Secure 2015

General Studies III

Topic-wise Compilation

Insights on India
March

General Studies III

March

Contents
Indian economy and issues relating to planning, mobilization of resources, growth, development
and employment .......................................................................................................................... 8
1. It is said that the most recent union budget has introduced a few excellent moves that could work
towards ushering in a new era in the financial sector in India. Write a note on them. (200 Words) ........... 8
2. Recently the Reserve Bank of India (RBI) and the union government signed Monetary Policy
Framework Agreement between them which are hailed as historic. Examine its highlights and this pacts
importance to Indian economy. (200 Words) ............................................................................................... 8
3. Do you think the new monetary policy framework signed between government of India and the RBI
will help the latter get more autonomy? Critically examine. (200 Words) ................................................... 9
4. Critically examine the importance of findings and recommendations of the Interim Report of the
Bankruptcy Law Reform Committee for Indian economy. (200 Words) ..................................................... 11
5. What is the importance of Great Compression in American history? Do you think India too can
experience Great Compression? If so, suggest what policy measures need to be implemented by the
government. (200 Words) ........................................................................................................................... 11
6. In recent union budget, the union government has announced that it would amend criminal codes and
introduce stringent provisions to punish tax evaders in an attempt to curb black money. Do you think
such measures will help in curbing circulation or stashing of black money in foreign accounts? In your
opinion, ideally what should be governments approach? Critically examine. (200 Words) ...................... 12
7. When RBI cuts key interest rates, the Sensex soars and the move is welcomed by the corporate world.
How ill such rate cuts affect common man? Critically examine. (200 Words)............................................ 13
8. While inflation targeting has some rationale in advanced economies, where foods contribution to
the CPI and consumption expenditures is barely 20 per cent, and agricultural markets are far more
organised, there is an inherent danger of it creating an anti-farmer policy bias in a country like India. In
the light of recent monetary policy framework signed between RBI and the government, critically
comment on the statement. (200 Words) .................................................................................................. 13
9. Do you think increased importance on building physical infrastructure either by involving private or
public means since independence is adversely affecting growth of human capital in India? Critically
evaluate. (200 Words) ................................................................................................................................. 14
10. What do you understand by net neutrality? Do you think regulating internet has negative
consequences? Examine. (200 Words)........................................................................................................ 15
11. In recent spectrum auction by the government, it was seen that the 900-MHz band was in more
demand than other frequencies of the spectrum. Critically examine why. Also examine what can be
possible fallout of this spectrum auction on consumers. (200 Words) ...................................................... 16
12. Even after the formation of NITI Aayog, the Plan and non-Plan expenditure distinction still continues
as seen in recent union budget to guide governments expenditure. Why do you think so? What are
the benefits of removing such distinction as recommended by a committee previously? Examine. (200
Words) ......................................................................................................................................................... 17
13. Unless India improves productivity, its demographic profile could become a burden rather than a
benefit. Critically discuss. (200 Words)...................................................................................................... 18

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14. Average Indian prefers to invest his/her money in gold rather than in stock market or in mutual
funds. This is seen as having deleterious effect on the economy. Critically examine why. Also examine
what should be the role of government in this regard. (200 Words) ......................................................... 19
15. The recent union Budget has proposed setting up of the Micro Units Development Refinance
Agency (MUDRA) Bank. Examine why it is being set-up with what objectives. (200 Words) .................... 20
16. If economic growth will not automatically translate into improved life chances, air pollution will also
hamper economic growth. In the light of increasing air pollution in Indian cities, critically comment on
the statements and provide suggestions to improve the air quality. (200 Words) .................................... 20
17. Critically comment on various fears expressed due to increasing use of robots in day to day tasks.
(200 Words) ................................................................................................................................................. 22
18. What do you understand by Employment Elasticity? Critically examine how and why it has varied
during the post liberalisation period in India. (200 Words) ..................................................................... 23
19. Economic Survey 2014-15 argues that the momentum of decline in food prices is likely to persist
because of three striking developments in three areas that signal a structural shift in the inflationary
process in India: crude-oil, agriculture, and inflation expectations. Examine how. (200 Words) .............. 23
20. It is often argued that labour reforms are the way to unlock double-digit growth in India. Discuss why
and examine what policy challenges exist in bringing labour reforms in India. (200 Words) .................... 24
21. For any skill development effort to succeed, markets and industry need to play a large role in
determining courses, curriculum and relevance. In the light of various efforts made so far by various
governments towards skill development in the country, critically comment on the statement. (200
Words) ......................................................................................................................................................... 25
22. Critically comment on the significance of the Mines and Minerals (Development and Regulation)
Amendment Bill, 2015 and the Coal Mines (Special Provisions) Bill, 2015 for Indian economy. (200 Words)
..................................................................................................................................................................... 26
23. Indias FRBM Act as well as the Kelkar Committee (2012) established the principle of aiming to bring
the centres fiscal deficit down to 3 percent of GDP. Why utmost importance is given to this principle in
India? Examine how the recent Economic Survey seeks to achieve this target. (200 Words).................... 27

Government budgeting .............................................................................................................. 28

1. In the light of recent reports of governments thrust on Make in India campaign and some pressing
problems being faced by the navy and army, critically comment on Indias defence budget and its
performance in recent years. (200 Words) ................................................................................................. 28

Major crops cropping patterns in various parts of the country, different types of irrigation
and irrigation systems; storage, transport and marketing of agricultural produce and issues and
related constraints; e-technology in the aid of farmers .............................................................. 29
1. As a District Collector, you are asked to come with solutions to recharge defunct borewells and
irrigation tanks in your district. What measures will you take? Explain. (200 Words) ............................... 29
2. What do you understand by the aeroponics technique of growing plants? Discuss its applications and
advantages for Indian agriculture. (200 Words) ......................................................................................... 29

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Issues related direct and indirect farm subsidies and minimum support prices; public distribution
system- objectives, functioning, limitations, revamping; issues of buffer stocks and food security;
technology missions; economics of animal-rearing .................................................................... 31
1. Critically examine what effect the ban on cow slaughtering by some of the states in India will have on
economy and society of India. (200 Words) ................................................................................................ 31
2. Some argue that the report of the Shanta Kumar committee on food management contains several
cogent recommendations and they should be implemented to make PDS efficient. Analyse these
recommendations and comment if they should indeed be implemented. (200 Words) ........................... 32
3. Critically examine what measures have been taken by the Indian government to aid the farmers
through the e-governance mechanism. Do you think these measures are helping an average farmer?
Also, comment. (200 Words) ....................................................................................................................... 33
4. Analyse the merits and demerits of banning cow slaughter. (200 Words) ............................................. 33
5. Critically discuss Indias concerns regarding Bali Ministerial Decisions and examine how they have been
addressed by the WTO. (200 Words) .......................................................................................................... 34
6. Leakages seriously undermine the effectiveness of product subsidies and recently the Prime Minister
stated that leakages in subsidies must be eliminated without reducing the subsidies themselves. Analyse
why leakage is a serious issue in public distribution system in India. (200 Words) .................................... 35
7. India is facing challenges on bridging the demand-supply gap in milk production. In this regard some
experts have suggested that India should follow Chinese model of milk production to meet the demand.
Examine the features of both the models and suggest which suits better for India. (200 Words) ............ 36

Land reforms in India ................................................................................................................. 37

1. It is said that most industrial projects in India, which are either stalled or cancelled, is due to land
acquisition problem in India. Do you agree with this assessment? Critically examine. (200 Words) ......... 37

Effects of liberalization on the economy, changes in industrial policy and their effects on
industrial growth ........................................................................................................................ 38
1. It is now widely accepted that the participation of private sector is important in the transformation of
the defence industrial base in the country. Critically examine, what are the challenges that private sector
faces and what needs to be done by the government in this regard. (200 Words) ................................... 38
2. In recent years, imposing tax with retrospective effect on private companies has become a major
concern with the foreign investors. Critically examine this issue and opine if retrospective taxation is a
necessary instrument in resource mobilization. (200 Words) .................................................................... 39
3. How successful have been the measures taken during last two years to improve exports from the
country and revive investors interest in India? Critically examine. (200 Words) ....................................... 39
4. Critically analyse merits and demerits of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2014. In your personal opinion,
what constitutes Fair Compensation to the farmer? Also, Comment. (200 Words) ................................ 40

Infrastructure: energy, ports, roads, airports, railways etc. ........................................................ 42

1. According to Census 2011, 80.7 million households in India live without electricity and of these about
75 million households are in rural areas. Critically examine the reasons behind such disparity between
urban and rural households and critically comment on governments policy in addressing the issue of
energy poverty. (200 Words) ...................................................................................................................... 42

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2. Dirty track and piles of garbage alongside not only present an ugly sight to travellers but also pose
serious safety problems to the Railways. Examine why and what measures are needed to address this
issue. (200 Words) ....................................................................................................................................... 43
3. It is observed that newly constructed roads in India do no last longer and they frequently fail the
quality test. Critically examine the reasons and suggest what measures you will take as an administrator
to ensure the construction of quality roads. (200 Words) .......................................................................... 43
4. The government has made it clear that some important sectors need public investment instead of
private investment to boost their growth. Critically examine why there is change in attitude, from where
will the funds come and the merits and demerits of this change in approach. (200 Words) ..................... 45
5. Economic Survey 2014-15 argues that by eliminating the exemptions in the countervailing duties (CVD)
and special additional duties (SAD) levied on imports, India can revive its manufacturing sector and boost
Make in India campaign. Critically examine how. (200 Words) ................................................................ 46
6. The rate of growth of gross fixed capital formation in India now languishes around zero and stalling of
projects, a term synonymous with large economic undertakings in infrastructure, manufacturing,
mining, power, etc., is widely accepted to be a leading reason behind this decline. Critically analyse
causes behind stalling of projects and their impact on the Indian economy. (200 Words) ....................... 47
7. The Economic Survey 2014-15 has called for restructuring the public private partnership (PPP) model
of investment to boost the infrastructure projects in India. Critically examine the problems it has
identified in PPP model and the solutions it has suggested to restructure the model. (200 Words)......... 47
8. The problem of land acquisition needs to be recast as the problem of efficient use of land, including
the reclamation of unutilized land, the optimal alignment of complementary inputs, and the honest
discharge of social responsibility aided by technology. In the light of ongoing debate on land acquisition
and challenges therein, critically comment on the statement. (200 Words) ............................................. 48
9. Examine the salient features of National Telecom Policy 2012 and evaluate its performance in
meeting its objectives. (200 Words)............................................................................................................ 49
10. There are many schemes which government of India has introduced to provide electricity to all
villages as part of its rural development agenda. Critically analyse these schemes. (200 Words) ............. 50
11. Write a note on the objectives, key components and potential of newly proposed Sagar Mala project
of the union government. (200 Words) ...................................................................................................... 51

Investment models..................................................................................................................... 53
1. The most recent union budget and the economic survey have pointed out that many big infrastructure
projects under PPP model are stalled thanks to variety of reasons. They suggest revisiting and revitalising
PPP model to complete stalled and new projects in a time-bound manner. In this regard, what
amendments have been proposed to PPP model? What challenges these amendments would face?
Examine. (200 Words) ................................................................................................................................. 53
2. It is said that the proposal to transfer risk away from the private sector to the government under PPP
model essentially returns India to a pre-2000 model for investment. Examine the Pre-2000 model of
investment and why this model is despised by some economists. (200 Words)........................................ 54

Science and technology - developments and their applications and effects in everyday life ....... 56
1. What do you understand by Big Data? Discuss some of its applications. (200 Words) .......................... 56

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2. It is said that that AC supply for basic domestic and commercial power needs, rather than DC, is a
highly inefficient way of using energy in the present times. Explain why. Also examine if it is possible to
use DC supply to provide round the clock power using solar source. (200 Words).................................... 56
Achievement of Indians in science and technology; indigenization of technology and developing new
technology..............................................................................................................................................58
1. Critically discuss Indias policy on science and technology. (200 Words) ............................................... 58

Awareness in the fields of IT, Space, Computers, Robotics, Nanotechnology, Biotechnology and
Issues related to intellectual property rights .............................................................................. 59
1. Write a note on different scientific theories on origin of life. Recent experiments by NASA suggest that
life might have evolved abiologically. Examine how. (200 Words) ........................................................... 59
2. Fifteen years after it rose and went limp, the biotech sector, globally, as well as in India has seen a bull
run of sorts and India has become the worlds 12th biggest biotechnology economy having the second
highest number of USFDA-approved plants. Examine the factors responsible for this rise and also
examine if this run is sustainable in coming years. (200 Words) ................................................................ 60
3. A woolly mammoth has been discovered in a very well preserved state. If scientists want to to
recreate a live mammoth at present, what possible technologies would they use to do so? Explain the
procedure. (200 Words) .............................................................................................................................. 61
4. What do you understand by agroecology? Why do some scientists advocate harnessing agroecology
for safe and sustainable agriculture? Examine. (200 Words) ..................................................................... 61
5. Recently scientists have proposed that natural tunnels known as lava tubes could safely house
permanent bases on the Moon. Examine the rationale behind this proposal. (150 Words) ..................... 62
6. Write a critical note on cooperation between USA and Russia in Space exploration. Also examine if
straining relations between two countries have any bearing on their mutual cooperation in future space
missions. (200 Words) ................................................................................................................................. 62
7. Critically comment on the salient features of the Protection of Plant Varieties and Farmers Rights
(PPV&FR) Act of India 2001. (200 Words) ................................................................................................... 63

