What’s in Today’s Article?

• Governor’s Powers Latest News
• Background: Constitutional Context of Article 201
• The Tamil Nadu Case and Supreme Court’s Intervention
• Three-Month Deadline for Presidential Action
• Broader Implications for Federalism and Governance
• Importance of Reasoned Decision-Making
• Conclusion
• Supreme Court’s Article 201 Ruling FAQs

Governor’s Powers Latest News

• In a groundbreaking development, the Supreme Court has mandated a timeline for the President of India to act on state legislature Bills reserved by Governors. 
• This historic judgment, delivered on April 8, 2025, addresses a long-standing constitutional grey area under Article 201 and is likely to reshape Centre-State legislative relations.

Background: Constitutional Context of Article 201

• Article 201 of the Constitution allows a Governor to reserve a Bill passed by a State Legislature for the President’s consideration. 
• However, the Constitution does not prescribe a specific timeframe for the President to act. 
• This ambiguity has often led to inordinate delays, with Bills being kept in limbo for months, sometimes years. 
• The absence of a deadline has sparked tensions between State governments and the Centre, often fuelling political and legal disputes.

The Tamil Nadu Case and Supreme Court’s Intervention

• The ruling came in response to a plea challenging Tamil Nadu Governor R. N. Ravi’s decision in November 2023 to reserve ten Bills for Presidential consideration, despite the Bills already having been reconsidered and passed again by the State Assembly. 
• The apex court, through a bench comprising Justices J. B. Pardiwala and R. Mahadevan, declared the Governor’s action illegal and unwarranted.
• In its verdict, the Court clarified that constitutional functionaries, including the President, are not immune from judicial scrutiny when delays disrupt legislative processes. 
• The judgment emphasized that constitutional roles, though devoid of explicit timelines, must be performed within “reasonable time” to uphold democratic values.

Three-Month Deadline for Presidential Action

• In a first-of-its-kind ruling, the Supreme Court has now stipulated that the President must take a decision on such Bills within three months from the date of receipt. 
• If this deadline is missed, the Centre must provide appropriate reasons to the concerned State.
• The Court based its direction on:
  • Office Memorandums (OMs) issued by the Ministry of Home Affairs in 2016, recommending timelines for legislative proposals and urgent ordinances.
  • Recommendations by both the Sarkaria Commission (1983) and the Punchhi Commission (2007), which called for definite timelines to ensure efficiency in legislative procedures.

Broader Implications for Federalism and Governance

• This decision is a step forward in balancing India’s quasi-federal structure by upholding the legislative autonomy of State Assemblies. 
• The Court cautioned against arbitrary inaction, saying delays in Presidential assent “would fall foul of basic constitutional principles” and hurt the federal spirit.
• Key implications include:
  • Accountability: Both Governors and the President are now expected to act within reasonable timelines, ensuring Bills are not held in indefinite abeyance.
  • Judicial Oversight: Courts have reaffirmed their power to intervene when constitutional authorities fail in their duties.
  • Policy Efficiency: State governments can now pursue their legislative agendas with greater clarity and predictability.

Importance of Reasoned Decision-Making

• The Court also noted that just like Governors cannot use an “absolute veto,” the President’s decision to withhold assent must be accompanied by sound, specific, and recorded reasons. 
• This brings much-needed transparency and structure to a constitutional provision that had long operated in a legal vacuum.

Conclusion

• The Supreme Court’s directive to time-bound Presidential decisions under Article 201 marks a significant milestone in India’s constitutional journey. 
• It protects legislative sovereignty, ensures accountability among top constitutional functionaries, and reaffirms the importance of timely governance in a federal democracy.

Supreme Court’s Article 201 Ruling FAQs

Q1. What is Article 201 of the Indian Constitution?

Ans. Article 201 empowers the Governor to reserve a Bill passed by a State Legislature for the President’s consideration.

