Federal state is one that brings together a number of different political communities with a common government for common purposes, and separate “state” or “provincial” or “cantonal” governments for the specific needs of each community. USA is an example of Federal State. Quasi-federal state on the other hand refers to a union of states under a central government; rather ‘ than the individual governments of the separate states. India is by constitution a federal republic, but in reality functions as a quasi-federal state.