The framers of the Indian Constitution pointed out that the Indian scheme was one of ‘Cooperative Federalism,’ which indicates a desire for a federal spirit. Therefore, Indian federalism aims at promoting close cooperation between the Centre and the State(s). The Constitution demarcates the areas that can be exclusively legislated by the Centre, those exclusively legislated by the States, and those concurrently legislated by both the Centre and the States. If any law passed by a state legislature conflicts with a statute of Parliament in the concurrent list, Parliament law shall prevail. Thus, the Indian Constitutional framework gives precedence to the laws passed by Parliament over those of the states.

The Central government is endowed with greater authority by the Constitution and their interference in the administration of the States has caused major strains in Centre-State relations as follows:

1) Imposition of President’s Rule: Article 356 was made to be used as a last resort.
For eg:

• Dismissal of a State government with a majority in the legislative assembly, emphasising its exceptional use in extreme circumstances.
• Suspending or dissolving the Assembly in a politician''s consideration.
• Not giving a chance to the opposition to form a government when an electoral verdict is indecisive.
• Denying the opportunity to the opposition to form a government when a ministry resigned in anticipation of a defeat on the floor of the House.
• Not allowing the opposition to form the government even after the defeat of a ministry on the floor of the House.

A clear misuse of the President’s Rule was seen in 1980 when the Janata Government at the Centre dismissed the Congress Governments in nine States.

2) Deployment of Central Forces: to maintain law and order, the Centre deployed para-military forces into the States without consulting the State’s Government, and at times against the wishes of the respective State.

3) Reservation of Bill: A Governor usually reserves a Bill against the advice of a State’s Ministry, but, on the advice of the Central Government. This act of the Governor is looked upon as serving the interest of the Central Government.

4) Fiscal Matters: Tensions arise concerning fiscal matters because of -

• Comparative powers of taxation
• Statutory versus discretionary grants
• Economic planning

1. Taxation power:The Centre controls vast resources granted through deficit financing, loans from the organised money market in the country as well as in the form of foreign aid. In addition, the Central government can collect a surcharge on taxes and raise additional funds in times of emergency. On the other hand, the States lack resources to discharge their responsibilities and at times fail to mobilise their resources. Thus, the State is Centre-dependent.
2. Statutory versus Discretionary Grants:There are four methods of devolution of funds from the Centre to the States, viz, Obligatory sharing of Union taxes on income, allocation of Union duties and taxes to the States, permissive sharing of Union excise duties, providing financial assistance to the States in the form of grants and loans.
3. Economic Planning:In the context of economic planning, the intention behind planning in India was to promote greater centralisation. This is exemplified by the transfer of industries from the State List to the Union List without a constitutional amendment. This transfer was justified on the grounds of expediency for the public interest, indicating a shift of authority over certain economic matters from the states to the central government.

To manage and lead a vast and complex nation like India, the leadership at central level needs to adopt a hugely accommodative approach, with a no-confrontation attitude. Cooperation and mutual understanding will help states deliver services to their citizens far better.