The division of Functions and responsibilities of the Union and the States is a foundational concept and provision of the Indian Constitution, establishing a dual polity where both levels of government draw their authority directly from the Constitution. This framework, which has its historical roots in the Government of India Act, 1935, was created to balance a strong central authority with the need for regional autonomy in a diverse nation.
The mechanism for this division is primarily detailed in Part XI (Articles 245 to 255) of the Constitution, with the core being the Seventh Schedule. Article 246 specifies the subject-matter of laws for the three legislative lists. The Union List (List I) grants Parliament exclusive power over subjects of national importance like defence, foreign affairs, and currency. The State List (List II) gives State Legislatures exclusive power over local matters such as police, public order, and public health. The Concurrent List (List III) allows both the Union and States to legislate on subjects like education and forests, but in case of a conflict, the Union law prevails under Article 254.
The Union is also vested with residuary powers (Article 248), allowing it to legislate on any matter not enumerated in the three lists. The framework is not rigid; for instance, Parliament can legislate on a State List subject if the Rajya Sabha passes a resolution in the national interest (Article 249). A significant change occurred with the 42nd Amendment Act, 1976, which shifted five subjects, including Education and Forests, from the State List to the Concurrent List. More recently, the 101st Amendment Act, 2016, inserted Article 246A, granting both the Union and States concurrent power to legislate on the Goods and Services Tax (GST). This system connects to the broader concepts of Administrative Relations (Articles 256-263) and cooperative federalism.