CONSTITUTIONAL AND ADMINISTRATIVE LAW

INSTITUTE OF LAW, RNTU, BHOPAL, MADHYA PRADESH

JANUARY 2025

Project Report of
COMPARATIVE PUBLIC LAW
On
COOPERATIVE FEDERALISM: A PARADIGM SHIFT IN FEDERAL GOVERNANCE

SUBMITTED BY:

RAHUL KUMAR BARNWAL

ROLL NO.-R24LA2CA0033

Enroll no.-

AU242824

COURSE-LL.M,

1 year, 1nd semester

BRANCH- Constitutional and Administrative Law

SUBMITTED TO:

Mrs. Madhavi Patkar

Institute of Law, RNTU

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ABSTRACT

Federalism, in its basic sense means division of legislative and executive power between central government
and regional governments so that each government can work independently in its own sphere. In a country
like India the importance of federalism is vital because different people from different background and
culture live together. Neither it would be possible for a single government to make laws for the whole
country nor is it desirable in the interest of the people with varied cultures, language and diverse
backgrounds. So, the Central government may make laws for the whole and any part of territory of India
and the respective State governments may make and implement the laws according to social, economic and
political conditions of the people living in different areas. Federalism in the modern age is a principle of
reconciliation between two divergent tendencies, the widening range of common interests and the need for
local autonomy. The paper will examine the concept of federalism as well as the changing dimensions of
federalism in India. Further, this paper will highlight the needs of the co-operative and collaborative
federalism for achieving the constitutional goals.

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TABLE OF CONTENT

Contents
ABSTRACT......................................................................................................................................................................2
INTRODUCTION:-..........................................................................................................................................................4
INDIAN FEDERALISM AND COALITION POLITICS:-.............................................................................................6
COOPERATIVE FEDERALISM UNDER INDIAN CONSTITUTION:-.......................................................................8
Full Faith and Credit Clause (Article 261)....................................................................................................................8
River water Disputes (Article 262)................................................................................................................................9
Inter State Council (Article 263)...................................................................................................................................9
Zonal Councils...............................................................................................................................................................9
There exists five Zonal Councils:................................................................................................................................10
Planning and Finance..................................................................................................................................................10
It has been assigned the following functions:..............................................................................................................11
CRITICAL ANALYSIS OF INDIAN FEDERALISM:-................................................................................................12
CHALLENGES AND CRITICISMS OF COOPERATIVE FEDERALISM:-..............................................................14
a. Unequal Power Dynamics:......................................................................................................................................14
b. Regional Disparities:...............................................................................................................................................14
c. Fiscal Imbalance:.....................................................................................................................................................14
d. Political Tensions:...................................................................................................................................................14
EMERGENCE OF COOPERATIVE FEDERALISM CHANGE..................................................................................15
Several factors have contributed to the shift towards cooperative federalism in India:..............................................15
a. Economic Liberalization (1991)..............................................................................................................................15
b. Need for National Integration with Regional Development....................................................................................15
c. Legal and Institutional Changes..............................................................................................................................15
d. The Introduction of the Goods and Services Tax (GST) (2017..............................................................................16
KEY FEATURES OF COOPERATIVE FEDERALISM IN INDIA.............................................................................17
a. Shared Responsibilities in Governance...................................................................................................................17
b. Institutional Mechanisms for Cooperation..............................................................................................................17
c. Fiscal Federalism and Resource Sharing.................................................................................................................17
d. Policy Harmonization..............................................................................................................................................17
CONCLUSION:-.............................................................................................................................................................19

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INTRODUCTION:-

Seeds of cooperative federalism can be traced right from the Regulating Act of 1773 which set up a system
whereby the British Government supervised (regulated) the work of the East India Company but did not
take power for itself. The Government of India Act, 1919 provided for a federal India, however superficial,
by envisaging a dual form of government called „dyarchy‟. The Report of the Indian Statutory Commission
of 1929 gave a federal solution by proposing to introduce dyarchy at the centre and to advance from diarchy
to fully responsible government in the provinces. The same was sought to be achieved by the Government
of India Act, 1935. In 1937, after a great deal of confrontation, Provincial Autonomy commenced. From that
point until the declaration of war in 1939, Lord Linlithgow tirelessly tried to get enough of the Princes to
accede to launch the Federation. The Cabinet Mission of 1946provided that Union of India should deal with
Foreign Affairs, Defence and Communication and all subjects other than Union subjects and all residuary
powers were to vest in the Provinces.

