Topic: Cooperative and Competitive Federalism in India
Chapter 1: Introduction:
The term ‘federalism’ refers to the constitutionally allocated distribution of powers between two
or more levels of government in the modern nation-state system, one, at the national level and
the other, at the provincial, state or local level. The most salient aspect of a federal form of
government is that the governments at both the national and the state level function in their
respective jurisdictions with considerable independence from one another. Some of the notable
federal polities in the world are the United States (US), Canada, Switzerland, Australia and India.
India is a quasi-federal polity. The Indian Constitution laid down a political system which is
federal in nature i.e., there are two tiers of government: at the national level, and the state level.
However, the Indian Constitution has structurally made the Union government more powerful
than the states.
Chapter 2: Cooperative Federalism in India:
In Cooperative federalism the Centre and states share a horizontal relationship, where they
cooperate in the larger public interest. It is an important tool to enable states’ participation in the
formulation and implementation of national policies. Union and the states are constitutionally
obliged to cooperate with each other on the matters specified in Schedule VII of the constitution.
Chapter 3: Competitive Federalism:
In Competitive federalism the relationship between the Central and state governments is vertical
and between state governments is horizontal. This idea of Competitive federalism gained
significance in India post 1990s economic reforms. In a free-market economy, the endowments
of states, available resource base and their comparative advantages all foster a spirit of
competition. Increasing globalisation, however, increased the existing inequalities and
imbalances between states. In Competitive federalism States need to compete among themselves
and also with the Centre for benefits.
3.1 Steps towards competitive federalism
3.2 Hindrances for competitive federalism
