Which list represents subjects where the Central and State governments both have legislative powers?

The Concurrent List is the correct answer because it is a unique feature of the Indian Constitution that allows both the Central and State governments to legislate on the subjects specified within this list. This dual authority creates a framework in which laws can be made at both levels, ensuring that important areas of governance, such as education, marriage and divorce, and bankruptcy, can be managed effectively by both governments.

This arrangement is particularly significant because it allows for a degree of flexibility and cooperation between the different levels of government. For instance, if both the Central and State governments make laws on the same subject in the Concurrent List, the Central law prevails in case of a conflict, but this does not prevent States from creating laws suited to their specific needs as long as they do not contradict the Central law.

In contrast, the Exclusive List pertains solely to one level of government, either the Central or State, meaning that the other cannot legislate on those matters. Similarly, the State List includes subjects exclusively reserved for the State government, and the Central List refers to matters exclusively handled by the Central government. Thus, only the Concurrent List encompasses areas where both can enact legislation, highlighting its unique role in Indian federalism.