Through an analysis of Allahabad University's functioning, this article argues that independent India's ideas of federalism reimagined university education. New visions of the educated person - linked to ideas about the ideal citizen - changed the kinds of disciplines and universities being funded. With support from industrial elites to buttress the new nation-state's development plans, the state prioritised technical education over arts and humanities to serve a unified economic policy. This change manifested through increased scrutiny over university functioning and crackdowns on student protests. The Indian postcolonial state's "centralised" federalism to manage the national economy and promote national integration impacted university funding. Ultimately, decisions about university funding were tied to the state's vision of the ideal apolitical citizen student, who would contribute to national development. This article highlights the complicated relationship between capital, the postcolonial nation-state, and university autonomy.