This study explores the intricacies of India's federalism, examining both the actual challenges encountered in implementing the system and the legal structure that establishes and governs it. The Indian Constitution aims to establish a balance of authority and responsibility between the central and state governments. It combines unique characteristics of unitary government with federal government. This study looks at the key constitutional provisions and amendments that specify the organizational structure of the federal government, including the division of legislative power, budgetary relationships, and administrative processes. Federalism cannot actually be implemented in India due to significant barriers, despite a constitution designed to maintain a careful balance. Administrative inefficiencies, political tensions, and economic disparities sometimes lead to strained relations between centers and states. This essay looks at these problems, highlighting instances of conflict and cooperation between different levels of government. This study aims to understand the evolution of Indian federalism by a critical analysis of case laws, policy decisions, and intergovernmental discussions. The paper also covers the effects of regionalism, coalition politics, and economic liberalization on the federal framework. The study aims to provide a comprehensive understanding of the practical aspects of constitutional federalism and the necessary modifications to enhance its efficacy by means of an examination of these characteristics. The findings underscore the necessity of continuous deliberation and adaptation to ensure that India's federalism is resilient and responsive to the aspirations of its diverse citizenry.