General Studies Paper-III

Q1. Normally countries shift from agriculture to industry and then later too services, but
India shifted directly from agriculture to services. What are the reasons for the huge
growth of services vis--vis industry in the country? Can India become a developed
country without a strong industrial base?
Indias service sector dominates Indian economy with contribution upto 60% while
manufacturing contributes around 26% and agriculture only 14% of Economy. Large
growth of service sector vis--vis industrial sector is because
i) Pre 1991 Industrial sector was heavily regulated by licensing and other
regulations while no such regulation restricted services sector
ii) Restrictive labour laws like IDA, Contract law made intensive industries leery of
expansion
iii) State led industrialization led to growth of inefficient industrial companies which
could not expand efficiently or could pace up technologically
iv) Discouraging FDI in India which led to suppressing of investment needed for
growth and starved industries of needed latest technology
v) Closed Indian economy gave industrial houses monopolies and thus little
incentive to invest in efficiency or develop new technology
Without industrial growth India cannot become developed country as services sector
cannot employ millions of youth who have emerged due demographic dividend and
moving away from agriculture due to lower productivity. These low skill manufacturing
jobs will drive economic prosperity of India. Developed countries economies have large
services sector due to internal demand generated by prosperity of industrial sector.
Thus for generation of large scale employment and economic progress India needs
large industrial base and initiatives like Make in India & NIMZ policy are in right
direction.

Q2. While we flaunt Indias demographic dividend, we ignore the dropping rates of
employability. What are we missing while doing so? Where will the jobs that India
desperately needs come from? Explain
India is experiencing demographic dividend which means large number of population in
working age cohort of 15-55 with declining dependency ratio. This demographic
dividend if reaped by economic productive jobs it will contribute significantly to the
growth of the nation.

While agriculture contributes only 15% of Indian GDP it employs more than 50% of
working age population, resultant it has caused large number of people trapped in
unproductive employment or under employment.
One of the biggest factors of this dropping rate of employability is
i)
ii)
iii)
-

iv)

Underdeveloped industrial sector in India which potentially could employ

millions
Development of industrial base on capital goods rather than labour due to
competition and quality requirements
Poor skills of Indian youth make their employability lower
While there is universal enrollment in primary schools, enrollment in
secondary, high school and colleges drop off drastically to 63%, 36% and
20% and only 3% of youth undergo some vocational courses according to a
report
Gap between courses taught in institutions and market needs furthers this
gap
Restrictive labour laws like IDA, Contract labour act made development of
labour intensive industries like textiles and leather difficult due to restrictions
on retrenchment of employees during downturn
This contributed in growth of ad-hoc contract labours and unorganized sector
which have lower productivity and welfare protection

India needs
i) Reforms in Labour laws to promote formal employment
ii) Setup courses in consultation with market in while setting up community colleges
and ITIs
iii) Promote FDI in industrial sector for bringing investment, technology

Q3. There is also a point of view that Agricultural Produce Market Committees (APMCs)
set up under State Acts have not only impeded the development of agriculture but also
have been the cause of food inflation in India. Critically examine.
APMC have promoted monopolies in markets for agricultural goods with restrictive
participation which has led cartel formation by traders to drive down prices paid to
farmers. Thus defeating the purpose of ensuring welfare of farmers. APMC promote
i) Monopolized markets and impede development of alternative markets thus
reducing chances of price discovery
ii) Force farmers to sell at lower value due to lack of alternatives

iii) Cartel formation by traders lead to hoarding

iv) Lower investment in maintaining of warehouses, cold storages leading to high
wastage
v) Makes FCI biggest buyer of grains at high MSP which leads to hoarding by govt,
inflation in cereals
vi) Middleman benefits at the expense of farmers and consumer
This led cental govt to formulate Model APMC act in 2003, but it has not been emulated
by state and as agri remains state subject it does not have much impact. However many
states like Bihar, Delhi have done away with APMC act but it has not lead to decrease
in inflation in these states.
Hence the problem of food inflation is not solely due to APMC but a mix of structural
bottlenecks like lack of supply chain leading to high wastage etc.

