Reviving Inter-State Council: For Federalism To Be Truly Cooperative

Syllabus: GS2/Governance

Context

• The debate over delimitation of parliamentary constituencies has renewed concerns about Centre-state consultation, highlighting the need to revive the Inter-State Council as an institutional platform for cooperative federalism.

About the Inter-State Council (ISC)

• It is a constitutional mechanism designed to strengthen Centre-state and inter-state relations through dialogue, consultation and coordination.
• Article 263 of the Indian Constitution provides for the establishment of an Inter-State Council by the President.
  • It is not a permanent constitutional body for coordination between the States of the Union.
  • It can be established ‘at any time’ if it appears to the President that the public interests would be served by the establishment of such a Council.
• It was established through a Presidential Order in May 1990, following the recommendations of the Sarkaria Commission (1983–88).
• Nature: It is an advisory and recommendatory body, not a judicial or legislative institution.
• Chairperson: Prime Minister of India.
• Members: Chief Ministers of all states, Chief Ministers of Union Territories having Legislative Assemblies, administrators of other Union Territories, and six Union Cabinet Ministers nominated by the Prime Minister.
• Secretariat: The Inter-State Council Secretariat functions under the Ministry of Home Affairs.

Functions Under Article 263

• The President may establish a council to perform the following functions:
  • Investigate and discuss subjects of common interest between the Union and states or among states.
  • Make recommendations for better coordination of policy and action.
  • Deliberate upon disputes between states and advise on their resolution.
• Thus, the Council provides a constitutional framework for resolving differences through dialogue rather than confrontation.

Why Does the Inter-State Council Matter Today?

• Managing Delimitation and Federal Balance: Delimitation can significantly affect the political representation of states in Parliament.
  • States that have achieved better population control may fear losing relative political influence compared to states with higher population growth.
  • The Inter-State Council can facilitate a national dialogue involving all state governments before decisions with long-term federal implications are taken.
• Strengthening Cooperative Federalism: Several national priorities, including taxation, infrastructure, healthcare, education and internal security, require coordination between the Union and states.
  • The Council can ensure that state governments participate meaningfully in national policymaking.
• Resolving Inter-State Disputes: Disputes relating to river waters, territorial boundaries, electricity distribution and natural resources often create prolonged political and administrative tensions.
  • The Council can provide a platform for negotiation and consensus-building.
• Addressing Regional Diversity: India’s states differ considerably in their economic development, geographical conditions, demographic trends and administrative capacities.
  • Consultation through the Council can make national policies more sensitive to regional requirements.
• Strengthening Democratic Federalism: Regular interaction between the Prime Minister, Union ministers and Chief Ministers can reduce political mistrust and strengthen constitutional cooperation.

Why Has the Council Remained Ineffective?

• Irregular Meetings: The Council’s meetings have been infrequent. Its 12th meeting was held in July 2016, reflecting the absence of a sustained consultation mechanism.
• Excessive Centralisation: Its Secretariat functions under the Ministry of Home Affairs, limiting its institutional independence and capacity to set an autonomous agenda.
• Advisory Nature: Its recommendations are not legally binding, reducing its influence over major policy decisions.
• Political Differences: Differences between the Union government and states, particularly those governed by Opposition parties, often weaken intergovernmental cooperation.
• Institutional Overlap: Several other bodies, including the NITI Aayog Governing Council and GST Council, perform specialised coordination functions.
  • However, the absence of an effective overarching forum limits comprehensive federal deliberation.
• Lack of Institutional Continuity: There is insufficient emphasis on regular meetings, systematic follow-up of recommendations and independent policy research.

Related Efforts and Initiatives

• Sarkaria Commission (1983–88): Recommended the establishment of a permanent Inter-State Council under Article 263.
• Punchhi Commission (2007–10): Examined Centre-state relations and recommended improvements in intergovernmental coordination.
• Zonal Councils: Established under the States Reorganisation Act, 1956, to promote regional cooperation.
• GST Council (Article 279A): Provides a constitutional platform for Centre-state cooperation in indirect taxation.
• NITI Aayog Governing Council (2015): Brings together the Prime Minister and Chief Ministers to discuss development priorities.
• Inter-State Council Secretariat: Provides institutional and administrative support for intergovernmental consultation.

Way Forward: Making the Inter-State Council Effective

• Ensure Regular Meetings: Meetings should be conducted at fixed intervals, preferably twice a year, with provisions for special sessions on urgent national issues.
• Strengthen Institutional Autonomy: The Secretariat should be empowered with independent administrative and research capabilities, supported by constitutional and statutory safeguards wherever necessary.
• Expand Its Deliberative Role: Major policy reforms affecting states, including delimitation, fiscal devolution, natural resource distribution and centrally sponsored schemes, should undergo structured consultation through the Council.
• Improve Follow-up Mechanisms: Recommendations should be accompanied by implementation timelines, periodic reviews and publicly accessible action-taken reports.
• Promote Evidence-Based Dialogue: Expert committees comprising constitutional scholars, economists, administrators and representatives of state governments should support its deliberations.
• Strengthen Political Consensus: The Council should function beyond party affiliations, recognising that federal cooperation is a constitutional necessity rather than a political concession.

Conclusion

• Cooperative federalism cannot remain merely a political slogan; it requires strong and functioning institutions.
• The Inter-State Council already has a constitutional foundation under Article 263. Revitalising it can transform Centre-state relations from periodic political confrontation into continuous institutional cooperation.
• As India navigates complex challenges involving economic development, demographic changes and constitutional balance, an effective Inter-State Council is not merely desirable but essential for strengthening the spirit of Team India and democratic federalism.

Source: IE