The division of power between the Central and State Governments is done in a three fold distribution of legislative powers between the Union and the State Governments.
There are three lists - Union List, State List and Concurrent List.
(i) Union List: It includes subjects of national importance, e.g., defence of the country, foreign affairs, banking, communication and currency. The Central Government alone can make decisions on these matters.
The aim of including these matters in Union List is to ensure uniformity in the policy of these areas throughout the country.
(ii) State List: It consists subjects of state and local importance such as police, trade, commerce, agriculture and irrigation. The State Governments alone can make laws and decisions on these areas.
(iii) Concurrent List: It includes those subjects which are of common interest to both the Central as well as State Governments. It includes matters like education, forests, marriage and trade unions. Both the State and Central Governments can make decision on these matters.