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Inter State Council: Background, Composition, Functions & More | UPSC Notes

Last Updated on Aug 12, 2024
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The inter state council is part of an important institutional mechanism tailored to make cooperative federalism a success in India. Coming under Article 263 of the Indian Constitution, the council has the charge to enforce coordination and better relations between the Centre and states. It inquires into and advises upon the disputes which may arise between states, and discusses subjects in which some or all of the states, or the central government, have a common interest. The inter-state council endeavors to provide a forum for dialogue in order to ensure harmonious relations through cooperative decision-making amongst India's diversified and federal political structure.

The topic is part of General Studies Paper II in the UPSC examination, which envelops Polity, Governance, and the working of the Indian Constitution. Understanding the inter-state council provides a context to examine mechanisms of federalism in India, the role of central and state relations, and collaborative frameworks that would help the Constitution framers manage the complex dynamic of governance within the country.

GS Paper

General Studies Paper II

Topics for UPSC Prelims

Article 263, Cooperative Federalism, National Development Council, Zonal Council, Finance Commission, NITI Aayog, Water Dispute Tribunals

Topics for UPSC Mains

Evolution of Inter State Council, Recommendations of Sarkaria and M.M. Punchhi Commissions, Impact on Center-State Relations and Policy Harmonization.

What is an Inter State Council?

An inter-state council is a constitutional body under Art. 263 of the Indian Constitution. It is an advisory body that can aid and assist the central and state governments in effectively discussing, deliberating, and resolving policy-related concerns, maintaining coordination, and sorting out disputes. The Council works towards a shared understanding and cooperative framework to enhance the efficiency of governance and ensure the smooth functioning of the federal system.

Background of Formation

It was envisaged by the makers of the Indian Constitution that there should be a council of this nature to redress inter-state and center-state problems that may arise. The chairman of the Drafting Committee, Dr. B.R. Ambedkar, had emphatically pointed out that such a body was needed for the strengthening of cooperative federalism. Article 263 provided for the setting up but remained unimplemented. Such a forum was felt necessary with the growing demands for decentralization and more state autonomy. The Sarkaria Commission, constituted in 1983, explicitly to review centre-state relations, strongly recommended the setting up of the council. Based on these recommendations, the Inter-State Council was formally established on May 28, 1990, by a presidential ordinance, under the chairpersonship of the then Prime Minister V.P. Singh.

Read the article on the national ganga council!

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Composition of Inter State Council

The constitution of the inter-state council ensures representation from the Center and the states to ensure it is broad-based, apart from having a forum with wide representation for the purpose of discussion. The council would be presided over by the Prime Minister of India, and it shall also comprise of:

  • Chief Ministers of all States and Union Territories having Legislatures: This category shall be set to ensure that the states are substantially represented in effective voice-sharing in the council.
  • Administrators of Union Territories without Legislatures: UTs without legislatures are represented by their administrators so that their interests are represented.
  • Cabinet Ministers nominated by the Prime Minister: Principal central ministers attend to adjust the State policy in tune with the national priority and needed policy support
  • Other invitees as deemed necessary: The council may invite experts, policy-framers, or other relevant individuals to throw light on certain issues.

This diversified composition enables the council to take up a wide range of inter-state and center-state issues from a comprehensive viewpoint.

Read the article on the difference between niti aayog and inter state council!

Functions of an Inter State Council

The inter state council performs many important functions that contribute towards the fulfillment of the objectives of cooperation and dispute redressal between the state and central governments:

  • Advisory Function: The council advises on matters which directly or indirectly involve more than one state or are of common interest throughout the country.
  • Investigation and Inquiry: It inquires into and discusses matters of common interest. It may also investigate any dispute or apprehended dispute between states.
  • Coordination: The council aligns policies and programs of the central and state governments. It ensures that national priorities are integrated with initiatives taken by the states.
  • Policy Recommendations: The council recommends improvements in the system, based on its discussion and inquiry, in center-state relations and governance.
  • Consultation Forum: It acts as a consultative body for improving communication and understanding between the Centre and State Governments.

Read the article on the North Eastern Council!

Standing Committee of the Inter State Council

For an effective discharge of its functions and to pay undivided attention to specific issues, the inter-state council has a Standing Committee. A standing committee refers to one that would keep a continuous review of the agenda of the council and is responsible for ensuring that the right subjects are covered with adequate depth and solemnity.

Functions of the Standing Committee of ISC

The standing committee of the inter state council does several key functions:

  • Setting Agenda: It identifies, prioritizes and sets the agenda for discussion to be taken up by the full council.
  • Preliminary Discussions: The Committee holds preliminary discussions on topics and issues and prepares detailed reports and recommendations for consideration of the Council.
  • Follow-up Actions: Ensures the implementation of the council's recommendations by monitoring and reviewing the follow-up actions taken by the central and state governments.
  • Periodic Review: The institution periodically reviews how the inter-state council is working and whether or not it is very effective, putting forward suggestions of improvements.
  • Engagement with Ministries: Coordinates with several central and state ministries to help in the resolution of certain issues and aligning policies.

