L17 Crux F Grassroot Democracy 2 and Federalism 1 1668389953

GRASSROOTS DEMOCRACY
● The structural adjustment programmes post 1991 crisis were imposed upon India. International
communities compelled the government through these programs to introduce good governance
via decentralisation of power.
● The new economic policy, 1991 was based on rolling back the state. Hence, even administrative
policy had to be based on rolling back.
● The administrative paradigm had to be congruent with the developmental paradigm.
● Therefore, they got rid of an overdeveloped state and matched the pace of economic reforms
with political reforms. This was needed to curb red tapism at central level.
● India’s commitments at the ‘Earth Summit’ in 1992. The Agenda 21 adopted at Earth Summit
recognized community participation as a precondition to achieve any sustainable development
objectives.
This is why 73rd CAA is called a ‘half-baked cake’ and a half-hearted attempt because there was no
internal will from the people. It was a supply-driven initiative, forced upon by international
institutions on India. Empowerment of panchayats and municipalities was not an electoral issue.
Key provisions of the act

Part IX, Article243 to 243O deals with the panchayats. The act added the 11th schedule to the
constitution.
The act contains 2 types of provisions:
● Compulsory provisions: They deal with institutional structure for the Panchayati Raj.
○ Majority states appear to have fulfilled the compulsory provisions such as enactment of the
State Panchayat Act, setting up of the State Finance Commission and setting up of the State
Election Commission. However, there still exists the need for capacity building and giving more
autonomy to these institutions in socio-economic development and planning for the states.
● Voluntary provisions:
○ They are the real empowering provisions on which the state governments objected. Hence,
they were turned into voluntary provisions.
○ This was done to convince the states for their approval of the act with the hope of greater
voluntary devolution in the future.
○ Because of this, some analysts call the act a compromise document.
It is to be noted that the government publicized 73rd constitutional amendment act as a huge step
towards decentralisation. But on careful analysis, we see that it is a step which is not more than
devolution. While the act creates the skeleton, it leaves it upon the states to provide flesh and blood
to it.
Key achievements
1. Earlier known as toothless bodies for decades, post-1993 the panchayats have not only been
vested with many functions ranging from civic welfare to preparation of plans and their
expenditures, these self-governing and representative units have also been provided with sizeable
funds to look after their day-today affairs, especially by the efforts of Finance commission under
article 280.
2. Reservation policies for women, scheduled caste and scheduled tribes have provided democratic
space to these subjugated communities. They have successfully asserted their political rights and
have produced leaders which have challenged centuries of oppression and subjugation.
3. Scholars like Esther Duflo and Raghavendra Chattopadhyay have studied that districts with female
sarpanch/pradhan, have made significantly greater investments in drinking water, a priority public
goods issue for women.
Thus despite its weaknesses, this decentralisation process has deepened democracy, political and
social inclusion. It has enhanced participation among the most marginalised sections of the society.
Hence, it seems that the decentralisation process has taken a strong root and looks ’irreversible’ in
India.
For More Study Material, Visit: studyiq.com Page no.

4
Strengthens and Weaknesses of 73rd Amendment Act:

Strengths:
1. The 73rd constitutional amendment act gave institutional character to Panchayats. It made it
mandatory to constitute a three-tier Panchayat in all states.
2. It provided for the State Election Commission to hold regular elections unlike the community
development program, 1952.
3. For the certainty in the funds, it provided for a dedicated state finance commission. It also made
additional obligations on finance commission under Article 280 for finances to the third tier.
4. It provided for reservation to women, SCs and STs.
5. It provided for district and metropolitan planning committees for decentralised planning.
6. It made the formation of Gram Sabhas mandatory.
Weaknesses:
1. Though the amendment created a skeleton for the third tier, yet there was no decentralisation of
power. The 11th schedule was just indicative, the actual transfer was dependent on the will of the
state government.
2. Though a uniform pattern had been introduced, yet there was no uniformity in the allocation of
work. In this light, 2nd ARC recommended activity mapping using ‘subsidiary principle’.
NOTE: Subsidiary principle is a principle of good governance according to which if something can
be done at the level of a village, it should not be done at the level of state or centre.
3. The heart and soul of the experiment i.e Gram Sabhas, proved to be the weakest part. The act did
not explicitly determine the powers and functions of Gram Sabha and left the scope for regional
variations.
4. Though the act created State Finance Commissions, yet they were neither autonomous nor had
expertise. As highlighted by the 14th Finance Commission, even the reports of the State Finance
Commission are not being tabled in the majority of states.
5. While the act provided for auditing, it did not prescribe any dedicated institution for the same.
Most of the states had given this work to CAG. Even CAG’s social auditing has not been effective
due to lack of capacity and conducive environment.
6. In the name of social audits, bogus meetings happened, mostly attended by men of contractors.
Hence, Mani Shankar Aiyar Committee (2008) recommended video recording. It highlighted the
nexus which has developed among Panchayat representatives, local bureaucracy and political
parties.
7. The act neither provides a separate cadre nor prescribes any model code of conduct for
bureaucracy while dealing with Panchayat representatives. Hence it is suggested that like Kerala,
other states should also introduce a model code of conduct.
8. State Election Commissions are not autonomous and most of the Panchayats elections become
extremely controversial due to state interference.
9. The act introduced reservation, but reservation has fallen short to ensure meaningful
participation. Case studies from Tamil Nadu have shown how members of upper caste have not
permitted Dalit chairperson to attend the meetings.
10. The state of panchayat finances has also been deplorable. They do not have independent powers
of taxation. As pointed out in Economic Survey 2018, local-Self Governments in India suffer from
‘low equilibrium trap’. In some states like UP and Bihar, they are completely dependent on the
devolved funds from upper tiers.
11. It has been argued that Panchayati Raj has resulted in decentralisation of corruption rather than
decentralisation of democracy.
In short, the panchayats suffer from a problem of 3Fs- Funds, functions and functionaries.
Hence, according to the Mani Shankar Aiyar Committee, disillusionment is prevailing with Panchayats.
The committee held that “Bad Panchayat Raj is worse than no Panchayat Raj”. Bad Panchayat Raj

5
creates the question mark on the idea itself and makes the institution suffer from a legitimacy crisis.
Other general challenges which dwarfs the progress of Panchayati Raj

1. Regional variations: As per Manishankar Iyer committee, while some states are progressing at
snail’s pace, others are leapfrogging. For example, while some states like Kerala and West Bengal
have devolved as many as 26 departments to third tier, several states have devolved only few
functions, even as low as 3 functions.
2. No specific roles assigned: Expert Committee on Leveraging Panchayat Raj Institutions for more
Efficient Delivery of Public Goods and Services revealed that except for MGNREGA and Backward
Regions Grant Fund (BRGF), none of the 150 centrally sponsored schemes had provided a specific
role for the PRIs.
3. Lack of capacity among the office bearers: States have not paid any serious attention to building
the capacities of newly elected representatives. Many such representatives remain totally
dependent on officials to perform even routine tasks. This situation is more evident in the case of
fifth scheduled areas.
4. Lack of e-governance: There has been hardly any progress in bringing panchayats under the ambit
of e-governance. While everyone accepts that leveraging of new age technologies (ICT) can
transform accountability, transparency and effectiveness of panchayats, only around 50000 out
of 2.4 lakh panchayats in the country have implemented the e-Panchayat project.
5. Lack of political will: Creation of mere constitutional political space does not provide the answer
to the growing demands for inclusion and participation. The Centre and States need to show
willingness to share powers in terms of fund functionaries and functions, for substantive
democracy to become a reality. Local level governance has proved its worth during the pandemic.
Hence, one hopes to see a certain degree of urgency and seriousness from the leadership to walk
the talk on devolution and decentralisation as promised through 73rd constitutional amendment
act.
6. Second ARC, 2008 blames the reluctance on the part of State Governments and bureaucracy to
share powers with panchayat bodies, in accordance with the principle of subsidiarity to the
continued low momentum of decentralisation process.
7. The introduction of the act was supply driven rather than demand driven. There has not been
demand from the people for good governance rather it was external imposition.
8. Scholars like Amartya Sen cite the lack of public debate as a major reason for failure. He held that
until and unless some issue becomes a matter of public discourse/debate, governments will not
respond. This is similar to Habermas’ suggestion for the need of public sphere and communicative
action.
9. Ultimately it reflects the failure of the people, especially the advanced section of the civil society
for failing to arouse consciousness.
Suggestions by major commissions to improve the functioning of the Panchayati Raj in India
● Punchhi Commission
○ The commission has recommended establishing legislative councils in all states with
representatives from urban local bodies and panchayats for more devolution of power.
○ Creation of a watchdog body to review the working of self-governments.
○ In this light, National commission for Panchayats or local self-body can be created.
○ Special purpose vehicles, Parastatal (parallel agencies) agencies like DRDA (district rural
development agency) need to be abolished.
○ Greater involvement of civil society is the need of the hour.
● Sumit Bose Committee
○ The Committee recommended a system of quality monitoring that should be put in place to
monitor all programmes by panchayats. It recommended that panchayats should be
encouraged to use only transaction based software for:

6
▪ carrying out functions in delivering local services.

