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Union List includes subjects of national importance such as defence the country , foreign affairs , banking , communications currency. The Union Government alone can make laws relating to the subjects mentioned in the Union List. State List contains subjects of State and local importance such as police , trade come commerce , agriculture and irrigation . The State Governments alone can make laws relating to the subjects mentioned in the state list. Concurrent list includes subjects of common interest to both the Union govt as well as state govt such as education, forest , trade unions , marriages , adoption and succession. Both the Union as well as the State Governments can make laws on subjects mentioned in this list. Subjects like computer software came up after the constitution made According to our constitution the Union Government has the power to legislate on these \’residuary\’ subjects