The Government of India Act, 1919 laid down the foundation of a federal form of government in India. It
introduced diarchy in India. A federal structure results in the division of powers between the center and the
units. The Government of India Act, 1935 also laid down the provisions for a federal form of government in
India. It provided for the distribution of legislative powers between the union and the provinces. The
Government of India Act, 1935,further provided for the cooperative relationship between the provinces.
Provisions were laid down to promote harmony and to resolve the differences between the various
provinces.

Sections 131, 132 and 133 of the Government of India Act, 1935 laid down provisions for resolving the
disputes related to waters. These dealt with the problems relating to inter Province Rivers and river valleys.
Section 135 of the Government of India Act, 1935 laid down provisions for the creation of councils dealing
with the coordination between the various provinces of the British India. The need for creating a cooperative
relation between the provinces was felt even before the independence. The Government of India Act, 1935
laid down the foundation for the creation of a cooperative relationship in the federal structure. The present
Constitution has elaborated the principles which were laid down under the Act.

Division of powers between the federation and the union where they are given ordinate and equal
status with their respective field is known as co-ordinate federalism. Where the units and the
federation do not for a power but co-operate through various instrumentalies to promote the
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commonpurpose is known as co-operative federalism.

Dr Vijay Kelkar, Who better than Dr Kelkar who headed the 13th Finance Commission. The speech is full
of insights:

While describing federalism, people have described it in many ways. For instance, some scholars have
described federalism as administrative federalism;” some have argued for “market preserving federalism”
and some others have described it as “coming together federalism” vs. “holding together federalism”.
Countries like USA are supposed to be examples of “coming together” federalism while India is supposed to
be an example of “holding together” federalism.

In my view, the important feature of Indian federalism is what in India we call the “cooperative federalism”
feature with formal and informal rules for maintaining the political system as well as for the peaceful
change management. This is the feature that gives the “flexibility” to our Federation. I think that it is this
“flexibility” which helped the country to maintain unity while strengthening the democracy and I do believe
that the democracy is oneof the deep determinants of India‟s growth performance. The U.S. constitution,
over its 200 years or more of existence, has been amended only 27 times while in India, we have amended
the Constitution 94 times in the first sixty years. Inmy view, this is the strength and not weakness of our
system.

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INDIAN FEDERALISM AND COALITION POLITICS:-

The Lokpal Bill has exposed the inner side of party politics in India. During the winter session the Lokpal
and Lokayukta Bill was introduced in the Lok Sabha. For the introduction of the Bill there was visible
pressure of the 'Anna Team' and the 'Fast Politics' had decided the party and public opinion in the country.
Anna's demand was for a strong Jan Lokpal to root out corruption in the different layers of the decision
making system. After prolonged discussion between the Standing Committee and the Anna Team the
Lokpal issue became the most heated and hated controversy. The Congress leadership of the UPA group
wanted a constitutional status for Lokpal for which amendment of the Constitution was a necessity. The Bill
also had a component for the institution of Lokayukta for the states, over which the coalition nature of the
Indian politics found its bitterest outburst in both the debates held in Lok Sabha and Rajya Sabha. The
Trinamul Congress of UPA and BJD were most critical over the Indian Parliament's attempt to subvert the
federal balance in the Constitution. The Congress leadership took shelter under the provision available in the
Legislative relation between Union and the states to give effect to international agreements. The voice of the
states was echoed by the BJP who wished the Bill to be discussed under some other provision which was a
dilatory move to put the Indian Federalism and Coalition Politics Prof. Surya Narayan Misra Congress into
an embarrassing situation for not passing the Lokpal Bill. The politics crossed all its limits in Rajya Sabha
and the inevitable happened. In the name of Federal structure, principle and balance the coalition politics in
the country forgot all kinds of Constitutional principles and proprieties. In this background it has become
necessary to have a fresh look at the structure, nature and compulsions of the Indian federal system.