▪ Maintaining databases related to local planning and monitoring progress.
▪ Financial management including e-procurement
● Dr. Venugopal Committee
○ The committee recommended that state governments should put a quorum in Gram Sabha
meetings for participation of panchayat representatives, including women.
● 2nd Administrative reform commission

○ It recommended panchayat ombudsman for grievance redressal.
○ It recommended the size to be restructured to make panchayats a visible unit of self-
government..
○ It recommended the state government to expand the tax domain.
○ It recommended panchayat bonds for better funding to the Panchayats
○ It recommended abolishing MPLAD and MLALAD schemes.
○ It recommended to work upon capacity building of panchayat representatives.
○ It recommended the introduction of E-governance.
Way forward:
● Like PESA Act (Panchayats Extension in Scheduled Areas), 73rd CAA should also clearly mark the
functions of Gram Sabha.
● Capacity building of people at grassroots level is key to success of Panchayati raj
● Punchhi commission and 2nd ARC suggested ‘activity mapping’ following ‘subsidiarity’ principle.
● Like State of Kerala, all states should introduce the institution of Panchayat ombudsman, where
people can register the complaints
● Separate cadre for third tier should be provided like Karnataka.
RESERVATION IN THIRD TIER

Issues:
1. Reservation of constituency only for one term.
2. Reservation for women is not in proportion to their population.
3. On the ground, there have been instances of upper castes not allowing lower castes to participate
in meetings and contest elections. For example,
a. Case study 1- In three sensitive panchayats in Madurai — Pappapatti, Keeripatti and
Nattarmangalam are infamous for not allowing SCs to contest the polls.
b. Case study 2- Muthukanni, A dalit Panchayat president from Tamil Nadu’s Tirunelveli district
had to build her own Panchayat office because she was not being allowed inside the panchayat
office, and was prevented from hoisting the national flag and carrying out her duties.
4. Women members are consulted only on some women issues.
5. Emergence of phenomenons like Panch-Pati.
What can be done in this regard:

1. In the long term: Empowerment of the vulnerable sections through education, capacity building.
2. In short term:
a. Make it mandatory that no resolution will be passed without the presence of Dalit community
members and women representatives.
b. Video recording of the meetings should be made mandatory.
c. Provision of institutional architecture should be developed.
PANCHAYATI RAJ AND WOMEN EMPOWERMENT

The goal of Panchayats was empowerment. Empowerment means giving power to the powerless and
voice to the voiceless in social, economic as well as cognitive dimensions. 73rd CAA introduced

7
reservation for the women in Panchayats with the vision that political empowerment will spillover to
other forms of empowerment. It was provided to counter the deep rooted patriarchal structure at the
village level.
As per the Women Link worldwide “The passage of 73rd and 74th constitutional amendment acts is a
milestone in the constitutional history of India, which brought remarkable changes in the local
governing institutions by reserving 33% seats for women members as well as chairpersons (including
SCs and STs) at all levels of Panchayati Raj Institutions.
Scholarly views:
Scholars who have questioned the empowerment:
● Sudha Pai: She suggested that political reservation will not lead to true empowerment of women
but it will give rise to so-called “Pati Panchayats”. She believed that there is a lack of clarity with
respect to the role of women.
○ She also conducted a brief study of three villages from Meerut district in Uttar Pradesh and
cautioned that female literacy, independent voting rights and change in the status in the
family and society are the foremost requirements for women to play any active role in the
village politics.
Scholars who support the empowerment:

● Rohini Pandey:
○ Reservations for women have reduced prejudice against female leadership.
○ Enhanced respect for women.
● Gabrielle Kruks Wisner:
○ Reservation in panchayats has been a key for women’s social mobility.
● Esther Duflo and Raghavendra Chattopadhyay
○ Have highlighted how districts with female sarpanch/Pradhan have shown significantly
greater investments are made in public utility goods like drinking water.
○ It has enhanced the confidence of women.
Positive role played by women in Panchayats

8
1. Rural development: There exists various evidences that panchayats with women representatives
have made significant investment in public infrastructure which has led to rural development.
Examples:
a. Arati Devi: She launched a campaign to revive traditional folk art in her village, and also made
sure that the benefits of the various government schemes reach the most needy.
b. Chhavi Rajawat: Posterwoman of changing face of rural Rajasthan, Chhavi had also addressed
delegates at the UN's 11th Info poverty World Conference in 2011.
2. Greater role in sexual and reproductive rights: Women have shown increased confidence and
they are taking decisions with regard to sexual and reproductive rights.
3. Increased role in decision making: They have been highlighting their importance by providing
diverse opinions from different points of view in a male dominated society.
4. Decreased domestic violence: Domestic violence has shown to be substantially reduced due to
women Pradhans. These women representatives have proactively taken steps against such
violence. The victims also feel free to share their grievances with women representatives.
5. Women as agents of social revolution: Women are acting as an agent of change and role models
in the society. They are raising their voices against injustice and atrocities. For example:
a. Sushma Bhadu from Haryana arranged for a training center in her village and ensured that
every girl child goes to school.
b. Radha Devi: As she dropped out of school when she was in Class 5, she has ensured a fall in
the dropout rate in the three institutions under the control of the panchayat. She has also
contributed to increased enrolment rate as well as the literacy rate of Rajasthan.
c. Fatima Bi from Andhra Pradesh, received ‘Race Against Poverty Award’ from UNGA. for her
for the economic empowerment of women.
6. Ensured participatory and inclusive democracy
Issues which restrict the pace of envisaged benefits of women reservation:

● Deep rooted patriarchal structure: It never agrees to women in roles of authority. A society, which
is controlled and dominated by patriarchal values, recognizes the legitimacy of male domination
over social resources, means of production, land and labour etc. It turns the gender relations into
a scenario of domination and subordination as argued by radical feminists.
○ For instance, Muktaben Patel, a backward caste woman from Gujarat (Hadara Gram
Panchayat) who won elections, had to face several no-confidence motions against her by a
higher caste candidate.
● Dual burden: Women who have got elected have not been relieved of their domestic and
household duties. Hence, they have been facing dual burden.
● Issue with reservation system:
○ Policy of reservation restricted only one term.
○ Reservation not in proportion to their population.
● Lack of education and capacity: Women in rural areas have less expertise for effective governance
owing to low literacy and educational standards.
.
PESA act (Panchayat extension in scheduled areas), 1996
● As per B.D. Sharma, a former Commissioner for Scheduled Castes and Scheduled Tribes, the
provisions of PESA, appeared to come as a savior which is designed to erase the historical
injustices done to the tribal community. It was perceived as restoration of their dignity and
tradition of self-governance, symbolised by ‘Mava Nate Mava Raj’ (Our Village Our Rule).”
● Panchayat (Extension to the Scheduled Areas) Act, 1996 has recently completed 25 years of its
existence. It was enacted to empower local communities in tribal areas.
● While the 73rd and the 74th Amendments to the Indian constitution were passed in 1992, the
tribal dominated areas listed under the fifth schedule of the constitution were deliberately kept

9
out of the purview of those acts. PESA, enacted in 1996, expanded local self-governance rules to
the areas listed under the fifth schedule.
Important Features of the act

● Every village shall have a Gram Sabha which will have to:
○ Protect the traditions, beliefs and culture of the tribal communities.
○ Resolve local disputes.
○ Manage and protect common properties based on their traditional systems of management.
○ Grant permission in case of land acquisition by administration, to restore land to the tribal.
○ Control money-lending to tribal and to exercise rights over minor forest produce.
○ Exercise control over local markets and melas as well as to control the distillation, prohibition
and manufacture of liquor.
○ Give recommendations for grant of prospecting license/mining lease for minor minerals in the
Scheduled areas and the grant of concession for the exploitation of minor minerals by auction.
Issues with working of PESA

● Low awareness and education makes Gram Sabhas ineffective.
● State governments have not appropriately decentralised fiscal and administrative powers. Thus,
Gram Sabhas lack the ability to levy and collect taxes, fees and generate finances.
● Recommendations of State finance commissions are not fully implemented on ground.
● Displacement of tribals remains an unresolved issue.
● Circumvention of provisions by state governments. For example, some states upgraded rural
panchayat to urban panchayat to bypass licensing clearance power for mining
● No provision of time limit to frame rules.
● No provision to appeal against the decision of Gram Sabha.
Assessment of working of the PESA

● Case study- The Supreme Court of India, in 2013 during a landmark case, asked the Odisha
government to go to the Gram Sabha to get permission for bauxite mining in Kalahandi district.
The gram sabha decided against the mining on Niyamgiri hills which led to the cancellation of a
huge project. This case reflects the spirit of PESA and is considered as a milestone.
● However, Dayamani Barla, a journalist and activist based in Jharkhand argues that, “People living
in fifth scheduled areas were excited as they hoped that the new legislation will ensure their
control over their resources, land, mines and minerals, minor forest produce etc. But their reality
did not change even after 25 years of this law.”
● A study conducted by Indian Institute of Public Administration (IIPA) in six districts of three states
namely Jharkhand, Chhattisgarh and Odisha, highlights the poor implementation of the act.
URBAN GOVERNANCE
Urban governance is primarily concerned with the processes through which government is organised
and delivered in towns and cities and the relationships between state agencies and civil society. It
makes decisions on how to plan, finance and manage the urban areas and involves a continuous
process of negotiation over the allocation of social and material resources and political power.
Therefore, it is influenced by the creation and operation of political institutions, government capacity
to make and implement decisions coupled with the extent to which these decisions recognise and
respond to the interests of the public.
Historical evolution of urban governance

● Since the times of Indus valley civilization, India has been known for excellence in urban
administration. It can be called as one of the first and highly advanced urban civilizations.

