SNIPPETS 05 APRIL 2026

Article 161: Grants Governor power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any convicted person+ Scope: Applies to offences under the State’s executive jurisdiction+ Madras HC held that the Governor must follow Cabinet advice while exercising powers under Article 161 of the Constitution.

Purchasing Managers’ Index (PMI): It is a survey-based indicator measuring business conditions using data on orders, output, employment etc+ PMI above 50 shows expansion and below 50 indicates contraction+ Types: Manufacturing PMI and Service PMI+ Reflects vulnerability of manufacturing to global shocks.

Non Deliverable Derivatives (NDD): Derivative contract where two parties agree on future exchange rate for rupee, but settle the difference in cash, usually in US dollars+ These trades take place offshore, outside the control of RBI+ They were developed in response to restrictions that constrained access to onshore markets and are widely used by foreign investors, hedge funds and global banks who cannot freely access the Indian rupee market.