Read the article on the National Judicial Council!

Issues Associated with Inter State Councils

Despite the fact that it plays an important role in cooperative federalism, a number of factors stand in the way of making the inter state council more effective.

  • Infrequency of Meetings: The meetings are infrequent, and this greatly diminishes the ability of the body to respond in good timing to emerging issues.
  • Limited Powers: The powers of the council are limited because it only has an advisory role; all its recommendations are not even binding. This in turn has reduced its impact on policy-making and the resolution of conflicts.
  • Coordination Challenges: The vast and varied political interests and priorities of different states can sometimes act as a barrier to achieving consensus.
  • Resource Constraints: Insufficient resources and support administratively can also bind the optimal endeavors of the council's functioning.
  • Gap in Implementation: There is an implementation gap between the recommendations of the council and their implementation on the ground by the concerned government departments.

Read the article on the National Startup Advisory Council!

Other Bodies Promoting Inter State Relations

Besides the inter-state council, there are various other bodies and mechanisms that play an important role in inter-state coordination and the resolution of disputes. These include:

  • National Development Council: A high-powered body consisting of the Prime Minister, Chief Ministers, and Union Ministers concerned with policy planning and economic development.
  • Zonal Councils: Constituted under the States Reorganization Act, 1956, these councils look into inter-state cooperation and adjustment in matters of common interest in their respective zones.
  • Finance Commission: Recommends the sharing of financial resources between the center and states and thus ensures fiscal federalism.
  • NITI Aayog: As the successor to the Planning Commission, it supports cooperative federalism with structured support initiatives and aids in policy making.
  • Water Dispute Tribunals: Under the Inter-State River Water Disputes Act, the dispute regarding the sharing of waters would be adjudicated by the special tribunals set up under it.

Read the article on the financial stability and development council!

Way Forward

Several steps could be initiated for further strengthening the effectiveness of the inter-state council towards strengthening cooperative federalism in India.

  • Regular Meetings: Ensuring meetings are more frequent so that there is a proper and timely discussion of issues and their solution.
  • Strengthening Mandate: Strengthening the mandate of the council may give it more authority regarding the enforcement of its recommendations and ensuring better compliance.
  • Resource Allocation: Resource allocation with proper administrative support to the council should be provided for effective functioning.
  • Capacity Building: Be enabled with adequate capacity among state representatives to effectively contribute to meaningful discourses during the council meetings.
  • Inclusive Approach: Identify stakeholders with engagements inclusive of civil society, academia, and experts from the industry to bring various perspectives on board.
  • Performance Monitoring: Develop effective mechanisms for monitoring implementation of council recommendations to establish their effectiveness.

Read the article on the role of zonal councils in cooperative federalism!

Key Takeaways for UPSC Aspirants

  • Constitutional Provision: Article 263 of the Indian Constitution provides for the establishment of an Inter State Council to promote coordination between states and the central government.
  • Formation: The council was formally constituted in 1990 following the recommendations of the Sarkaria Commission, which examined center-state relations.
  • Composition: It includes the Prime Minister as the Chairman, Chief Ministers of all states, Chief Ministers of Union Territories, and Administrators of UTs without legislatures.
  • Functions: The council is tasked with investigating and discussing subjects of common interest between the Union and states or among the states themselves, and making recommendations.
  • Advisory Role: Although influential, the council’s role is advisory, providing recommendations rather than binding decisions.
  • Meetings: Regular meetings are not mandated, but they are held as needed to discuss critical issues, with the aim to foster cooperative federalism in India.
  • Significance: It serves as a vital platform for dialogue and consensus-building on policy issues, promoting cooperative federalism and addressing disputes between the central and state governments.
  • Recent Utilization: The council has been instrumental in discussing important contemporary issues such as water disputes, fiscal federalism, and the implementation of central schemes, thus playing a critical role in enhancing intergovernmental relations.

We hope your doubts regarding the topic have been addressed after going through the above article. Testbook offers good quality preparation material for different competitive examinations. Succeed in your UPSC IAS exam preparations by downloading the Testbook App here!

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Inter State Council UPSC FAQs

An inter state council can be established by a presidential order under Article 263 of the Indian Constitution, following recommendations by the government or need-based decisions.

The Prime Minister of India is the head of the inter state council.

The Prime Minister of India serves as the Chairman of the inter state council.

Yes, the inter state council is a constitutional body established under Article 263 of the Indian Constitution.

The Union Home Minister is the chairman of the standing committee of the inter state council.

The Sarkaria Commission, which recommended the establishment of the inter state council in its report, paved the way for the first formal inter state council constituted in 1990.

An inter state council is a constitutional body under Article 263 of the Indian Constitution, designed to facilitate coordination and collaborative decision-making between the central and state governments.

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