Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R: Assertion A: Federalism in India is in recent years moving from cooperative to bargaining federal system. Reason R : Residuary powers of legislation are lying with the centre. In the light of the above statements, choose the most appropriate answer from the options given below:

Federalism in India

• It refers to dividing powers and responsibilities between the central government and the states.
• In recent years, there has been a noticeable shift in the dynamics of federalism towards a more bargaining-oriented approach. This shift can be observed in various aspects, including fiscal federalism, where states demand greater autonomy in financial matters, and policy implementation, where states seek more say in decision-making processes that directly affect them. The cooperative federalism model, which emphasizes collaboration and cooperation between the centre and states, is gradually evolving into a model characterized by negotiations and bargaining between the two levels of government. Hence, Assertion is correct.
• In India, residuary powers, which refer to powers not specifically assigned to the states, are vested with the central government as per the Constitution. This means that matters not enumerated in the state or concurrent lists automatically fall under the centre's jurisdiction. These residuary powers give the central government significant authority over certain legislative matters, reinforcing its position as the primary authority in certain areas of governance.
• While the reason provided (R) is correct in stating that residuary powers of legislation lie with the centre, it alone does not fully explain the transition from cooperative to bargaining federalism. The shift in federal dynamics involves multiple factors, including changes in political ideologies, state demands for greater autonomy, and evolving governance practices, rather than just the distribution of legislative powers. Therefore, option 2 Both A and R are correct, but R is NOT the correct explanation of A, which is the most appropriate choice.