How does the 'system of three lists' function in Indian federalism ? Explain with examples.

(i) The Constitution clearly provided a three-fold distribution of legislative powers between the Union Government and the State Governments. It contains three lists- Union List, State List and Concurrent List.

(ii) Union List includes subjects of national importance, such as defence of the country, foreign affairs, banking, communications and currency.

(iii) They are included in Union List because we need a uniform policy on these matters throughout the country. The Union Government alone can make laws relating to the subjects mentioned in the Union List.

(iv) State List contains subjects of State and local importance, such as police, trade, commerce, agriculture and irrigation. The State Governments alone can make laws relating to the subjects mentioned in the State List.

(v) Concurrent List includes subjects of common interest to both the Union Government as well as the State Governments, such as education, forest, trade unions, marriage, adoption and succession.

(vi) Both the Union as well as the State Governments can make laws on the subjects mentioned in this list. If their laws conflict with each other, the law made by the Union Government will prevail.

(vii) Apart from the above three lists, there is a separate provision related to the residuary subjects that are not specifically mentioned in the three lists. It includes subjects like computer software, cyber laws, information technology. constitution, the Union Government has the power to legislate on these ‘residuary’ subjects.