Winston Churchill once in his speech at the London’s Constitutional Club in 1931 said, “India is no more a political personality than Europe, it is a geographical term and is no more a united nation than the equator.” This was the popular perception of colonial India. It was fragmented, divided on communal, regional and monarchical lines. It was unfathomable for the western leaders to imagine such diverse regions coming together in future to form a nation united under one flag. But this was possible due to the shape that our constitutional makers gave to our constitution. It was accepted by them that pragmatic federalism is necessary for achieving a federal balance and will necessitate joint wisdom from the federal government and states. Still Indian polity has repeatedly faced multiple challenges to its federal structure, which has strained centre state relations from time to time. Some of the contemporary challenges to the federal structure of India are discussed herewith.