Union vs. States: A Battle for Power or a Partnership for Development? | UPSC | MPPSC | Exams 2026 Special Report

Union vs. States: A Battle for Power or a Partnership for Development?

UPSC | MPPSC | Exams 2026 Special Report

Indian Federalism is no longer just a chapter in a constitutional textbook—it has become the biggest debate in politics, economy, administration, and development models.

Is the Central Government becoming too powerful? Is State autonomy shrinking? Or is it all moving towards a "Team India" model? These questions make Union-State relations a high-scoring topic for 2026 exams.

1. What Does the Constitution Say? (Static Polity)

The Indian Constitution has adopted a "Federal System with Unitary Bias."

Basis	Description
Article 1	India is a Union of States
7th Schedule	Union, State, and Concurrent Lists
Article 246	Division of Legislative Powers
Article 356	President’s Rule
Article 263	Inter-State Council

2. Why is Conflict Rising? (Current Relevance)

Governor vs. State Government: Friction over withholding bills and summoning assembly sessions.
GST & Fiscal Federalism: Reduction in states' tax autonomy and compensation disputes.
Use of Central Agencies: State objections to CBI, ED, and NIA investigations (Withdrawal of General Consent).
Central Schemes: "One Nation" policies vs. regional diversity in subjects like Health and Agriculture.

3. Examples of Cooperation (Cooperative Federalism)

GST Council: A unique model of federal decision-making.
NITI Aayog: A collaborative platform replacing the Planning Commission.
Disaster Management: Joint efforts during COVID-19.
Jal Jeevan Mission: Shared financing and implementation for social welfare.

4. Fiscal Federalism (Exam Focus)

Balancing resources between the Center and States remains the most challenging front.

Finance Commission: Vertical and horizontal devolution of taxes.
Grants-in-aid: Financial assistance under Article 275 for weaker states.
CSS: Conditions imposed on states through Centrally Sponsored Schemes.

5. Role of the Supreme Court

The Supreme Court acts as the guardian of federalism:

1. S.R. Bommai Case (1994): Placed limits on the misuse of Article 356.
2. Delhi Dispute: Clarified the powers of the LG vs. the Chief Minister.
3. Judicial Review: Ensuring the federal balance is not tilted unconstitutionally.

6. How is it Asked in Exams?

Mains GS Paper 2: "Is Indian federalism cooperative or confrontational? Analyze."

Interview: "If you were a Chief Minister in conflict with the Center over funds, what would be your approach?"

7. The Way Forward

To strengthen federalism, the Inter-State Council must be revitalized. Ensuring the political neutrality of the Governor's office and consensus-based decisions in the GST Council will help realize the spirit of "Team India."

            Conclusion: "Indian federalism is not a conflict, but a continuous process of balancing—where a strong Center and empowered States together build a 'New India'."
        