Why this matters now
Centre-State relations are tested directly (the three lists, residuary powers, the commissions) and underpin debates on cooperative federalism, GST, governors and Article 356. It is core GS-2.
Legislative relations (Articles 245-255)
Law-making power is divided through the Seventh Schedule: the Union List (Centre — defence, foreign affairs), the State List (states — police, public health) and the Concurrent List (both — education, forests). Residuary powers rest with the Union. In a conflict on the Concurrent List, central law prevails (Article 254). Parliament can legislate on State subjects in special cases (e.g. Article 249 — national interest via Rajya Sabha resolution).
Administrative relations (Articles 256-263)
States must exercise their executive power so as not to impede Union laws; the Centre can give directions to states. Mechanisms of coordination include All-India Services, the Inter-State Council (Article 263) and inter-state water/trade provisions. Non-compliance can, in the extreme, trigger Article 356.
Financial relations (Articles 268-293)
Taxes are divided between the Centre and states, with a shared pool distributed on the recommendation of the Finance Commission (Article 280). GST (via the GST Council) reshaped indirect taxation as a shared domain. States also receive grants-in-aid and borrow within limits.
Commissions on Centre-State relations
Several bodies have reviewed the federal balance: the Sarkaria Commission (1988), the Punchhi Commission (2010) and the earlier Rajamannar Committee — recommending restraint in using Article 356, a stronger Inter-State Council and genuine cooperative federalism.
UPSC angle
Master the three lists + residuary-with-Union, Article 254 (central law prevails), and the financial-devolution route (Finance Commission, GST). Link Sarkaria/Punchhi to Article 356 restraint and cooperative federalism.
Frequently asked questions
How are legislative powers divided between Centre and States?
Through the Seventh Schedule’s Union, State and Concurrent Lists; residuary powers rest with the Union, and central law prevails on the Concurrent List.
Where do residuary powers lie in India?
With the Union (Centre) — unlike the US model, where they lie with the states.
What is the role of the Finance Commission in Centre-State relations?
It recommends how the divisible pool of taxes is shared between the Centre and the states and the principles of grants-in-aid (Article 280).
Which commissions examined Centre-State relations?
The Sarkaria Commission (1988) and the Punchhi Commission (2010), among others.