Centre State Relations: India is a federal country with a unique balance between the Union and the States. Unlike the classical federal systems such as the USA, where both units enjoy equal status, the Indian Constitution establishes a federation with a strong Centre. This arrangement was designed to maintain the unity of a diverse nation and ensure effective governance, especially in times of crisis.
The relations between the Union and the States are not limited to the sharing of power but also extend to administration, finance, and judicial functioning. Broadly, Centre-State relations in India can be studied under three heads:
- Legislative Relations – Division of law-making powers
- Administrative Relations – Distribution of executive authority
- Financial Relations – Sharing of financial resources
In addition, issues and commissions related to Centre-State relations provide important insights into how the system has evolved and one of the most important topics in Indian Polity.
Centre-State Relations
Centre-State relations refer to the constitutional, political, and financial interactions between the Union and the States. They ensure that while States enjoy autonomy in their own sphere, the Centre retains enough authority to preserve national unity and handle matters of common importance. These relations are broadly divided into three categories: legislative, administrative, and financial.
| Type of Relation | Articles | Key Features |
| Legislative | 245–255 | Distribution of law-making powers through Union, State, and Concurrent Lists |
| Administrative | 256–263 | Division of executive authority, Centre’s directions to States, All India Services |
| Financial | 268–293 | Allocation of taxing powers, revenue sharing, grants-in-aid, Finance Commission |
Legislative Relations
Legislative relations define the scope of law-making authority of both the Union and State legislatures. Articles 245 to 255 of the Constitution deal with this aspect. The objective is to clearly demarcate subjects to minimize conflict and ensure smooth governance.
Territorial Jurisdiction
- Parliament can make laws for the whole of India or any part of its territory, including Union Territories. It is also the only body that can enact extra-territorial legislation, i.e., laws that apply outside the territory of India.
- State legislatures can make laws for their entire state or a part of it, but they cannot legislate beyond their boundaries unless there is a clear territorial connection.
Distribution of Legislative Subjects
The Constitution adopts a threefold distribution of subjects under the Seventh Schedule. The residuary powers, i.e., subjects not mentioned in any list, belong exclusively to the Parliament under Article 248.
| List | Number of Subjects | Power of Legislation |
| Union List | 100+ subjects | Exclusive power of Parliament (e.g., defence, foreign affairs, atomic energy) |
| State List | 60+ subjects | Exclusive power of State legislatures (e.g., police, public health, agriculture) |
| Concurrent List | 50+ subjects | Both Parliament and States can legislate; in case of conflict, Union law prevails |
Parliamentary Legislation in State Field
Parliament may legislate on matters in the State List under specific circumstances:
- Article 249 – If Rajya Sabha passes a resolution by a two-thirds majority that it is in the national interest.
- Article 250 – During a National Emergency, Parliament can legislate on State subjects (laws remain valid for six months after emergency ends).
- Article 252 – If two or more states pass resolutions requesting Parliament to legislate on a State subject, Parliament can make laws applicable to those states.
- Article 253 – To implement international treaties, agreements, or conventions.
- Article 356 – When President’s Rule is imposed, Parliament assumes State legislative power.
Centre’s Control over State Legislation
- Certain State bills require the President’s prior sanction before being introduced, such as those affecting freedom of trade and commerce.
- Governors may reserve specific bills for the consideration of the President.
- During financial emergency (Article 360), the President can direct States regarding money bills or financial matters.
Administrative Relations
Administrative relations between the Union and the States are governed by Articles 256 to 263. They ensure coordination in implementing laws and policies, while also providing the Centre with supervisory authority over States.
Distribution of Executive Powers
- The Union Government has executive power over subjects on which Parliament can legislate, and also on matters involving treaties and agreements.
- The State Governments exercise executive powers over subjects in the State List and Concurrent List, but their actions must not conflict with Union laws.
Union Directions to States
To ensure uniformity and compliance, the Union can issue directions to States in matters such as:
- Construction and maintenance of communication systems of national/military importance
- Protection of railway operations and safety
- Education for linguistic minorities in their mother tongue at the primary stage
- Implementation of welfare measures for Scheduled Tribes
Integrated Judicial System
Though India has a federal structure, it follows a single integrated judiciary. This ensures uniformity in the interpretation of laws made by both the Union and States, with the Supreme Court acting as the guardian of the Constitution.
Other Provisions
- Article 355 – Duty of the Union to protect States against external aggression and internal disturbance.
- Governor – Appointed by the President; acts as a link between the Centre and State.
- All India Services (IAS, IPS, IFS) – Common to both Union and States, but ultimate control rests with the Centre.
Administrative Relations
Administrative relations between the Union and the States are governed by Articles 256 to 263. They ensure coordination in implementing laws and policies, while also providing the Centre with supervisory authority over States.