Conservation, environmental pollution and degradation, environmental impact assessment .... 64

1. It is said that India has a de facto Carbon Tax. Critically examine how this tax is imposed, what are its
objectives and if these objectives have been met. (200 Words) ................................................................ 64
2. Write a critical account on the measures taken by the government to conserve natural vegetation and
wildlife in India. (200 Words) ...................................................................................................................... 64
3. Recently it has been pointed out that India has moved from a carbon-subsidisation regime to the one
where carbon spewing is taxed i.e. the shift from a negative price to a positive price on carbon
emissions. Elaborate and examine advantages and disadvantages of this shift in policy on climate
change. (200 Words) ................................................................................................................................... 65
4. It is said that fight against harmful emissions affects industrial growth which in turn affects economic
development. Critically discuss what strategies need to be adopted by countries to fight environmental
pollution without affecting economic development. Also comment, if it is worth to let economic growth
take a beating at the cost of measures taken to mitigate environmental pollution. (200 Words) ............ 66
5. What do you understand by Black Carbon? Examine its impact on ecosystem. (200 Words) ............... 67

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6. Recently, the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) issued guidelines
on access and benefit sharing (ABS) of biological resources. Examine the objective behind these
guidelines and their impact on traditional medicines manufacturing industry. (200 Words) .................... 68
7. Critically highlight the hazards of indoor air pollution. Suggest what measures are needed to address
this issue. (200 Words) ................................................................................................................................ 68
8. Many species of plants and animals are endangered in India. Explain why and evaluate if policies taken
by the government are effective in protecting these species. (200 Words) ............................................... 69
9. A recent study report has concluded that the Indian thermal power plants are way behind the global
best in terms of performance. Critically analyse the major issues with coal based thermal power plants
and what and why urgent actions are needed to improve their efficiency and performance. (200 Words)
..................................................................................................................................................................... 70
10. In recent years, municipal corporations prefer scientific closure over bioremediation for garbage
recycling process. Examine why. (200 Words) ............................................................................................ 71
11. Examine the institutional mechanism that India has set up to conserve its wildlife. Do you think this
set-up has succeeded in conserving wildlife? Critically evaluate. (200 Words) .......................................... 71

Disaster and disaster management ............................................................................................ 73

1. The UN Office for Disaster Risk Reduction (UNISDR), in a report, has said as much as US $314 billion
will have to be spent every year to meet annual average losses from just earthquakes, tsunamis, tropical
cyclones and river flooding. Critically discuss why its imperative for governments to invest in disaster
managements and risk reduction strategies and the cost of neglecting these measures. (200 Words) .... 73
2. Critically analyse how the Disaster Management Act, 2005, has performed in meeting its main
objectives since its enactment. (200 Words) .............................................................................................. 73
3. Critically comment on the existing disaster response mechanism in India and critically examine the
role, objectives, structure and performance of the National Disaster Response Force (NDRF). (200 Words)
..................................................................................................................................................................... 74

Challenges to internal security through communication networks, role of media and social
networking sites in internal security challenges, basics of cyber security; money-laundering and
its prevention ............................................................................................................................. 75
1. The Reserve Bank of India (RBI) is likely to adopt a zero tolerance policy on Know Your Customer (KYC)
and Anti-Money Laundering (AML) norms. Examine what this zero tolerance policy entails and why there
is such strict policy against above mentioned violations by banks. (200 Words) ....................................... 75
2. Critically comment on the intent and content of the Undisclosed Foreign Income and Assets
(Imposition of New Tax) Bill, which was recently cleared by the cabinet to introduce it in the Parliament.
(200 Words) ................................................................................................................................................. 75
3. Critically analyse the approach adopted by India to secure its Cyber Space. (200 Words) .................... 76
4. Critically examine the role of social media websites such as twitter in creating challenges to internal
security. Do you think blocking these sites is a solution if they pose security threat? Justify. (200 Words)
..................................................................................................................................................................... 77

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Security challenges and their management in border areas; linkages of organized crime
with terrorism ............................................................................................................................ 78
1. The United States with cooperation from other Western countries is increasingly depending on
eliminating top leadership of terrorist organisations as counter-strategy to fight terrorism and weaken
those organisations. Do you think this is a sound strategy? Critically analyse. (200 Words) ..................... 78
2. India is yet to sign the Mine Ban Treaty which has been signed by eighty percent of the governments
worldwide. Critically examine why there is growing argument against the use of anti-personnel landmine
and why is India still reluctant to sign the treaty. (200 Words) .................................................................. 79

Various Security forces and agencies and their mandate ............................................................ 80

1. Write a note on the structure and mandate of Indo-Tibetan Border Police (ITBP). (150 Words) .......... 80

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Indian economy and issues relating to planning, mobilization of

resources, growth, development and employment
1. It is said that the most recent union budget has introduced a few excellent moves that could work
towards ushering in a new era in the financial sector in India. Write a note on them. (200 Words)
Business Standard (Reworking the financial sector)
Answer:
To meet the ambitious development targets, a vibrant financial sector is the need of the hour. Many
welcome steps have been taken in this budget which gives genuine reason for cheer.
1) Capital infusion to PSBs- around 8000 cr. will be pumped into PSBs to meet BASEL 3 norms. Although this
is inadequate considering NPA issues, more revenue is likely to be generated through reducing government
share.
2) SARFARESAI to NBFCs- given much importance to NBFCs to fund SMEs, it was prudent to incorporate
them in this act for better debt recovery and reducing court disputes.
3) Sector neutral financial redressal agency- a one stop consumer complaint and grievance redressal forum
against all financial service providers. (Recommended by FSLRC)
4) Merging FMC with SEBI- SEBI with its experience and trustworthy track record, better equipped to deal
with malpractice and chaos prevailing in future commodity market.
5) Revamping bankruptcy code- since existing legal provision are not adequate to deal with this. A
simplified law will bring legal certainty, speed and keep away rogue borrowers.
6) MUDRA (Micro Finance Development Refinance Agency) will strengthen financially the micro finance
institutions and extend their reach.
7) An autonomous bank board bureau- for appointment of persons in high posts of PSBs without any
political interference.
Proper implementation of these will make room for further reforms and the ride to our great
developmental ambition will be smooth.
2. Recently the Reserve Bank of India (RBI) and the union government signed Monetary Policy
Framework Agreement between them which are hailed as historic. Examine its highlights and this pacts
importance to Indian economy. (200 Words)
The Indian Express (Historic change in policy)
The Hindu (Pact binds RBI to inflation target)
Answer:
For past few years, India has been fighting against price rise at monetary level, not with much success. This
time addressing few structural constraints partially in budget, government has strengthened its monetary
front by entering into a pact with RBI. Key highlights are:

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Reasserting that monetary policy will be solely handled by RBI pre-empting long standing friction
between FM and RBI governor.
Setting clear inflation target- by January 2016, CPI would be contained below 6% and following years, it
will vary between a 2% band. This will bring taming inflation to forefront for RBI giving secondary priority to
interest rate cut, thus somehow resolving the growth-inflation dilemma.
Accountability- criteria have been set that will determine when RBI missed the target. In such case it has
to explain to government the causes and state remedial measures that will be taken. It will publish a
biyearly document explaining people the source of inflation.
Its inflation forecast for next 6-8 months will give an officials estimate enabling many to form strategies
accordingly.
A monetary policy committee will bring in more objectivity avoiding the view of RBI governor alone.
Importance to Indian economy:
1) Huge relief to common men
2) Increase in expenditure by people boosting growth
3) Increase in saving rate making more capital available for investment.
4) No more gold rush- no more CAD deficit and unstable exchange regime
5) With better investment avenues no need to look only for real estate inflating it price to unacceptable
level- a good sign for governments housing for all by 2022 scheme. And yes less black money in this sector.
Such institutionalized measure to battle inflation has given more confidence but government must do more
to address the structural issues like supply chain constrains.
3. Do you think the new monetary policy framework signed between government of India and the RBI
will help the latter get more autonomy? Critically examine. (200 Words)
Business Standard (New monetary policy framework to give more autonomy to RBI)
Business Standard (The pros and cons of inflation targeting)
Answer:
[1]
Based on Urijit Patel Committee recommendations, government and the Reserve Bank of India (RBI) are
agreeing over a new monetary policy framework with the primary objective of containing inflation. Many
people feel it will give more autonomy to RBI which is in sync with the central banks of many world big
economies.
The agreement says, once inflation reaches beyond the comfort zone, both at high and low levels, RBI
should use whatever in its command to bring it to the comfort zone. This basically gives autonomy to RBI.
RBI act will be amended for the formation of a five-member monetary policy committee (MPC) headed by
the RBI governor. Out of the five members, three were suggested to be from RBI (the deputy governor and
the executive director in-charge of monetary policy).
This composition of committee will reflect the independence of RBI, it should have experts as members and

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should not have government nominee as members.

India in past has paid price for not having clear monetary policy. So this step should improve the situation
and also ease pressure on RBI to pursue a particular course of policy.
In general, this mechanism is welcome - since it brings to India the formal accountability and transparency
about future actions that is the hallmark of modern central banking but there are still few areas where RBI
cannot still do much.
As, RBI targets CPI where the weight of food items if around 50% but food inflation in India is mostly
dependent on non-monetary factors such as production and supply chains, rains, harvest etc. In this case,
RBI may signal intent but it will not have much impact on ground and RBI will find hard to achieve inflation
target .Also, RBI dont have any control over fiscal responsibility or debt control which government breach
again and again. So again, RBI can't do much here as well.
This step is a much welcome step and will definitely improve the situation in India with respect to monetary
policy but we need to be cautious and government also need to contain fiscal deficit and control its debit.
[2]
Urijit Patel led MPC's recommendation is now the framework for the new pact signed between the union
government and the RBI. In this RBI will be accountable and responsible for its in directional Inflation
targeting approach in the spectrum band of 2-6%. In case if it missed it will be liable to report to the centre
about the causal failure accompanied with the redressal mechanism. I general Autonomy long desired is
thus imparted to the central banks
Some of the stake holders have argued about the Nominated external members to be nominated by Govt
or RBI. As Bureaucrats by govt nomination will be taking govt side and Autonomy may again be
compromised .While it has been suggested nomination to be made by dy. governor and Governor .One
must note that it will not matter who shall nominate as long as the basic framework for containing the
inflation is achieved
Some Opposition to this framework
1 Inflation targeting has been long done away, after Lehman case 2008. Targeting nominal GDP seems
plausible
2Also Supply side bottlenecks are reason for inflation especially food inflation for which Infra and
government policies are required
3 FrBM and govt debt line, that is Fiscal responsibilities are frequently challenged or crossed. In this sense
targeting inflation may be an issue
4 Until now debt management was under RBI domain , setting independent office under govt will reduce
autonomy and create a milieu of conflict of interest as govt is important player in bond market
5 Besides the interest rates control no other possible means of controlling the financial market seems
visible . Fiscal irresponsibilities may cause forever tight monetary regime hurting Investor sentiment.
Government support & faith in MPC shall be welcomed and Regarding Indian economy ,it is the new
economy and from past experiences what worked abroad has not succeeded here ,Thus suitable time for
experimenting ,trial and error shall be imparted to the Diligent institution for greater Public interest

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4. Critically examine the importance of findings and recommendations of the Interim Report of the
Bankruptcy Law Reform Committee for Indian economy. (200 Words)
The Hindu (Bankruptcy law reform needed)
Answer:
Indian laws are often termed as the toughest laws for the running of businesses in India. To improve
business condition in the country, Bankruptcy Law Reform Committee was setup by the government in Aug,
2014. Some of the recommendations of the committee which submitted its report are1. Early recognition of financial distress in company and timely intervention by the government to rescue
the organization
2. Liquidate un-viable company as soon as possible
3. Allow secured creditors apply for the rescue of the company, earlier it was filled after the company have
been
defaulted by 50 per cent of its outstanding debt
4. Unsecured creditors representing 25 per cent of the debt be allowed to initiate rescue proceedings
against the debtor company
5. Recommendation on individual solvency
Effect of recommendation if implementedPositive effect1. Improve the rank of India on ease of
doing business
2. Easy exit policies are one of the criteria considered by entrepreneurs before setting any organization
3. Early intervention by the government will save the organization from liquidation
Negative effect1. Various provisions which deal with the early intervention by the government to save organization from
being defaulted in already available under various laws, ineffective implementation of existing laws are
major problems
2. Many small businesses and micro enterprises are managed by people who do not have much knowledge
about laws and are largely illiterate, thus, without required knowledge of existing laws, proper
implementation seems to be a distant dream
3. In lieu of getting subsidies and tax benefits through state intervention, entrepreneurs may show a well
running organization as a sick organization
5. What is the importance of Great Compression in American history? Do you think India too can
experience Great Compression? If so, suggest what policy measures need to be implemented by the
government. (200 Words)
Business Standard (Walmart's visible hand)
BusinessWeek (The Great Compression)
Answer:
Great Compression {GC} was period Post WW2 till 70's which took the form of Great divergence {GDI}. GC
was the used as US govt policy to narrow the Gini index [ reduce the income inequalities, wealth