10
● Urban centres have been the sources of wealth in India, playing the role of trading centers. The
Mahajanapadas, Mauryas, Vijayanagara, are known for their achievements in urbanisation.
● At present, while cities and towns occupy only 2% of total land, they accommodate 33 percent of
the total population. Hence, urban centres have been recognized as engines of economic growth.
● Urban administration which had been one of the most neglected areas, was focused upon by the
Britishers. They introduced some reforms.
● However, after independence, there was hardly any attention towards municipal governance.
While Panchayats were mentioned under Directive Principles of state policy (Article 40),
municipalities did not find any mention.
● Later, it was the 74th constitutional amendment act which provided a spotlight to the cities. It
mandated setting up and devolution of powers to Urban local bodies (ULBs).
Significance of urban governance reforms

● As per NITI Aayog,
○ Global experience suggests cities are central to economic growth.
○ City governance is a key enabler of urban transformation, job creation and sustainable growth.
● According to a report by McKinsey on India’s urban awakening, cities would generate 70 percent
of net new jobs created by 2030. They will contribute more than 70 percent to the GDP of India
and would drive nearly fourfold increase in per capita income across the nation.
● This McKinsey report also highlighted that unlike many countries which are grappling with aging
population and rising dependency ratios, India has a young and dynamic population, a potential
demographic dividend. Hence, India needs thriving cities if that dividend has to pay out.
● According to Isher Judge Ahluwalia, there cannot be a smart city without a smart municipality.
● She says that we fail to even imagine the amount of loss we are incurring because of neglect of
urban administration.
● 33% of the Indian population is living in urban areas. If India aspires to become a major power, it
requires faster economic growth which will require revamping of Indian cities.
● The centrality of cities to the Indian future can be seen by the fact that the urban economy will
provide 85 percent of total tax revenue which will finance development nationwide (NITI AAYOG).
● Not just economic growth, cities will also be critical for inclusive growth. With improved access to
jobs, market and the urban infrastructure, rural populations adjoining large urban centres will
result in inclusive growth.
Constitutional provisions related to Urban governance

● The 74th constitutional amendment act, 1992 has introduced a new Part IXA to the constitution,
which deals with Municipalities in from articles 243P to 243ZG.
● An illustrative list of functions that may be entrusted upon the municipalities has been
incorporated as the Twelfth schedule of the constitution. This schedule defines 18 new tasks
under the functional domain of the Urban Local Bodies.
● Article 243Y envisages a state finance commission and makes a provision that the Finance
commission constituted under Part IX for Panchayats shall also review the financial position of the
municipalities and make recommendations to the Governor for the same.
Issues with Urban governance reform

● They can be defined under three main tenets:
○ A federal system→ which doesn’t empower the third tier.
○ A political system→ which is heavily biased towards rural areas.
○ Lack of adequate institutional framework→ for metropolitan planning and governance.

11
● Existence of parallel agencies:

○ Urban administration is more chaotic because of the existence of parallel agencies which
results in overlapping jurisdictions.
○ Municipal corporations are denied their political role by continued operations by various
parastatal agencies created by the state government.
○ These agencies, having certain autonomy, are accountable only to the state government and
not to the local government.
● Lack of uniformity in the institutions and model of governance between the states:
○ There are various forms and models of urban governance. They vary in form of municipalities,
Nagarpanchayats, Nagarpalikas, Municipal corporations, Notified area committees, court
authorities to cantonment boards.
● Creation of special purpose vehicles:
○ Central government programs such as the Smart City programme seek to ring fence itself from
local governments. These programs mandate the creation of SPVs (Special Purpose Vehicles)
which will have ‘operational independence and autonomy in decision making and mission
implementation’. This is seen as bypassing local authorities.
○ It further encourages the state government to delegate powers available to ULB (Urban Local
Body) to the SPV.
● Lack of financial Independence
○ Not enough powers have been given in financial matters to municipalities.
○ For example, even for certain functions which are in its purview such as levying taxes, ULBs
need permission from the state government.
● Democratic decentralisation in the case of municipalities is not truly participative or inclusive.
○ In contrast to Panchayats, municipalities seem more backward as there is no institution of
direct democracy such as Mohalla Sabha at par with Gram Sabha.
● Lack of political will
○ There has been a deliberate neglect of urban administration because Lok Sabha is dominated
by rural constituencies.
○ Urban areas are seen as sources for generating funds, hence there is greater reluctance among
politicians and state governments to devolve more power to municipalities.
● In addition the McKinsey report has pointed towards the following other constraints:
○ Absence of modern special planning framework
○ Lack of human resource capabilities.
○ Poor municipal finance.
○ Narrow, inflexible and non buoyant tax base.
○ Inability to recover the cost of service.
○ Presence of parastatal agencies like urban development agency, special purpose vehicle.
Suggestions to improve the urban governance

● McKinsey report on India’s urban awakening has suggested the following:
○ Urban reforms primarily need political will, vocal citizens and active participation from the
private sector. India is currently in a state of deep inertia about urgency and scale of needed
urban reforms.
○ India’s urban model should focus on four main pillars:
■ Funding→ Sufficient financial resources to invest and build services for citizens.
■ Governance→ A development model that empowers local leaders but also holds them
accountable.
■ Planning→ Effective and systematic urban planning needs to be a part of the fabric of
successful cities.
■ Sectoral policies→ Great cities invest effort in designing policies for the most important
sectors which influence a city’s economy and quality of life.

12
● Isher Judge Ahluwalia in her article “Do cities matter” had suggested following solutions to
improve the city governance:
○ To achieve the goal of a 5 trillion economy, India needs to sustain an 8 % rate of growth. It
cannot be achieved without structural transformation in urban administration.
○ The present government has a stronger mandate to fix up the problem of cities. It should
enable and support the state governments for devolution of power.
○ So far the 3rd tier is kept out of GST. The 15th finance commission should correct it and include
it in the GST council.
○ Co-operative federalism in India should not stop at state level but should percolate even to
the third tier.
● 15th finance commission on urban Finance has taken bold, imaginative and far-sighted measures:
○ Substantive increase in funds to cities→ Rs. 1.55 lakh crore over a five year period from 2021-
2026 (78 percent increase over grants during the 14th FC period).
○ It has recommended “performance-based grants” for incubation of new cities and health
grants to local governments.
○ In grants for Urban local bodies, basic grants are proposed only for cities having a population
of less than a million.
○ For million-plus cities, 100% of the grants are performance-linked through the much hyped
Million-Plus Cities Challenge Fund (MCF).
○ MCF amount is linked to the performance of these cities in improving their air quality and
meeting the service level benchmarks for urban drinking water supply, sanitation along with
solid waste management.
○ Deadline of march 2024 has been set for states to strengthen the state finance commission
and table action taken reports in the state legislature.
● As per NITI Aayog ’Strategy for New India @75’:

○ It acknowledged that cities are central to raise productivity, enhance job creation and improve
public finance. It also acknowledged that city governance is a key enabler to achieve economic
development.
○ Indian ULB’s have huge scope to improve their financial autonomy and capacity to raise
resources. Ultimately in a democracy like India, higher level of funding and greater
transparency would require to be complemented by greater civic engagement and demand
for accountability.
● Suggestions by Economic survey:
○ It mentions that local self governance institutions depend on devolved funds and suggests that
state governments should be encouraged to transfer functions under the 12th schedule to
urban local bodies.
○ Preparation of a road map to make municipalities financially self-sufficient.

