"Federalism" is used to describe a system of government in which sovereignty is constitutionally divided between a central governing authority and constituent political units (such as states or provinces). Federalism is a system based upon democratic rules and institutions in which the power to govern is shared between national and provincial/state governments, creating what is often called a federation.
India, a nation with many languages, religions and regions, emerged as an independent nation after a long and painful partition. Several princely statesvbecame a part of the country soon after independence. India was declared as a Union of States, by the Constitution. The Indian Union is based on the principles of federalism. When we look at the features mentioned above and if we apply it to the provisions of the Indian Constitution, we can see that almost every aspect is similar.
The Constitution earlier provided a two-tier system of government.
The Union or Central Government representing the Union of India and The State Governments.
Later, Panchayats and Municipalities were added as a third tier of federalism.
All these different forms of government enjoy separate jurisdiction. The duties of the Union Government include subjects of national importance such as defence of the country, foreign affairs, banking, communications and currency. This is because, a uniform policy on these matters will be maintained throughout the country. All the laws pertaining to the above duties must be given only by the Union Government.
The duties of the State Governments include subjects of the State and local importance such as police, trade, commerce, agriculture and irrigation. All the laws pertaining to the above duties must be given only by the State Governments.
Some aspects have to be taken care of, by both, the Union Government as well as the State Governments. They are education, forest, trade unions, marriage, adoption and succession. Both governments can make laws on these subjects. If their laws conflict with each other, the law made by the Union Government will prevail.