Sarkaria commission was set up in June 1983 by the central government of India. Its charter was to examine the relationship and balance of power between state and central governments in the Country and suggest changes within the framework of constitution of India. The commission was so named as it was headed by justice Ranjit Singh Sarkaria (Chairman of the commission), a retired judge of the supreme court of India.

This three-member commission submitted its report in January 1988 to the central government. The commission recommended, by and large, status quo in the centre-state relations, especially in the areas, related to legislative matters, role of governors and use of Article 356. It suggested a powerful centre, but strong states. It laid emphasis on the establishment of permanent interstate council. It also emphasised that both the centre and state governments should be responsive towards development of the backward regions.

If it is maintained properly in a planned way, there will be an automatic end of the separatist powers. Disputes between the centre and the state should be solved mutually. It justified the demand of more financial aid by the states. To improve the relation between the centre and the states, the commission has recommended economic liberalization and amendments in the constitution.