Why makes India a federal country

India a federal country because of the following reasons:

• There are levels of governments—Central Government, State Government and Local Government.
• Each level of government administers over the same region, but they have their own jurisdiction in matters of administration, taxation and legislation.
• The Government at each level derives its power from the Constitution of the country. Thus, the Central Government cannot easily dilute the powers of the State or Local Governments.
• The basic principles of the Constitution and the rights given to the people cannot be changed by only one tier of the Government. It requires the consent of governments at both levels.
• Both levels of the Government can collect taxes from the people according to the guidelines of the Constitution of the country.
• The Indian Constitution contains three lists which contain subjects in which the Union and the State Governments may form laws. Only central government can make laws in the Union List and state government in the state list. Subjects related to the interests of both Central and State Governments are included in the concurrent list.