Cooperative Federalism is a system where the central government and state governments work together to achieve common goals, sharing responsibilities in policymaking and implementation. In this system, both levels of government cooperate on issues like infrastructure, economic policies, law and order, disaster management, and more. While the central and state governments coordinate, they maintain independence in their respective areas.

Key Features of Cooperative Federalism in India

1. Power Sharing: The 7th Schedule divides powers into Union, State, and Concurrent Lists, with residual powers given to the Centre.

2.Institutions for Cooperation : Article 263 establishes the Inter-State Council for resolving issues between the Centre and states. Zonal Councils, created under the State Reorganization Act of 1956, promote coordination among regions. The NITI Aayog replaced the Planning Commission to enhance collaboration. All India Services exemplify cooperative federalism by ensuring collaboration between the central and state governments in administration.

3. Financial Support: Financial support, a key aspect of cooperative federalism, includes institutions like the Finance Commission, NITI Aayog, and GST Council, ensuring equitable resource distribution and fostering collaboration between central and state governments.

4. Joint Efforts: During emergencies like natural disasters, both the Centre and states work together to provide relief.

 

Recent Examples of Cooperative Federalism in India

1.Goods and Services Tax (GST): The Centre and states worked together to introduce a uniform tax system.

2.COVID-19 Management: Highlighted the importance of central-state cooperation for public health management.

3.National Education Policy (NEP): The Centre and states collaborated to bring reforms in education.

4.NITI Aayog promotes a bottom-up approach, emphasizing state autonomy in development.

15th Finance Commission increased state share in tax revenues, empowering them financially

Challenges to Cooperative Federalism in India

Centralisation of Power: Central government often oversteps state powers, especially with Article 356 (President’s Rule).
Fiscal Imbalance: The central government controls most revenue sources, causing dependency for states.
GST Concerns: States worry about losing fiscal autonomy with GST implementation.
Political Differences: Disputes between political parties can slow cooperation.
Resource Conflicts: States sometimes demand more funds or control over resources.
Regional Imbalances: Development is not equal in all states, causing tension.

Way Forward
Cooperative federalism in India is an evolving process shaped by historical, political, and judicial factors. Strengthening cooperative federalism requires greater fiscal support, decentralisation of power, and allowing states more independence in law-making. These measures can enhance coordination and promote balanced development across India, ensuring harmony between the Centre and states.