13
○ Enhance citizen participation through an open cities framework. It means the use of digital
technology for reporting and feedback.
○ Use of the alternative model of finance like Municipal Bonds (Lucknow).
GRASSROOT MOVEMENTS
● Grassroot movements, also known as micro movements are an organised effort undertaken by
groups of individuals to bring changes in social policy or influence an outcome, often of a political
nature. According to Rajni Kothari, the growth of grassroot movements reflects the
disillusionment with institutionalised politics and growing disconnect between political parties
with the public.
● By harnessing spontaneous popular support to bring about policy changes at local, regional,
national, or international levels, grassroots movements are considered bottom-up, rather than
top-down efforts. According to DL Seth, grassroots movements have become active in different
parts of the country since the 70s.
● The long term aim of these movements is democratisation of development and transformation of
the society.
● They are entering into direct confrontation with organisations which represent global political and
economic power.
● They represent the desperate struggle by economically marginalised and socially excluded
sections of the society.
● Many grassroot movements have collaborated to form a national level alliance to fight against the
mighty state on the issues of globalisation.
As per Smitu Kothari, the growth of grassroot movements is a result of globalisation. Globalisation
has resulted into the developmental models which are not people centric. There exists an impression
that the Indian state is increasingly getting dependent upon the foreign capital. Along with this,
globalisation has created consciousness of human rights which results in movements against the state.
Evolution and rise of grassroots movement

● Rajni Kothari has analysed the evolution of grassroot movements in detail:
○ He sees the rise of grassroot movements as a symbol of dissatisfaction with representative
politics and institutional decline.
○ He points out the decline of the parliament, disconnect between people and their
representatives.
○ He also mentions that political parties have given up the ‘movement’ aspect of their mandate.
Their activities have increasingly been restricted to operate as electoral machines at
grassroots levels only at time of elections.
○ Trade unions remain junior partners of political parties. Therefore, the emergence of new
activist groups championing the cause of workers in the legislature reflected the decline in
wider and inclusive politics. Hence, grassroot movements led by educated middle class have
emerged in India and have taken the empty space.
○ One of the most effective campaigns of grassroot has been the quest for ‘Right to information’
and ‘Lokpal’.
○ The recent farmers movements against the repealed farm law has also been considered as a
major milestone in the evolution and revival of grassroots democracy.
● Amrita Basu in her ‘Grassroot movements and the state’ explores the origin of the grassroot
movements in capitalist societies. She suggests that grassroot movements in India grow because
of the capitalist model of development on one-hand and availability of democratic space on the
other. As the capitalist space is limited, people resort to democratic space to further their
grievances.
● Smitu Kothari has also analysed that:

14
○ Globalisation has been a huge factor in the revival of grassroot movements around the world
in a big way, due to the destructive forces of development.
○ There is a rise of grassroot movements for human rights, peace and against forces of
corruption.
Significance/contribution of these movements:

● Ranjita Mohanty in her article ‘Contesting development, reinventing democracy grassroots social
movements in India’ suggested five tasks performed by these movements, namely:
○ They replaced the exclusionary narrative of state led development with a counter narrative of
inclusion.
○ They are increasingly democratising the public sphere.
○ They have expanded non party spaces for citizen’s actions.
○ They are sites for reconstruction of modernity through the discourse of citizenship with rights
and duties.
○ Reformulating the relationship between state and citizens.
In this light, D. L. Sheth argues that grassroot movements should be seen as countervailing forces
against global political and economic forces.
CONCLUSION
Hence, social movements that originate in the grassroots of democracy often have the potential to
shape history. Today, grassroots movements aim to influence broader social issues such as income
inequality, racial injustice, climate change, reproductive rights, corruption, anti-globalisation etc. and
work for the interests of the vulnerable sections. History tells us that various grassroot movements
have already reshaped politics and society. They have given voice to the interests of the poor in the
form of a variety of labour, farmer, populist, religious, temperance, and anti corruption movements.
Hence, they re-assert Arendt’s theory of action.
PYQs
1. Bring out the common and unique features of the 73rd and the 74th amendments of the
Constitution of India. Do you think that these amendments would contribute to the achievement
of ‘gender’ and ‘social’ justice at the grassroot level ? (2002)
2. Comment : Role of Gram Sabha under the Constitution (Seventy-third-Amendment) Act, 1992.
(2005)
3. Highlight the impact of 73rd constitutional Amendment on the working of the Panchayati Raj
institutions in India. (2006)
4. Comment : The Panchayati Raj institutions and district administration should develop a new
relationship for achieving the goal of good governance. (2007)
5. Discuss how far the grass democratic institutions have remained successful in accelerating the
process of rural development after the 73rd constitutional amendment. (2007)
6. Comment on: The correlation between democracy and development in India (2008)
7. Examine the changing pattern of electoral behaviour in India. (2011)
8. Examine the changing structures of Panchayati Raj institutions with special reference to 73rd
Constitution Amendment Act. (2013)
9. Explain how the participation of women impacted the functioning of rural local bodies in India.
(2014)
10. Examine the role of Panchayati Raj Institutions and Urban Local Bodies in deepening democracy
in India. (2015)
11. The goal of Good Governance will be achieved only by strengthening the grass root level
democracy. (2016)
12. Has the 73rd Constitutional Amendment empowered women in panchayats in India ? Discuss.
(2017/15)

15
13. Comment on the New Panchayat Raj is an effective instrument for women empowerment. (2018)
14. Examine the provisions of Panchayat Extension Services Act [PESA], 1996. (2018)
15. Political decentralization has not been matched by administrative decentralization at the grass
roots level. Explain (2019)
16. To what extent 73rd and 74th amendment of the Indian constitution enhanced women’s
empowerment.(2020)
17. Do you think that despite having limitations on Panchayati Raj institutions have strengthened the
process of democratic decentralization? Give your view.(2021)
18. Examine the unique features of the 73rd Constitutional Amendment. Do you think this
Amendment would contribute in achieving the goal of empowerment of marginalized sections of
the society? (2022)
SOURCES
● THE OXFORD COMPANION TO POLITICS IN INDIA
● B.L. FADIA
● D.D. BASU
● M. LAXMIKANT
● IGNOU

16
FEDERALISM
FEDERALISM
The term "Federalism" comes from Latin word "Foedus" meaning contract in which the govt. is
established by a contract. Constitution is the contract document. To resolve the differences or disputes
federation requires a neutral arbiter that is independent judiciary.
Federalism is best understood as a method of promoting self-rule and shared rule and of balancing the
interests of a nation with that of its regions. Typically, this is done for a dual purpose—that of limiting
the possibility of a tyranny of the majority, and of generating strength through union. A durable
federal design thus aims at the contradictory goals of reconciling freedom with cohesion, and a
diversity of political cultures and identities with effective collective action.
Federalism is a system of government in which powers have been divided between the centre and its
constituent parts such as states or provinces. It is an institutional mechanism to accommodate two sets
of politics, one at the centre or national level and second at the regional or provincial level.
It is natural for the vast and diverse country like India to go for federal form of polity. The basic idea
behind federalism is that it is a political contrivance to achieve good governance when unit desires
unity without uniformity.
Scholar Definition of Federalism
K.C. Wheare, an authority on federalism says that “Federation is a

system which consists of two sets of governments which are independent,
co-ordinate and distinct.”
K.C. Wheare
Prof. A.V. Dicey, says: “Federation is a political contrivance intended to

reconcile national unity with the maintenance of State Rights.”
Prof. A.V. Dicey
Dr.B.R. Ambedkar, “The partition of legislative and executive power of

the centre and units is the main criteria of federation.”
Dr.B.R. Ambedkar
TWO TYPES OF FEDERATIONS

In a federation system, there are two seats of power that are autonomous in their own spheres. A
federal system is different from a unitary system in that sovereignty is constitutionally split between
two territorial levels so that each level can act independently of each other in some areas.
There are two kinds of federations:

1
FEDERALISM
 Holding Together Federation – In this type, powers are shared between various constituent parts
to accommodate the diversity in the whole entity. Here, powers are generally tilted towards the
central authority. Example: India, Spain, Belgium.
 Coming Together Federation – In this type, independent states come together to form a larger
unit. Here, states enjoy more autonomy as compared to the holding together kind of federation.
Example: USA, Australia, Switzerland.
CHARACTERISTICS OF A FEDERATION:
A federation is traditionally constituted when two or more independent neighbouring states forge a
Union for defined purposes of common interest by divesting themselves of a measure of sovereignty
which is vested with the federal government. “The urge for union comes from the need for collective
security against aggression and economic co-ordination for protection and expansion of trade and
commerce. The federation is given only enumerated powers, the sovereignty of the states in the Union
remains otherwise unimpaired”.
“A Federation in USA is of this type. Alternatively, a federation is formed when a sovereign authority
creates autonomous units and combines them in a Union.” Once constituted, the national and state
governments possess co-ordinate authority derived from the several constitutions and enjoy
supremacy in their respective spheres of authority and jurisdiction. Canadian federation belongs to
this category. However, the differences between the two lie in the degree and extent of emphasis on
unitary features.
The characteristic features of a federal Constitution according to Prof. Dicey are:
1. Supremacy of Constitution;
2. The distribution among bodies with limited and co-ordinate authority, of different powers of
government;
3. The authority of the courts as interpreters of the Constitution;
4. Double citizenship is another characteristic of some of the Federation.
No federal Constitution can completely fulfil all these characteristics. Even the Constitution of U.S.A.
may not be completely federal in character. If, however, the Constitution predominantly fulfils the
federal characteristics, overshadowing the unitary features, it may be categorized as Federal
Constitution.
RELATIONSHIP BETWEEN FEDERATION AND CONFEDERATION

According the US Supreme Court, federation is indestructible union.
Thus confederation is destructible. In federation units loose external
sovereignty permanently, once for all. It means
1. No right to secede from union.
2. No right to conduct independent foreign policy, e.g. As per Art
253 the division of powers between center and state would not
apply in case of international treaties or agreements. Former
USSR was confederation. Units had power to secede and power
to conduct foreign policy. It is for this reason; India had
diplomatic relations with central Asian countries like Tajikistan
even when they were part of USSR.
We can also say a confederation as a loose federation.
THE DIFFERENCE BETWEEN THE US AND INDIAN FEDERALISM