The one-party dominant era could consume the Central dominance and we toyed with the idea of
'Cooperative Federalism'. But the electoral dynamics of the country and the new political compulsions
appeared after the fourth general elections of 1967 exposed the tension areas of the Indian federal system.
The DMK government in Tamil nadu, Left Front in West Bengal and other non-Congress dispensations
raised the bogey of 'Fiscal imbalance', 'central misrule', 'politics of planning', 'impartial governor' and 'fair
deal to the States' etc. These could not disturb the political balance till the Congress had majority and there
was lack of understanding among the non-Congress Opposition Parties. The first non-Congress government
at New Delhi attempted to have a re-look at theFederal system but it could not achieve success. During the
Janata Party rule at the Centre the rise of new regional parties and the existing tirade against central
dominance could experience the demand for autonomy by the States like West Bengal, Tamil nadu, Punjab,
J & K etc. Again the political scenario in the country was changed in 1989. This ushered in the Coalition era
in the Indian politics. The political map of the country was drastically changed and Congress had a symbolic

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presence with only 30 % of the country under its political control. The beginning of 1990s could experience
the Constitution of Inter-state Council under Article-263 for the first time. Some of the political allegations
of use of electronic media and Election Commission also found a positive climate for discussion at the
national level. This could see the Prasar Bharti Act and multi-member election commission in operation
later.

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COOPERATIVE FEDERALISM UNDER INDIAN CONSTITUTION:-

With the passage of time, however the concept of competitive federalism slowly gave way to co-operative
federalism. There has been a felt need for a change from competitive to cooperative relationship in the
working of the federal constitution. Cooperative federalism means that the center and the states share a
horizontal relationship and neither is above the other. This trend has been promoted by three factors:

1. The exigencies of war when for national survival, national efforts take sprecedence over fine points
of Centre state division of powers;
2. Technological advances mean making of communication faster;
3. The emergence of the concept of social welfare state in response to public demands for various
social services involving huge outlays which the governments of the units could not meet by
themselves out of their own resources.

The concept of cooperative federalism helps the federal system, with its divided jurisdiction to act in
unison. It minimizes friction and promotes cooperation among the various constituent governments of
the federal union so that they canpool their resources to achieve certain desired national goals.

The Constitution of India provides various provisions dealing with the cooperative aspect of federal
structure. The constitution makers deliberately provided for such features in the constitution in order to
ensure the smooth working of the government.

Full Faith and Credit Clause (Article 261)

Article 261 of the Constitution of India provides that full faith and credit shall be given throughout the
territory of India to all the public acts, records and judicial proceedings of the Union and of every State.
This is a step to promote cooperation and faith between the center and the states. Clause (2) empowers
the Parliament to lay down by law the mode of proof as well as the effect of acts and proceedings of one
state in another state. According to clause (3), final judgments or orders delivered or passed by civil
courts in any part of the territory of India can be executed anywhere in the country according to law.

The full faith and credit clause promotes uniformity and unity throughout the territory of India. It
develops a sense of harmony and unity in the country. It promotes cooperation between the states and
the center and gives due credit to all the public acts.1

1
K. C. Wheare (1963). Federal Government. Oxford University Press.
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River water Disputes (Article 262)

Article 262 empowers the Parliament to provide by law for adjudication of any dispute or complaint
with respect to the use, distribution or control of the waters of any interstate river or river valley. A river
board may be established by the Central government for advising the governments interested in relation
to matters concerning the regulation or governance of an inter State river or river valley.

Inter State Council (Article 263)

Article 263 provides that the President may by order appoint an Interstate Council if it appears to him
that public interest would be served by its establishment. The President may define the organization,
procedure and duties of the Council.

In T.N. Cauvery Sangam v. Union of India2, the Supreme Court has held that once the Central
government finds that the dispute referred to in the request received from the State government cannot
be settled by negotiations, it becomes mandatory for the central government to constitute a tribunal and
to refer the dispute to it for adjudication. Further, if the central government fails to make such a
reference, the court may, on an application under Article 32 by an aggrieved party issue mandamus to
the central government to carry out its statutory obligation.

Sarkaria commission on Centre state relations has strongly recommended forthe establishment of an
inter state council to effect coordination between states.

In Dabur India Limited v. State of Uttar Pradesh 2(1990), the Supreme Court suggested the setting up
of a council under Article 263 to discuss and sort out problems of central state taxation.

Zonal Councils

Zonal Councils have been introduced in India by the States Re organisation Act,1956. These councils
have been created in order to bring the states of a particular region in close conformity with each other.
The Zonal Councils were created as an instrument of intergovernmental consultation and cooperation
mainly in socio economic fields and also to arrest the growth of controversies and particularistic
tendencies among the various States.

2
1990 AIR 13162 1990 AIR 1814
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There exists five Zonal Councils:

(1) Northern- comprising of the states of Punjab, Haryana, Himachal Pradesh, Rajasthan, Jammu and
Kashmir and the union territories of Delhi and Chandigarh.

