Key Takeaways
- India is a federal parliamentary democratic republic, with power shared between the central and state governments.
- The government has three pillars: the Legislature (makes laws), the Executive (implements laws), and the Judiciary (interprets laws).
- Operating in India requires navigating different regulations across its 28 states and 8 union territories.
A Sovereign, Socialist, Secular, and Democratic Republic
To understand how to operate in India, one must first understand how it is governed. India's political structure is a parliamentary democratic republic, where the President of India is the head of state and the Prime Minister of India is the head of government. It is based on the principle of **federalism**, where power is divided between the central government and the individual state governments.
The Three Pillars of Government
The Legislature
The Parliament, which makes the laws. Composed of the Lok Sabha and Rajya Sabha.
The Executive
Implements the laws, headed by the President and Prime Minister.
The Judiciary
Interprets the laws, headed by the Supreme Court.
Administrative Geography: States vs. Union Territories
India's administrative geography is crucial for business strategy. Regulations, licenses, and taxes can vary significantly between its 28 states and 8 union territories.
States vs. UTs: What's the difference?
States have their own elected governments and significant autonomy. Union Territories (UTs) are administered directly by the central government, leading to different regulatory landscapes.