Q4. In the villages itself no form of credit organization will be suitable except the
cooperative society - All India Rural Credit Survey.
Discuss this statement in the background of agricultural finance in India. What
constraints and challenges do financial institutions supplying agricultural finance face?
How can technology be used to better reach and serve rural clients?
Govt of India has mandated agriculture and primary sector lending as priority lending
and has increased fund allocation to it over the years. However according to RBI study
only around 3% of the credit offtake reserved for primary sector is taken by small and
medium farmers and biggest beneficiary of the expanded credit are large farmers, agro
based industries. This is due to requirement of banks for KYC which require
documentation often not with small and medium farmers.
Green revolution techniques require increased capital expenditure and its adoption
makes small farmers depend upon local moneylenders for loans who charge high
interest rates. When the crops fail due to lack of assured irrigation and failure of
monsoons it causes high distress in rural society and resultant dispossession and
suicides.
In villages cooperative society can be ideal way to disburse increasing amount of loans
reserved for primary sector as they have grass roots in community and can enable them
in better targeted coverage and better loan recovery.
Technology can act as enabling factor as Banks now can enroll and service rural
customers without opening physical banks through e-banking and Bank
correspondents. These bank accounts opened could be seeded by Aadhar number for

targeted subsidies, DBT. Moreover technology reduces transaction costs of banks

making expansion of rural banking viable.

Q5. The Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act, 2013 has come into effect from 1 st January 2014.
What are the key issues which would get addressed with the Act in place? What
implications would it have on industrialization and agriculture in India?
Indias land acquisition was undertaken under antiquated Colonial Land acquisition act
which had led to increased distress, conflict over eviction of land owners and landless
labors form their land without proper compensation or rehabilitation. This led to
enactment of LARR act 2013, its significant features are
i) Higher compensation of 4 and 2 times of market rate for land acquisition in rural
and urban areas respectively
ii) SIA for affected population with remedial measures for rehabilitation and
resettlement
- This measure is significant for landless labours who lose their livelihood
iii) Consent of 80% of land owners required for acquisition
iv) Wrote one more point dont remember now
Its implications are mixed to negative on industrialization and agriculture
i) It would resolve conflicts between community and industries on lower
compensation
ii) Industries fear delays over mandatory SIA and 80% consent requirement
iii) Higher cost of development due to higher payment for land acquisition
iv) Uneven impact as major industrial activities like mining are exempt from LARR
Its implications have initiated debate on its dilution in Indian society and government,
with loosening on SIA and consent requirement.

Q6. Capitalism has guided the world economy to unprecedented prosperity. However, it
often encourages short-sightedness and contributes to wide disparities between the rich
and the poor. In this light, would it be correct to believe and adopt and adopt capitalism
for bringing inclusive growth in India? Discuss.
Capitalism believes in markets as only mechanism for delivering goods efficiently and
its invisible hand in regulating to drive for greatest benefit with high efficiency. While
laissez-faire economy has delivered high economic gains but they have not been

equitable and has promoted iniquitous society. For example Brazil before 2003 and
Bostwana have had high per capita GDP and high growth rate but the economic gains
were skewed. This led to high gini coefficient in the society and its attendant problem
like social unrest, wide spread distress, lower human development indicators etc.
Moreover unregulated markets as being self-correcting has been laid as lie by 2008
financial crisis which was perpetuated by lightly regulated banking sector in western
countries. This light regulation led to taking up excessive risk for higher pay by bankers
and in end lead to collapse of the system which spread to main street economy causing
widespread distress due to freezing of credit.
There is also problem of disproportionate gains of economic growth being appropriated
by top 1%, which has been highlighted by research of Thomas Piketty.
Even in western countries, regulation over labor and environmental protection was
needed to protect these vulnerable sectors, hence in India it wont be possible to deliver
inclusive growth by capitalism alone. Capitalism needs to be regulated for delivery of
greatest economic growth to greatest number of people for achieving inclusive growth.

