Subject: Indian Polity

The evolution of cooperative federalism in India represents a shift from the traditional hierarchical center-state relationship towards a more collaborative partnership-based approach.

Drawbacks in Existing Federal Structure

• Fiscal Imbalances: The reduction in states' share from 42% to 41% as per the 15th Finance Commission highlights the continuing fiscal centralization, limiting states' financial autonomy.

• Administrative Overlaps: The complex structure of Centrally Sponsored Schemes (CSS) with varying funding ratios (90:10, 60:40, 50:50) creates administrative burden and implementation challenges for states.

• Constitutional Tensions: Recent cases like the West Bengal vs CBI (2024) and Tamil Nadu Governor's delay in bill approvals (2025) demonstrate strains in center-state relations and institutional friction.

• Governance Issues: Unilateral decision-making by the center, especially in areas of concurrent jurisdiction, undermines the federal spirit and state autonomy.

Cooperative Federalism as a Solution

• Enhanced Fiscal Partnership:

  • Promotes balanced resource sharing through institutional mechanisms like the GST Council.
  • Enables customized funding patterns for different states based on their developmental needs.

• Administrative Coordination:

  • Strengthens platforms like the Inter-State Council for resolving federal disputes.
  • Facilitates better implementation of national schemes through state participation.

• Constitutional Harmony:

  • Recent Supreme Court judgments like the 2023 Delhi government ruling reinforce state authority in administration.
  • Promotes clear demarcation of powers between center and states.

• Collaborative Governance:

  • Encourages joint policy formulation through bodies like NITI Aayog.
  • Enables better coordination in handling cross-border issues and national emergencies.

The path towards effective cooperative federalism requires strengthening existing mechanisms while creating new platforms for center-state dialogue. The success stories of GST implementation and Covid-19 management demonstrate the potential of collaborative governance in addressing national challenges while respecting state autonomy.