(2) Eastern- comprising of the states of Bihar, West Bengal, Orissa and Sikkim.

(3) Western- comprising of the states of Gujarat, Maharashtra, Goa and the union territories of Daman
and Diu and Dadra and Nagar Haveli.

(4) Central- comprising of the states of Uttar Pradesh and Madhya Pradesh

(5) Southern- comprising of the states of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala and the
union territory of Pondicherry. Each State included in a zonal council enjoys a complete equality of
status as:

(1) Each state has an equality of representation in the council;

(2) Each Chief Minister is to act as the Vice chairperson of the council in rotation for a year;

(3) Meetings of the council are to be held in each member state by rotation;

(4) The Chief Secretary of a member state is to act as the Secretary of the council in rotation for one
year.

A zonal council is an advisory body and has no executive or legislative function to perform.

Planning and Finance

Planning makes inter-governmental cooperation very necessary for in a federal structure, the
governments are not arranged hierarchically. The Directive Principles of state Policy emphasize towards
economic democracy, economic empowerment of the weaker sections of the society, and a welfare state
without which political democracy does not have much meaning for the larger section of the poor people
in the country.

In 1950, the Government of India set up the Planning Commission with the Prime Minister as its
chairman. It has a vice president and a few central ministers and a few non official experts as its

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members.

It has been assigned the following functions:

(1) to make an assessment of material, capital and human resources of the country and investigate the
possibilities of augmenting such of these resources as are found to be deficient in relation to the nation‟s
requirements;
(2) To formulate a plan for the most effective and balanced utilization of the country’s resources;

(3) On a determination of priorities, to define the stages in which the plan should be carried out and
propose the allocation of resources for the due completion of each stage;

(4) To indicate the factors which are tending to retard economic development and determine the
conditions which in view of the current social and political situation, should be established for the
successful execution of the plan;

(5) To determine the nature of the machinery which will be necessary for securing the successful
implementation of each stage of the plan in all its aspects?

(6) to appraise from time to time the progress achieved in execution of each stage of the plan and
recommend the adjustments of policy and measures that such appraisal might show to be necessary; and

(7) to make such interim and ancillary recommendations as might on a consideration of the prevailing
economic conditions, current policies, measures and development programmes, or on an examination of
such specific problems as maybe referred to it for advice by the Central or State governments.

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CRITICAL ANALYSIS OF INDIAN FEDERALISM:-

There is criticism that ―the Indian constitution does not satisfy certain essential tests of federalism, namely,
the right of the units to make their own constitution and provision of double citizenship as American
constitution has. Even the essential characteristics of federalism like duality of governments, distribution of
powers between the Union and the state governments, supremacy of the constitution, existence of a written
constitution and most importantly, authority of the courts as final interpreters of the Constitution are all
present in our constitutional scheme. But at the same time, the constitution has certain features which can
very well be perceived as deviations from the federal character, due to this deviation many constitutional
experts doubted on the federal nature of the constitution. They described it as more unitary and less federal
because the Central government is more powerful than the State governments. Distribution ofpower
between Centre and state is done by three lists in schedule VII, but all-important subjects either are placed
in Union List or Concurrent List and this distribution make the Centre stronger.

Indian constitution has certain striking unitary features too.

 The Parliament can alter or change the areas, boundaries or names of the States
 During emergency, the Union Parliament is empowered to make laws in relation to matters under the
State List, the Parliament shall have the power to make laws with respect to any matter included in
the State List, if the Council of States declares by a resolution of 2/3 of its members present and
voting that it is necessary in national interest,
 in case of inconsistency between the Union and the State laws, the Union Law shall prevail.
 If the legislature of two or more states pass a resolution that it shall be lawful for the Parliament to
make law on the subject in State list.
 Parliament shall also have power for the purpose of implementation of any International agreement,
treaty and convention.
 If there is any repugnancy between law made by the Parliament and the law made by the legislature
of State on the subject of Concurrent list, the law made by Parliament will occupy the field.
 Additionally, the Governor of a State is empowered to reserve the Bill passed by the State
Legislature for consideration of the President and the President is not bound to give his assent to
such a bill.
 That apart, ―the executive power of Union shall extend to give directions to the States and
empower Union officers to execute matters in the State List
 Further,―if the government of a state is not carried on in accordance with the provisions of the
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constitution, the President has power to impose President‘s rule in such State, either on the report of
the Governor or otherwise.
 Fiscal federalism refers to the responsibilities between centre and state related taxation and
expenditure. Both centre and state government can levy and collect taxes. But in our constitution
more powers are vested with the centre for imposing tax and centre has to determine the share of
state in tax revenue. The states do not have much financial resources as centre have. In financial
matters states always look for assistance to the centre. But I think after the GST, the situation has
been changed and the state governments may tax the consumption of goods and services (SGST) and
agricultural incomes.