Some gaps exist between US and Indian federalism. These
differences were created by the creators of the Indian Constitution.
The US federalism, as envisaged by its representatives in its Constitution, is very powerful and more
rigid. It has a regional character rather than a unitary one. Though India is unitary rather than federal,
it is a quasi-federal state.
RIGIDITY
The Constitution of the United States is very concise and compact, with just a few pages, while the

2
FEDERALISM
Constitution of India is very dense, comprising as many as XXII sections, 395 articles, and 10
schedules. Since the US Constitution is very strict, the laws intended to amend the constitution are
also very rigid and more formal. The US Constitution has only been changed 27 times. Whereas
the Constitution of India, which entered into force in 1950, has so far been amended more than 100
times. While a federal Constitution exists in the US, all federal government states have their
Constitutions to rule themselves by their loyalty to the federal Constitution. In India, all States that are
aligned with the Indian Union have a commitment to the Indian Constitution and no constitution of
their own, but each state has the right to pass the laws of its own that are included in both the state and
the concurrent lists.
LEGISLATURE WORKING
The lower house or Lok Sabha in India is stronger and its representatives are elected directly by the
people and representatives of the upper house or Rajya Sabha are elected indirectly. The members of
Lok Sabha serve their electorate on a population basis. The House of Representatives is elected in the
US-based on the population of a state but each state in the USA has only two senate members,
totalling a hundred members in the United States, irrespective of the size of the state or population.
Whereas the Lok Sabha and lower house in India are stronger, the Senate House or the upper house is
stronger in the United States. A Rajya Sabha member in India is indirectly elected by a system of
proportional and transferable voting, while in the USA a Senate member is elected directly.
JUDICIAL WORKING
While the United States has an established
judicial system, the Indian judicial system is
rapidly evolving. An accused or a witness in the
United States will depose from his place of
incarceration, preventing the use of modern
technology and excessive trips to New York
from Chicago or Los Angeles. Such facilities in
India are yet to be built. While a judge in the
United States can hold the post for life as long as
he enjoys good health, it is slightly different in India. In India, a judge in the District retires at the age
of 60 years. The judges of Higher judiciary retires at the age of 62 years from the high court and At
age of 65 years in Supreme Court.
FORMS OF GOVERNMENT
The president is the head of the state in the U.S. and thus his administration is popularly referred to as
the presidential form of government. India, on the other hand, has a legislative system of government,
while the Prime Minister exercises real power with his cabinet, with the President being only a
nominal head. United States is following the two-party rule, India has a multi-party system and a
dynamic selection mechanism. The Indian Cabinet and the Prime Minister are accountable jointly
both directly and indirectly to the Parliament and the people, while the US President has constitutional
duties and responsibilities to the people.
CITIZENSHIP
The Indian Constitution recognizes single citizenship. On the other hand, the United States
Constitution allows for double citizenship.
Although there are quite differences, there are also some ‘similarities’ between the two countries like
both, the US and India have a written Constitution, providing for a federal constitutional system under
which both governments exercise their powers and privileges, with the right to equality, to liberty, to
the right against discrimination, to freedom of religion, to cultural and educational privileges , and the
right of constitutional remedies. The federal government functions in both countries at the core in
which different states have acceded. In both the US and the Indian Constitutions the division of
powers between three entities-administrative, legislative, and judicial-is given. Each division has a

3
FEDERALISM
separate capability. While the powers between executive, legislative, and judicial officers in both
countries are explicitly divided, these powers can also overlap.A “checks and balances” mechanism
that prevails in both countries is important.
FEDERALISM IN INDIA
India is a federal system but with more tilt towards a unitary system of government. It is sometimes
considered a quasi-federal system as it has features of both a federal and a unitary system. Article 1 of
the Indian Constitution states, ‘India, that is Bharat, shall be a union of states’. The word federation is
not mentioned in the constitution.
Elements of federalism were introduced into modern India by the Government of India Act of
1919 which separated powers between the centre and the provincial legislatures.
FEDERAL PROVISIONS IN INDIAN CONSTITUTION

Constitutional Federal Description
Provision
Article 1 Article 1 of Indian constitution explicitly mentions India as union of state,
strived by Ambedkar Indestructible union and an example of holding
together model.
Seventh schedule Seventh schedule of the constitution -The Seventh Schedule to the
of the constitution Constitution of India defines and specifies allocation of powers and
functions between Union & States. It contains three lists; i.e. 1) Union
List, 2) State List and 3) Concurrent List.
Article 246 Article 246 - The Indian constitution divides legislative power between the
union and the states under Article 246. It provides the union exclusive
legislative authority over the items on list 1 and concurrent legislative
authority over the items on list 3 of Schedule 7 of the constitution.
Article 249 Article 249 -In the national interest, Article 249 of the Indian constitution
provides parliament control over matters on the state list.
Article 250 Article 250 - If a proclamation of emergency is in effect, Article 250 of the
Indian constitution grants parliament control over any matter on the state
list.
Article 252 Article 252 of the Indian constitution empowers parliament to legislate on
behalf of two or more states with their approval.
Article 352 to 360 Article 352 to 360 states about provisions for the proclamation of
emergency and the effect of such proclamation on various grounds.
REASONS FOR ADOPTING FEDERALISM IN INDIA

 A large country.
 A country with diversity.
 Feeling among people that they do have some commonality and they can be represented as a unit
in one.
 Military or security reasons.
 Economic reasons to have a bigger common market.
Features of federation :A.V Dicey

 There should be set of states closely connected by location and capable of having an impression

4
FEDERALISM
that they can have common nationality

 States or units must desire union but must not desire unity. They have a desire to maintain
distinct identity and retain autonomy or independence.
 A federal state is a political contrivance intended to reconcile national unity and power with the
maintenance of state rights
Federal Features of the Indian Union

 Governments at two levels –centre and states
 Division of power between the centre and states – there are three lists given in the Seventh
Schedule of the Constitution which gives the subjects each level has jurisdiction in:
o Union List
o State List
o Concurrent List
 Supremacy of the constitution – the basic structure of the constitution is indestructible as laid
out by the judiciary. The constitution is the supreme law in India.
 Independent judiciary – the constitution provides for an independent and integrated judiciary.
The lower and district courts are at the bottom levels, the high courts are at the state levels and at
the topmost position is the Supreme Court of India. All courts are subordinate to the Supreme
Court.
 Written Constitution – India has the one of the largest constitution in the world which consists
of 395 articles 22 parts and 12 schedules. Every article of Indian constitution is clearly written
down and has been discussed in full detail.
 Supreme judiciary – The Supreme Court of India is regarded as the superior court of the
country. The decision of the Supreme Court is binding upon all courts and it has the power to
interpret the articles of the constitution.
 Bicameral-legislation – In India, the legislature is bicameral. It has two houses and that are Lok
Sabha and Rajya Sabha. The upper house of the parliament which represents the states is Rajya
Sabha and the lower house of the parliament which represents the people in general is Lok Sabha.
Unitary Features of the Indian Union

 The flexibility of the constitution – the constitution is a blend of flexibility and rigidity. Certain
provisions of the constitution can be easily amended. In case the amendments seek to change
aspects of federalism in India, the provision to bring about such amendments is not easy.
 More power vests with the Centre – the constitution guarantees more powers with the Union
List. On the Concurrent List subjects, the parliament can make laws that can override the laws
made by a state legislature on some matters. The parliament can also make laws regarding certain
subjects in the State List.
 Unequal representation of states in the Rajya Sabha – the representation of the states in the
upper house is based on the state’s populations. For example, Uttar Pradesh has 31 seats and Goa,
1 in the Rajya Sabha. In an ideal federal system, all the states should have equal representation.
 The executive is a part of the legislature – in India, the executive in both the centre and the
states is a part of the legislature. This goes against the principle of division of powers between the
different organs of the government.
 Lok Sabha is more powerful than the Rajya Sabha – in our system, the Lok Sabha is more
powerful than the upper house and an unequal power to two houses is against the principle of
federalism.
 Emergency powers – the centre is provided with emergency powers. When an emergency is
imposed, the centre has increased control over states. This undermines the autonomy of the states.
 Integrated judiciary – the judiciary in India is integrated. There is no separate judiciary at the
centre and the state levels.
 Single citizenship – in India, only single citizenship is available to citizens. They cannot be
citizens of the state as well. This helps in increasing the feeling of nationality as it forges unity
amidst regional and cultural differences. It also augments fundamental rights such as the freedom
of movement and residence in any part of the nation.