Distribution of Executive Powers
- The Union Government has executive power over subjects on which Parliament can legislate, and also on matters involving treaties and agreements.
- The State Governments exercise executive powers over subjects in the State List and Concurrent List, but their actions must not conflict with Union laws.
Union Directions to States
To ensure uniformity and compliance, the Union can issue directions to States in matters such as:
- Construction and maintenance of communication systems of national/military importance
- Protection of railway operations and safety
- Education for linguistic minorities in their mother tongue at the primary stage
- Implementation of welfare measures for Scheduled Tribes
Integrated Judicial System
Though India has a federal structure, it follows a single integrated judiciary. This ensures uniformity in the interpretation of laws made by both the Union and States, with the Supreme Court acting as the guardian of the Constitution.
Other Provisions
- Article 355 – Duty of the Union to protect States against external aggression and internal disturbance.
- Governor – Appointed by the President; acts as a link between the Centre and State.
- All India Services (IAS, IPS, IFS) – Common to both Union and States, but ultimate control rests with the Centre.
Issues in Centre-State Relations
Despite constitutional provisions, several issues persist in Centre-State relations:
- Resource allocation disputes – States often complain of unfair devolution of central funds.
- GST regime – Though it streamlined taxation, concerns remain about compensation to States.
- Misuse of Article 356 – Critics argue it has been used for political gains rather than genuine constitutional crises.
- Governor’s role – Seen as partisan and often acting as a representative of the Union government.
- Central legislation vs. State autonomy – States have challenged laws like the CAA and NIA Act in the Supreme Court.
Commissions on Centre-State Relations
Several expert commissions have examined Centre-State relations and suggested reforms:
- Sarkaria Commission (1983): Advocated strengthening All India Services, restricting Article 356 misuse, and encouraging cooperative federalism.
- Punchhi Commission (2007): Recommended fixed tenure for Governors, devolution of powers to local bodies, and better mechanisms for handling inter-state disputes.
- NCRWC (2000): Suggested creation of Inter-State Trade and Commerce Commission, inclusion of disaster management in Concurrent List, and strengthening fiscal federalism.
Practice Questions on Centre-State Relations
Here are some practice questions on Centre State Relations which candidates can solve.
Objective (MCQ)
- Which Article gives residuary legislative powers to Parliament?
- Under which Article can the Union legislate on a State List subject during an emergency?
- Which Article empowers the President to impose financial emergency?
- The Union List currently consists of how many subjects?
- Which Article empowers the Finance Commission to recommend tax devolution?
Short Answer
- Explain the difference between statutory and discretionary grants.
- What is the role of the Governor in Centre-State relations?
- Mention two circumstances when Parliament can legislate on matters in the State List.
- Why is India called a “federal system with a unitary bias”?
- What is the significance of Article 355 in administrative relations?
Long Answer
- Discuss the financial relations between the Centre and the States with examples.
- Examine the role of the judiciary in maintaining Centre-State relations.
- Critically evaluate the misuse of Article 356 in Indian politics.
- Explain the recommendations of the Sarkaria and Punchhi Commissions on Centre-State relations.
- “Cooperative federalism is the key to Indian democracy.” Discuss with reference to Centre-State relations.
Answer Key
- Article 248
- Article 250
- Article 360
- Around 100 subjects (originally 97, now increased)
- Article 280
- Statutory grants are mandatory under Article 275, while discretionary grants under Article 282 are optional.
- The Governor acts as a link between Centre and State, appointed by the President, with power to reserve bills.
- During a national emergency (Art. 250) and when Rajya Sabha passes a resolution (Art. 249).
- Because Centre holds stronger powers, including residuary powers, emergency powers, and control over States.
- It obligates the Union to protect States against aggression and disturbance.
Please Note: 11–15. Subjective, to be written by students in exam format.
FAQs on Centre-State Relations
Q1. What are Centre-State relations in India?
Centre-State relations refer to the constitutional arrangements that define the powers and responsibilities of the Union and State governments in legislative, administrative, and financial matters.
Q2. Which part of the Constitution deals with Centre-State relations?
Centre-State relations are mainly covered in Part XI (legislative and administrative relations) and Part XII (financial relations) of the Constitution.
Q3. What are the three types of Centre-State relations?
The Constitution divides Centre-State relations into three categories: legislative relations, administrative relations, and financial relations.
Q4. How does the Centre control State legislation?
The Centre controls State legislation through provisions such as the Governor reserving bills for the President’s consideration, prior presidential sanction for specific bills, and Union supremacy in matters of the Concurrent List.
Q5. What role does the Finance Commission play in Centre-State relations?
The Finance Commission, set up under Article 280, recommends the distribution of central taxes between the Union and the States and also advises on grants-in-aid to States.
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