Q7. Explain how Private Public Partnership arrangements, in long gestation

infrastructure projects, can transfer unsustainable liabilities to the future. What
arrangements need to be put in place to ensure that successive generations capacities
are not compromised?
Did not attempt

Q8. National Urban Transport Policy emphaises on moving people instead of moving
vehicles. Discuss critically the success of the various strategies of the Government in
this regard.
Emphasis on moving people instead of moving vehicles has entailed
i) Policy of setting up mass public transportation Metro in every city with large
population above 2 million
ii) Encouraging a unified transport authority to plan for movement of people instead
of separate body for Buses, Taxis, roads etc
iii) Emphasis on creation of capacity in ULB for creation of infra in the city through
reforms

iv) Increasing FSI in the city to increase concentration of population to discourage

urban sprawl which entails long road commute increasing number of vehicles
causing traffic jams, GHG emissions
Strategy of govt in dealing with this have been
i) Institution of JNNURM for renewal or urban centres with funds for public infra like
public transport for reforms undertaken in ULBs however it has not been
successful in regeneration of ULBs
Last question which I attempted and the paper was taken at this point. I needed better
time management. Also I am not satisfied with this answer.

Q9. Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized.
What influence this is expected to have on Indian defence and economy in the short run
and long run?
India has emerged as largest arms importer in recent years. Recently govt. liberalized
FDI norms in defence sector with
i) 49% investment allowed under direct route
ii) 100% investment allowed in special cases where sensitive technology would be
brought in
Short run implications
i) this step would lead to reduction in this through indigenous manufacturing of
initially local assembly of small arms and offset clauses
ii) Will instill confidence among FII and MNC for favourable environment of
investment in India
iii) Will bring in long term foreign exchange in industrial sector shoring up countrys
CAD and image
Long term implications
i) Development of military-industrial complex in India which will increase
collaboration between military, academia and industry leading to higher industrial
growth
ii) Development of indigenous arms industry could encourage exports hence
change Indias foreign trade profile
iii) Development of industrial employment in India
iv) Increase research linkages of defence industries to commercial aspects as well

Q10. Scientific research in Indian universities is declining, because a career in science

is not as attractive as business professions, engineering or administration, and the
universities are becoming consumer-oriented. Critically comment.
India spends only 0.9% of GDP as expenditure on research and development compared
to 5% spent by China and higher by western countries. This lower expenditure
combined with other problems has made scientific career appear unattractive to young.
i)
ii)
iii)
iv)
v)
vi)

Lower academia-industry linkages lead to lower commercial viabilities of R&D

Lower expenditure by private sector on R&D
Politics in grants, promotion also dishearten young researchers
Silos based organizations with no cross organizations research
Universities generally have poorly equipped labs
Research based culture by encouraging to publish in reputed international
journals is also missing in universities this creates inequality among researchers
and leads to departure of promising researchers to foreign shores

Middle class aspirations of quality education to secure employment has reduced Indias
institutions to employment exchanges hence discouraging research and innovation in
academia. This is reflected in poor international ranking of Indian universities.
To become knowledge based society India would need to spur R&D efforts in its
universities, labs and encourage industrial-academia linkages for greater commercial
viability.

Q11. Can overuse and free availability of antibiotics without Doctors prescription, be
contributors to the emergence of drug-resistant diseases in India? What are the
available mechanisms for monitoring and control? Critically discuss the various issues
involved.
Antibiotic resistant microbes and antimicrobial resistance are phenomenon where
microbes develop strains making them resistant to antibiotics. This is dangerous in
terms that it may cause diseases which would not be cured or difficult and expensive to
cure. India suffers from emergence of many drug-resistant microbes like
i)
ii)

NDM I
XDR-TB, MDR-TB and TDR-TB

NDM I was found in hospitals of New Delhi which caused infections totally resistant to
all known drugs. While drug resistance strain of TB is making its treatment prohibitively

expensive because of multiple drugs and isolation ward .Drug resistance strain
develops due to
i) Indiscriminate OTC sale of antibiotics which lead to survival of some hardy
strains of microbes which them multiply as drug resistant strain
ii) Prescription of more than required strength antibiotics by doctors to allay patients
iii) Insanitary conditions prevailing in Hospitals and Indian cities also give microbes
ample sites to develop
iv) Feeding of antibiotics to poultry and cattle also contribute to development of drug
resistant strains
Control mechanism
i) Govt has banned OTC sale of many antibiotics this needs to strictly enforced
across country
ii) Doctors and patients need to made aware of harmful effects of over prescription
iii) Maintaining hygienic conditions in hospitals and surroundings, Swachh Bharat
Abhiyan can be useful here
iv) Aligning with WTO in using of advanced medicine developed for treatment of
patients afflicted with drug resistant diseases.