5
FEDERALISM
 Governor’s appointment – the governor of a state acts as the centre’s representative in the state.
The state government does not appoint the governor, the centre does.
 New states formation – the parliament has the power to alter the territory of a state by increasing
or reducing the area of the state. It can also change the name of a state.
 All India Services – through the All India Services such as the IAS, IPS, etc. the centre interferes
in the executive powers of the states. These services also offer uniformity in administration
throughout the nation.
 Integrated election machinery – the Election Commission of India is responsible for conducting
free and fair elections at both the centre and the state levels in India. The members of the EC is
appointed by the president.
 Veto over states bills – The governor of a state can reserve certain kinds of bills for the
president’s consideration. The president enjoys absolute veto on these bills. He can even reject the
bill at the second instance that is when the bill is sent after reconsideration by the state legislature.
This provision is a departure from the principles of federalism.
 Integrated audit machinery – the president of the country appoints the CAG who audits
accounts of both the centre and the states.
 Power to remove key officials – the state government or state legislature does not have the
authority to remove certain key government officials even at the state level like the election
commissioner of a state, judges of the high courts, or the chairman of the state public service
commissions.
Debate over nature of Indian Federalism: Views of Scholars

Prof. K C Wheare compared Indian model with US model
 He declared India to be quasi-federal.
 According to him, India is federal in form but unitary in sprit.
 He calls Indian constitution having subsidiary federal features
whereas prominent unitary features.
 He calls it Quasi federal because of various centralizing provisions
like Emergency powers with the centre, All India services, integrated
judiciary , residuary power with the centre etc.
Criticism of KC Wheare approach
 K C Wheare’s approach is legal constitutional.
 Hence his approach is static. He ignores the dynamic aspect of federalism
 KC Wheare is also ethnocentric. When he calls India ‘quasi-federal’ he takes US constitution as
a model.
Granville Austin-
 Each federation in unique, sui-generis.
 Indian federation is the product of the unique circumstances which India
has faced. Whichever country will face secessionist trend is bound to
have a model where center is strong. Be it India or Canada.
 Granville Austin calls Indian model as example of ‘cooperative
federalism’.
Alfred Stephan
 Indian model is Demos-enabling whereas US's is Demos-constraining
because Indian model provides representation in Rajya Sabha based on
the population unlike US where the equal number of seats have been
provided to each state.
 Indian Model is better suitable for Developing countries

6
FEDERALISM
According to Louise Tillin, Indian constitution is an example of great

creativity. Different parameters are followed with different regional aspirations.
The attitude of central govt. depends on multiple factors like security, political,
economic. Constitution of India provides following options:
● Union territories (UTs)
● full-fledged states
● national capital territories (NCR)
● Autonomous states.
● Autonomous regions.
Sir. Ivor. Jennings feels, that India is a federation, with a strong centralizing tendency.
W.H.Morris Jones, held the view that “Indian federalism was a kind of cooperative federalism
where bargaining took place between the centre and the states, but ultimately a solution came out
and both agreed to co-operate.”
Appleby, goes a step further to describe the Indian Constitution as “Extremely Federal.
WHAT MAKES INDIA QUASI-FEDERAL?

There are many examples which clearly show that the Indian constitution has federal features but it
also shows that it has been evident with quasi-federal features too. Some of the examples which show
that India is a quasi-federal are as follows-
 Division of power between the central and state government but the central government has been
given more powers than the state government.
 Parliament can override the laws which are passed by the states for the reason of national interest.
 Residual powers are vested with the central government.
 Major taxation powers are also vested with the central government.
 Parliament does not represent the states equally. However, in a pure federal government the upper
house of the legislature has equal representation from the constituting states. But in our Rajya
Sabha, the states do not have equal representation. The populous state has more representatives in
the Rajya Sabha that the less populous states.
 In India, citizens are allotted single citizenship which is not a feature of pure federal government.
As in true federal nation, citizens are allotted dual citizenship. First, they are the citizens of their
provinces then they are the citizens of their nation.
CONSTITUTIONAL DEBATE ON FEDERALISM

Dr. Ambedkar listed several features of the draft constitution which mitigated the rigidity and
legalism of federalism in his historic speech in the constituent assembly in November 1949. The
following features were mentioned:
1) Article 246 of Indian constitution distributes legislative power between union and states. It gives
union exclusive power to legislate in respect of matters contained in list 1 and concurrent power
to legislate in respect to matters contained in list 3 of schedule 7 of the constitution.
2) Parliament is given power to legislate on exclusively state subjects matters namely:
 Article 249 of Indian constitution gives power to parliament with respect to matter in the state list
in the national interest.
 Article 250 of Indian constitution gives power to parliament in respect of any matter in the state
list if a proclamation of emergency is in operation.
 Article 252 of Indian constitution gives power to parliament to legislate two or more states by
consent of those states.
 Article 352 and 353 states about provisions for the proclamation of emergency and the effect of
such proclamation.
 There are provisions included in the constitution which are to be operative unless parliament
made any contrary provision or word to the same effect.

7
FEDERALISM
 Article 368 of Indian constitution states about provisions regarding the amendment of the
constitution.
Dr Ambedkar made it clear that these provisions make the Indian constitution both unitary as well as
federal according to the requirements of time and circumstances. He further stated that in normal
times it is framed to work as a federal system. But in times of war it is designed as to make it as
though it was a unitary system. He also made it clear that Article 250, 352, 353 of Indian constitution
can only be exercise by the President of India and requires the approval of both houses of the Indian
parliament.
Importance of Cooperative Federalism:-

 Federalism is the most relevant factor of modern
constitutionalism. The core objectives of Indian federalism
are unity in diversity, devolution in authority, and
decentralization in administration. Through federalism, the
State pursues the goal of common welfare in the midst of
wide diversity in socio-cultural, economic spheres.
 Cooperative federalism is the concept which reflects the relationship between centre and state
where they both come together and resolve the common problems with each other’s cooperation.
With the collaborative efforts and cooperation, different level of governments in an amicable
manner, contributes towards the growth of the country.
 It shows the horizontal relationship between union and states and shows neither is above the
other. To ensure this relationship between centre and state, Indian constitution has incorporated
certain instruments like inter-state council, Zonal council, 7th schedule etc. Indian model of
federalism is called quasi-federal system as it contains major features of both: federation and
union. Federalism is a system of government in which power is divided between a central
authority and constituent political units. The Constitution of India establishes a federal structure to
the Indian government, declaring it to be a “Union of States”.
 In 1974, when the Supreme Court commented on the Constitution envisaging a cooperative
federal structure, federalism has come a long way in India. In relation to the imposition of
President’s rule under Article 356 of the Constitution, federalism is far more mature.
 Between 1947 and 1977, there were 44 instances when the power to impose President’s rule was
exercised. Between 1977 and 1996, the power was exercised almost 59 times. Prime Minister
Indira Gandhi’s cabinet resorted to the power an estimated 50 times in her 14 years.
 From 1991 till 2016, there have been 32 instances of the exercise of this power compared to 92
instances in the preceding period. In S.R. Bommai v. Union of India (1994), the limitation laid
down by the Supreme Court might have placed gentle breaks on exercise of this power
(President’s Rule), but the Centre continues to wield superior legislative powers, including
residuary powers and legislative precedence.
 Taxation powers are contentious issue and the Central government has won most of the disputes
purely due to express provisions in the Constitution. In the Goods and Services Tax (GST)
scenario, States have foregone some taxation powers (octroi, entry tax, luxury and entertainment
taxes, etc.) but have powers to levy taxes through panchayats and municipalities.
 Such powers can result in an anomalous situation of a transaction being taxed under GST laws
and a local law, and this is yet to be tested in court. After the GST amendments to the
Constitution, States have power to levy tax on sale of petrol, diesel, etc. and these would be
revenues of the respective States. However, the GST Council is yet to recommend inclusion of
these items under GST.
 The southern States have been vocal about the false positives and negatives from tax sharing and
this mechanism is largely subject to the recommendations of the Finance Commission (FC) and
action by Parliament. State levies and State GST form part of a State’s revenue. Under Article
269A(1) the GST Council and not the FC has the powers to make recommendations in relation to
sharing of taxes from inter-State trade.
Important Cases

8
FEDERALISM
State of Rajasthan v Union of India, 1977

In State of Rajasthan v Union of India, 1977 former Chief Justice Beg,
called the constitution of India as “amphibian” he further stated that our
constitution creates a central government which is amphibian in the
sense that it can be either federal or unitary according to the need of the
situation and the circumstance of the case.
S.R. Bommai vs Union of India

In this case the court stated that the president should exercise his powers only after his proclamation is
approved by both houses of parliament. The power of president to dismiss a state government is not
absolute.
Haryana vs State of Punjab
In State of Haryana v State of Punjab the term semi-federal was used for India and in Shamsher Singh
v State of Punjab the constitution was called more unitary than federal.
State of West Bengal vs Union of India

This case dealt with the issue of the exercise of sovereign powers by Indian states. In this case, the
Supreme Court held that the Indian constitution does not promote a principle of absolute federalism.
The court further states 4 characteristics highlighting the facts that the Indian constitution is not a
traditional federal constitution.
 The first characteristic is highlighted by the court is
that constitution of India is the supreme document
which governs all states and there is no provision of
separate constitutions for each state as required in
the federal state.
 The second characteristic is highlighted by the court
is that the states have no power to alter the
constitution but only central government has the
power to alter the constitution of India.
 The third characteristic is highlighted by the court is
that the Indian constitution renders supreme power
upon the courts to invalidate any
action which violates the constitution.
 The fourth characteristic is highlighted by the court is that the distribution of powers facilitates
national policies matter by central government and local governance by the state government.
 The Supreme Court further held that the central government is the final authority for any issue.
The political power distributed between both union and state government with greater weight
given to union government.
 Another thing which is against the pure form of federalism is there is concept of single citizenship
in India.
 The learned judges finally concluded that the structure of India as provided by the constitution is
centralized, with the states occupying a secondary position vis-à-vis the Centre.
Federalism at the time of COVID

COVID-19 pandemic has laid bare the strengths and weaknesses of all forms of political systems
and structures: democratic and authoritarian; unitary and federal.
The pandemic put both the unitary strengths and the federal assets of India’s political structure to
serious test, befitting the nation from one extreme to the other.
Louise Tillin, a known scholar on federalism captures this trend succinctly when she says: “India
has moved from unilateral centralized decision-making in the first wave to something that
approximates unilateral decentralized decision-making by default—in the second wave.
Other factors like The complete domination of the states through the NDM Act along with the use
of the levers of finance to twist the tails of the states clearly hurt the quality of federalism and
heavily tilted the balance in favour of the Centre.

