In this section, we delve deeper into what constitutes India's federal structure. Although the Indian Constitution does not explicitly use the term 'federalism', it exemplifies federal principles through its division of powers among various tiers of government. The Constitution outlines three lists: the Union List concerning national importance, the State List for local governance, and a Concurrent List for shared responsibilities. The unique characteristic of the Indian federal system is its unequal distribution of power among states, ensuring that regions with special circumstances have specific autonomies. The establishment of local government as a third tier has further decentralized authority, allowing for responsive governance across different localities. Overall, India's federal arrangement effectively manages its vast diversity while promoting a unified nation.