Government of India 2025: Structure, Powers, Budget Priorities & Federal Framework Explained

The Government of India, officially called the Union Government or Bharat Sarkar, is a federal parliamentary republic operating under a written Constitution that balances executive, legislative, and judicial powers with both federal and unitary features.

The President serves as Head of State, while real executive authority rests with the Prime Minister and the Council of Ministers, accountable to Parliament. The bicameral Parliament—Lok Sabha and Rajya Sabha—makes laws, and the Supreme Court ensures constitutional supremacy. India’s federal structure empowers states and local bodies, supported by civil services and digital governance.

In FY 2025–26, the government emphasizes inclusive growth under Viksit Bharat, focusing on agriculture, MSMEs, healthcare, education, jobs, and infrastructure while ensuring transparency, accountability, and citizen-centric service delivery.

The Government of India: Structure, Powers, and Priorities in 2025

India, the world’s largest democracy, operates under a unique constitutional framework that blends federalism with strong central features. Officially known as the Union Government or Bharat Sarkar, it functions as a federal parliamentary republic with three branches—the executive, legislature, and judiciary—ensuring a balance of power. In practice, however, unitary elements strengthen the Union’s cohesion. As India moves toward its vision of Viksit Bharat 2047, understanding how its government works is crucial to appreciating its democratic depth and policy priorities.

Constitutional Setup: The Foundation of Governance

India’s Constitution, adopted in 1950, defines the powers and responsibilities of the Union and the states while safeguarding individual rights. It establishes three distinct branches of government—the executive, legislature, and judiciary—under a system influenced by the Westminster model. Federal in structure yet unitary during crises, the Constitution ensures stability while respecting state autonomy. With mechanisms like President’s Rule and judicial review, it balances national security with constitutional safeguards, making it one of the most detailed constitutions in the world.

Executive Branch: The President, Prime Minister, and Cabinet

At the heart of the executive lies the dual role of the President and the Prime Minister. The President, elected for five years, is the ceremonial Head of State but assumes key powers during emergencies. The real executive authority rests with the Prime Minister and the Council of Ministers, who shape policies, manage ministries, and remain accountable to the Lok Sabha. The Prime Minister’s leadership sets the direction of governance, while Cabinet portfolios cover areas such as defence, finance, and foreign affairs.

Legislature: The Parliament of India

India’s Parliament is the supreme law-making body, consisting of the Lok Sabha, Rajya Sabha, and the President. The Lok Sabha, with 543 directly elected members, reflects the voice of the people, while the Rajya Sabha, a continuing body of 245 members, represents the states. Together, they debate, scrutinize, and pass laws that govern the nation. The Speaker of the Lok Sabha and the Vice President as Chairperson of the Rajya Sabha ensure smooth functioning. Parliament also plays a critical role in executive accountability through budget control and no-confidence motions.

Judiciary: Guardian of the Constitution

The judiciary safeguards democracy by interpreting the Constitution and striking down unconstitutional laws or executive actions. At its apex is the Supreme Court of India, followed by High Courts and subordinate courts, forming a unified judicial system. Its power of judicial review ensures that both Parliament and the Executive stay within constitutional limits. Through landmark judgments like Kesavananda Bharati and S.R. Bommai, the judiciary has reinforced democracy, curbed misuse of emergency powers, and protected citizens’ rights—making it the ultimate guardian of constitutional supremacy.

Federal Structure and States

India’s federal setup includes 28 states and 8 Union Territories, each with its own executive and legislature modeled after the Union. Governors represent the President in states, while Chief Ministers hold real executive power. The 73rd and 74th Amendments strengthened local self-governance, empowering Panchayats and urban bodies. Fiscal devolution through the Finance Commission and GST Council ensures cooperative federalism. Despite its federal design, India’s unitary tilt during emergencies reflects the balance between state autonomy and national unity.

Civil Services and Administration

The permanent executive—the civil services—ensures continuity of governance irrespective of political change. The All India Services (IAS, IPS, IFoS) and central services form the administrative backbone, implementing laws and policies at the ground level. Ministries and departments, coordinated by the Cabinet Secretariat and PMO, oversee execution. In recent years, digital governance platforms like DigiLocker, UMANG, and CoWIN have revolutionized service delivery, making administration more transparent, efficient, and citizen-friendly while driving India’s push toward a Digital Bharat.

Core Features of Governance

India describes itself as a Sovereign, Socialist, Secular, Democratic Republic, a definition enshrined in its Constitution. Its parliamentary system operates on collective responsibility of the Cabinet to the Lok Sabha, enabling accountability through votes of confidence and budgetary checks. With a mix of federal features (state representation, division of powers) and unitary powers (emergency provisions, residuary powers with the Union), India’s governance model ensures both diversity and cohesion. This unique blend sustains the world’s largest democracy while adapting to new challenges.

Elections and the Political Process

Elections form the lifeblood of Indian democracy. Every five years, citizens elect the Lok Sabha, after which the President invites the leader with a majority to form the government. The Rajya Sabha, elected indirectly by state legislatures, ensures continuity with staggered terms. The Election Commission of India guarantees free and fair elections, enforcing the Model Code of Conduct during campaigns. This process ensures democratic renewal, while tools like floor tests confirm government legitimacy, upholding the principles of parliamentary accountability.

Union Budget and Public Finance

The Union Budget outlines the government’s fiscal vision, balancing growth, welfare, and stability. The 2025–26 Budget highlights India’s ambition for Viksit Bharat, with focus on agriculture, MSMEs, jobs, healthcare, and manufacturing. A strong emphasis on capital expenditure aims to spur infrastructure growth, while tax reforms target ease of doing business. Social spending—expansion of medical education, cancer centers, and worker welfare schemes—reflects inclusivity. This fiscal blueprint aligns growth engines like investment and exports with social justice, ensuring balanced progress across sectors.

Key Policy Priorities for FY 2025–26

The government’s 2025–26 agenda revolves around four growth engines—agriculture, MSMEs, investment, and exports. Policies target farmer productivity, credit access for small enterprises, and skilling initiatives for youth. Healthcare sees expansion in cancer care and medical education, while digital infrastructure strengthens learning and inclusion. The informal workforce—including gig workers and street vendors—gains social security and credit support. With inclusivity as its guiding spirit, the government envisions zero poverty, universal healthcare, quality schooling, and greater women’s workforce participation.

Emergency Powers and Safeguards

While India’s Constitution empowers the President to impose National Emergency, President’s Rule, or Financial Emergency, judicial oversight prevents misuse. For instance, after S.R. Bommai, President’s Rule in states is subject to judicial review. Emergencies allow the Union to assume greater control to safeguard security and governance, but conventions and court rulings ensure that federalism is not eroded. These safeguards balance strong central powers with the preservation of state autonomy and citizens’ rights.

Citizen-Focused Governance and Transparency

Modern governance emphasizes accountability, participation, and transparency. Initiatives like Right to Information (RTI), single-window portals, grievance redress systems, and data-driven dashboards empower citizens to track performance. Jan Bhagidari, or people’s participation, drives campaigns on nutrition, sanitation, and healthcare. Oversight bodies like the Comptroller and Auditor General (CAG) and parliamentary committees strengthen checks. With the rise of digital public infrastructure and data protection frameworks, trust between state and citizens forms the cornerstone of inclusive governance in the digital era.

Fast Facts About the Government of India

System: Federal parliamentary democracy with unitary features

Seat of government: New Delhi

Branches: Executive (President, PM, Council of Ministers), Legislature (Lok Sabha + Rajya Sabha + President), Judiciary (Supreme Court, High Courts, Subordinate Courts)