9
FEDERALISM
The federal response to the pandemic has evolved in a number of ways

Unilateral centralized:
 The Centre took over many responsibilities which otherwise fall within the domain of the
state.
 The Centre assumed the role of anchor and led from the front in managing the pandemic,
particularly during the periods involving national lockdowns.
Unilateral Decentralized
 The Centre frequently emphasised the involvement of third tier institutions similarly various
states delegated substantial powers and responsibilities to these bodies in managing the
pandemic.
o For instance, the Odisha government delegated the sarpanch with the powers of a
magistrate to control the movement of migrants and oversee physical-distancing norms.
o Similarly, the Kerala government allowed local bodies to do contact-tracing, conduct
health camps and sanitation drives, and sensitise people on health protocols.
Thus the COVID pandemic proved that the Centre and states have different roles but need to work
closely during a crisis, instead of adopting a centralised approach.
CONCLUSION
The Indian government is quasi-federal in nature as it contains features of single citizenship, a single
constitution, and flexibility of constitution which are not the features of a pure federal government
which are followed in the United States of America. Although the Indian government contains
features of federal government such as division of power, partial rigidity of constitution, it cannot be
consider as pure federal government but as quasi-federal government.
THE DYNAMICS BETWEEN PARTY SYSTEM AND FEDERAL SYSTEM

Federalism does not operate in vacuum. It gets affected by other factors in the environment. Since
it gets impacted by environment we cannot call it as static idea. It is a dynamic concept. It evolves
with time. The most prominent factors that shape the functioning of federalism is the nature of
party system.
Ideally federal system requires presidential form of government. Parliamentary form of government is
based on party system and party system distorts federalism. On the other hand, presidential system
does not depend on party system.
It is now an explicit fact that in India, there is no centre and state dispute; there are only party to party
disputes. Indian model works properly in a frictionless manner when same party is ruling at the centre
and the state. However once the combination differs, friction emerges and cooperative federalism
becomes bargaining.
Prof. M. P. Singh points that federalism is a dynamic concept, it needs to be understood in the socio-
cultural context. According to Prof. M P Singh, there are two axis of Indian political system.
1. Parliamentary axis.
2. Federal axis.
Parliamentary axis denotes strong center, federal axis denotes strong states. When single party has
absolute majority at the center, parliamentary axis becomes prominent, e.g. Under Pandit Nehru,
Indira Gandhi and now under Modi government. On the other hand, when there is a coalition politics,
which represent regionalization, federal axis becomes dominant.
Thus the nature of federalism has been evolving with the changing nature of party system in India.
Besides party system, economic policy/political economy of the state will also impact. Position of
states will be stronger if the developmental model is neo-liberal and that of centre will be stronger if
the developmental model is based on welfare.
Federalism ideally requires Presidential form because Party system distorts federalism
1. If both centre and state have same party
It results into co-operative federalism and federalism works smoothly
2. If centre and state have different party

10
FEDERALISM
Scholars like Granville Austin and Morris Jones held that the states where ruling party was
different with the ruling party at Centre appeared disadvantaged considering the greater
bargaining power of the state government with the same party at state and center.
EVOLUTION OF FEDERALISM WITH PARTY SYSTEM IN INDIA

Stage of Party System State of Indian Federation
Stage 1 (since 1967) One party dominant system- called Congress System
 As India adopted Centralize planning and begin with one party
dominant system federalism was in its ideal form.In 1967 we
saw the breakdown of congress system and the rise of regional
parties in the states.
 Federalism worked smoothly till the breakdown of congress
system
Stage 2 (1967- 1989 ) Rise of regional parties

 India’s cooperative federalism started showing strains and fault
lines.
 Along with cooperative federalism emerged bargaining
federalism.
 Misuse of Governor’s post.
 Frequent misuse of President’s rule.
Quasi-Confederal stage
Stage 3 (1989 onwards )  In 1990 not only party system and the governments at centre
changed (i.e.beginning of the coalition system), even the
political economy changed from state controlled to LPG model.
 In this phase the bargaining power of the state government has
increased due to the presence of regional parties, LPG model also
reduced the dependence on the central government.
 The bargaining power of state governments increased to an extent
that scholars like Balvir Arora described that India is moving
from quasi-federal to quasi-confederal.
Stage 4(Since 2014 ) BJP System

 Since 2014 onwards we see that the centralizing trend may be
strengthened due to the emergence of another dominant party
system.
 As the ruling party has got absolute majority and a sort of one
party dominant system, to quote Suhas Palashikar, ‘BJP system
is emerging’.
Globalisation and Indian federation

The Globalisation has both strengthened and weakened the role of centre in India
Strengthening role of Centre by globalisation
 Emergence of global security threat -more space for centre
 Growth of transnational actors
Weakening role of Centre by globalisation
 Rolling back of the state with market taking the central role.
 State government taking interest in economic policies
 State government attracting FDI
 Structural adjustment programme – No good governance possible without power
devolution which resulted into devolution of more power to state government.

11
FEDERALISM
COOPERATIVE AND COMPETITIVE FEDERALISM IN INDIA

Co-operative federalism in India
 Indian model of federalism is an example of co-operative federalism. In dual federation, the
two governments acts as the two completely independent entities; they are like two water
tight compartments.
 India is also seen as an example of ‘Executive federalism’, rather than legislative
federation like USA. In India, the importance of state arises in context of administration
Cooperative Federalism is based on the philosophy of interdependence and in which centre acts
as an elder brother. Cooperative federalism is adopted in countries which:
 Suffers from regional imbalance.
 Suffers from secessionist trends like Canada & India
 When center and states, and states work with each other for a common cause
Features of cooperative federalism in India
 Cooperative federalism is based on the concept of interdependence rather than independence.
The two governments are not two water tight compartments, there is interlocking.
 It means both are made dependent on each other. If states are dependent on union financially,
union is dependent on state for execution of union laws and policies.
How co-operative federalism changes into bargaining federalism

 According to Prof. M P Singh, in most of the scenarios, cooperative federalism remains an
idea whereas in practice, it becomes bargaining federalism.
 A thin line between co-operative and bargaining
 Co-operative federalism denotes the existence of the trust between the two levels of
govt. It represents the consultation, cooperation, mutual trust. In the words of Prime
Minister Modi, ‘Team India’ approach. In cooperative federalism, centre acts as a
friend, philosopher and guide.
 On the other hand, bargaining federalism represents a situation where center acts as a big
bullying brother or a patriarch. Since bargaining power of center is more, bargaining
federalism show the disadvantaged position of the states. However, regionalization of
party system has enhanced the bargaining powers of state governments.
Competitive federalism
It is a framework in which states and centre compete to provide best services to the citizens at
lowest cost .It encourages bottom up planning where tailor made policies replace one size fits all
policies to fulfill different priorities.
Features of competitive federalism
Competitive federalism is a neo-liberal idea based on ‘minimum government, maximum
governance’. It denotes rolling back of the state. When the developmental functions of the states
are rolled back, the vaccuum is filled by private sector. Hence the policy of the state governments
should be such that they are able to attract private investments.
Examples of Competitive federalism in India
 NITI Aayog replaced Planning Commission. Hence states are no longer bound by
centre’s policy guidelines.
 41% of shareable pool of funds is assigned to states for providing untied funds for
bottom up planning
 Number of compulsory CSS (centrally sponsored schemes )has also reduced. Only
core of the core CSS will remain
 States are improving ease of doing business to attract private investors. e.g. Rajasthan’s
land and labour reforms.
 Even funding for centre’s schemes is based on competition e.g. Smart City Mission
selection of cities.
 Centre has proposed Swiss challenge method based bidding for selecting location for IITs,

12
FEDERALISM
IIMs, AIIMS, ports, national games, ports, refineries etc. This will not only allow merit based
decision making but state’s cooperation will be generated through means of competition rather
than direction.
Criticism of competitive federalism in India
 Based on neo-liberal vision and hence can accentuate inter-state disparities or regional
imbalance
 Regional imbalance has always been a cause of concern as it strengthens the separatist trend
 The regional imbalance may also create more intra-state dispute
 Hence whatever idea is introduced it must not ignore the
dimension of equity and justice
 It is necessary that union govt. should help in capacity
building of weaker states so that there is a level playing field
 According to Prof. Balveer Arora in his book “India’s
Beleaguered Federalism: The Pluralist Challenge"
competitive federalism in Indian context may not be
adequate because the situation of different states varies. It
will create unfair competition, will lead to the lack of
balanced development.
NATURE OF POLITICS INVOLVED IN STATES FORMATION IN INDIA (ARTICLE 3).

