What makes India a federal country?

Explain the constitutional provisions that make India federal.

A 'Union of States'. India became independent after a painful, bloody Partition, and soon many princely states joined it. The Constitution calls India a Union of States. It never uses the word 'federation', but it follows federal principles: all the features of federalism apply. It began with two tiers (the Union or Central Government, and the State governments); a third tier, panchayats and municipalities, was added later.

Three lists of subjects.

Union List: subjects of national importance that need one policy for the whole country: defence, foreign affairs, banking, communications, currency. Only the Union makes laws on them.
State List: subjects of state and local importance: police, trade, commerce, agriculture, irrigation. Only the States make laws on them.
Concurrent List: subjects of common interest: education, forest, trade unions, marriage, adoption, succession. Both can make laws; if they clash, the Union's law wins.
Residuary subjects: anything not on any list, or new things nobody imagined when the Constitution was written, like computer software. The Union makes these laws.

Not every state is the same. As in other 'holding together' federations, units have unequal powers.

Assam, Nagaland, Arunachal Pradesh and Mizoram have special powers under Article 371, because of their particular social and historical circumstances. These protect the culture and land rights of indigenous peoples, and give them preference in government jobs. People who are not permanent residents cannot buy land or houses there.
Union Territories, like Chandigarh, Lakshadweep and Delhi, are too small to be states but could not be merged with any. They have very little power; the Central Government has special powers to run them.

Hard to change. This sharing of power is basic to the Constitution, and Parliament cannot change it alone. A change must:

pass both Houses of Parliament with at least a two-thirds majority; then
be ratified (approved) by at least half of all the State legislatures.

Courts and money. If there is a dispute over who has which power, the High Courts and the Supreme Court decide. Both the Union and the States can collect taxes to pay for their work.

Test yourself (the book's 'suppose' questions).

Rajasthan opposes the nuclear tests at Pokharan. Can it stop them? No: nuclear tests are about defence, a Union subject.
Sikkim wants new school textbooks the Union dislikes. Does it need permission? No: education is on the Concurrent List, and unless a Union law on it clashes, the State can go ahead.
Can the Prime Minister order three Chief Ministers to follow one police policy? No: police is a State subject.

Union List for the country, State List for states, Concurrent for both (Union wins); residuary goes to the Union.

Residuary subjects go to the Union.

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