Birth of The Idea of Federalism: A Comparative Study of Federalism in India And Germany

Abstract: This paper, Birth of the Idea of Federalism: A Comparative Study of Federalism in India and Germany, examines the historical evolution, institutional frameworks, and fiscal dynamics of federalism in both countries. Through a comparative analysis of contextualist and functionalist methodologies, the study highlights how India’s federal structure has been shaped by its socio-cultural diversity and economic imperatives, often resulting in a strong centralising tendency. In contrast, Germany’s model reflects a more decentralised approach, influenced by post-war reconstruction and national unification efforts. The paper explores key dimensions of federalism, including the distribution of legislative powers, the balance of authority between central and subnational governments, and evolving fiscal arrangements. Notable developments such as the shift from cooperative to competitive federalism in Germany and the introduction of the Goods and Services Tax (GST) in India, which has redefined fiscal relations between the Centre and the States—are critically analyzed. The study concludes by assessing how these structural shifts impact the foundational ideals of federalism and the challenges they pose in a contemporary context.