Solution:
The three tiers of the Indian federal government are the national government, the state government, and local self-government. The following characteristics define federalism: The government is divided into at least two levels. Each government level has its rules, taxes, and administrative structure. Each level of government's rights and obligations are established by and guaranteed by the Constitution. Thus India is a federation, but power doesn't reside only with the central authority as power is divided between central, state, and local governments.Hence the Assertion is correct, but the Reason is false.