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concentration] ,which included measures viz. unionisation, legislation for minimum wages ,Overall the view
was take the slice of income from best paid and giving it to the worst Paid. Indeed this Economic policy was
way ahead for various other countries.
In context to India which recently in its Economic survey 2015 had theme "creating opportunities [of
economic growth] and reducing vulnerabilities [economic inequalities] had similar stance, though in the
milder format. In India economic inequalities are relatively high as shown in the Gini Index which is 33.4% [
mean 33% people have greater control over resources ]
GDI adopted by US government was ,to weaken social security net and support the already best paid , have
created wide disparities among the people as shown in 2010 GINI index which is 41% .
Progressive taxation which means taxing more to rich, is a way which was used by US back then, is similar
to Recent Budget 2015-16, where no populism or reduction is tax slabs was made. Also similar stance of
progressive taxation and cess on items which are generally used by Upper middle class or rich class can be
seen in same Light
This policy may work, provided the effective implementation and, Leakage prove transmission of such
funds from rich to the Social welfare. For this Though Govt have sought leak-less JAM trinity number, it will
be time and space which will decide the outcome of policies.
6. In recent union budget, the union government has announced that it would amend criminal codes and
introduce stringent provisions to punish tax evaders in an attempt to curb black money. Do you think
such measures will help in curbing circulation or stashing of black money in foreign accounts? In your
opinion, ideally what should be governments approach? Critically examine. (200 Words)
Business Standard (The wrong approach)
Answer:
Black money has evolved into a major political issue and with wild surmises about its amount, it has
captured our imagination. The SC had ordered formation of a Special Investigation Team on this issue. In
the union budget of 2015, the central government announced some measures like more rigorous
punishment for tax evasion, stronger laws for benami transactions and not allowing offenders to approach
the Settlements Commission. But these steps leave much desired for more focussed action plan:
1. They do not address the inefficiency and corruption in our taxation regime and put more discretionary
powers in hands of taxmen. As our experience shows, this will lead to more harassment and litigations.
2. While we need to act to simplify our rules and regulations, promote more ease of doing business and
uncomplicated procedures for investment, we are merely prescribing punishments without understanding
why black money is generated.
3. Certain sectors lay real estate or gold trading act as parking for unaccounted money that needs to be
addressed.
Ideally the government should take following steps:
1. Simplify rules and regulations of investment and further liberalize economy.
2. Demonetize higher currency notes.
3. Just as USA PATRIOT ACT, all transactions by or with Indians, above a threshold, must get reported.
4. Introduce amnesty for voluntary surrender of black money, set up a Tax Tribunal and increase
punishment in tax evasions.
5. Round tripping of black money is a major issue s it distorts market and boosts up assets prices. Tax
deductible at source and closing off traditional routes of inflow like, Mauritius route need to be done.

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6. More international cooperation in areas of money laundering and benami transactions.

7. To exhibit its seriousness, government should, ideally, legislate to force disclosure of assets, income and
expenditure of political parties and bring them under RTI.
7. When RBI cuts key interest rates, the Sensex soars and the move is welcomed by the corporate world.
How ill such rate cuts affect common man? Critically examine. (200 Words)
The Hindu (RBI move will ease your EMI burden)
Business Standard (RBI cuts rate, banks set to follow suit)
Answer:
The recent rate cut by RBI of repo rate from 7.75% to 7.5% has been welcomed by corporate world and has
sent Sensex to new heights. It has various implications for a common man:
1. Banks can borrow loans from RBI at reduced rates and so will have to lower their own bank rates. This
means more loans cam be doled out and that too cheaper ones. So, cheaper education, home or car loans
and smaller Equated Monthly Instalments, is good news for our middle class.
2. Business can avail easier loans so bring down their costs, expand enterprise and generate more
employment.
3. Inflation can be checked.
4. More expenditure than savings by people so drive up the growth and demand.
5. More trading in markets and speculations will build upon trust.
However, there are some negative affects also:
1. Reduced savings and more demand will pump up the prices of various goods.
2. Loans given out may cause an economic bubble to form and this may burst as in US in 2008.
3. Depreciation of rupee will result. Currently oil prices are in check so no issue. But volatility of rupee to
crude oil prices is large and geopolitical issues are disturbing trends. Seasonal changes in food prices are
also an issue.
4. Banks may have to suffer from issues of non-performing assets and their own margins.
So the present situation brings cheers to common man but continuous monitoring is required by RBI.
8. While inflation targeting has some rationale in advanced economies, where foods contribution to
the CPI and consumption expenditures is barely 20 per cent, and agricultural markets are far more
organised, there is an inherent danger of it creating an anti-farmer policy bias in a country like India. In
the light of recent monetary policy framework signed between RBI and the government, critically
comment on the statement. (200 Words)
The Indian Express (Against the grain)
Answer:
The recent monetary policy framework agreement between RBI and government institutionalizes the
inflation control measures and a welcome sign. But there are some issues:
a) RBI determines its monetary policy based on CPI figures where food and non-alcoholic beverage has
about half the weightage (45.86%). Their price are more controlled by weather condition, supply chain
management, market structure etc. and less by monetary policy tools like interest rate.

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b) Food and fuel price drives the CPI and mostly it depends on external factors like volatility of oil producing
region, adverse weather etc. RBI can only react by increasing interest rate which will dampen growth and
wont tame inflation either.
c) RBI can only give a buffer time to the government to address the core issues and safeguards the
economy from drastic change in macro-economic indicator but for temporarily. In this case, making the RBI
answerable for explaining the reasons for missing inflation target does not make sense.
d) In the advanced economies, food commodities share barely 20% of inflation index and agriculture
market is organized which makes it responsive to the monetary policy of central banks.
How this will create anti-farmer policy bias?
The pressure of limiting inflation to the set figures will make government frequently resort to 1. Not
increasing MSP regularly 2. Imposing export ban 3. Duty-free import. This will affect the agriculturalists and
workforce dependent on agriculture.
Both fiscal and monetary policies are needed to rein in inflation. Instead of throwing this completely on RBI,
government should think over structural reforms which cause inflation.
9. Do you think increased importance on building physical infrastructure either by involving private or
public means since independence is adversely affecting growth of human capital in India? Critically
evaluate. (200 Words)
The Hindu (Nehruvian budget in the corporate age)
Answer:
Human Capital also known as Human Resource is the skill, knowledge and experience of individual,
organisation or nation. A nations biggest asset is Human Resource development which needs better
physical infrastructure (roads, education institutes, bridges, electricity) and invisible infrastructures
(services, education, sanitation) for realisation of full potential.
Physical infrastructure needs huge investment which led to focus on public and PPP investment on this
sector and ignored Human Capital development as for election and political advantages visible
infrastructure holds more value. Also, for providing mass scale employment and developing new urban
areas, physical infrastructure was boosted since Independence. Indias education system also produced
more than enough to qualify for domestic job requirement. Most of the high-tech research and
technologies we directly buy from foreign nations at considerate price. Also, primary sector of economy
which caters largest employment to nation doesnt need skill and education expertise. All such factors
summarises to lesser focus on Human capital development. International organisation like World Bank, IMF
and ILO also never focussed on skill development for India, rather they only asked for trade transparency,
EXIM policy, cheap loans for infrastructures etc. because, the deficit in infrastructure was matching up with
deficit in Human capital.
A Developed HR will be of no use if there is no physical infrastructure and vice-versa. Both HR and physical
infrastructure have gestation period and takes time to mature and become beneficial.
Hence, balanced attention to both is needed.

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10. What do you understand by net neutrality? Do you think regulating internet has negative
consequences? Examine. (200 Words)
The Hindu (Net neutrality myths)
Answer:
[1]
---Net neutrality is the concept, according to which the ISPs and the govt should consider every internet
equally, and not to differentiate in it broadcast on the basis of user, content, site or platform.
---It basically prevents the govt or other entities from blocking any content, which may be opposing their
personal views, or can be considered as criticism of their policies.
---Regulation of any information on the internet is certainly undesirable, as it prevents the citizens from
forming a wholesome view regarding an aspect.
---The corporates may bribe the ISPs to channelize their content more preferably, as compared to other
sites and users. This can be detrimental to freelance writers, who do not have enough financial backing to
equal that of the wealthy individuals.
---It is also possible that the citizens dont get to know the other side of the truth, and they are forced into a
biased opinion by the ISPs.
---On the other hand, the freedom of speech also has some limitations, as enumerated in Article 19(1) (a) of
our constitution, according to which, any information which tends to disturb public health, public morality,
international relations, etc. can be veiled in favour of the nation.
---In such cases, it becomes necessary to regulate such content on the internet. So we can say that net
neutrality is not a holistic concept which has to be followed in every situation. It is up to the wisdom of the
govt, to allow/ disallow some content from broadcasting, while keeping the public wellbeing in
consideration.
[2]
Net Neutrality: In internet traffic every data irrespective of its origin is equal and its transport over network
must be considered equally without giving some preferences to some. Net neutrality is core of internet
governance over various networks that ISPs should not discriminate.
Effect of Regulating Internet:
Internet traffic in various countries is regulated by their law of the land; Like China imposes ban on multiple
websites. Similarly India too has started to interfere in such matters in recent times. Government's
contentions on Public safety and national security are valid; however there must be clear cut guidelines and
laws to manage and implement such bans. For example recently Supreme Court of India asked to ban all
porn websites in India on argument that porns are increasingly responsible for rapes in India. Such flawed
and arbitrary argument to ban some traffic is against the principle of net neutrality and it will cause a
debilitating impact on internet business and freedom of speech. So regulation of internet traffic must be
carried out in spirit of striking a balance between freedom of speech and some restrictions of freedom of
speech (as it is not unlimited).

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11. In recent spectrum auction by the government, it was seen that the 900-MHz band was in more
demand than other frequencies of the spectrum. Critically examine why. Also examine what can be
possible fallout of this spectrum auction on consumers. (200 Words)
Business Standard (Artificial scarcity)
Answer:
[1]
In general, Mobile communication is supported over 900MHZ and 1800MHZ frequency bands. In India,
union government conducts
periodic auction of these frequency bands through which telecom operators will buy license to provide
service. The latest call for bids to get the license of 900 MHZ has seen an unprecedented demand. This can
be attributed to
1. As per the laws of physics, for the same strength, low frequency signals can travel more distance than
high frequency signals. Hence the number of intermediate base stations required to increase the strength
of signal will be less in case of 900MHZ frequency band service. It will reduce the installation costs.
2. Wide availability and lower costs of essential devices and network equipment required to support
communication service in 900 MHZ than in 1800 MHZ.
3. Introducing 4G services by exploiting the better technical standards of 900MHZ band is easier compared
to less evolved standards of 1800MHZ band.
4. The present license holders could build up large consumer base through their consistent service in 900
MHZ band for 20 years. Loss of license, without alternative band to support, means losing the established
customer base to competitor.
Though the increased demand can bring high revenues to the government, it may have the following
possible fallouts:
1. Service providers will most likely to pass the costs to customer by increasing the call tariff
2. Without proportionate increase in tariffs, stress on the balance sheets of private firms may lead to
default. It causes increase in Non-performing assets of banks which lent credit to them.
Government would do well to take measures to allow
service over alternative bands to reduce the pressure on existing bands. 15MHZ band, in 2100MHZ
frequency range, that was agreed by armed forces for civilian use can come handy.
[2]
An electrical engineer's view point
Why 900 MHZ??
(1) Mobile Wireless communication in India is basically based on 2 Generations of technology i.e. 2G and
3G. Recently 4G (LTE) is also coming... 2G Technology has two variations which are CDMA (Works on 800
MHZ) and GSM (900 MHZ). While 3G (WCDMA Technology) works at 2100 MHZ. In recent auction
government is auctioning spectrum for all the 3 technologies i.e. CDMA (800MHZ), GSM (900MHZ) and
WCDMA (2100MHZ). While GSM and WCDMA technologies are popular in India however CDMA based

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technology is rapidly losing its base in India. The reason for loose of CDMA base in India is because of its
higher initial costs as compared to GSM. Therefore there are only 2 operators (Tata Indicom, Reliance
CDMA) of CDMA in India and they have heavily invested in technology so they can't leave. Therefore when
bidders are not there so from where will the demand come? Secondly 3G in India is not as much popular as
2G is. As telecom companies mostly are getting their revenues from voice operations so they are not that
much interested in data (IIN may be an exception: P).
2) Reliance Jio is making speculations and Idea is getting crazy (so are the people who use IIN: P). So a
competition for Internet hegemony in India is started b/w them and nobody is ready to step out. Govt. is
benefitting from this competition or rivalry :).
Critical Analysis: PM is talking about digital India and internet to mass is very imp. However, telecom
operators are not interested in 3G (2100 MHZ) band. They simply want to maximize their profits from 2GGSM (900MHZ).
Fall out of spectrum auction on consumers: Bidders are bidding at too much high cost. All this has to be
passed on customers in future.
Suggestions: 1) Govt. should to vacate more spectrum has in 2100 MHZ band. There are huge possibilities
there. Too much spectrum is lying vacant with defence. Govt. should take it and auction it so 3G services
can get more bandwidth and hence there rates also reduces. Then only mission of PM digital India will
materialise.
12. Even after the formation of NITI Aayog, the Plan and non-Plan expenditure distinction still continues
as seen in recent union budget to guide governments expenditure. Why do you think so? What are
the benefits of removing such distinction as recommended by a committee previously? Examine. (200
Words)
Business Standard (Unplanned Plan)
Answer:
1. The plan and non-plan distinction was introduced to distinguish between spending on schemes under
FYP and other expenditure.
1. 12th plan is already in the middle. Most of the schemes and states budgets are planned according to
that. Even NITI aayog is going to take midterm appraisal of plan. So it is being continued.
Adverse impacts of distinction:
1. Non-plan expenditure is seen as non-productive and pruned. For instance, recently the budget of
ministry of health is pruned to meet fiscal deficit target, whereas health has already low allocations.
2. Appraisal is being done only on plan expenditure, thus, there is no appraisal and improvements in nonplan expenditure.
3. Already created assets under plan expenditure in previous plans are being neglected, as they form nonpan expenditure now. For instance, water shed maintenance is being neglected.
Because of these adverse impacts, the distinction should be down away with.

