B.4. Issues and Challenges Pertaining to Federal Structure

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Below are some of the challenges regarding federalism in India

Challenges	Details
i. Regionalism	India is a nation of diversity, where people from different cultural backgrounds reside together. Regionalism is one of the major issues and challenges pertaining to the federal structure. Regionalism is where an individual’s region is given preference, at times that of other regions as well. In a country as diverse and geographically vast as India, regionalism tends to rear its ugly head from time to time. Regionalism is a significant hindrance that stands in front of federalism. Some factors can be cultural as in the example of the Northeast states whose denizens feel that they are not culturally close enough to the rest of the country or the case of the Southern states who feel they are not given their fair share of central funds despite having large states. In such situations, people prefer their state over any other state, giving rise to regionalism. After several years of federal rule, we can still find regionalism in India.
ii. Centralized Amendment Power	In a typical federation, the power of amendment to the Federal Constitution lies on a shared basis between the federation and its units. In India, the power of constitutional amendment lies with the Centre under Article 368 and other provisions. Although ratification of half of the states is sought in some limited areas, the states in the Indian Union have virtually no power in this critical area of governance. Federations worldwide have sought a constitutional mechanism to provide equal representation to all units to prevent the predominant influence of larger units on the smaller units. However, there is no such provision for equal representation of units in the Rajya Sabha in India. The States are not allowed to give opinions over the amendments done to the Constitution of India from time to time.
iii. Encroachments on States’ Autonomy in State Subjects	In recent years, several major and politically sensitive decisions have been made without consultation or reference to the relevant states, such as: Without consulting the state legislature, Article 370 was repealed. Overstepping its power and forcing a law on the states, Parliament legislated on “agricultural” in the state list to enact the three disputed farm laws. The New Education Policy 2020 has also been criticized for infringing on the polity’s federal nature. In addition, the BSF’s jurisdiction was expanded without consultation with the respective governments in Assam, West Bengal, and Punjab.
iv. Language Conflicts	India is a land of diversity, and people of different cultures and backgrounds reside in India. Diversity in languages in India sometimes causes a blow to the federal spirit of the Constitution. There are 22 languages constitutionally approved in India. Besides, hundreds of dialects are spoken across the country. Trouble arises when the strongest unit of the federation attempts to force a particular language on others. The tussle for the official language in India is still a burning issue. The southern states’ opposition to Hindi as the official language of India has led to a deep-seated language crisis in India.
v. Economic Incompatibilities of the Units	Differences in economic standards and relative economic and fiscal incompatibilities among the constituent states also pose a threat to a federation. The forces of imbalances in the field are demands for economic planning and development for regional economic equality and the financial autonomy of states. Demand for financial equality in a region creates problems in a federation. In India, some states are declared as poor and on the principle of equalization, are getting grants-in-aid. However, the dilemma in a federation emerges that if the principle of equalization is adhered to, the national income and the total income growth will suffer.
vi. Problems with the Tax System	The ill-conceived Goods and Services Tax (GST) has already stripped states of most of their sovereignty and made the country’s indirect tax framework unitary. The Union government routinely breached the GST regime’s reimbursement commitments to the States during the pandemic. The impact of the economic slump was exacerbated by the failure to pay the States their dues.
vii. Division Of Powers	Unlike other federations globally, India’s distribution of power is different and unique. According to the Indian Constitution, the division of powers are made under three list among the Central and State governments. The powers of Central and State governments are mentioned in the Union list and State list, respectively. Whereas, some other powers are vested in the hands of both governments, and it is mentioned in the Concurrent List. The division of power among the Central and State governments is one of the significant issues & challenges to the Federal structure.
viii. Centralized Planning	Although economic and social planning is found in the Concurrent List of the Seventh Schedule to the Constitution, Still, the Union government still gets unconstrained authority over national and regional decision-making and planning in India. Centralized planning, through the Planning Commission, now NITI Aayog appointed by the Centre, considerable preponderance in legislative power for the Union, the financial dependence of the states on the Centre’s mercy, and the administrative inferiority of the states make the states meek and weak. The State governments are dependent on the Central Government for financial aid. The lack of powers in the hands of the State government makes it difficult for federalism in India.
ix. Religious Issue	As stated above, India is a land of diversity, and people belonging to different religions live in India. The religious barrier has become one of the significant issues and challenges pertaining to the federal structure. Religious conflicts and intolerance among the people of different religions have become one of the most significant issues & challenges about the federal structure.
x. Several bodies are ineffective	The Planning Commission has been abolished, the Inter-State Council has only met once in the last seven years, and the National Development Council has never met.
xi. Covid-19’s impact	The states were limited in their ability to control COVID-19 in areas such as testing kits, immunization, the application of the Disaster Management Act of 2005, and the unplanned nationwide lockdown. Furthermore, during the Second Wave, an unprepared administration responded to criticism by declaring health to be a “State topic.”