Tuesday, 29 October 2024

The Evolution of Federalism in India: From Competitive to Cooperative

The concept of federalism in India has undergone a significant transformation since the adoption of the Constitution in 1950. Initially characterized by competitive federalism, the relationship between the central and state governments has gradually shifted towards cooperative federalism. This article explores this evolution and its implications for governance in India.

Understanding Federalism in India

 Federal Structure

India's Constitution establishes a quasi-federal structure, where the term "federal" is not explicitly mentioned. Instead, it embodies a system of governance that shares powers between the Union and the states. The Seventh Schedule delineates subjects on which both levels of government can legislate, facilitating a cooperative approach to governance.

Cooperative Federalism

Cooperative federalism emphasizes a horizontal relationship between the Centre and states, where both entities work together for the larger public interest. Key characteristics include:

- Joint Efforts: The Centre and states are constitutionally required to cooperate on matters listed in the Seventh Schedule.

- Shared Responsibilities: Initiatives such as the Inter-State Council and Zonal Councils facilitate dialogue and collaboration on inter-state issues.

- Pooled Sovereignty: The introduction of the Goods and Services Tax (GST) represents a significant step towards cooperative fiscal federalism, aiming to unify tax structures across states.

Competitive Federalism

In contrast, competitive federalism fosters a vertical relationship where states compete with each other and with the Centre for resources and investments. This model has gained traction since the economic reforms of the 1990s, characterized by:


- State Competition: States strive to attract investments by improving infrastructure and administrative efficiency, leading to enhanced economic performance.

- Performance Rankings: Initiatives like NITI Aayog's indices encourage states to innovate and adopt best practices through competition.

- Decentralization of Power: The central government has promoted policies that allow states more autonomy to cater to their unique needs while still competing for national resources.

The Shift from Competitive to Cooperative Federalism

The transition from competitive to cooperative federalism reflects an understanding that while competition can drive development, cooperation is essential for addressing national challenges effectively. Several factors have influenced this shift:

- Economic Disparities: Increased globalization has highlighted inequalities among states, necessitating a cooperative approach to ensure balanced development across regions.

- National Challenges: Issues such as public health crises (e.g., COVID-19) have underscored the importance of a united front where states collaborate with the Centre to tackle emergencies.

- Policy Integration: The need for cohesive policies that transcend state boundaries has led to calls for greater cooperation among states and between state and central governments.

Conclusion

The concepts of cooperative and competitive federalism in India are not mutually exclusive; rather, they complement each other. While competitive federalism can stimulate growth and efficiency among states, cooperative federalism ensures that this growth is inclusive and equitable. The future of Indian federalism lies in striking a balance between these two models, fostering an environment where both cooperation and competition can thrive towards achieving comprehensive national development.

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