The Republic of India is a union of states. The specific powers and spheres of influence of these states are set forth in the constitution, with all residual or non-specified powers in the hands of the central government (the reverse of the US Constitution). The central government has the power to set state boundaries and to create and abolish states. The state governments are similar to the central government in form, with a chief minister and a cabinet responsible to the state legislature, which may be unicameral or bicameral. State governors, usually retired civil servants or politicians, are appointed by the president for a five-year term and act only on the advice of the state cabinet.
The constitution gives the president the power—on the advice of the prime minister—to dissolve a state legislature and dismiss a state government if no party commands the support of a majority or if the state's constitutional machinery is incapable of maintaining order. The Lok Sahba, which must approve each six-month extension of direct rule, acts as the state legislature during its imposition, governing through the governor. Termed as "President's Rule" in the constitution, this power derives from a provision for "Governor's Rule" in the Government of India Act of 1935 and survives in the Pakistan constitution of 1973 in that form. It was invoked for the first time in 1959 by Prime Minister Nehru, and on the advice of Indira Gandhi, who was then Congress Party president; in power herself, she invoked the power repeatedly, often for partisan political purposes and, especially in the early 1980s, in the wake of ethnic/communal violence in Punjab, Assam, and Jammu and Kashmir. Limitations on its partisan use were imposed in a Supreme Court decision in spring 1994.
Under the States Reorganization Act of 1956, there were 14 states and five union territories, organized, where appropriate, on linguistic grounds. Through a gradual process of reorganization and division, two former union territories have become states while new union territories have been created (there were seven as of 2003), and the number of states has grown to 28.
Administratively, the states and union territories are divided into districts, under the control of senior civil servants who are responsible for collecting revenues, maintaining law and order, and setting development priorities. Districts are further divided into subdivisions, and subdivisions into taluks or tehsils . State government and lower levels of representative councils vary in organization and function, but all are based on universal adult suffrage. Large towns are each governed by a corporation headed by a mayor; health, safety, education, and the maintenance of normal city facilities are under its jurisdiction. Smaller towns have municipal boards and committees similar to the corporations but with more limited powers. District boards in rural areas provide for road construction and maintenance, education, and public health. The constitution provides for the organization of village councils ( panchayats ), and nearly all the villages have been so organized. The panchayats are elected from among the villagers by all the adult population and have administrative functions and a judicial wing that enables them to handle minor offenses.
In the mid-1990s, there were several campaigns to form new states in India, carving new borders along factional lines in existing states. A promise by former Prime Minister Deve Gowda to create a new state in Uttar Pradesh in 1996 renewed separatist sentiments in several other states.
The Hindu nationalist party (BJP) proposed five new states in 1996, hoping to control their assemblies rather than fight political foes in larger entities. Both proposals ignore potentially chaotic consequences in favor of political gain; existing state boundaries were drawn on language differences, while there appears to be no motive other than politics for the boundaries suggested by the new proposals. On its return to power in 1998, the BJP government succeeded in drafting bills that created three new states (Chhattisgarh, Uttaranchal, and Jharkhand), but put on hold its plans for making Delhi, presently a Union Territory, a state. Chhattisgarh, Uttaranchal, and Jharkhand became India's three newest states in November 2000, raising the total from 25 to 28.