Introduction

India’s federal system is about 76 years old, as compared to the federal systems in other countries like the United States, Switzerland or Canada, which are more than two centuries old. Yet, it is recognised as the most complex of a kind for a critically diverse population in a federal framework. The national government specifically deals with vast issues like national defence, foreign relations, commerce, and currency. The state governments, on the other hand, have more roles than the federal government, encompassing aspects such as education, public safety, standards and fixing the infrastructure.  

The federalism in India is notable for its quasi-federal nature of government. A quasi-federal government is often characterised by a division of power between the centre and the states, where the centre is relatively more powerful than the states. Basically, there is a combination of a central and state government of a country, but unlike the federal government, the central government has more influence over the state government. The state government can make decisions. However, the central government has the authority to intervene within it. 

What is Federalism

Federalism is the structure of government, where the powers are shared between two kinds of governments. One is the Central government, and the other is smaller regional governments. It indicates the agreement between different levels of government to work together while still maintaining independence in their own spheres. In a federation, the national government and the regional government each have their own areas of authority as outlined in the Constitution.

Evolution of Federalism

Originating from the Latin word ‘foedus’ meaning ‘treaty’ or ‘covenant’ impacting the sovereign existence of different constituents of a union, the term federalism was nationalised in the late eighteenth century in the ‘Greek city-states’ of classical Greece. Earlier states used the confederacy agreement to tie up between the most powerful state and other smaller or localised states to create a balance between the power, authority and mutual dependence between the sovereign states. 

Renowned academicians like K.C Wheare and A.V Dicey ascribe the meaning of federalism in their testaments as a way in which powers are bifurcated between central government and regional government for employing their powers within their own independent spheres. Also, in a completely developed federal system, powers are distributed among different governmental bodies, each with limited but equal powers. In the constitutional premise, the courts have the supreme authority to uphold and interpret the values of the Constitution in a federation. 

From the late 1700s to 1860s, the power struggle between the national government and the states in the United States prevailed at large. The first American Union, formed in 1781, was a confederation with a weak central government. However, the second American Union, established in 1789, created a stronger federal government, preserving state sovereignty. The system evolved through various constitutional amendments during the Civil War period (1861-65), solidifying modern federalism.

The key conflict between federal authority and sovereign states came up in the creation of the National Bank, where the states came up as resistance. The decision of Alexander Hamilton, one of the prominent secretaries of the Congress federal government, to set up the first federal bank of the United States faced opposition from the Republicans. Subsequently, in the McCulloch vs. Maryland (1819) case, the institution of the ‘Second Bank of the United States received massive objections for imposing tax on the federal bank encroaching on state jurisdiction. 

The Supreme Court bench of Sir John Marshall ruled that the authority to create the National Bank was within the powers of the national government, and the state’s tax protocol could not be enforced on the federal government. This asserted the central government’s supremacy over state interference in federal activities. Further, in Gibbons vs. Ogden (1824), the Supreme Court reinforced federal authority over state laws, particularly in matters of commerce, emphasising the national government’s power over the states. Overall, the scope of encroachment of national powers began after the Civil War, as it instigated the state to turn away from powers to save their own interests. 

Gradually, federal principles were implemented in the Indian Constitution to maintain a balance of power so that each tier of government operates within its designated domain. Through many trials and errors, India has now evolved through many amendments altogether to escalate intergovernmental relations.

Classification of Federalism

Federalism can be divided into the following  categories:-

Dual Federalism

In this kind of federalism, the national government and the state governments can exist with distinct powers to operate independently from each other. This demonstrates that certain responsibilities and decision-making freedoms are bestowed upon the federal government, such as managing foreign affairs, national defence, and trade. Meanwhile, states with sovereign power have more authority over other areas of the state’s internal matters, such as education, licensing, and public policy. 

Cooperative Federalism

Cooperative federalism refers to a system where the federal government and state governments cooperate and work together towards achieving common goals. This approach allows for greater flexibility and innovation at the state level while still working towards overarching national objectives.

Holding Together Federalism

Holding Together Federalism is a political system in which a group of federal states come together to form a single federal entity. In that case, each member of the federation retains a significant degree of autonomy and authority. It aims to maintain units while maintaining diversity and is characterised by centralised power or decentralised governance. For example, India, Spain and Belgium have ‘holding together federalism’ in their political system.

New Federalism

In this concept of New federalism, it is possible to identify the concept that focuses on the decentralisation of powers of the federal government and the states and municipalities. It enhances a culture of devolution that supports the policymaking of a state instead of the federal government. The main proponents of this approach show that the results are more responsive in this governance since solutions to any issue can be made from the level closest to the people.