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This article examines "federalism" as an abstract political concept similar to liberalism and socialism, and "federation" as a descriptive term denoting a form of government. The phrase "federative systems" refers to the genus of which federations are a species. The notion of "federalism" has significant consequences for comparison examinations of federations such as Canada and India. Both Canada and India began as quasi-federations and have since transformed into federations. They are not founded on the concept of federalism. The Constitution was not only the blueprint for a federation, but it was also inspired by a political theory we call "federalism," which consists of interlocking principles of governance who are very distinct from the parliamentary tradition that Canada and India adhere to. If these two nations wish to move beyond viewing federation as a means of power distribution, they will need to reevaluate their parliamentary tradition and, eventually, develop their own concept of federalism. India's federal system seeks to explain their effectiveness in terms of their symbiosis with the projects of nation-building and state-formation in India. This is done through a presentation of the basic structure of federalism in India and its political constraints. Federalism, along with parliamentarism, is axial principle of Government in India. Indian federalism is not a static entity. It has been evolving over the years form a predoom- namely parliamentary system. The flexibility of the federal process has made it possible for India to accommodate ethnos national movements in the form of new regions, thus gradually increasing both the number of states and the governability of the union. In this article we examine federal Process in India, structure, asymmetric federalism, andthe in-traction between globalization and India's federal system, in the context of the country's past decade of economic reform. Federalism in the modern age is a principle of reconciliation between two divergent tendencies, the widening range of common interests and the need for local autonomy.