in a particular zone.
  • National Development Council (NDC): Though now defunct, it played a crucial role in coordinating development plans between the Centre and States.

Challenges to Cooperative Federalism

Despite the progress, cooperative federalism faces several challenges:

  • Financial imbalances: States often depend heavily on central transfers, leading to a power imbalance. The 15th Finance Commission (2020-2026) recommendations have sparked debate regarding the criteria for devolution.
  • Centre-State disputes: Disagreements over issues like resource sharing, environmental clearances, and implementation of central schemes are common.
  • Governor’s role: The Governor’s role as an intermediary between the Centre and States is often controversial, with accusations of partisan behavior.
  • Weakening of inter-state council: The Inter-State Council has not met frequently enough to effectively address inter-state disputes.
  • Centralizing tendencies: Certain policies and legislative actions by the Centre are perceived as encroaching upon State autonomy.

Recent Developments

The implementation of the National Education Policy (NEP) 2020 and the Agnipath scheme have seen varying degrees of state cooperation. While some states have embraced NEP, others have expressed reservations. Similarly, the Agnipath scheme faced resistance from several states concerned about recruitment and employment. These instances highlight the ongoing tension between central initiatives and state autonomy.

Feature Coercive Federalism Cooperative Federalism
Centre-State Relationship Dominant Centre, Subordinate States Collaborative, Consensus-based
Financial Devolution Centre controls resource allocation Greater State autonomy in financial matters
Policy Making Centre-led, States have limited say Joint policy formulation, State participation

Conclusion

Cooperative federalism remains an evolving concept in India. While significant strides have been made in fostering collaboration between the Centre and States, challenges related to financial imbalances, inter-state disputes, and the role of constitutional functionaries persist. Strengthening institutional mechanisms like the Inter-State Council, ensuring greater financial autonomy for States, and promoting a spirit of mutual respect and dialogue are crucial for realizing the full potential of cooperative federalism and ensuring a more harmonious and effective governance structure in India.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Quasi-Federalism
A system where the Constitution establishes a federal structure, but the central government holds significant power and authority, tilting the balance away from a purely federal model. India’s Constitution is often described as quasi-federal due to the strong Centre.
Fiscal Federalism
A system that defines the financial relations between different levels of government (Centre, State, and Local). It deals with the division of tax revenues, expenditure responsibilities, and transfer of funds between these levels.

Key Statistics

As of 2023-24, States’ share in the divisible pool of central taxes is 41% as recommended by the 15th Finance Commission (reduced from 42% recommended by the 14th Finance Commission).

Source: Ministry of Finance, Government of India

According to the Reserve Bank of India (RBI), State governments accounted for approximately 58% of total government expenditure in India in 2022-23.

Source: Reserve Bank of India (RBI) – Handbook of Statistics on Indian States (Knowledge cutoff 2024)

Examples

One Nation One Tax (GST)

The implementation of the Goods and Services Tax (GST) in 2017 is a prime example of cooperative federalism. The GST Council, comprising representatives from the Centre and all States, makes decisions on GST rates and policies through consensus.

Frequently Asked Questions

Is India truly a federal country?

India has a federal structure, but it’s often described as ‘quasi-federal’ due to the strong Centre. While States have significant powers, the Centre retains overriding authority in certain areas, particularly concerning national security and economic policy.

Topics Covered

Indian PolityGovernanceFederalismCentre-State RelationsConstitutionIndian Politics