Federal System under the Indian Constitution

The nature of the federal system introduced by the Indian Constitution has been elaborated in detail earlier (Chapter 5). To summarize its essential features: although there is a strong unitary bias and several exceptions from the traditional federal model, the Constitution establishes a federal system as the basic structure of governance in India.

The Union comprises 28 States, and both the Union and the States derive their authority from the Constitution, which divides all powers—legislative, executive, and financial—between them.

Note: The judiciary is not divided; a common judiciary exists for both the Union and the States (Chapter 22).

This arrangement ensures that States are not mere delegates of the Union. While there are mechanisms for Union control over States in certain matters, States remain autonomous within their own spheres, as allocated by the Constitution. Both the Union and the States are equally subject to constitutional limitations, such as the restriction of legislative powers by Fundamental Rights.

Sovereignty and Limitations

Neither the Union Legislature (Parliament) nor a State Legislature is sovereign in the absolute legal sense. Their powers are restricted by the Constitution, including:

• The distribution of legislative powers between Union and States

• Fundamental Rights

• Specific provisions such as:

  • Article 276(2): Limits State taxation on professions

  • Article 303: Limits Parliament and State legislatures regarding trade and commerce

If any constitutional limitations are violated, the courts can declare the law invalid.