The Indian Constitution distributes powers between the Centre and the States through a three-fold division of subjects :
1. UNION LIST - Subjects of national importance requiring a uniform policy. Only the Union Government can make laws on them. Examples : defence of the country, foreign affairs, banking, communications and currency.
2. STATE LIST - Subjects of state and local importance on which the State Governments alone can make laws. Examples : police, trade, commerce, agriculture and irrigation.
3. CONCURRENT LIST - Subjects of common interest to both. Both the Union and the State Governments can make laws, but in case of a conflict the law made by the Union Government prevails. Examples : education, forest, trade unions, marriage, adoption and succession.
4. RESIDUARY POWERS - Subjects which do not fall in any of the three lists, such as computer software, are called residuary subjects, and the Union Government has the power to legislate on them.
5. Special provisions - Some states such as Jammu and Kashmir and the north-eastern states enjoy special provisions, while Union Territories are administered by the Central Government.