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13. Unless India improves productivity, its demographic profile could become a burden rather than a
benefit. Critically discuss. (200 Words)
Livemint (Realizing the Indian dream)
Answer:
[1]
With relatively young population and most of the people in the working age group, India demographics are
better than China and any other major economies of the worlds in terms of their economic importance and
all of this would mean nothing unless India invest efficiently and wisely in improving its skilled manpower
and productivity otherwise the boon is likely to convert into bane for it.
Features and advantages of demographic profile in India:
1.Roughly two third of the population is in the working age group( 15 to 60 years) .This provides the
potential for huge man power capable of being employed and meet the labour demand. No country in the
world has such demographic advantage like India .Major economy like China and Japan have increasing
aging population thus ,presenting potentially huge shortage of labour in upcoming future.
2. The average age of population in India is 27 year and this is expected to reduce further to 24-25 by 2020.
3. A lager young population means huge domestic consumer base for produced goods and services that
makes Indian market more lucrative with huge growth potential and economic activities. Indias economic
growth would not be dependent on exports and thus would remain largely insulated from decreased
demands internationally in crisis.
Why improving productivity is key:
1.Productivity must increase to generate more and more employments by creating huge number of new
jobs otherwise most of the young working population would remain unemployed in absence of proper and
sufficient jobs. Thus, demographic advantage of having large working age population would turn from a
benefit into a huge financial and social burden.
2. Adequate imparting of skills through increased education and training is essential to make the young
population employable and fit to meet the requirement of jobs.
In absence of all these, India would end up becoming an under achiever.
[2]
India Economy is having various Positive developments in both macroscopic Stability and Demography of
Country. In the case of former , Lower oil import bill Slowing Beijing ,Brazil Economy and US , Russia ,China
willingness to cooperate with India While in case of Latter it is Young labour force 15-64 ,that is lower
dependency ratio vis a vis to China ,Japan, UK etc.
Harassing the Human capital by providing skill even at cost of greater fiscal deficit can help economy glide
in the Long run. Success of Services can well be emulated in other sectors as well. Dependency on Imports,
technologies, can be reduced by various S&T, R&D programmes like Atal innovation scheme, INSPIRE,
STRAW. Linkage between IIT /NITS with MSME/villages to solve their daily life problems is another good
step to reap the dividends. Some other steps LIKE MOOC of IIT Bombay , NSDC , Women entrepreneurship,
USTAAD, SFURTI, Seeko or Kamao , Nai UDAAN , STEAM .Collateral free Loans to minorities/Women/SC/STs
etc. can further give fillip to the Economy

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However if irregularities, and lackadaisical attitude prevailed then it may be burden too Such as younger
generation in drudgery, Crime, rape, Prostitution etc. Increased Health, poverty, disease eradication of
Government will cause fewer funds for Investment in Projects for Economy.
A Golden Window, of such features shall not we wasted, Rather Greater focus on Youth Policy and
implementing above schemes to be Prioritised.
14. Average Indian prefers to invest his/her money in gold rather than in stock market or in mutual
funds. This is seen as having deleterious effect on the economy. Critically examine why. Also examine
what should be the role of government in this regard. (200 Words)
Business Standard (India's gold obsession needs a correction)
Answer:
The retail investors affinity for buying gold is a result of various reasons
1.Indian's cultural obsession for gold leading to imports as India doesn't mine gold substantially.
2. The lack of attractive alternate financial instruments which are both safe and ensure good returns.
3. The lack of awareness among people about other saving and debt instruments and a low level of
financial inclusion.
The deleterious effects on economy are:
1. High import of gold leads to Current Account Deficit (CAD) which hurts rupees strength which creates a
vicious cycle of continuous CAD.
2. Any hike in import duty drives gold market into Black leading to loss to exchequer and raise of criminal
activities.
3. Had the expenditure on gold otherwise invested in financial instruments would have helped financing
many public projects especially infrastructural.
Governments role in tackling this issue:
1. The recent budget announced following
(a). Gold Monetisation Scheme: where people can earn interest or take loan by depositing their gold.
(b). Sovereign Gold Bond: which is a paper-replica of metal gold. One can buy this and earn interest rate
and redeem at market price of gold.
(c). Indian government minting its one gold coin to decrease imports especially.
2. Decision to develop debt market will attract retail investors to invest as they are not generally interested
in equity markets.
3. A well-functioning and well regulated financial system should be maintained to attract investors away
from gold.
4. Tax incentives or less lock-in periods can be provided prudentially.
Thus government has to take a multi-pronged approach of discouraging imports, offering attractive
financial sector and bring awareness and among people to tackle this problem and gain resources for much
needed investments.

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15. The recent union Budget has proposed setting up of the Micro Units Development Refinance
Agency (MUDRA) Bank. Examine why it is being set-up with what objectives. (200 Words)
Business Standard (MUDRA Bank: A catalyst for India's 10% GDP growth)
Answer:
Majority of the marginalised and poor in India are employed in the informal sector which is often dubbed
as the parallel economy. To achieve the goal of social inclusion and make strides in Human development
there is an urgent need to look at the requirements of this sector.
Micro Units Development Refinance Agency (MUDRA) Bank, will be set up to help microfinance firms to
lend more mainly because:
only 4 per cent have access to institutional credit, with loans between Rs 50,000 - 10 lakh almost
impossible, forcing them to go to moneylenders.
The sector faces stiff competition from larger firms, lack of infrastructure and access to easy credit.
Inadequate finance for purchase of machinery, equipment or raw materials.
The 'change' to our economic architecture could be deep and transformational because:
1. It involves funding the unfunded and encouraging entrepreneurship
2. Development tool for SCs, STs and OBCs who own almost 60% of all enterprises in this sector.
3. Would expand the tax-GDP ratio and government revenues.
4. Will increase liquidity and so lower their borrowing costs.
However, some critiques have raised the question whether India really needs another banking agency since
many others like payment banks etc. have been recently mooted. Digging deeper, its scope of work will be
much larger:
it will be a statutory body responsible for regulating and refinancing all MFIs
will also rate MFIs, formulate a code of conduct for the industry
promote right technology solutions for the last mile,
Will run a credit guarantee scheme
Also, Similar agencies have been successful in other countries like Bangladesh PKSF (Palli Karma-Sahayak
Foundation)
This highlights a step in the right direction and the new economic philosophy of supporting enterprise
wherever there is a desire for that in our economy, while continuing with better targeted and wellconceived social security framework for the poor and needy and better social inclusion.
16. If economic growth will not automatically translate into improved life chances, air pollution will also
hamper economic growth. In the light of increasing air pollution in Indian cities, critically comment on
the statements and provide suggestions to improve the air quality. (200 Words)
Business Standard (Competitive pollutionism no good)
Answer:
[1]
Development encompasses the growth, increased life chances, equitable share to everyone. So mere
economic growth perspective will only cause the shift of balance causing various issues such as pollution,
inequitable growth, and decreased life chances. Air pollution In Indian cities is clearly evident from stance

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of Buying Air purifier ahead of US President Visit. Approach towards such pertinent issue shall be based on
cause and remedial measures rather debating and comparing over numbers [pollutants] Vis a Vis to other
nations and cities.
Causes of Air pollution in Indian capital and Northern India
~ Burning the rice husk to clear off the fields quickly in PB and HR, This decreased the visibility and
increased air pollution in India's Capital
~ Old vehicles, Non PUC compliance
~ Low level of instrumentation to monitor which causes neglect of Air pollution
~Approaching pollution as distinct matter, thus unable to connect with Economic and Health consequences.
WHO 2009 stated Air pollution cost 1.7% of GDP to nation
~Increased vehicular traffic , low rates of CNG which were made to encourage over petrol has actually been
offset by sky rocket rise of Vehicles on roads
Remedial
~Delhi govt and Union govt can pay farmers not to burn rice Husk. Same could be used for Bio -fuel
provided if Govt support given to them
~strict compliance with PUC, Aiming for BS6 rather BS5 by 2030
~Hand held divide as recommended by CSE along with IiTM SAFAR app can sensitise people and show the
real time monitoring based on new Air quality One Number- One Colour-One Description
~Behaviour change along can help in achieving the target. Ahmedabad model of using of bus/public
transport by Upper class can serve example
~Carbon credit , emission trading instrument ,polluter pay principle, green bonds, Green buildings code
Process based rather product based, green rating [ GRIHA etc.] for different sector can pave in
In sum it shall be wholesome and multi-faceted approach which can turn the Sky colour Blue.
[2]
Air Pollution in many Indian cities have crossed the safe limits which can also be seen from the fact the 13
Indian cities are placed in the top 20 polluted cities in the world. This heavy pollution not only has severe
consequences to the individuals and the society but also impact the country in economic terms. According
to a report India loses 1.7% of its GDP because of air pollution.
Causes of this includes:1) Continuous and increasing use of non-renewable sources of energy, heavy dependence of fossil fuels
2) Rapidly increasing population
3) Rapid industrialization, industrial activities and urbanization. With lack of effective regulation on
emission the situation worsens.
4) Rising vehicular population added with low quality of diesel, petrol and other fuels like kerosene used in
vehicles for economic benefits
5) Uses of fuelwood and biomass burning. Also some agricultural practices like burning of rise husks also
cause pollution.
All these lead to a vicious cycle of increasing pollution every day. This has severe consequences in the form
of chronic respiratory diseases which can also impact the life expectancy. Further it restricts individuals
capacity and productivity having an adverse impact on country's GDP and growth along with economic
burden on the society as well as the country in terms of health services.
Solutions:1) More focus on renewable sources of energy. Governments' plan to produce 100GW of solar energy by

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2022 is a welcome step. Proactive steps are needed to achieve this dream.
2) Government has implemented Euro IV norms for metro cities. Further greener fuels like CNG or
hybrid/electric cars needs to be promoted. Motivating people to take public transport along with improving
upon it so that people uses it.
3) Curb of adulterated fuels. Also removal of subsidies from diesel is a welcome step. Further a pollution
cess can be thought of.
3) Providing LPG connections to those who don't have them
4) A more proactive role needs to be played by the pollution control boards both at the central and the
state levels.
Unfortunately Pollution have not been a political issue, as a result it didn't received desired attention from
the political class. But now seeing its adverse impact and toll on individual, society and the country there is
an urgent need to revamp the air
levels in the country by improving upon the pollution aspects. Synergy between the governments at
central, state and local levels and civil society along with improved coordination between various agencies
working in this direction is the way forward
17. Critically comment on various fears expressed due to increasing use of robots in day to day tasks.
(200 Words)
The Hindu (Whos afraid of robots?)
Answer:
Robots are Abiotic, created by man for various operations and activities. With advancement in technologies
they were able to pass the Turing test [test for Human like intelligence]. Since advent of Industrialisation,
Mechanisation, people who were unable to compete, ousted are Luddite to any such technological
advancements. Various people have feared the technological unemployment that is machine in place of
man for the same work .it may appear to be true when looked on the place where changes occurred
However if comprehensive picture, along with ecosystem if analysed, such above fears will appear
exaggerated, illogical. For instance a branch of bank where there were previously 25 people working , But
now only 5 people are working post Computerisation. This if looked at branch level will appear as
technological encroachment But , if we take another perspective like Computer have software designed by
team of software development which are obviously huge in quantity . Along with back end support team
for day to day issues employed for all branches. In a way machines has created more jobs rather decreasing
them.
Fears that Haunts People
~Job loss ,unemployment
~Increased competition
~Skills becoming redundant
~ Mgmt. rationale view Robots vis a vis Worker
One must note that robots/machines are only causing taking over jobs that are repetitive in nature, low
skill based However Such machines are still in control of Man

