The Inter-State Council (ISC) is a constitutional, recommendatory body whose foundation lies in Article 263 of the Constitution of India, located in Part XI dealing with Centre-State relations. Article 263 empowers the President to establish such a council by order if it appears that the public interests would be served thereby, and it specifies three functions: (a) inquiring into and advising upon disputes that may have arisen between States; (b) investigating and discussing subjects in which some or all of the States, or the Union and one or more States, have a common interest; and (c) making recommendations upon any such subject, particularly for the better coordination of policy and action. Because Article 263 is itself an executive-discretion provision, the Council was not constituted automatically with the Constitution's commencement in 1950; it lay dormant for four decades.
The actual establishment of the Inter-State Council came in 1990 through a Presidential Order, acting on the recommendation of the Sarkaria Commission (1983–88), which had been appointed to review Centre-State relations and had strongly urged a permanent, charter-based institutional forum for cooperative federalism. As composed, the Council is chaired by the Prime Minister, and its members include the Chief Ministers of all States, the Chief Ministers/administrators of Union Territories having legislatures, administrators of UTs without legislatures, and six Union Cabinet Ministers nominated by the Prime Minister. The Council is meant to meet at least thrice a year, and a Standing Committee (constituted in 1996, chaired by the Union Home Minister) conducts continuous consultation and processes matters before the full Council. An Inter-State Council Secretariat, headed by a Secretary, services the body; since 2011 it also services the Zonal Councils. The Council's recommendations are advisory and not binding, distinguishing it from a body with adjudicatory or legislative force.
In practice the ISC has met infrequently — the eleventh meeting was held in 2016 under Prime Minister Narendra Modi — and critics note that NITI Aayog's Governing Council and other forums have absorbed much cooperative-federalism deliberation. The Punchhi Commission (2010) recommended revitalising the Council and making its meetings more regular. As of 2026 the ISC remains the principal constitutional forum for structured Union-State dialogue, though it must be distinguished from the National Development Council (an extra-constitutional body) and from the Zonal Councils (statutory bodies created under the States Reorganisation Act, 1956). Article 262, by contrast, deals separately with inter-State water disputes.
For the UPSC examination this topic is tested in General Studies Paper II (Polity and Governance) under federalism and Centre-State relations, and recurrently in the Prelims. The typical question angle asks candidates to identify the constitutional source (Article 263), distinguish the ISC from statutory and extra-constitutional cousins, recall the Sarkaria Commission link and the 1990 establishment, and evaluate whether the body has fulfilled its cooperative-federalism mandate. Mains answers frequently ask whether the ISC should be strengthened in light of GST Council experience and recurring Centre-State frictions.
Example
In 2016, Prime Minister Narendra Modi chaired the eleventh meeting of the Inter-State Council in New Delhi, where Chief Ministers discussed the Punchhi Commission recommendations and Aadhaar-linked direct benefit transfers.
Frequently asked questions
It is established under Article 263 of the Constitution, in Part XI dealing with Centre-State relations. The President may set it up by order if public interest so requires; it is not a self-executing body.