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India’s federalism is in need of a structural reset Premium

17 Feb 2026
2 min

Federal Structure and Centralisation in India

The Constitution of India, while inherently federal, was designed with a strong centralising bias, influenced heavily by the Government of India Act, 1935. The post-Partition context, integration of numerous princely states, and fears of disunity led to this centralised framework.

Historical Context and Centralisation

  • K. Santhanam emphasized that effective authority lies closer to local knowledge and accountability.
  • Excessive centralisation leads to inefficiency and fragility.
  • Over time, centralisation was reinforced through a dominant national party culture, diminishing state autonomy.

Judicial Perspective

  • The Supreme Court in S.R. Bommai vs Union of India (1994) affirmed federalism as part of the Constitution’s Basic Structure.
  • States should not be seen as mere appendages of the Centre; they are supreme within their domains.

Decentralisation and State Autonomy

Decentralisation allows for tailored policy-making that accommodates regional diversity.

  • Examples of successful state-led programs include: 
    1. Tamil Nadu’s noon meal scheme
    2. Kerala’s public health and literacy achievements
    3. Maharashtra’s employment guarantee initiative
  • Centralised policy-making often suppresses innovation and diversity.

Challenges with Centralisation

  • States are often perceived as lacking capacity, justifying Union intervention, which in turn stunts state development.
  • The centralised model has struggled to deliver on universal access, quality, equity, and competitiveness.
  • There is a need to recalibrate the balance of power between the Union and States.

Tamil Nadu's Perspective

C.N. Annadurai and M. Karunanidhi advocated for strong state autonomy and federalism at the Centre.

  • The 1969 Rajamannar Committee Report highlighted the need for balanced federal relations.
  • Successive commissions like Sarkaria and Punchhi also noted the need for rebalancing without major structural reforms.

Current Initiatives

The Government of Tamil Nadu constituted a High-Level Committee on Union-State Relations in 2025 under Justice Kurian Joseph to address contemporary federal challenges.

  • The Committee's report, submitted in 2026, covers issues like the role of Governors, language policy, and Goods and Services Tax.

The report aims to provoke informed debate and recalibrate the Union-State relationship, promoting a focused Union and trusted States.

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Goods and Services Tax (GST)

A comprehensive indirect tax levied on the supply of goods and services in India. It has subsumed multiple indirect taxes, aiming to create a unified national market and simplify tax administration.

Punchhi Commission

A commission established in 2007 by the Indian government to review the working of the existing arrangements between the Union and the States and to recommend steps to ensure that the constitutional framework promotes the effective functioning of the federal system.

Sarkaria Commission

A commission established in 1983 by the Indian government to examine the central-state relationship and recommend measures to improve it, generally favoring a balanced federalism but not advocating for major structural overhaul.

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