India is considered a federal country because of the following reasons:

• The Indian Constitution contains three lists that contain subjects in which the Union and the State Governments can form regulations. Only the central government can make regulations in the Union List, and the state government can make regulations in the State List. Subjects related to the interests of both Central and State Governments are included in the Concurrent List.

• India has a two-tier system of government, with powers divided between the central and state governments.

• India has a dual government polity, with a division of powers between various levels.

• The Indian Constitution is rigid, with an independent judiciary.

• India has a dual citizenship system.

• India has a bicameral parliament.

• India has financial autonomy, with both the Union and State Governments having the power to raise resources by imposing taxes to carry out their assigned responsibilities.

Although the term "federal" is not used in the Indian Constitution, India is considered a federal country because it has all the significant characteristics of a federal government and has properly implemented it.