In our country, we have two Houses in Parliament i.e. the Lok Sabha and the Rajya Sabha or Council of
States (elected by members of state legislative assemblies). The Fourth Schedule to the constitution provides
for allocation of seats to the States and Union Territories in Rajya Sabha. The allocation of seats is made on
the basis of the population of each state. But the election for Rajya Sabha is merely a formality because the
party can nominate any person and if party have sufficient number of members in legislative assembly, the
person will be elected. There is also no requirement of domicile in the state concerned getting elected.91
Basically, parties used to oblige to who are loyal to the party.

One of the criticisms is that the state has no role in amending process of the constitution other than
ratification by one half of the states in case of some amendments. The power to amend lies with the centre.
But I think it is not proper to oppose the federal character on this ground because we have one constitution
for the whole country and it is considered as flexible and rigid accordingly.3

Our Constitution is considered as federal in spite of many unitary features because almost all features of
Federal Constitution exists in our constitution. In order to be called ―federal‖, it is not necessary that a
Constitution should adopt the federal principle completely. It is enough if the federal principle predominant
principle in the Constitution. So the mere presence of unitary features in a constitution, which may make a
constitution quasi federal in law, does not prevent the constitution from being predominantly federal in
practice.

3
Chatterjee, P. (2004). *The
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CHALLENGES AND CRITICISMS OF COOPERATIVE FEDERALISM:-

While cooperative federalism has been a step toward more inclusive governance, it has faced several
challenges:

a. Unequal Power Dynamics: Despite the cooperative nature of federalism, the Union Government still
wields significant influence over states, particularly in financial matters. States often feel that they are being
coerced into adopting national policies without sufficient consultation or flexibility.

b. Regional Disparities: India’s vast diversity, in terms of language, culture, and development, makes
cooperation difficult at times. States may have different priorities and needs, making it challenging to adopt
one-size-fits-all solutions for national issues.

c. Fiscal Imbalance: States rely heavily on central transfers to finance their budgets, which sometimes
creates tensions when the Union Government imposes conditions or restricts the flow of funds.

d. Political Tensions: At times, political considerations, especially when the Union and State Governments
are from different political parties, can hinder cooperation. This leads to inefficiency in governance and
poor implementation of joint initiatives.4

4
Austin, G. (2000). Working a Democratic Republic: The Indian Experience. Oxford University Press.
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EMERGENCE OF COOPERATIVE FEDERALISM CHANGE

Several factors have contributed to the shift towards cooperative federalism in India:

a. Economic Liberalization (1991)

The most significant catalyst for the shift towards cooperative federalism was the economic reforms of
1991. With the onset of liberalization, India opened up its economy to market forces, and there was a
growing need for greater involvement of State Governments in the process of economic development.
Devolution of Powers: States were given a more prominent role in economic planning, attracting
investments, and driving growth in their respective regions.
Fiscal Federalism: The Union Government realized that economic policies and reforms could not be
effectively implemented without the active cooperation of States, especially with regard to taxation,
infrastructure development, and local governance.

b. Need for National Integration with Regional Development

India is a large and diverse country with varying regional disparities, economic conditions, and development
needs. For meaningful progress to take place, the Union Government could no longer dictate policies top-
down without considering the local needs of States.
States needed to play a more active role in addressing their unique challenges in sectors like agriculture,
education, healthcare, and social welfare.
The Union Government recognized the necessity of collaborative policymaking, especially in a
decentralized environment, to ensure more equitable development across regions.

c. Legal and Institutional Changes

The introduction of new legal frameworks and institutional mechanisms reflected a shift towards
cooperative governance:
The 1990 Inter-State Council (Article 263) was established to facilitate dialogue between the Union and
State Governments on contentious issues. It became a key platform for cooperation and coordination in
federal matters.
Finance Commission (Article 280): The role of the Finance Commission evolved from just making
recommendations on the distribution of finances to actively promoting fiscal balance between the Union and
States, ensuring States have adequate resources for development.
d. The Introduction of the Goods and Services Tax (GST) (2017)
The implementation of the GST in 2017 stands out as the most concrete example of cooperative federalism
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in practice. The GST represents a radical change in India’s tax system, where both the Union and States
mutually agreed to harmonize and simplify the tax structure, ensuring a common tax base and removing
inter-state barriers.

