Federalism in India is not a rigid or classical model. It is a pragmatic and evolving arrangement. This model is designed to suit the country’s political, social, and economic realities. The Indian Constitution establishes a federal structure with a strong central bias. Powers are divided between the Union and the States. These powers are coordinated through various constitutional and institutional mechanisms.
Within this framework, two distinct but interconnected models of federal functioning have emerged over time: Cooperative Federalism and Competitive Federalism. Understanding the difference between the two is essential to grasp how Centre–State relations operate in practice.
Concept of Federalism in India
Indian federalism is founded on the constitutional division of powers. This division is between the Union and the States. It is under Article 246 and read with the Seventh Schedule. Unlike classical federations, Indian federalism allows flexibility, asymmetry, and central intervention when required.
The Constitution does not explicitly use the word “federal.” However, the structure, distribution of powers, and independent judiciary collectively establish India as a federal polity. It also has unitary features.
Also Read- Doctrine of Colorable Legislation
Cooperative Federalism
Cooperative federalism refers to a model where the Union and the States work together in a spirit of coordination. They aim for partnership and mutual support. The goal is to achieve common national objectives.
In this model, governance is not viewed as a zero-sum game between the Centre and the States. Instead, responsibilities are shared, policies are jointly framed, and implementation is often collaborative.
Key features of cooperative federalism include shared decision-making, fiscal cooperation, and institutional dialogue. Mechanisms such as centrally sponsored schemes, inter-state councils, and consultative bodies reflect this approach.
The Goods and Services Tax regime is a prominent example of cooperative federalism. Both the Union and the States pool their taxation powers. They participate collectively in decision-making. Similarly, policy forums like NITI Aayog emphasize cooperative planning rather than top-down directives.
Cooperative federalism is particularly important in a diverse country like India, where national unity must coexist with regional autonomy.
Competitive Federalism
Competitive federalism, on the other hand, encourages States to compete with one another. This competition aims to attract investment, improve governance, and enhance economic performance. The underlying idea is that healthy competition among States leads to innovation, efficiency, and better public service delivery.
Under this model, States are treated as independent economic units. They strive to outperform each other on parameters such as ease of doing business. Other aspects include infrastructure development, education, and healthcare outcomes.
Competitive federalism gained prominence with economic liberalization and decentralization. States were given greater freedom to design policies suited to their local needs. Rankings, performance indices, and outcome-based incentives reinforce this competitive environment.
Competition can drive growth. However, it risks widening regional disparities. This occurs if weaker States are unable to compete on equal footing.
Also Read- Doctrine of Severability
Cooperative vs Competitive Federalism: A Comparative Understanding
Cooperative federalism focuses on collaboration and shared responsibility, whereas competitive federalism emphasizes autonomy and performance-based rivalry. The former prioritizes national cohesion and uniform policy goals, while the latter stresses efficiency, innovation, and state-level accountability.
In practice, these models are not mutually exclusive. India’s federal system operates through a blend of both, depending on the policy area and political context.
National crises, welfare schemes, and fiscal redistribution rely heavily on cooperation. In contrast, economic reforms, investment promotion, and administrative efficiency thrive on competition.
Constitutional and Practical Challenges
Indian federalism faces persistent tensions between centralization and state autonomy. Excessive central dominance can weaken the federal spirit, while unchecked competition can undermine cooperative governance.
Issues such as fiscal dependency of States and uneven development raise concerns. Political differences between Centre and States also contribute to these worries. Additionally, the misuse of constitutional provisions is a factor. These issues impact the balance between cooperation and competition.
A sustainable federal system requires constant recalibration to ensure that neither model overwhelms the other.
Contemporary Relevance
In recent years, India has consciously attempted to move towards a balanced federal model where cooperative and competitive federalism coexist. States are encouraged to innovate and compete, while the Centre retains a coordinating and enabling role.
This hybrid approach reflects the constitutional vision of unity without uniformity and decentralization without fragmentation.
Also Read- Doctrine of Eclipse
Federalism in India is best understood not as a fixed doctrine but as a dynamic process. Cooperative federalism ensures unity, coordination, and collective governance, while competitive federalism drives efficiency, innovation, and accountability.
The real strength of Indian federalism lies in maintaining a functional balance between these two models. Overemphasis on either cooperation or competition distorts the constitutional equilibrium. A mature federal democracy requires both—working together, not working against each other.
Connect with us on Instagram – X – LinkedIn for daily updates, quizzes, and other materials