Q12. In a globalized world, Intellectual Property Rights assume significance and are a
source of litigation. Broadly distinguish between the terms- Copyrights, Patents and
Trade Secrets
Wrote in paragraph style mentioning following points
i)

Indias current conflict with US over IPR and report issued by US Commerce
dept under art. 301, India constituting special high level committee to look and
advise on IPR of India
ii)
TRIPS negotiated under WTO and implemented across, conflict is over its
stringent application US insisting over TRIPS+ provisions which is not
binding but nevertheless being pushed under TPP as TRIPS+
a) Patents Std definition of patents, Mentioned India used to recognize process
patent only before acceding to TRIPS but became fully compliant by amending
its amending laws now both process and product patents recognized. Conflict
over article 3(d) due to evergreening issue and compulsory license by Pharma,
Cos worried as it may inspire other emerging nations to emulate India
b) Copyrights Std definition granted over creative work to artists mostly over
their creation. Span is longer compared to patents of artiste lifetime and 70

years. Example novels, books etc. Talk of covering software program under
this
c) Trade secrets business process or product formulations held secret by cos to
give them competitive advantage, not protected by any legal provisions. Example
Coke

Q13. Should the pursuit of carbon credits and clean development mechanisms set up
under UNFCCC be maintained even though there has been massive slide in the value
of a carbon credit? Discuss with respect to Indias energy needs for economic growth.
Carbon credits and CDM was set up under now lapsed Kyoto Protocol which entered
into force in late 90s. However now developed country are not accepting the CBDR
framework of Kyoto Protocol as negotiation framework and want equity based model for
agreement as emerging country like China has become worlds largest emitter of GHG
while India with 6% share of GHG emission is 4 th largest.
Recently EU declared ambitious GHG emission cuts and move to renewable sources of
energy by 2030 with cuts of over 40% from 1990 level. US-China entered into bilateral
agreement to cut GHG emissions and China agreeing to peak its emissions by 2030.
While India is pursuing CBDR framework for climate change negotiations as developed
countrys historical responsibility but it has been isolated diplomatically on this due to
ascension of China, SA, Brazil to equity based model for climate change negotiations.
Current climate change negotiations seek to limit emissions to contain temp rise to 2 C,
India has raised its energy production rapidly on back of thermal power to around 230
GW which is expected to go up to 600 GW by 2050. While India needs to balance its
developmental needs by more GHG emissions and as its per capita emissions are still
one of the lowest in world need more leeway but it will also be disproportionately
affected by climate change, like
i) India needs to develop climate change adaptable crops
ii) Himalayan glaciers would shrink due to warming hence increase water distress
iii) More extreme climatic events like cyclones, cloud-bursts
India to break its isolation and align with emerging countries, LDCs to maintain some
semblance of CBDR in negotiations, agree on nationally binding targets like earlier
unilaterally announced reduction in its GDP intensity and ensure funds are provided
under GCF agreed under Copenhagen summit for technology transfer and moving to
cleaner regime.

Schemes like Solar mission, encouraging renewable power buy by state discoms under
NAPCC would help India and the reduction in GHG emissions.

Q14. Drought has been recognized as a disaster in view of its spatial expanse, temporal
duration, slow onset and lasting effects on vulnerable sections. With a focus on the
September 2010 guidelines from the National Disaster Management Authority (NDMA),
discuss the mechanisms for preparedness to deal with likely El Nino and La Nina
fallouts in India
Didnt had much idea about NDMA guidelines, wrote generic points
El Nino is heating of pacific waters near Peru coast which results in weakening of the
Indian monsoons. This effect measured in early in March gives time for preparedness,
moreover monsoons also depends upon on local factors for their proceed over India.
Hence even during normal predicted monsoons there might be variances due cyclones
etc.
Disaster preparedness involves
i) NDMA prepares along with state and other agencies in distribution of aid through
PDS or other channels
ii) Prevent Hoarding and improve access to cereals
iii) Reservoir waters are planned to be used judiciously for irrigation and drinking
water
iv) Help from ICAR in supplying drought resistant crops seeds instead of water
intensive Rice and train farmers in their cultivation
v) Move cereals from storage and release in market to control inflation
vi) Ban of exports
vii) Wrote few more points dont remember now
La Nina is normal climatic conditions in pacific which do not require special
preparations.