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18. What do you understand by Employment Elasticity? Critically examine how and why it has varied
during the post liberalisation period in India. (200 Words)
Economic Survey 2014-15, Chapter 1
Livemint (Indias employment elasticity almost zero)
Answer:
Employment elasticity is the growth of employment relative to growth of Economy. Reforms of 1991 are a
shift in era in Indian economic realm. Post Liberalization the major change occurred is the shift in
population from agriculture to Manufacturing and Services. India traditionally being an agrarian economy,
the low growth and heavy population pressure on land, disguised unemployment have led to people
waiting for opportunity to change to a rapid growth environment and liberalisation provided a medium.
Despite aspiring for an Industrial economy during Nehruvian era, there was a marginal growth which could
not sustain momentum resulting in low productivity in manufacturing as well. Post liberalization period
gave an opportunity for people to turn to services with the growth of banking, financial sector, BPO
industry, coming of internet. Though new employment opportunities have come but the rapid rise of
population, urbanisation has made it mandatory to raise the employment growth. So, unlike expected post
liberalisation has led to stagnation in employment growth. With deregulation of sectors and removal of
licenses, emergence of private sector and employment in trade and tourism etc. also tried to provide
employment. But overall Employment Elasticity in India has been flexible till 1991 and post liberalization
has made it rigid and sectorial composition to GDP of the country changed especially with rapid growth in
services sector and marginal growth in manufacturing, and not much change in agriculture. The low
employed industry of services is contributing maximum share to GDP is an evidence that employment
elasticity is rigid posing a challenge to the current Indian government and revival of manufacturing through
'Make in India' could be a great opportunity to meet the growing requirements.
19. Economic Survey 2014-15 argues that the momentum of decline in food prices is likely to persist
because of three striking developments in three areas that signal a structural shift in the inflationary
process in India: crude-oil, agriculture, and inflation expectations. Examine how. (200 Words)
Economic Survey 2014-15, Chapter 1
Answer:
With greater emphasis and thought towards inflation targeting, in recent times there has been a
structural shift in inflationary pressures in India. The decline in food prices, much to the cheer of the
common man, is likely to persist because.
1. Crude oil prices:
Persistence of moderated prices due to:
weaker global demand-due to slow growth in major global economies
increased supplies- increased crude oil and shale gas production in US and decline in power of OPEC
Global monetary liquidity environment prospect of future rise in interest rates in US favour oil
extraction now
2. Agriculture:
Expected decline in global agricultural prices -likely to have an impact in moderating increases in domestic

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support prices.
Rural wage growth will decelerate further moderating inflation
3. Inflation expectations:
Indias inflation will be shaped by pressures from foreign and domestic agriculture
Economy will over-perform on inflation and lead to monetary easing
Declining bond yields could lead to reduction in lending rates by banks
However with a globalised and highly interconnected world, the situations can change rapidly. If China
slows down and responds through a combination of cheaper credit and depreciating exchange rate, global
liquidity could surge. Also the instability of the PIGS and European Union may also affect the food prices.
20. It is often argued that labour reforms are the way to unlock double-digit growth in India. Discuss why
and examine what policy challenges exist in bringing labour reforms in India. (200 Words)
The Hindu (Unlocking growth through labour reforms)
Answer:
[1]
The objective of labour laws was to provide adequate safeguards, rights and privileges to the labour.
However the incremental rise of these legislations has become the biggest hurdle in unleashing the true
potential of the industrial sector which is very important for large scale employment generation and
achieving the double digit growth. Thereby making it imperative to usher labour reforms:- Labour laws are one of the most prominent reasons why India is among the worst countries in ease of
doing business. The number of laws to comply, cost associated with them, regulatory provisions and paper
work drains out lot of wealth and energy. Thus Multinational giants prefer more industry friendly countries
in East Asia over India. In order to bring more investment and business there is a need to create a more
business friendly environment.
- Many Industries in India fear from scaling up their production for it will make them fall under more
regulatory compliances, also informalisation and contractualisation predominates to escape labour laws. All
this makes Industry under-productive and restricts growth of MSME sector as well. The need is to create
incentives for this sector rather than hurdles. Either they should be exempted or simpler regulation should
be there.
- The demographic dividends can be unleashed only when more rationalised laws are there; this will further
help in making more productive, skilled and efficient.
Overall a country that has rich demographics, skilled labour and a deep market need an environment where
business can grow and labours feel secure. This is possible by rationalisation of labour laws and making
their compliance simpler.
However it is not very simple to bring their reforms as the labour unions in India are very strong and they
are a big vote bank as well, every political party in India is associated to some trade union thereby making it
further impossible to bring about a consensus on a policy change that dilutes labour rights. Thus the need is
to bring about incremental reforms with a strong political will to usher a change that can help in unleashing
a double digit growth.

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[2]

Indian govt have brought many reforms for the labour sector like:
minimum wages, mines act and dock workers act for safety, compensation act, maternity benefit act,
employee's provident fund scheme, employee's pension scheme etc.
Still 93% of workers are working in unorganised sectors, with very low working and vocational skills.
The challenges existing in bringing the labour reforms in India are:
-- Red tapism: 40 central and 150 state labour laws have been amended for recruitment of workers.
-- Ineffective Industrial training institutes: they need to be upgraded through public private partnerships.
-- Accidents in railways, mines, and docks etc.
-- Ineffectiveness of MNREGA: MNREGA should be linked with the apprentice act.
-- Minimum wages should be linked with inflation and revised annually.
-- Inertia for amendments like LARR. These amendments are considered as pro industrial by workers.
-- Low employability: low skill of workers does not attract FDIs. Also workers are unable to use new
technologies.
-- Unawareness causing policies like maternity benefit act remains underutilised.
India requires about 120 million workers in non-farm jobs, making these reforms necessary to push India
towards development and urbanisation.
21. For any skill development effort to succeed, markets and industry need to play a large role in
determining courses, curriculum and relevance. In the light of various efforts made so far by various
governments towards skill development in the country, critically comment on the statement. (200
Words)
The Hindu (The nuts and bolts of skill development)
Answer:
In the Central Government, around 20 Ministries are closely involved in skill development.
Most State Governments also have set up State Skill Development Missions as nodal bodies to anchor the
skill development agenda in the State.
But, linkage between Educations to manufacturing sector needs to be strengthened.
Reforms needed in skill development sector:
1. Education System: Need to create an efficient education delivery model including Availability,
Accessibility and Adaptability
2. In Industry Sector: Need qualified teachers to train students for vocational skills
3. Encourage Women's participation in evening and vocational courses
There is a need for removal of entry barriers to private participation, while putting in place an effective
regulatory framework for coordinating private players.
There are many schemes for Skill development like Modular Employable skills (MES) approved by NCVT,
Training in ITI and NGOs, etc.
Promotion of:
1. lifelong learning, maintaining quality and relevance, according to changing requirement particularly of

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emerging knowledge economy.

2. Effective convergence between school education, various skill development efforts of government and
between government and Private Sector initiative.
3. Capacity building of institutions for planning, quality assurance and involvement of stake holders.
4. Institutional mechanism for research development quality assurance, examinations & certification,
affiliations and accreditation.
Need of an hour is an implementation through empaneled expert organization in the field of Skill training
and industrial associations. Preference must be given to those players who ensured market linkages and
proposes the programmes for identified minorities districts-clusters to NE states, also.
[Comment]
The problem with the skill development programs lies in the implementation side not in the investment.
Different govt ministries and departments have their own skill development programs with no synergy
between them and duplication of same programs. Govt needs to play the role of regulator vesting
employers with the work of implementation. The industry and market, therefore, must be on the driving
seat.
Steps to be taken1. Formulation of skill development programs by NSDC & NSDA, different ministries coordinating to
regulate these programs and giving incentives to different sectors for proper implementation.
2. Formal training to be given by industries to their permanent employees.
3. Govt incentivising different industries to provide vocational training.
4.strengthening and increasing the number of ITIs, imparting skills to school going children interested to
work and study after higher secondary level.
22. Critically comment on the significance of the Mines and Minerals (Development and Regulation)
Amendment Bill, 2015 and the Coal Mines (Special Provisions) Bill, 2015 for Indian economy. (200 Words)
The Hindu (Liberating black gold)
Answer:
The recently passed mines and minerals (development and regulation) bill and the Coal Mines (special
provisions) bill have together ushered in a period of economic reforms. Apart from spearheading the
promise of cooperative federalism by increased fiscal devolution to the states, the bills will also do away
with arbitrary allotments and increase
transparency.
Merits:
1. Gives private players a firm footing in the energy infrastructure sector by doing away with the
government monopoly over coal. Giving private players an opportunity to mine coal and trade it without
fixing end result clauses, can increase production.
2. Both the acts with the transparent auction processes empower mineral rich states like Odisha, Jharkhand
and Bihar which also have a significant tribal population. This devolution of funds gives more power to the
states to micro-plan policies based on local needs.
3. It has paved way for FDI as the Indian arms of foreign corporations can bid for both blocks and for
commercial mining of coal.

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4. Brings clarity on the process of auctioning and the empowered authorities who will be conducting the
auctions. The coal bill also explicitly lays down the stipulations under which prior allottees will be allowed
to bid eliminating the firms with an unscrupulous record.
5. Released from the behemoth task of being the single coal trading unit in India, Coal
India Ltd can finally focus on improving its infrastructure and ushering in new technology.
Demerits:
1. Though the MMDRB has the provision of a District mineral foundation as a social safeguard for mining
affected communities, the Coal Bill does not have any such provision.
2. Due to aggressive bidding by private firms, the costs incurred by end-users might shoot up.
3. There is no provision for an independent coal regulator which will oversee the operational, pricing and
safety aspects of the sector. Apart from this there are no guidelines about the monitoring of mining
activities by private companies.
4. Providing clearances is only part of the solution but without land acquisition being made easier, the
functionality of the mines will still be threatened.
23. Indias FRBM Act as well as the Kelkar Committee (2012) established the principle of aiming to bring
the centres fiscal deficit down to 3 percent of GDP. Why utmost importance is given to this principle in
India? Examine how the recent Economic Survey seeks to achieve this target. (200 Words)
Economic Survey 2014-15, Volume 1: Chapter 2
Answer:
Implementation of FRBM Act has been facing impediments with 2008 crisis stood as a major hurdle along
its progress. With prospects for revival of Indian growth, Economic survey proposes ways to achieve the
target of Fiscal deficit as 3% of GDP. This principle is very important for growth of India by lessening interest
payments for borrowings, improving external account, better rating for India among foreign countries,
increase investments, positive outlook for economy, less burden on common man, reducing poverty and
helps in achieving sustainable growth and development.
1. Reducing subsidy burden by proper implementation of subsidies without leakages using JAM Trinity.
DBTs and Aadhar play key role in transferring benefits without leakages.
2. Increasing taxes like surcharges on rich Indians, implementing GST which increases revenues.
3. Borrowings only for public investments and investing on capital assets, not for filling revenue deficit gap.
This can bring growth in future.
4. Reviving the PPP model with restructuring the existing stalled projects which once completed can
provide benefits to the people and in turn economy.
5. Raising funds through disinvestments, spectrum auction.
Reducing fiscal deficit can improve the economy significantly and a caution in dependency on foreign funds
which could make economy volatile. Public investments for domestic growth can provide benefits which
could in long term can work for reducing fiscal deficit for better stability.

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Government budgeting
1. In the light of recent reports of governments thrust on Make in India campaign and some pressing
problems being faced by the navy and army, critically comment on Indias defence budget and its
performance in recent years. (200 Words)
[Linked with: indigenization of technology; Security challenges]
Business Standard (Needed - defence budgeting structures)
Answer:
The government has allocated 144 crores for the make in India campaign for the communications and the
battlefield integration system, both of which wouldn't see the light of the day this year for the lack of
proper planning and foresight.
For years, the defence budget has been an exercise of tussle of egos in the defence ministry rather than a
focussed budget aiming to deliver performance where needed. Army has been consistently
underperforming by giving away 60% revenues to its payrolees and other wasteful activities. The navy
meanwhile has been languishing for the lack of critical components and even then its budget has been
slashed to 13.5% percent.
The policy makers have to realise that in a warlike situation, the enemy wouldn't indulge each of three
arms separately on our terms. It would be an all-out war for supremacy. The key point to note over here is
that despite our focus on stopping Pakistan in J&K and containing China based on our previous four wars
concentrating on land forces, we have to take an integral view of the situation.
A joint services command like that of US would greatly help in inter-coordination and proper setting of
priorities. A bottom up budget with flexibility to allocate money on basis of requirements and coordination
with local industries is required. Rather than a single chief, the forces should be integrated under 5-6
commands with chiefs from various services focussing on the area based approach. Until these basic steps
are taken, we would continue to languish in our defence capabilities.

