Critically examine the working of the federal system in India

Federal set up there is a two tier of Government with well assigned powers and functions. In this system the central government and the governments of the units act within a well defined sphere, co-ordinate and at the same time act independently. The
federal polity, in other words, provides a constitutional device for bringing unity in diversity and for the achievement of common national goals.Democracy is associated with higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom. Democracy is closely tied with economic sources of growth, like education levels and lifespan through improvement of educative institutions as well as healthcare.

Characteristics of the Indian Federal System 

1. Two-tier Government:

You must have heard that there are two sets of government created by the Indian Constitution: one for the entire nation called the union government (central government) and another for each unit of State, called the State government. Sometimes, you may also find the reference of a three-tier government in India, because besides the Union and State governments, local governments-both rural and urban- are also said to constitute another tier. But constitutionally India has a two-tier government. The Constitution does not allocate a separate set of powers to the local governments as these continue to be under their respective State governments. 

2. Division of Powers:

Like other federations, both the Union and the State governments have constitutional status and clearly identified area of activity. The Constitution clearly divides the powers between the two sets of governments, so that the Centre and the States exercise their powers within their respective spheres of activity. None violates its limits and tries to encroach upon the functions of the ____ ___ _____ ________ _____ _____ _______ _______ _______ __________ __________.
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