Parliament may by law admit into the Union, or establish, new States on such terms and conditions as it thinks fit.

There are two powers given to Parliament by Article 2, namely:

(i) The power to admit new States into the Union; and

(ii) The power to establish new States.

The first refers to the admission of duly organised political communities (states which are

already in existence), while the second to the formation of state where none existed before, i.e. Article 2 refers to the admission or establishment of new states that are not part of the Union of India. Parliament admitted the French settlements of Pondicherry, Karaikal, etc. by using this power.

Further, it should be noted that Article 2 gives complete discretion to Parliament to admit or establish new States on such terms and conditions as “it thinks fit”. Such terms and conditions must, however, be consistent with the foundational principles or the basic structure of the Constitution. There is nothing in the Constitution, which would entitle a new State, after its formation or admission into the Union, to claim complete equality of status with an existing state.