Federalism defines the relationship between the central/national government and regional/state/local governments, with powers distributed between these levels. A federation typically has two levels - the central government responsible for national interests, and state/provincial governments that administer local matters. India's constitution outlines a three-list system distributing legislative powers between the Union and States across subjects of national, state, and common interest. Center-state relations and strengthening local governments further decentralized India's federal system over time.