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warning Report Error Page 4Answer: Our Constitution declared India as a Union of States. Indian Union is based on the principles of federalism. The Constitution originally provided a two- tier system (at the central and the state level) but later in 1992 a three-tier system (added up the third tier as local government) was adopted. The powers are divided between three levels by Union List, State List and Concurrent List respectively. The Union List includes 97 subjects like defence, foreign affairs, banking, etc. These subjects are of national importance, so they are looked after by the Union government and they only legislate on these subjects. The State List includes 66 subjects like police, agriculture, trade and commerce, etc. These subjects are allotted to all the state governments and the state governments can legislate on them. The Concurrent List includes subjects of common interests between the Centre and the State, e.g., education, forest, marriage, etc. Both the Union as well as the State governments can make laws on their respective subjects but central government exercises an upper hand. Page 5
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