Article 3 is often suggested as a non federal feature of Indian Constitution.
However, it is not. Every federation is unique/sui-generis. It is not correct to
take USA as an ideal type. Indian model is cooperative federation, logically
driven by the historical situations. Ambedkar has clearly mentioned that
India is indestructible union of destructible states. India is holding together
model of federation. According to Louise Tillin (Book-REMAPPING
INDIA), the internal territorial map of India is still not settled. It is to be
noted that boundaries in India have been colonial boundaries rather than
natural boundaries. Gandhi himself accepted and advocated the
reorganization of India on linguistic lines. Even for administrative purposes, Louise Tillin
some sort of homogenization is required. Hence it was natural that
constitution makes flexible provision for formation of states. Had Article 3 not been there, and the
process of alteration had been made rigid, India would not have survived its ‘dangerous decades’.
THEORETICAL ANALYSIS OF STATE FORMATION IN INDIA

Approach Scholars Analysis
Political economy approach – Atul The economic policies of the state dictated the creation of
Kohli. smaller states e.g. The main consideration behind creation of
Chhattisgarh was government’s neo-liberal approach to
mining. Once Chhattisgarh becomes state, it will have no
option but to open its mines and minerals.
Sociological theory -Ramchandra The demands represent the assertion by the marginalized
Guha and Yogendra Yadav. sections. To assert their share in power and development.

13
FEDERALISM
Political analysis of state The main consideration behind state formations has been
formation - Louis Tillin political. The timing, the possibility of formation is
primarily dictated by the interest of the ruling party at
center.
For example:
 Congress kept on postponing the creation of Telangana
and made announcement just before elections.
 Similarly, BJP created Uttarakhand to consolidate its
position.
 Lalu Prasad Yadav agreed for bifurcation of Bihar
because it consolidates the position of RJD.
Christophe Jaffrelot’s Analysis Christophe Jaffrelot also considered state formations in

India including linguistic reorganization as purely political
phenomenon and primarily based on caste.
 Pandit Nehru opposed linguistic states because he was
concerned about the future of Congress system.
However, he held that multilingual states are showcases
of India’s unity in diversity.
 Despite SRC (State Reorganization Commission)
accepted need to create Telangana, Pandit Nehru
rejected it. Instead of state, he offered ‘gentleman’s
promise’. But the real reason for not creating Telangana
was that, Telangana was dominated by communists.
 Linguistic reorganization was an aspiration of certain
castes to consolidate their political power. It led to the
emergence of dominant castes in different states who
could form their governments. For example, Yadav
emerged as the dominant caste in UP and Bihar; Jats are
the dominant castes in Haryana and western UP;
Marathas are dominant caste in Maharashtra; Reddis,
Kammas and Kapus in Andhra Pradesh; Lingayats and

14
FEDERALISM
Vokkaligas in Karnataka.
FACTORS BEHIND STATE FORMATION

Louise Tillin in her recent book REMAPPING INDIA has given the exhaustive analysis of the
process of state formation. New states have been formed in different phases with different
logic/reasons.
Phase State Reorganisation
1st phase: 50s and 60s Reorganization of peninsula. Main concern was linguistic.
2nd phase: 60s and 70s Reorganization of western and North Eastern part. As far as North
East is concerned, ethnicity was the criteria.
3rd phase: 21st century Reorganization of Hindi heartland besides Telangana. The logic has
been ‘good governance’ and development.
Do you support smaller states?

There has been a consistent demand for creation of new states. There is a lack of consensus among the
political scholars.
In favour of smaller states 2nd school of thought
Ramchandra Guha, Bibek Debroy, Political Prof. M. P. Singh and Sudha Pai
leaders like Advani and Mayavati

15
FEDERALISM
Their core argument is logic of good Prof. M. P. Singh and Sudha Pai agrue that:
governance. Smaller states are easy to govern 1. There is no relation between size and good
and good governance translates into governance e.g. Despite being large, Tamil
development, inclusive growth. There should Nadu is well governed and despite being
be a rationalization between the strength of small, neither Jharkhand nor Chhattisgarh
administration and the population of the state. can be seen as examples of good
According to Bibek Debroy, there should be at governance.
least 50 states in India. USA with 1/4th of 2. No relation between size and development.
Indian population has 50 states but India has The growth story of Punjab is over;
only 28 states. If we take UP as a country, in Chhattisgarh shines on mines (the
terms of population, it will be the 5th largest in unsustainable approach). Maharashtra,
terms of population. despite being large, continues to be more
developed.
3. New states means new ministries, new
infrastructure for government institutions,
unnecessary expenditure.
4. More states means more interstate disputes.
5. Smaller states – politically unstable,
defection is easy e.g. Goa.
6. The economic viability of many new states
being demanded is questionable. They will
depend on grants of union, as good as union
territories.
7. The impact on mother state will also have
to be taken in consideration.
8. Some demands may create strategic
concerns like Gorkhaland in India. It will
give weightage to the Nepal’s allegations
that India has captured its territories during
colonial times.
9. When govt. has introduced 73rd
amendment act, the logic for smaller states
goes. Good governance and development
requires the strengthening of Panchayati
Raj.
10. The use of information and communication
technology (e-governance) can bring
government at the doorstep.
11. This does not mean that no demand for
smaller states to be accepted. Wherever
there is a genuine aspiration of the people,

16
FEDERALISM
the demand can be considered. However, it

should not be purely political.
Practice Questions
Q) Does the functioning of federalism in India tend to make it appear as a unitary state in practice?
Q) Discuss asymmetrical federalism in India.
Q) Indian federation has moved from cooperative federalism to competitive federalism.
REFERENCES
 B.L.FADIA-INDIAN GOVERNMENT AND POLITICS
 IGNOU NOTES

17

L17 Crux F Grassroot Democracy 2 and Federalism 1 1668389953

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

L17 Crux F Grassroot Democracy 2 and Federalism 1 1668389953

Uploaded by

Copyright:

Available Formats

GRASSROOTS DEMOCRACY

Key provisions of the act

For More Study Material, Visit: studyiq.com Page no.

Strengthens and Weaknesses of 73rd Amendment Act:

For More Study Material, Visit: studyiq.com Page no.

Other general challenges which dwarfs the progress of Panchayati Raj

For More Study Material, Visit: studyiq.com Page no.

▪ carrying out functions in delivering local services.

● 2nd Administrative reform commission

RESERVATION IN THIRD TIER

What can be done in this regard:

PANCHAYATI RAJ AND WOMEN EMPOWERMENT

For More Study Material, Visit: studyiq.com Page no.

Scholars who support the empowerment:

Positive role played by women in Panchayats

For More Study Material, Visit: studyiq.com Page no.

Issues which restrict the pace of envisaged benefits of women reservation:

For More Study Material, Visit: studyiq.com Page no.

Important Features of the act

Issues with working of PESA

Assessment of working of the PESA

Historical evolution of urban governance

For More Study Material, Visit: studyiq.com Page no.

Significance of urban governance reforms

Constitutional provisions related to Urban governance

Issues with Urban governance reform

For More Study Material, Visit: studyiq.com Page no.

● Existence of parallel agencies:

Suggestions to improve the urban governance

For More Study Material, Visit: studyiq.com Page no.

● As per NITI Aayog ’Strategy for New India @75’:

For More Study Material, Visit: studyiq.com Page no.

Evolution and rise of grassroots movement

For More Study Material, Visit: studyiq.com Page no.

Significance/contribution of these movements:

For More Study Material, Visit: studyiq.com Page no.

For More Study Material, Visit: studyiq.com Page no.

Scholar Definition of Federalism

K.C. Wheare, an authority on federalism says that “Federation is a

Prof. A.V. Dicey, says: “Federation is a political contrivance intended to

Prof. A.V. Dicey

Dr.B.R. Ambedkar, “The partition of legislative and executive power of

TWO TYPES OF FEDERATIONS

For More Study Material, Visit: studyiq.com Page no.

RELATIONSHIP BETWEEN FEDERATION AND CONFEDERATION

THE DIFFERENCE BETWEEN THE US AND INDIAN FEDERALISM

For More Study Material, Visit: studyiq.com Page no.

For More Study Material, Visit: studyiq.com Page no.

FEDERAL PROVISIONS IN INDIAN CONSTITUTION

REASONS FOR ADOPTING FEDERALISM IN INDIA

Features of federation :A.V Dicey

For More Study Material, Visit: studyiq.com Page no.

that they can have common nationality

Federal Features of the Indian Union

Unitary Features of the Indian Union

For More Study Material, Visit: studyiq.com Page no.

Debate over nature of Indian Federalism: Views of Scholars

For More Study Material, Visit: studyiq.com Page no.

According to Louise Tillin, Indian constitution is an example of great

WHAT MAKES INDIA QUASI-FEDERAL?

CONSTITUTIONAL DEBATE ON FEDERALISM

For More Study Material, Visit: studyiq.com Page no.

Importance of Cooperative Federalism:-

For More Study Material, Visit: studyiq.com Page no.