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Major crops cropping patterns in various parts of the country, different

types of irrigation and irrigation systems; storage, transport and
marketing of agricultural produce and issues and related constraints; etechnology in the aid of farmers
1. As a District Collector, you are asked to come with solutions to recharge defunct borewells and
irrigation tanks in your district. What measures will you take? Explain. (200 Words)
The Hindu (Reviving dead borewells successfully)
Answer:
Defunct borewells, empty irrigation tanks is a tale of every state, region of India. Being the administrator of
district I would take following measures.
(1) Rain Water Harvesting: First I will install a model system in DM office, and DM bungalow to showcase
the system. Then I will encourage NGO, Other government bodies like PSUs working in district, hospitals,
industries etc. to install such systems. For households I would encourage them to dig one small earthen
water tank (may be of 10-12 feet deep) which will store the rain water. As households lack funds to install
rain water harvesting system, I would ask government to provide funds so as subsidise rain water
harvesting system in households.
(2) Digging deep the existing irrigation tanks.
(3) Vigil on sand mafia which are illegally extracting sand which leads to erosion.
(4) Emphasis on plantation in city.
(5) Making earthen dams, bunds at convenient places in city; I would first learn and analyse how these
systems are working in water scarce Auragawad district villages like Hiware Bazar, Ralegaon siddi.
(6) Emphasis on conservation and reducing the wasteful consumption of water-- Through awareness drives.
(7) Promotion of water efficient irrigation systems like drip irrigation, sprinklers.
(8) Regulation on excessive borewell digging and promotion of Water supply system through filter plants.
(9) If possible and funds are there, I would take the project of sewage water and waste water treatment so
at least it can be used in irrigation.
2. What do you understand by the aeroponics technique of growing plants? Discuss its applications and
advantages for Indian agriculture. (200 Words)
[Linked with: Science and Technology- developments and their applications and effects in everyday life]
Business Standard (In search of the right potato)
Answer:
With the advance in agricultural technology, newer methods of growing plants have been devised including
hydroponics, tissue culture, aeroponics etc.
Aeroponics is the process of growing plants or crops with water and air, without typical medians like soil etc
. The plants are housed in troughs, tubes or foam and Roots are fully exposed and constantly sprayed with
micro bursts of atomized water.
Benefits include:

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1. The exposed roots quickly absorb oxygen from the air, and crops also tend to grow faster than those
planted in soil, resulting in quicker harvests.
India: many crops needing longer periods like potato can be grown better
2. The water and air mixture helps create the humid environment. This can help prevent waste/crop loss.
India: dependency on monsoon can be reduced
3. Safe and ecologically friendly way to grow plants and crops.
India: damage to plants from high fertilizer use and soil/water pollution can be prevented
4. Closed-loop system conserves water
India: declining water table and water intensive crops
5. Higher density crops optimize output, higher quality of crops
India: productivity is sub-optimal in most of the areas, can be used to contain food inflation
6. Scalable systems can range from commercial level to apartment-sized gardens
India: can be used to cater to increased demands due urbanization
7. Can be used in inaccessible areas or where agriculture is limited due to geographical conditions
India: north-east and other areas
However, the cost included is high and hence need for further research to reduce cost, promotion of
private investment aided with investment by the government.

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Issues related direct and indirect farm subsidies and minimum support
prices; public distribution system- objectives, functioning, limitations,
revamping; issues of buffer stocks and food security; technology
missions; economics of animal-rearing
1. Critically examine what effect the ban on cow slaughtering by some of the states in India will have on
economy and society of India. (200 Words)
The Indian Express (Maharashtra bans beef)
The Hindu (Cattle slaughter, in varying degrees)
Answer:
[1]
No state law explicitly bans the consumption of beef except Maharashtra. Cow slaughter is banned in
almost every state of India, except Kerala and the North-eastern states, while buffalo slaughter is legal in
most states in India. There will be some good & some bed effects of the ruling.
Effect of ruling on society
1. Cattle slaughter in India is a historically taboo subject, because of the cow's traditional status as a sacred
animal in Hinduism, the largest religion in the country.
2. The new rule is expected to hit the Muslim community hard, some of whom own a majority of the beefrelated businesses.
3. Undemocratic is the government's crude attempt to regulate, dictate and censor the dietary
habits of Indians. Banning cow slaughter involves preventing people from choosing what they eat.
Permitting it would not impose a particular diet on an individual or group.
4. Abstinence from beef-eating is largely a caste or class question among Hindus. The low castes prefer beef
to other meat for reasons of taste and habit too.
5. More important, surveys of butchers in different states show that three-fourths of all beef is consumed
by non-Muslims, largely Hindus. A higher proportion of the sellers of cattle are Hindus. It will create
differences among different communities.
6. Why save the cow only but not its poor distant cousin buffalo? Its like Casteism among cattle.
Effect of ruling on economy
1. But because of religious sentiments and bans in various states, most of India's beef is exported - with a
20% share of the global market and exports worth more than $4bn (2.6bn) a year, it is now the country's
top agricultural export, beating the more famous
basmati rice. Buffalo meat, however, accounts for 80% of the exports.
2. Following the Maharashtra ban, there is concern over what will happen to bulls and bullocks or to cows
too old to produce milk or to give birth.
3. Their owners, mostly farmers, could now be stuck feeding them for years until they die of natural causes.
4. It will render thousands of people without jobs and would result in spiralling of prices of other meats.
5. Beef is more popular with the poor in India as it is typically cheaper than other meats such as chicken or
mutton. Its an important source of protein for those who do eat it, but now meat itself might become
unaffordable.

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[2]

Cow slaughtering is the logical parallel in India being the Higher Milk Producer as well as Consumer in the
world that is 294 units/person, which is even higher than US. Thus Pink revolution is the logical outcome of
white revolution. Economics of Milk, dairy can only be sustained if the draught and non -milking [those who
were giving milk but not now] goes to slaughter houses. Govt moves will surely affect the Milk activities of
the Country as well. One must note that though we are largest supplier of Beef, however Due to cultural
restriction and norms, Indians do not consume .Thus it gets exported which gets significant returns in trade
market. Thus Move will also affect our trade balance in which leather products, beef comprises
significantly.
Normal life of the cow/buffalo for mulching is generally at max 4-5 yrs. [ with as well as without use
oxytocin, as drug only quicken the mulching life and do not increase milk quantity as commonly conceived
]. However they live 4-5 folds of Mulching lives. Thus to support the economy of dairy, Decision made on
principle of economic dominates As this beef gets significant cash value when packed and freezes
In India itself there is wide difference in views regarding cow slaughter among states. As well as in
consumption to
Cultural norms shall be respected ,However Government shall take pragmatic view given the fact Milk has
ability to reduce malnutrition, supports various sub urban dairy activities and cooperative business. Any
decision based on Emotional Aspect may deter the Health of Citizen and economy.
2. Some argue that the report of the Shanta Kumar committee on food management contains several
cogent recommendations and they should be implemented to make PDS efficient. Analyse these
recommendations and comment if they should indeed be implemented. (200 Words)
Business Standard (Fixing the PDS)
Answer:
Shanta Kumar Committee report on food management talks about some important issues and many
recommendations are being made by the committee
which needs to be implemented as soon as possible.
1) Cash Transfer: This recommendation is made by committee to stop the possible leakages and this will
also save thousands of crores of money from government which can be used for expansion of facilities.
2) Private Partnership: Private partnership has been recommended by government for procurement and for
transportation, this should help in efficient use of resources and further enhancing the capability.
3) Reduce Coverage: One of the recommendations is to reduce the coverage from 67% to 40 % which has
been opposed by many parties.
But this has been suggested due to the statistics which are showing that leakages are too much and most of
the food is not reaching the actual beneficiaries. If we reduce the target and also focus on reducing the
leakages, this should help but we need to be sure that national food security is not impacted.
4) Procurement shift: There has been recommendation that procurement should shift to north eastern
states as they dont have the required structure. This should be implemented to help north eastern states
grow.
5) Export: The committee has suggested that the food ministry should be quick to export grains or sell them
in the local market as soon as FCI procures more than the requirement. This should be implemented.
6)Taxation : The committee has proposed uniform tax of minimum 3 % and maximum 4 % on wheat and
rice and the same to be included in the MSP.
This also should be implemented.

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There are many recommendations which should be implemented immediately but some of them only once
we are sure that we are not keep people hungry like the reduction in coverage.
3. Critically examine what measures have been taken by the Indian government to aid the farmers
through the e-governance mechanism. Do you think these measures are helping an average farmer? Also,
comment. (200 Words)
India 2015; Chapter 4 (Agriculture)
Answer:
The new tool of the government is governance, a smart, cost effective and efficient mechanism to help
farmers in multiple ways. This can be understood as:1. Financial Assistance: - Government is switching to new mechanism to transfer subsidies, benefits and
financial assistance. The Pradam Mantri Jan Dhan Yojana, along with direct benefit transfer scheme is
further planning to extend it to almost all areas. However many farmers are yet to have a bank account , so
this is more a sweep through exercise , superficially executed and benefits going to middle and large
farmers.
2. Land records digitization - some projects like bhoomi showed how this can help in resolving land disputes
and other issues faced by farmers. However, only some progressive states have implemented it, state like
UP, Bihar which needs it the most are yet to.
3. Advisory role/Inputs - Use of Kisan call centres, IT kiosk and agri-clinics to provide information on farm
inputs, market prices and consultation has helped farmers to be more informed and practice farming more
scientifically. However such facilities are available at very few places mainly on pilot basis or in few states,
other problem is literacy and language barriers and even internet connectivity.
4. Weather Information/ Farming support - sending mobile SMS to give weather information on pilot bias
has helped farmers in sowing and protecting crops. However poor and marginal farmers don't have
mobiles. Further government plan of precision farming or soil health card. This will tremendously help
farmers as it will help farmers in understanding the soil health. What crops to grow and what inputs to give.
Apart from it government through NeGP plans to initiate many mission mode projects, the National optical
fibre network is also in process. The objective is to avail multiple benefits to farmers and rural community.
However the major issue still remains to be digital literacy, language barriers, farmers lack of comfort and
trust on this alien medium, mode of service availability [ IT kiosks will only be limited and not everyone
owns a mobile] . All these issues need a resolution, else it is only the large and medium farmers who will
avail the benefits, leaving the poor, marginal ones left out.
4. Analyse the merits and demerits of banning cow slaughter. (200 Words)
Business Standard (The state of cows)
Answer:
The recent ban of cow slaughtering by states like Maharashtra, Haryana, etc. has brought into debate
highly emotive and contentious issue to the forefront.
Merits of banning cow slaughter:
1. It helps in cow protection and preservation thus bringing in an improvement in bovine population.

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2. It upholds the Directive Principles of State Policy contained in Article 48 of the Constitution which
prohibits cow slaughter
3. It protects the animal rights
Demerits of banning cow slaughter1. It affects the livelihood of large number of beef producers, traders and farmers
2. It affects Indias thriving animal husbandry sector which has made India the second largest beef exporter
3. It is likely to have an adverse impact on the cuisine and business of premier hotels and might affect the
foreign tourism
4. It will result in shooting up the price of other meats
5. It might affect the poor people who depend on beef which is termed as poor mans meat and worsen the
malnutrition scenario.
6. This issue might placate religious sentiments and might showcase the Governments intention as proHindu and might widen the communal differences
7. It might lead to increase in old and infirm cow population which Supreme Court in 1958 judgment held
that keeping useless cattle alive would be a wasteful drain on the nations cattle feed.
8. It also affects the process of genetic improvement through selection by culling of under-performing
animals and breeding high-yielding varieties.
Thus, a rational approach to the subject is the need of the hour taking into account the economic, social as
well as ecological concerns.
5. Critically discuss Indias concerns regarding Bali Ministerial Decisions and examine how they have
been addressed by the WTO. (200 Words)
India 2015/2014, Chapter 7, Commerce
Answer:
WTO Bali conference was aimed at Free trade, 21 million jobs, unrestricted movement, reducing the
disparities across the Globe. It also had clause to the nations to stop the farm subsidies by capping till 10%
of produce. Further Prices determined for the Subsidies were of 1985-86 levels.
Such was challenged by India, by not Entering into the agreement as it raised concerns regarding its social
welfare and subsidies programme. It was Of view that Given lower level of nutrition in developing countries
[ Like India] , Subsidy programme [ NFSA] and higher Inflation Levels [ Since 85] , 10% cap may appear
minuscule as it has to feed 67 % of population. Further India was also concerned that during 1985-86 US
prices were greater that of India, Thus it will be disadvantage to developing world to use such price cap and
giving the Elbow room to Developed World, for Instance US also runs a large scale Farm subsidy
programme.
Such stand of India was supported by Venezuela, Cuba and more importantly IFAD [UN body] aimed for
Agriculture development. Later through Bilateral talks between India -US it was sought that No country will
go in Dispute settlement WTO against India [for market distortion] and such Extension of Food subsidy will
continue beyond 2017 until any further mechanism is provided.

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6. Leakages seriously undermine the effectiveness of product subsidies and recently the Prime Minister
stated that leakages in subsidies must be eliminated without reducing the subsidies themselves. Analyse
why leakage is a serious issue in public distribution system in India. (200 Words)
Economic Survey 2014-15, Volume 1: Chapter 3
Answer:
[1]
Leakages refer to describe the subsidised goods that do not reach the intended beneficiaries/households.
They have a dual effect:
1. direct cost of wastage
2. Opportunity cost of how the government would have otherwise deployed those resources
The main pds leakages are of food and kerosene.
kerosene: leakages are large and universal and more with higher
allocations. This is sold in the black market and illegally traded crossborder
food: leakages are larger in APL than BPL.
Benefits of reducing leakages:
1. The regressive nature of many subsidies reduces their effectiveness as anti-poverty strategies
2. Gives government the fiscal space for higher-return social welfare programmes without causing welfare
losses
3. Reduction in market distortions
4. Can indirectly help in controlling food inflation
Converting all subsidies into direct benefit transfers can avoid the distortions that subsidies may induce.
But developing this will take time and can down pace the reforms. Hence alternatives include:
1. mobile money: increased penetration of mobile networks and success in other countries. Ex: m-pesa in
Uganda
2. Post-offices: since India has the worlds largest network of postal services and service in many
geographically isolated areas
Finally the JAM number trinity- Jan Dhan, Aadhar and Mobile numbers offer a cushion to the poor and
cover their vulnerabilities and offer targeted subsidy benefits
[2]
The government of India over the past few budgets has been sanctioning between 50 - 60 Billion USD in the
form of subsidies. However, even with the involvement of the planning commission and state agencies,
these huge numbers have failed to bring about a long lasting discernible impact in the economic and social
status of those for whom these subsidies are meant. Among the many critiques of over
subsidization and ineffective implementation, one of the key reasons for the defeat of subsidies is the
gruelling problem of leakages.
This economic evil is a huge step backward for the government for many reasons:
1) Opportunity Cost - The money that is lost due to leakages carries an opportunity cost with it, if
implemented more effectively by the government in another area.