GST Council: The GST Council, a constitutional body, consists of Union and State Finance Ministers and
plays an ongoing role in decision-making regarding GST rates, rules, and policy changes. This body
epitomizes the cooperative spirit between the Union and States, as both levels of government jointly decide
on matters impacting the national economy.

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KEY FEATURES OF COOPERATIVE FEDERALISM IN INDIA

a. Shared Responsibilities in Governance
The shift towards cooperative federalism emphasizes that governance cannot be the sole responsibility of
either the Union or the States. Joint action is required in several sectors such as:

Economic Development: National economic programs, like the Five-Year Plans, required collaborative
participation from the States for effective implementation.
Social Welfare Programs: National schemes like Pradhan Mantri Awas Yojana (PMAY) and Swachh Bharat
Abhiyan require cooperative efforts, with financial support from the Union and implementation carried out
by the States.

b. Institutional Mechanisms for Cooperation

India’s shift towards cooperative federalism has been facilitated through several institutional mechanisms
that promote dialogue and collaboration:

Inter-State Council (Article 263): Created to resolve conflicts and promote consultation between Union and
States, the Council provides a platform for meaningful cooperation.
GST Council: The introduction of GST led to the creation of the GST Council, where the Union and State
Governments together decide on tax policies, rates, and dispute resolution.
Finance Commission: The Finance Commission's role in resource allocation between the Union and States
ensures equitable fiscal distribution, promoting balanced development across the nation.

c. Fiscal Federalism and Resource Sharing

The Union and States share financial resources through transfers, grants, and taxes, ensuring that States can
meet their development needs. The Finance Commission, as mentioned above, plays a key role in
determining the allocation of funds from the Union to the States.

Revenue Sharing: The Union Government shares tax revenues with States through mechanisms like the
Finance Commission’s recommendations and the Goods and Services Tax system.
Grants and Transfers: In addition to tax-sharing, the Union provides States with grants for specific purposes,
such as health, education, and infrastructure development.

d. Policy Harmonization
Cooperative federalism in India has also led to greater policy harmonization, particularly in areas like
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taxation, infrastructure development, and social welfare programs. The Union and States work together to
ensure that policies are consistent, inclusive, and meet the country’s diverse needs.

Education Policy: For example, the implementation of the Right to Education Act (RTE) required joint
action by both Union and State Governments.
Environmental Policies: The Union and States must cooperate to address environmental issues that
transcend state boundaries, such as pollution control and climate change.

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CONCLUSION:-

Recently, the Supreme Court emphasised in the NCT of (Delhi) case on the concept of collaborative
federalism, where both the Centre and the state governments should express their readiness to achieve the
common objective and they have to move on the path of harmonious co-existence and interdependence
irrespective of their differences. If both governments involve in in any kind of conflict, the ultimate sufferer
will be the people. Both the governments operate simultaneously on the same people and in the same
territory, so in modern time they must perform functions with understanding and cooperation. But some
time due to different political ideology, conflict arises between the Centre and state governments. In the
present era, the way of governance should be according to the need of the common people, because it will
not be possible that all 28 states are being ruled by same party and it is obvious that other party ruling in the
state has its own ideology may be different from the party ruling at centre, in this regard both the
governments before taking any decision have to collaborate with each other. No policy and programme can
be implemented effectively unless both the governments will work together for achieving the constitutional
goal. It is need of the times that in India we have to adhere to the principle of co-operative/collaborated
federalism.5

Cooperative federalism in India represents a paradigm shift from a unitary approach to a more collaborative
governance model. Although the Indian Constitution envisaged a system with a strong Union Government,
the realities of governance, particularly in a diverse and developing country like India, have necessitated a
greater focus on intergovernmental cooperation.

Cooperative federalism has been instrumental in shaping India's development, especially in areas such as
fiscal federalism, policy implementation, and resource sharing. However, challenges persist, particularly
regarding the balance of power between the Union and States, fiscal imbalances, and regional disparities.

Looking ahead, cooperative federalism will continue to be a critical framework for addressing India’s socio-
economic challenges, fostering equitable development, and ensuring that the needs of both central and state
governments are met through collaboration.

5
K.C. Agarwal, Crusade India 369-70 (Knowledge Books Inc, 2007).
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