Federalism is a form of government where there is interdependence of central government at national level with state government at regional or state level. Federalism is basically a setup or a form of agreement for sharing of decision making authority, delegation of power at center and state level. The division of power is done in such a way that each of the assignee can exercise only such powers its in individual capacities while others must be shared equally between the center and state at national level and local/regional level. The central government with sole authority to mint money, raise and dictate army and declare war, while an intermediate level of government i.e. states have the sole authority to regulate education, criminal or civil law etc. The Indian model of federalism may be one of the most interesting federal structure in the world. Indian federalism is highlighted in the seventh schedule of the Indian Constitution, which gives subject each has jurisdiction in which are namely the three lists: The union list, state list, concurrent list. The union list talks about powers and functions the center has to deal with and the decision making authority solely rests with the central government, the state list talks about powers and functions which the state has to perform and the decision making authority solely rests with the state government. The concurrent list is where center and state equally have the power to make decision. Federalism as a concept is important for comparative studies of federations such as the United States, Canada, and India. Canada and India initially began as quasi-federations and then gradually become federations. They are not based on federalism as a concept. Through this paper India’s position in present day would be highlighted and what it needs to adapt if it wishes to proceed beyond treating federation as the distribution of power, It has to reappraise its parliamentary tradition and, in due course, evolve its own concept of federalism.