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2) Social deterioration - The items that fall under subsidy [kerosene, grains etc.] are generally essential for
the existence of the poor. Leakages of such subsidies strain the already stressed economic condition of the
BPL section.
3) Ineffectiveness - As in the case of India, if 50-60% of the subsidies are lost due to leakages, the
ineffectiveness of the government and its distribution systems is clearly brought to light.
4) Economic and Financial repercussions - The leakage in subsidies leads to gap in demand and supply of
the subsidized items thereby leading to an unexpected increase in price.
Leakages need to be addressed with effective PDS and policy implementation. In furtherance of this
objective the government has started initiatives such as JAM; curbing leakages will depend unidimensionally on the success of such initiatives.
7. India is facing challenges on bridging the demand-supply gap in milk production. In this regard some
experts have suggested that India should follow Chinese model of milk production to meet the demand.
Examine the features of both the models and suggest which suits better for India. (200 Words)
The Hindu (Chinas dairy model not suitable for India)
Answer:
Chinese Collective farms/Milking station
Supported by the township and county governments. Farmers are grouped into a farm model in which all
the cows are milked by machine. A local investor/builder constructs the dairy facility, supplying all the
capital. The village director settled the debt with the builder by identifying individual producers to purchase
stall space within the barn. While the operation is run by a village committee, individuals own the stall
space and assume full management of their cows, including feeding.
Milking machines, however, are owned by the company, in the China case, the New Hope Dairy Cattle
Company. A member of the collective supervises the milking and keeps records of the amount of milk
produced by each cow. A local company collects the milk. One of the obvious constraints to extending this
type of operation is geographical access to facilities.
Indian Cooperative method
In India, the dairy cooperative model has been perceived to be central to the development of its dairy
industry, the largest in the world and one that has been based on integrating small and marginal farmers
into a business environment. However, while successful in numerous states, in particular the Amul
cooperative in Gujarat, not all have flourished. In many other areas of India, the cooperative movement has
been less successful in empowering farmers and transforming dairying into a means of development for
rural people.
The challenges include: i) cultural, socio-economic constraints in replicating the model; ii) the critical need
for democratically elected management and, in particular, the need to avoid state-management; and iii)
difficulties in ensuring competitiveness with the private sector iv) delayed payments of dividends are some
other issue
Geographical issue, capital investment issue, and cultural differences can impede emulation of Chinese
models. However supply demand adjustment can well be adjusted by Emulation of successful cooperatives
to various parts of country.

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Land reforms in India

1. It is said that most industrial projects in India, which are either stalled or cancelled, is due to land
acquisition problem in India. Do you agree with this assessment? Critically examine. (200 Words)
[Linked with: Effects of liberalization on the economy, changes in industrial policy and their effects on
industrial growth]
Business Standard (The noise around the land acquisition law)
Answer:
For the last decade or two, land acquisition has been the biggest irritant for any developmental or industrial
projects. The intensity of problem is reflected from following:
- Arcerol Mittal and POSCO withdrew their multibillion dollar steel project last year
- Resistance by local people and tribals following government suppression has prevented land acquisition
like Niyamgiri Hills of Odisha
- About 1300 PPP projects worth 7 lakh crore is pending and land is one of the reason for this
In some places environmental concerns raised by environmentalists and civil society has dissuaded people
from giving away their land. Although there are other issues like delay in clearances, economic climate, high
interest rate and NPA condition of banks which is preventing players especially private ones to go ahead
with investment.
But the issue with land is a problem of governments own making, because:
a) Until recently land were taken forcefully with paltry or no compensation
b) No consent of broad consultation before taking land
c) No participation in decision making in rehabilitation plan or future development on their land and fair
benefit sharing
d) Government sitting on huge amount of unused barren land, fallow land and government land but not
effectively using them.
Although land acquisition act of 2013 took adequate care of affected people, the resulting high cost and
delay in acquisition send a negative signal to industry. Some innovative ways like land bank, efficient use of
barren and government land, leasing out land instead of selling them would be the way forward without
compromising the interest of affected people.

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Effects of liberalization on the economy, changes in industrial policy and

their effects on industrial growth
1. It is now widely accepted that the participation of private sector is important in the transformation of
the defence industrial base in the country. Critically examine, what are the challenges that private sector
faces and what needs to be done by the government in this regard. (200 Words)
The Hindu (Radical in promise, not in practice)
Answer:
Defence industry is highly technology driven and it is the private sector that adapts itself better to rapidly
changing technology. It helps the nation to build a reservoir of latest technology to give it an edge over its
prospective adversaries. But the private sector faces the below challenges:
1. POLICY ISSUES:
a. In all deals where transfer of technology is negotiated, the nominated recipient is always a DPSU. Private
sector company is not considered even it is better placed in terms of infrastructure and know-how to
absorb the technology.
b. Increasing the FDI limit to 49% is unlikely to be sufficient to attract FDI with technology transfer.
c. Most countries have export control laws that regulate the participation of defence manufacturers in
ventures abroad .They guard their technology and perpetuate their monopoly with consequent financial
gains.
2. PROCEDURAL ISSUES:
a. Inadequate time for the submission of technical and commercial proposals as requirements of the armed
forces is not made known to the private sector sufficiently in advance.
b. Indian private companies that have the requisite capability are not considered for the RFPs (Request for
proposals) apparently owing to their lack of experience in delivery.
c. Lack of necessary financial strength.
3. FUNCTIONAL ISSUES:
a. Many Indian vendors have not fully grasped the import of highly accurate and exact standards
requirement of defence equipment.
b. RFPs are issued for one-time piecemeal quantities without any long term commitment regarding regular
flow of orders. This deters Indian companies from committing resources for establishing production
facilities as the venture can prove both expensive and risky.
4. THE COMMUNICATION GAP:
a). Procurement Agencies are Unaware of Industrys Potential:
There is no data bank of Indian industries available with the MoD. Requests for Proposals (RFPs) are issued
only to a few highly visible companies, while many others lose by default.
(b). Industry Lacks Knowledge of Defence Requirements and Procedures:
Many private sector companies having the capability to manufacture the whole range of defence
requirements are ignorant of the procurement agencies, their policies and procedures.
STEPS TO BE TAKEN BY THE GOVT:
1. Transparency: All contracts should be opened up for bidding
2. RURs: As suggested by Kelkar committee, government should identify certain firms based on their

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technical, managerial and financial strength as champions (Raksha Udyog Ratna) and circulate RFPs for
major systems to these firms.
3. Tax rebates: Removal of the differential and regressive tax and duties
4. Infrastructure Availability: Availability of capital, land and infrastructure; Total elimination of licensing;
5. Ensuring better planning and strict implementation of offsets
6. Facilitation: A directory of credible defence manufacturers should be made available to all the defence
procurement agencies and foreign producers to locate potential Indian partners for collaboration.
2. In recent years, imposing tax with retrospective effect on private companies has become a major
concern with the foreign investors. Critically examine this issue and opine if retrospective taxation is a
necessary instrument in resource mobilization. (200 Words)
[Linked with: mobilization of resources]
Business Standard (Past mistakes aren't past)
Answer:
Retrospective taxation means effecting changes in the law to levy tax on events that have taken place prior
to formation of law.
In 2012, the Finance Ministry had amended the Income tax Act 1961 to levy the Capital Gains Tax on
Vodafone India which had through its subsidiary in Netherlands acquired the CGP Investment holding
Company in Cayman Island (A subsidiary of Hutchinson, Hong Kong) which held 67 % shares of Hutch Essar
Ltd. India. The amendment was enacted after the Supreme Court ruled in favour of Vodafone citing that it
is beyond the jurisdiction of the Indian govt (As per IT Act 1961) to claim the CGT.
Outdated taxation laws and Double Taxation Avoidance agreements between India and various countries
results in a huge loss to the Indian Exchequer .The estimated loss in Vodafone case being Rs. 12000
Crore as tax money which could have been used for bridging the fiscal deficit and funding poverty related
schemes. However, retrospective taxation also called tax terrorism by the corporates goes against the
spirit of free economy. The confidence of the Indian and foreign
investors goes down and the government is not motivated to look at alternate route of resource
mobilization like selling of sick PSUs , disinvestment ,improving government services and reducing the
wasteful expenditure .Also , reform of taxation laws and DTA agreements in tune with changing economic
scenes is a must. In In light of Make in India and FDI relaxation, retrospective taxation is not beneficial for
the economy in the long run even though it may yield short term benefits.
3. How successful have been the measures taken during last two years to improve exports from the
country and revive investors interest in India? Critically examine. (200 Words)
India 2015/2014, Chapter 7, Commerce
Answer:
There have been lot of measures taken in the past in order to improve the investment especially in the
exports sector in India. Some have yielded positive results and some have failed to make an impact:
- Minimum Land acquisition clause removal for IT SEZ has resulted in spiral growth of many software
companies in the past 2 years, and in turn has provided a multiplier effect by increasing the employment
and increase in human development welfare.

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- Duty benefits to companies which procure capital goods from domestic market has led to the growth of
domestic manufacturers but also has resulted in the blockage of certain key investments from big
companies especially from US
- Relaxation of FDI in the various Greenfield companies up to 100% has resulted in many MNC coming to
India
- Hopes are being banked upon the newly launched Make in India campaign which lays a coherent and
comprehensive vision in order to improve exports.
- With the policy encouragement and good understanding with neighbours and other countries, there have
been many FTAs, CEPA, PTAs which have indeed resulted in investment from various sources
- With single window clearance system, use of IT, reduction of documentation required to export to 3 etc.
have resulted in winning some of the investors confidence but these changes remain largely untested.
More than piecemeal approaches, structural changes are bound to make a greater impact and that is what
India has been trying to do. Investment though has been on the downside, but more changes should take
place with these reforms.
4. Critically analyse merits and demerits of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2014. In your personal opinion,
what constitutes Fair Compensation to the farmer? Also, Comment. (200 Words)
The Indian Express (Empower, dont patronise, the farmer)
Answer:
Merits of LARR ordinance replacing LARR Act 2013
1 Reducing the Indirect cost of SIA, opinions surveys etc. which made acquisition more cumbersome ,slow
2 Most of land remain un utilised and stalled projects due to other clearances post acquisition , thus It
increased the years before land to be returned
3 Removed exemption to other sectors of as well
4 Freed the restriction which were on private sector , While govt was free to evict the land, which was
seldom utilised [ only 10% utilised of total acquired]
Demerits
1 Opinion and SIA is removed
2 situation of land less, share croppers and other linked sector not examined
3 Provision of Employment can only be fulfilled when skill were already present . Outside employment may
only create social inequality
Larr act used three approaches that is greater prices, farmers say and bureaucrats says through SIA.
However it failed to achieve intended goals and satisfied neither corporates nor farmers
Fair compensation shall be based on principle that Farmers to be empowered not patronised. That is they
must have say in the process, along with prices shall be market determined rather bureaucratic/lawmakers
guess byzantine Suggestions. Many times land is purchased by intermediate parties to acquire windfall
gains while farmers are given old agri prices. Also govt shall give the 2-3 options for same project thus
ensuring the price equitable and just both to private sector and Farmers. Employment rehabilitation shall
not be seen as provision under law to be skipped but rather moral responsibility for those who contributed
in National development and greater cause

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[Comments]

Merit1.enlarging exemption list- projects of strategic importance, rural-urban infrastructure, industrial corridor
are in pipeline due to delay in land acquisition.
2. Removing consent clause- as less than 10% of forceful acquisition post-independence is done by private
industry, 80% consent is against ease of doing business.
3. Removing SIA- It makes acquisition cumbersome & delays execution, which leads to time & cost overrun,
harmful for both economy & consumer.
Demerits1. Deciding Compensation not without involving farmers, the sole loser.
2. Compensation based on size of land acquired not no. of people affected.
3. Forceful Acquisition of multi cropped land is a threat to food security.

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Infrastructure: energy, ports, roads, airports, railways etc.

