Directions: read the following passage and answer the questions that follow

Federalism in India is a unique system of governance that combines both federal and unitary features. It has evolved from a unitary system under British rule to a federal system after independence. Indian federalism faces several challenges, including regionalism, division of powers, absence of fiscal federalism, unequal representation of units, and centralized amendment power. Strengthening federalism is crucial to preserve diversity, safeguard autonomy and rights, improve governance, promote balanced development, and foster cooperation. Several institutions play a role in promoting federalism, including the Supreme Court, the Inter-State Council, the Finance Commission, and the NITI Aayog.

To strengthen federalism in India, certain measures can be taken. First, there is a need to enhance the devolution of powers and resources to states and local bodies. This can be achieved by revising constitutional lists, increasing the share of states in central taxes, and providing more fiscal autonomy to states. Second, greater representation and participation of states in national decision-making should be ensured. States should be involved in the formulation and implementation of national policies and programs, and they should have more voice and vote in federal institutions such as the GST Council, the Inter-State Council, and the NITI Aayog.

Third, cooperative and competitive federalism should be fostered among states. States should be encouraged to work together on common issues, share best practices, and promote innovation. Incentives and rewards can be created to encourage better performance and outcomes. Fourth, regional imbalances and inequalities need to be addressed. Special assistance and support should be provided to backward and disadvantaged regions, ensuring fair and adequate allocation of resources and opportunities. Regional development councils or authorities can be established to facilitate this process.

Finally, it is essential to respect federal principles and spirit. Adherence to constitutional provisions and norms related to federalism, avoidance of arbitrary or unilateral actions, and resolution of disputes through dialogue or judicial mechanisms are necessary to maintain the integrity of federalism in India. By implementing these measures, federalism in India can be strengthened, leading to a more inclusive, balanced, and cooperative system of governance.