What is Cooperative Federalism?

Cooperative federalism is a concept of federalism in which national, state, and local governments increasingly interact cooperatively and collectively to solve common problems.

• The Indian model of federalism is predominantly 'cooperative', as laid down by the Supreme Court in State of Rajasthan v. Union of India (1977).
• The most essential precondition for its effective functioning is robust institutions and mechanisms for promoting intergovernmental relations.
• The Constitution does not explicitly contain the phrase 'cooperative federalism,' but the working of the Constitution implicitly results in it.
• India does not mimic a pure federal system; it follows a quasi-federal system, which needs cooperation and collaboration between the federal units.
• The Sarkaria Commission Report (1988) stated that, by the mid-twentieth century, federalism had come to be understood as a dynamic process of cooperation and shared action between two or more levels of government.

Why is Cooperative Federalism Needed in India?

India takes pride in being the world's largest democracy — a democracy made meaningful because it is encapsulated in a federal structure.

• Promoting social justice: While democracy represents the majority opinion, federalism links it to the voice of the minority, lending a flavour of social justice.
• Ensuring accommodation: Cooperative federalism, with cultural and ethnic pluralism, gives the political system flexibility and the capacity to withstand stress through accommodation.
• Ensuring stability and growth: In the turbulent circumstances after Partition, only a cooperative federal setup could meet the needs of security, defence, a welfare state, and economic crisis.
• Contemporary issues: Current challenges (like COVID-19) emphasise cooperation and coordination rather than a rigid demarcation of powers.

Constitutional Provisions Upholding Cooperative Federalism

Recent Measures to Promote Cooperative Federalism

NITI Aayog

• Constituted to actualise cooperative federalism and enable good governance. Its Governing Council comprises Chief Ministers of states and Administrators/Lieutenant Governors of UTs.
• Acts as the platform to bring states together as 'Team India' to work towards the national development agenda.
• Established models such as the Centre-state partnership Development Support Services to States (DSSS) and the SATH (Sustainable Action for Transforming Human Capital) programme.
• Other initiatives: policy support and capacity development of State/UT functionaries, and the Aspirational Districts Programme for backward districts.

Goods and Services Tax (GST)

• The introduction of GST in 2017 is considered one of the most significant steps towards cooperative federalism — a unified tax system that replaced various state-level taxes and created a common national market.
• The GST Council, comprising representatives of the central and state governments, decides on the tax system, ensuring a high degree of Centre-state collaboration.

Centrally Sponsored Schemes (CSS)

• CSS are implemented by the central government in partnership with states — the Centre provides a major share of funding, and the state contributes the rest.
• The Centre provides guidelines and standards; states have the flexibility to adapt schemes to local needs.
• Per the Ministry of Finance, there are currently around 28 CSS in operation, covering rural development, education, health, and skill development.

Factors that Hinder Cooperative Federalism

• Over-centralization: The Centre enjoys more power, and the most important subjects are in the Union List — often causing conflicts. For example, Article 356 (President's Rule) is frequently prone to misuse by the Centre.
• Limitations of the Inter-State Council: Article 263 allows it to recommend, but not to enforce or implement.
• Regionalism: Strong regionalism can give rise to secessionist tendencies that threaten national unity and make cooperation difficult.
• Uniform approach: A "one size fits all" approach ignores India's heterogeneity, making Centre-state cooperation difficult.
• Fiscal federalism: Unequal distribution of financial resources can hamper states' ability to deliver services and run development programmes.
• Administrative challenges: Inadequate staffing and training, poor communication and coordination, and bureaucratic red tape.

Steps to Promote Cooperative Federalism

Sarkaria and Punchhi Commission Recommendations

The Sarkaria Commission (set up 1983, report 1988) and the Punchhi Commission (2007–10) gave several recommendations to strengthen cooperative federalism:

• The office of the Governor should be apolitical, and the terms of his removal should be altered.
• Restricting the use of President's Rule (Article 356) to prevent excessive misuse.
• Extending the mandate of the Inter-State Council beyond advice and recommendations.
• Laying down guidelines to prevent misuse of the President's veto of legislation.
• Including states when the Centre enters into international agreements.

General Recommendations

• Strengthening inter-governmental mechanisms to resolve Centre-state conflicts and further public welfare.
• Promoting fiscal federalism for greater fiscal autonomy and coordination.
• Strengthening institutional frameworks — NITI Aayog, the Inter-State Council, and the Finance Commission.
• Regular inter-governmental meetings to share information and build consensus.
• Avoiding the 'one size fits all' approach to respect states' socio-economic, political, and cultural diversity.
• Empowering local governments with greater decision-making powers and financial resources.

Cooperative Federalism & the COVID-19 Pandemic

Intergovernmental cooperation is key to responding to any crisis like the COVID-19 pandemic.

• Health is a State List subject and infectious disease control is on the Concurrent List — so combating COVID-19 needed a joint Union-state effort.
• The Epidemic Diseases Act, 1897 and the Disaster Management Act, 2005 enabled joint efforts to control the spread.
• The National and State Disaster Management Authorities worked together to achieve the objectives of the DM Act.
• Virtual conferences between the Prime Minister and Chief Ministers showed a spirit of cooperation at all levels.
• Collaborative vaccination efforts were praised by the UN and WHO. Overall, the pandemic renewed cooperative federalism and promised collaborative governance.

Indian federalism is a "dialogue", not a monologue — the Centre may be the stronger partner, but cooperative federalism works only when the states are heard as equal stakeholders, not mere participants. — Legacy IAS Faculty

Frequently Asked Questions (FAQs)