Q2. What did the Supreme Court rule regarding Article 201 in April 2025?

Ans. The Court ruled that the President must act within three months on any Bill reserved under Article 201.

Q3. What happens if the President delays action beyond three months?

Ans. The Centre must provide reasons for the delay to the concerned State.

Q4. Why is this judgment significant for federalism?

Ans. It ensures timely legislative action and strengthens State autonomy within India’s federal framework.

Q5. Can the President withhold assent without giving reasons?

Ans. No. The President’s decision to withhold assent must be based on clear, documented reasons.

Source: IE | Livelaw

 What’s in Today’s Article?

• US Dollar Decline Latest News
• Impact on the Indian Rupee
• Bond Market Shock
• US Dollar Decline FAQs

US Dollar Decline Latest News

• The U.S. dollar has sharply declined despite President Trump pausing his trade moves, reflecting reduced confidence in the American economy. 
• Traditionally, market volatility boosts demand for dollar assets, but this time, investors are fleeing to other safe havens like the Swiss franc, Japanese yen, euro, and gold—which hit a record high. 
• Wall Street stocks also fell after a brief rally, and long-term U.S. Treasury yields are rising, signaling a major weekly jump not seen since 2001.

Impact on the Indian Rupee

• Weak Opening
  • The Indian rupee opened weak on April 11 despite favorable global cues.
• Support from Dollar Decline
  • A continued sharp decline in the U.S. dollar index and falling oil prices are expected to support the rupee in the near term.
• Rupee Outlook
  • According to experts, while the rupee may gain some strength, it is unlikely to appreciate beyond the 86 level.

Bond Market Shock

• President Trump's reversal on tariffs is believed to have been prompted by a sharp selloff in U.S. government bonds, signaling plummeting confidence in the American economy. 
• Major foreign investors like Japan and China reportedly dumped U.S. debt amid growing trade war concerns.

Understanding Government Bonds

• Government bonds are debt instruments issued to fund public spending, offering interest in return. 
  • The U.S. currently has over $35 trillion worth of bonds in circulation, much of it held by foreign investors.

Bond Yields and Currency Value

• Higher bond yields (and lower bond prices) tend to attract foreign capital, strengthening the domestic currency. 
• This is part of the carry trade strategy, where investors borrow in low-interest economies to invest in high-yield markets, influencing global currency flows.

Changing Perception of U.S. Bonds

• Historically seen as safe, U.S. bonds are now facing volatility. 
• Yield spikes suggest rising risks, making it more costly for the U.S. government to raise funds and potentially affecting its ability to finance key programs like Social Security and Medicaid.

Investor Concerns Mounting

• For the first time in two years, investors are demanding a higher premium on junk-rated U.S. debt compared to European equivalents—indicating fears of a significant economic slowdown.

US Dollar Decline FAQs

Q1. Why is the US dollar declining suddenly?

Ans. Due to falling investor confidence, bond selloffs, and shifts toward safer currencies and gold.

Q2. How does the dollar decline impact the Indian rupee?

Ans. It lends support, but rupee remains weak amid uncertain global trends and market volatility.

Q3. What triggered Trump's tariff pause?

Ans. A steep selloff in U.S. bonds and fear of economic slowdown influenced the decision.

Q4. What is the relation between bond yields and currency value?

Ans. Higher yields attract foreign capital, boosting currency strength through carry trade strategies.

Q5. Why are investors avoiding US bonds now?

Ans. Rising yield risks and fears of U.S. economic slowdown are reducing bond market confidence.

Source: IE

What’s in Today’s Article?

