What do you understand by cooperative federalism? Does it exist in India? Discuss.

OPSC OAS Mains 2023GS Paper IIGroup AQuestion 2

Solved previous year question from the OPSC OAS/OCS Main Examination (General Studies Paper II), with a structured model answer by Strive Edge IAS.

Question

What do you understand by cooperative federalism? Does it exist in India? Discuss.

GS Paper IIOPSC Mains 2023

Model Answer

Introduction

Cooperative federalism refers to a model of governance where the Centre and States work together in a horizontal, collaborative relationship — sharing power, resources, and responsibilities — to achieve common national goals, rather than functioning in watertight compartments. It views the Union and States as partners in a joint enterprise of development, not as rivals.

Key ingredients of cooperative federalism:

  • Mutual trust and coordination between Centre and States
  • Shared decision-making through common institutions and forums
  • Equitable devolution of finances and resources
  • Respect for State autonomy within the constitutional scheme
  • Joint responsibility in subjects of common concern (Concurrent List)

Body of the Answer

Areas where cooperative federalism exists

  1. GST Council (Article 279A): The finest example, where the Centre and States jointly decide indirect tax rates through consensus, pooling their sovereignty for "one nation, one tax."
  2. Institutional forums: Bodies like NITI Aayog, the Inter-State Council (Article 263), and Zonal Councils provide platforms for Centre-State and inter-State dialogue and policy coordination.
  3. Finance Commission (Article 280): Ensures equitable vertical and horizontal distribution of financial resources; the 15th Finance Commission devolved 41% of the divisible pool to States.
  4. Concurrent List cooperation: On subjects like education, forests, and criminal law, both levels legislate together — e.g., the National Education Policy 2020 was framed with State consultation.
  5. Centrally Sponsored Schemes: Programmes like MGNREGA, PM-KISAN, and Swachh Bharat are jointly funded and implemented by Centre and States.
  6. Disaster and crisis management: The COVID-19 pandemic saw coordinated Centre-State action through video-conferencing, shared funds, and joint vaccination drives.
  7. Emergency cooperation: All-India Services (IAS, IPS) serve both Centre and States, creating an integrated administrative link binding the federation.

Areas where cooperative federalism is missing

  1. Misuse of Article 356: Frequent imposition of President’s Rule for political reasons has undermined State governments and strained federal trust.
  2. Role of the Governor: Governors acting as agents of the Centre — delaying assent to Bills, or discretionary decisions in government formation (as seen in various States) — has been a recurring friction point.
  3. Fiscal centralisation: Rising cess and surcharges (not shared with States) shrink the divisible pool; delays in GST compensation payments have caused Centre-State disputes.
  4. Encroachment on State subjects: Central laws on agriculture (the now-repealed Farm Laws 2020) and other State List subjects were seen as bypassing State consent.
  5. Central agencies: Alleged partisan use of agencies like the CBI, ED, and Income Tax Department against opposition-ruled States erodes cooperative spirit.
  6. Weak Inter-State Council: The Council rarely meets, and NITI Aayog lacks the financial powers of the erstwhile Planning Commission, limiting genuine consultation.
  7. Delimitation and language concerns: Southern States’ apprehensions over the proposed 2026 delimitation and imposition of Hindi reflect deeper trust deficits.

Way Forward

  1. Strengthen consultative institutions: Convene the Inter-State Council regularly and empower NITI Aayog to act as a genuine forum for cooperative planning.
  2. Reform the Governor’s office: Implement Sarkaria and Punchhi Commission recommendations on the appointment, role, and neutrality of Governors.
  3. Ensure fiscal fairness: Rationalise cesses and surcharges, share them with States, and ensure timely release of grants and GST dues.
  4. Institutionalise consultation: Mandate meaningful consultation with States before legislating on Concurrent and State List subjects.
  5. Move towards competitive-cooperative balance: Encourage "competitive cooperative federalism," where States compete to perform (e.g., Ease of Doing Business rankings) while cooperating on national goals.
  6. Depoliticise central agencies: Ensure autonomy and impartiality of investigative bodies to rebuild inter-governmental trust.

Conclusion

Cooperative federalism in India exists more in spirit and design than in consistent practice — visible in institutions like the GST Council yet undermined by centralising tendencies. As India moves towards its development goals of a Viksit Bharat by 2047, nurturing genuine "Team India" partnership between the Centre and States is not merely desirable but essential for balanced and inclusive growth.

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