1.Genesis of the Commission

In April 2007, the Government of India constituted the Commission on Centre-State Relations, chaired by Justice Madan Mohan Punchhi (former Chief Justice of India).

It was set up as the second major Commission on Centre-State relations after the Sarkaria Commission (1983–1988), reflecting the government’s intent to reassess federal dynamics in light of changing political, economic, and security contexts.

2.Need for Review

Sarkaria Commission recommendations (1988) had partially shaped the legal-political discourse on federalism, but India’s post-1990 evolution in politics, economics, and security demanded another comprehensive review:

i.Coalition Politics & Regional Parties: By 2000s, 15+ states were under regional parties or alliances, affecting national coalitions and federal negotiations.

ii.Economic Liberalization (1991 onwards): Emergence of a more market-driven economy shifted resource distribution methods, fuelling debates on tax and fiscal autonomy.

iii.Internal Security Challenges: Terrorism, Maoist extremism, cross-border crimes demanded clearer Union-State collaboration, particularly regarding policing and intelligence sharing.