What makes India a federal country?

Our constitution has declared India, a Union of States. The Indian Union is based on the principles of federalism, as a two tier system initially (at the central and the state level) but later in 1992, as a three- tier system, with the addition of a third tier – the local government.

Powers are divided into three levels with the union list, the state list and the concurrent list.

• The Union list
  
  • It has 97 subjects.
  • It includes Defence, Currency, Foreign Affairs. These subjects are of national importance – hence the union government makes rules for them.
    
• The State list
  
  • It has 66 subjects
  • It includes Police, Agriculture, Trade and Commerce. These subjects are allotted to the state governments and the state governments can legislate them.
    
• The Concurrent list
  
  • It has 47 subjects that are of common interest between the Centre and the States.
  • Education, Forest, Marriage etc. Both the Centre and States can make laws but the Centre always has an upper hand.
    • Residuary subjects– Subjects which are not present in any of the lists mentioned in the constitution are known as residuary subjects. The Union government has the powers to make laws on residuary subjects.
      
      Such subjects include- Computer Software, e-Commerce, etc. These subjects came into being after the constitution was created.
      
    • Special provisions for certain states– Jammu and Kashmir – Article 370 (it has now been abolished)
      
    • Separate constitution for J&K Many provisions of the Indian constitution are not applicable to J&K. In this state, no rule can be passed without the approval of the state assembly. Indians who are not permanent residents of this state cannot buy land or house there. This particular law is applicable to some other states as well e.g. Himachal Pradesh.
      
    • Union territories in India
      • 28 states
      • 8 Union Territories
      • There are some units of the Indian union which enjoy very little power
      • These are areas which were too small to become an independent state, but could not be merged with another state either.
      • Lakshadweep, Andaman and Nicobar islands, Delhi, Chandigarh, Ladakh etc.
      • The Union government has special powers in running these areas
        
    • Sharing of power
      • The sharing of power between the Union government and the State government is basic to the structure of the Constitution
      • It is not easy to make changes to this power sharing arrangement
      • The Parliament cannot change this arrangement on its own
      • Any change to it has to be first passed by both the Houses of Parliament with at least two-thirds majority.
      • Then it has to be ratified by the legislatures of at least half of the states.
        
    • Judiciary’s role in implementation
      
      • The Judiciary oversees the implementation of constitutional provisions and procedures.
      • In case of any dispute about the division of powers, the High Courts and the Supreme Court take a decision.
      • The Union and State governments have the power to raise resources by levying taxes in order to carry on the government and responsibilities assigned to them.