Q15. Environmental Impact Assessment studies are increasingly undertaken before a

project is cleared by the Government. Discuss the environmental impacts of coal-fired
thermal plants at coal pitheads.
EIA have made mandatory by govt as procedure for any large project undertaken to
determine its impact on the local environment and make company pursuing project take
remedial steps like reforestation etc. For proper impact and sustainable development

EIA must be taken as project is being considered and not as requirement to be fulfilled
for environmental clearance which when delayed due to faulty or unfulfilled EIA
requirements leads to charge of policy paralysis.
India needs huge amount of power for development hence it has undertaken bid to build
capacity through thermal power plants as it has large coal reserves. However there are
many problems associated with thermal power plants at coal pitheads,
i) In India open cast mining is practiced which is very ecologically damaging
ii) Thermal power plants are very polluting and adds significantly to the GHG
emissions
iii) Indian coal is high in sulphur and ash content which makes it lower calorific value
hence it requires more coal for production of power
iv) Most of the coal bearing areas are situated in places with thick forests like
Chotanagpur plateau and hence its exploitation would have deep impact with
deforestation combined with pollution
v) Situating thermal power plants at coal pitheads reduces transportation costs but
gives rise to the problems like local pollution in terms of ash dumping causing
land and water pollution
vi) Thermal power plants require lot of water hence reducing water availability in
area
Gov t has taken few steps like mandating construction of super critical thermal power
plants only which have higher efficiency, cos are importing higher cost coals from Aus
and Indonesia to tide over shortage of coal, making few areas as NO GO for mining to
protect forests and adivasis. But more is needed to make development sustainable and
inclusive.

Q16. The diverse nature of India as a multi-religious and multi-ethnic society is not
immune to the impact of radicalism which is seen in her neighbourhood. Discuss along
with strategies to be adopted to counter this environment.
Recently Shia-Sunni sectarian divide has came to dominate middle east. Astonishing
rapid development of ISIS as Sunni extremist organization which won significant
victories against Iraq and Syria and has captured large territory has came to signify this
divide. This divide is further worsened by rivalry of Sunni Saudi Arabia and Shia Iran for
influence in Iraq and Syrian civil war.
ISIS has shown its capability for gruesome terrorist activities, murders which has won it
worldwide revulsion and many followers from youth from Islamic communities. These

indoctrinated youths represent threat in terms of attracting more from communities and
return as hardened terrorist to their home country furthering radicalization.
India with high minority population faces significant threats of radicalization of its youth
as underscored by recent call by Al-Qaeda, a terrorist organization for them to rise
against state with arms. Moreover this radicalization is given specter of failed states of
Afghanistan and Pakistan with massive terrorist organizations and prospects of
weapons and propaganda export from them. For example India was affected by
Rohingya Muslim and Buddhist riots in Myanmar by rumour mongering in Bangalore
which led to exodus of North Easterners. India has faced multiple religious or ethnic
conflicts like Khalistan movement in Punjab in 1980s, ongoing separatist activities in
North East and Kashmir.
Apart from robust law and order structure to counter any threats. India needs to remain
vigilant against cyber indoctrination which is preferred method now. Make smuggling of
weapons across border difficult which is used by separatists and continue with liberal
pluralist attitude in line with democratic traditions to not allow radicalization take place
along religious or ethnic lines.

Q17. International civil aviation laws provide all countries complete and exclusive
sovereignty over the airspace above their territory. What do you understand by
airspace? What are the implications of these laws on the space above this airspace?
Discuss the challenges which this poses and suggest ways to contain the threat.
Airspace refers to space over countrys territory or area over which it enjoys sovereignty
like EEZ, or special rights zone. It gives country legal right to use this space as it deems
fit and protect it from any transgressions using any means it deems fit. This airspace is
used for civil, military aviation and for international aviation flyby rights countrys
permission needs to be taken. For example S Koeran flight was shot down by Soviet
jets in 1988 when it strayed into USSRs airspace and was thought to be spy plane.
I missed space above airspace part question, and went on to discuss challenges posed
by transgressions in Airspace rather than space above airspace which is global
commons and discussed challenges posed by airspaces like Drones, Missiles flight,
ADIZ declaration etc. Hence only partial question is correct.

