Horizontal power sharing involves the distribution of power among different organs of government at the same level, such as the legislature, executive, and judiciary. This arrangement is also known as the separation of powers. Its primary purpose is to ensure that no single organ holds unlimited power, thus preventing the abuse of authority and maintaining a system of checks and balances. For instance, judges can check the laws made by the legislature or actions of the executive.

Vertical power sharing, conversely, entails the distribution of power among governments at different levels. This includes the central or union government, state governments, and local self-governments (municipalities, panchayats). This form of power sharing is fundamental to federal systems. It allows for the delegation of authority to lower levels, ensuring better governance and responsiveness to regional needs, while maintaining national unity.