• Optional Practical Training (OPT) Program Latest News
• Optional Practical Training (OPT) Program
• Rising Popularity of OPT Program
• Key Highlights of the Fairness for High-Skilled Americans Act of 2025
• Optional Practical Training (OPT) Program FAQs

Optional Practical Training (OPT) Program Latest News

• A bill titled The Fairness for High-Skilled Americans Act of 2025 was introduced recently in the US House of Representatives. 
• The bill proposes ending the Optional Practical Training (OPT) program, which permits international students to work temporarily in the US after completing their studies. 
• The move comes amid concerns from some supporters of former President Donald Trump, who argue that such programs, like the H-1B visa and OPT, reduce job opportunities for American workers. 
• The OPT program has grown in popularity, especially among international students from STEM fields, including many from India.

Optional Practical Training (OPT) Program

• The Optional Practical Training (OPT) program allows international students in the US on F-1 visas to work temporarily in a field related to their area of study.
  • The F-1 visa is a non-immigrant student visa that allows international students to enter the United States to pursue full-time academic studies.

Types of OPT

• Pre-Completion OPT - Students can work before completing their studies, provided they have completed at least one academic year of full-time study.
• Post-Completion OPT - Allows students to work after graduation in their field of study for up to 12 months.

Extension for STEM Students

• Students pursuing degrees in Science, Technology, Engineering, and Mathematics (STEM) can apply for a 24-month extension, enabling them to work in the US for up to three years after graduation.

Rising Popularity of OPT Program

• In the academic year 2023–24, 2.43 lakh international students (about 22% of the total 1.13 million international students in the US) were on the OPT program. 
• This marks an increase from 1.99 lakh in 2022–23 and is more than double the number from a decade ago (1.06 lakh in 2013–14).

Indian Students and OPT

• Among the 3.31 lakh Indian students in the US in 2023–24, around 29% (97,556 students) were on OPT. 
• Many Indian students opt for STEM OPT extensions as a way to earn, repay student loans, and potentially transition to an H-1B visa.

STEM Courses Drive Demand

• STEM fields are the most popular among international students:
  • Mathematics and Computer Science: 2.82 lakh students (25% of total international enrollment)
  • Engineering: 2.10 lakh students
• For Indian students specifically, 42.9% were enrolled in maths and computer science, making these fields the top choice and fueling the demand for STEM OPT extensions.

Key Highlights of the Fairness for High-Skilled Americans Act of 2025

• The Fairness for High-Skilled Americans Act of 2025 seeks to eliminate the post-completion OPT program, i.e., it would apply only to international students no longer engaged in full-time study. 
• It does not ban work for F-1 students who are still studying.

Reasons Behind the Proposal

• Experts argue that the OPT program:
  • Undercuts American workers, especially recent graduates and high-skilled professionals.
  • Provides tax incentives to employers to hire cheaper foreign labor.
  • Circumvents H-1B visa caps, creating a loophole for businesses.
  • Allows employers to avoid payroll taxes like FICA and Medicare.

Legislative Background & Political Context

• A similar bill was introduced in 2019 but did not pass. It was referred to a subcommittee and never voted on. 
• The issue aligns with former President Donald Trump’s political stance, which appeals to the idea that such immigration programs disadvantage American workers.

Business and Legal Concerns

• Many analysts state that US businesses rely heavily on foreign labor, and the bill—if passed—would likely face strong opposition from both the public and private sectors due to its dramatic departure from established norms.

Optional Practical Training (OPT) Program FAQs

Q1. What is the OPT program?

Ans. OPT allows F-1 visa students to work temporarily in the US in their field of study.

Q2. Who introduced the Bill to end OPT?

Ans. Republican Congressman Paul Gosar introduced the Fairness for High-Skilled Americans Act of 2025 on March 25.

Q3. Will students be banned from working while studying?

Ans. No, the bill only targets post-completion OPT, not work during active enrollment in a full-time course.

Q4. Why is the OPT program under criticism?

Ans. Critics claim it undercuts American workers, avoids taxes, and bypasses H-1B visa limits.

Q5.Why is OPT popular among Indian students?

Ans. It helps repay loans, offers US work experience, and is a pathway to the H-1B visa for STEM graduates.

Source: IE