Q18. How does illegal transborder migration pose a threat to Indias security? Discuss
the strategies to curb this, bringing out the factors which give impetus to such migration.
Mentioned and elaborated on three points

i) Illegal migration from Bangladesh due to lack of socio-political opportunities

- Leads to taking up of job opportunities by illegal migrants anger and
resentment in natives against them- many NE separatist terrorist org found on
this grouse AASU 1979 etc
- Disturb community population balance hence disrupt social harmony apart
from economic problem
- Gives impetus to security problem like human, weapons and cattle smuggling
causing loss to exchequer and law and order question
ii) Militants or criminals crossing over from Bangladesh and Pakistan with view of
conducting terrorist activities in India or back in country, mentioned recent case
of Blast in Burdwan and JuB links
iii) Illegal migrants also pose threat in terms of narcotics smuggling by being used
as mules golden crescent and golden triangle
Strategies to deal with this are
i) Better border control
- Settlement of border with Bangladesh and Myanmar to help in border
collaboration to achieve that
ii) Investments in Bangladesh and Myanmar to create capacity to earn goodwill,
make opportunities to reduce migration
iii) Trade led development to develop backward areas BCIM is a step in this
direction

Q19. In 2012, the longitudinal marking for high-risk areas for piracy was moved from 65
degrees east to 78 degrees east in the Arabian Sea by the International Maritime
Organization. What impact does this have on Indias maritime security concerns?
Expansion of areas under high-risk of sea piracy will have negative impact on the Indian
maritime security as it would entail more intensive patrolling to protect international
trade which is mostly sea borne. Moreover India meets its energy requirements through
imports of crude from middle east which is especially threatened by sea-piracy. Other
impacts on Indias maritime security are
i) India trades extensively with GCC and Iran through Arabian sea this is
threatened by sea piracy
ii) Increased insurance premiums paid for Indian shipping lines thus increasing
transaction costs
iii) Increase spend by Indian navy in securing this waters for Indian ships
iv) Increased chances of international conflict like shooting of fishermen by Italian
marines

v) US Pivot to Asia strategy sees it moving away from middle east to Asia Pacific
this will diminish its role as security provider in the region hence greater threat of
sea piracy in this vacuum
vi) US shale gas and oil revolution has made it independent of middle east
hydrocarbons hence US is less inclined to protect these waters, it is significant
for India as it imports majority of crude through Persian gulf in Arabian sea.
India needs to align with multilateral forums like IOR- AC and other countries like China
to develop multilateral patrolling to check sea piracy and secure international trade.

Q20. China and Pakistan have entered into an agreement for development of an
economic corridor. What threat does this pose for Indias security? Critically examine.
Recently China and Pakistan entered into a multi-year agreement for development of
economic corridor in Pakistan worth $45 billion, this huge project would entail
construction of power plants, ports, highways and railways through PoK to China. It has
multi-farious impact on Indias security like
i) Development of ports: China has developed Gawdar Port in Pakistan which it
would handle. This is dual use infra which would enable it import and export
through it and also service its military vessels
- It is strategically challenging to India as it is close to Persian Gulf through
which India imports majority of crude from Iran and Iraq. India also trades
extensively with UAE and other GCC countries though this gulf. Through
Gawdar port China can potentially disrupt it
ii) Highway through conflicted area of Kashmir to China will allow rapid mobilization
of Pakistani troops against India. Also construction of infra like highway would
enable better logistics for terror camps situated in PoK and thus help terrorists.
iii) Development of Power plants in Pakistan would help trade and commerce in
Pakistan increasing its prosperity. This increased prosperity could be used by
Pakistan to fuel weapons race with India and fund anti-India activities from its
soil.
India needs to be wary of the development and should keep a close watch on this as it
develops and build on its capacity in Arabian sea to counter any strategic challenges.