1. According to Census 2011, 80.7 million households in India live without electricity and of these about
75 million households are in rural areas. Critically examine the reasons behind such disparity between
urban and rural households and critically comment on governments policy in addressing the issue of
energy poverty. (200 Words)
Down to Earth (The extent of Indias energy poverty)
CSE (Contours of Inequality)
Answer:
Energy-poverty is a persistent issue that continues to be a central focus in the governments budgeting, as
is apparent by the level of annual subsidization levied on the OPCs and the energy industry. This has to be
analysed in the context of the energy complex, a concept that has influenced the understanding on rural
energy access and usage.
Poverty and energy access present an immense divide between the urban and rural populations, and
although the government has attempted to replace rudimentary (wood) forms of energy for the consumer,
with newer forms such as LPG, kerosene, solar panels, the poor still struggle. The reason being that the
usage pattern and consumer preference linked to energy usage in India cannot be assumed as being in a
linear pattern. The governments understanding is that once a better option for energy is provided whether
it is for electrification or cooking, the previous form will be abandoned. The governments recent push to
expand its LPG network to rural areas has still resulted in what is referred as an energy complex. The
usage of each type of fuel depends on location of village, proximity to resource body such as forest or dry
shrub land, number of women in household, annual income, land holding, caste etc. All these factors
combined influence the type and intensity with a particular fuel is used.
In terms of providing electricity, there is a definite divide. This divide simply exists because of the
governments inability to understand energy usage patterns, and also in the lack of funds that exist in
setting up energy infrastructure. IGO reports released annually use a variety of factors in order to get an
assessment of energy usage across rural sections in developing countries to better understand and plan for
an efficient alternative. Even then this is quite a task; more importantly the government at this stage should
focus on
1. Improving road infrastructure as a primary initiative to allowing the spread of LPG usage across villages
for cooking purposes.
2. In terms of providing electricity on a wider network, a better investment of infrastructure is required.
Transmission is the central focus here as resources are distributed unevenly across the country: coal
reserves largely in the eastern sector and hydel reserves in the northern sector. Power generation happens,
but the level with which it is transferred is important.
3. Corporations such as Power Finance and REC (Rural Electrification Corporation) need better coordination and greater investment in FDI in order to distribute resources across the rural sector.
4. Renewable energy continues to be an unexplored sector that should be seriously invested into. If the
centre is strapped for funds on a yearly basis, foreign intervention into amenities such as solar panel
chargers, solar cookers for case specific locations would be helpful.

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5. Offshore generation of wind energy is still in its preliminary stages, and holds promise across coastal
states that can harness this potential.
2. Dirty track and piles of garbage alongside not only present an ugly sight to travellers but also pose
serious safety problems to the Railways. Examine why and what measures are needed to address this
issue. (200 Words)
The Hindu (Bio-toilets could prevent rail corrosion that leads to derailments)
Answer:
Railways, the Life line of country, carries the humungous freights and passengers across the length and
breadth of the country. Such size and numbers can bell be equated to populations of many countries and
even continent/islands. Increasing Pressure of Such loads has caused the derailments, accidents on number
of occasion. Government is committed to eradicate and lessen such mishap through technological
intervention in the railways. Several recommendation from the committees have enlisted causes and
remedial measures/way ahead for to proper functioning of the railways
Causes
~ Piling of Excreta due to present spill over the track type design of toilets
~poor maintenance of the rail bed
~ Lower technological innovation in metallurgical application in railways
Remedial measures
~ Installing of bio toilets and vacuum type with zero discharge facility
~ Proper maintenance of the tracks within proper intervals
~ Use of copper-molybdenum , nickel-cooper-chromium rails
~Anti corrosive Bituminous paintings on rails , greasing and sealing in corrosion prone areas
~ Awareness among people to not to dump plastic in such bio toilets as it may hinder the flow/discharge
In sum such essentials are to be paced up, if it were to reap dividends from growing market of tertiary
activities of transportation & supply chain dynamics
3. It is observed that newly constructed roads in India do no last longer and they frequently fail the
quality test. Critically examine the reasons and suggest what measures you will take as an administrator
to ensure the construction of quality roads. (200 Words)
The Hindu (A third of city roads failed quality test)
Answer:
[1]
India as an emerging economy needs better roads and transport facility but it has been seen that in India
newly constructed loads doesn't last longer.
Reasons:
1) Faulty Design of roads-- It is many times faulty.
2) Lack of maintenance: Lack of maintenance due to funds and due to corruption.
3) Quality checks: Quality checks are faulty due to nexus between contractors, engineers, political
influence.
4) Wrong Criteria: roads are laid based on the allotment of funds and not based on the traffic or load

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criteria.
5) Corruption: Corruption in contracts given and least amount is always given the contract.
6) Bitumen Roads: In India most of the roads are made up of Bitumen which doesnt last longer due to cost.
Measures Needed:
1) Effective use of PPP: We need to effectively use the PPP model and build better roads. I will collaborate
with best road builders in country and on cost sharing basis.
2) Design: Design of roads should be perfect and should be designed after proper consultation with experts.
I will use experts from the area to design roads and will make them accountable.
3) Contracts: Contracts should be based on online system and fair without any political and corporate
influence. I will use online it system which is transparent.
4) Criteria: I will use traffic and load criteria apart from cost.
5) Quality checks: Quality checks will make stringent and expert teams will be appointed to test the quality
periodically.
Basically we need a holistic approach right from planning, building to maintenance for roads and we need
to fix the process at each step.
[2]
Roads, Highways should not be seen as infrastructure rather it be seen as transformative agent that can
uplift socio-economic upliftment of people, can bring prosperity to region as seen in DFC in India.
Reasons
However poor quality of roads Due to greater sand-clay mix, corruption ,Politician - contractor Nexus,
Construction done by laymen rather engineers , Old methods continuously haunts the quality levels . One
must note that while Quality level are very low for roads for public , However same is not true for VIP tracks
/roads ,where failure level is nearly3-4 time lower than normal level
Measures
New methods like Use of plastic chips in road construction can solve the issue of Non-biodegradable waste
and superior road quality along with lower heat absorption of concrete which is generally an issue with City
roads
~MP led Yuva contractor _Engineer Yojana is another good step in which e -tender of roads/infra is only
given to those who are engineers and not just politically supported Lay men.
~ Municipal bond with community participation ,social audits along with probity in officials can reap
benefits for citizen both on economic and social fronts
In sum it is not an engineering problem in the roads that causes problem it is the present Wrong
Engineered approach used by Government department ,which needs to be Eradicated

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4. The government has made it clear that some important sectors need public investment instead of
private investment to boost their growth. Critically examine why there is change in attitude, from where
will the funds come and the merits and demerits of this change in approach. (200 Words)
[Linked with: Mobilization of resources]
Frontline (Public funds to push neoliberal agenda)
Economic Survey 2014-15, Chapter 1
Answer:
[1]
Present regime focus on growth and development seems visible in the ES of this year. Although there may
be good intention but ignored to achieve "growth" of economy, Development and Benefit of Poor shall not
be compromised
Present Strategy and Merits Associated
~ Redesign of PPP, with risk to public and dividends to Private to attract investment
~ Reduced leakages [AP study ] by Cash based subsidies at predetermined price level through DBT via
Aadhar or JAM trinity number which is changing the way of social welfare scheme were administered.
~Borrowing for Capital investment, Following of Golden rule, rationalise subsidies, with Leakages
elimination. Reducing Revenue deficit/FD along with increase in Capital investment by Public which later to
be over taken by private sector
~Certain areas Like Railway operation ,Roads, railways to be financed through Public like Reits InviTs ,
Municipal infra long term bonds.
~Greater PSB autonomy, for greater decision risk based Vis a Vis private counterparts
Flaws ,Fissures and loopholes
~It is good to refashion PPP but increasing risk to already burdened Public sector in linear projects may not
give results
~ Cash transferred or Destabilising FCI [SK committee] may reduce the Nutrition level{NSSO report] also
such cash may be diverted for other need ultimately disadvantaging the poor As evident in RSBY.
~ Greater reliance on Private sector with significant reduction in social Sector scheme as evident in
Reductions in present Budget
~ Financial repression, Disinvestment [Selling the family silver] and Pressuring for greater dividend to PSUs
may cause less capital for Investment
In nutshell reliance on private, without thought to inclusive development, and Mere growth at cost of
Schemes Beneficial for Poor may end in Recipe for Disaster
[2]
Economy has been slowing down for the past two years. Overall business sentiment is subdued on account
of huge number of stalled projects-policy paralysis and high interest rates.
With the coming of reform-oriented government to power and slowing inflation sentiment has revived.
However private investment has not really picked up on the ground- capital rich companies are wary of still
subdued consumer spending and bad debt ridden banking sector is risk averse to advance loans
proactively. PPP model has also not achieved desired outcomes due to flawed risk-sharing arrangements

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among others. So to revive slowing economy immediately and generate employment government has
decided to increase public spending in the short term in infrastructure.
Budget 2015-16 has rightly postponed the target for reaching the goal of fiscal consolidation by one year.
Considering the huge capital requirements for infrastructure building, government spending should
become highly efficient through better targeting and streamlining of subsidies. Proper institutional
mechanisms therefore have to be created- employing JAM is a welcome step. Revenues are too generated
through reforming tax laws and eliminating exemptions that are arbitrary.
But real danger of this approach lies in cutting social sector spending as evident in budget estimates of
education or MGNREGA. Human development indicators are already poor in India- highest number of
stunted children in the world, home to 33 per cent of world's poor, high infant and maternal mortality
rates.
Reviving growth through public investment is necessary but should not be at the cost of social sector
spending.
5. Economic Survey 2014-15 argues that by eliminating the exemptions in the countervailing duties (CVD)
and special additional duties (SAD) levied on imports, India can revive its manufacturing sector and boost
Make in India campaign. Critically examine how. (200 Words)
Economic Survey 2014-15, Chapter 1
Answer:
In line with international norms, CVDwhich is equal to the taxes such as excise duty levied on locallyproduced goodscan be levied on all imported goods to neutralize any disadvantage to domestic industry.
But the government has over the years exempted certain products, from CVD and SAD, arguing that the
move is aimed at benefiting consumers.
CVD exemptions lead to an unfair competition between foreign and domestic products. If domestic
industry is to be boosted this needs to be done off with
1. Assumption: CVD exemptions on inputs will lower the cost for the manufacturers.
Criticism: It can be reclaimed as input credit tax. Hence do not provide any relief
2. Assumption: both CVD and excise exempted to create level playing field
Criticism: the domestic producers will not benefit as foreign goods are zero rated in the source country and
domestic producers also cannot claim input tax credit
3. Assumption: certain goods are exempted from CVD/SAD since there is no domestic production.
Criticism: many dont produce those domestically due to absence of a level playing field
The solution to this is applying a uniform GST with narrowed down exemptions. This would help as GST
would be applied on all imports.
The inverted duty structure followed in many cases like solar panels, rubber etc. under various FTAs should
be looked into and reviewed to protect the domestic industry
Hence India can effectively encourage domestic production and promote Make In India without
becoming protectionist and without violating norms of WTO or FTAs.

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6. The rate of growth of gross fixed capital formation in India now languishes around zero and stalling of
projects, a term synonymous with large economic undertakings in infrastructure, manufacturing,
mining, power, etc., is widely accepted to be a leading reason behind this decline. Critically analyse
causes behind stalling of projects and their impact on the Indian economy. (200 Words)
Economic Survey 2014-15, Volume 1: Chapter 4
Answer:
Stalled projects in India are about 7% of its GDP and it is directly affecting India's investment, which has
been much lower than its potential over the last few years.
Reasons behind the stalled investments are:
1. Unfavourable market conditions have been the main reason of stalling projects in manufacturing sector.
2. Air transport, roads, shipping is the other big contributor in staling projects in infrastructure projects.
3. Steel, cement, garments, food processing contribute in stalling of manufacturing projects.
4. Lack of promoter's interest affects the manufacturing projects.
5. Lack of non-environmental clearances and land acquisition affect Real estate and mining projects.
6. Government projects face lack of funds.
7. Lack of fuel (coal) and fuel supplies stall electricity projects.
8. Bankruptcy laws and assets restructuring - independent renegotiation committee need to be set up to
address these issues.
9. Slow revival rate of stalled projects.
10. Increasing non-performing assets of private banks.
11. Flaws in existing PPP model.
The stalled projects directly affect private and public banks and their future investments and growth,
making it a vicious cycle. Clearing the top 100 stalled projects will address 83% of problems by value. But till
these projects are cleared, public investment needs to fill the gap in short term (as private sector is the
most affected by stalled projects).
7. The Economic Survey 2014-15 has called for restructuring the public private partnership (PPP) model
of investment to boost the infrastructure projects in India. Critically examine the problems it has
identified in PPP model and the solutions it has suggested to restructure the model. (200 Words)
Economic Survey 2014-15, Volume 1: Chapter 4
Answer:
The Public-private partnership structure in India has proved to be flawed in that it has led to multiple
stalled projects and capital exposure of the government these projects. Since infrastructure is one area
which cannot see any development without the public and private enterprises joining hands, it is necessary
to identify the challenges and reform the model therein.
Problems in PPP
1) Existing contracts do not focus on service provision and only on the revenue benefits that a bidder
provides
2) Bidders almost always end up asking for a "viability grant" in situation where the collection is not
enough. Since these grants are typically disbursed during construction the government has no leverage in
the case of non-performance and can only resort to termination

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3) There are no ex-ante structures for renegotiation. If a bureaucrat restructures a project, there are no
rewards; instead it may lead to investigation for graft.
4) Failed projects lead neither to penalties nor investigation
5) Contracts are over-dependent on market wisdom and quoted prices are not confirmed as "logical prices
by government agencies
Reforms in PPP
1) It is better to continue combining construction and maintenance responsibilities to incentivise building
quality
2) Attract pension and insurance funds to decrease financing burden; these are a natural funding source for
long-term infrastructure projects.
3) Another option is the Least Present Value of Revenue (LPVR)
4) Burden sharing among different shareholders
5) Revenues from PPP to go into an escrow account
8. The problem of land acquisition needs to be recast as the problem of efficient use of land, including
the reclamation of unutilized land, the optimal alignment of complementary inputs, and the honest
discharge of social responsibility aided by technology. In the light of ongoing debate on land acquisition
and challenges therein, critically comment on the statement. (200 Words)
Livemint (How much land does a nation need?)
Answer:
Land acquisition, Usage of land to more productive sector is a vital issue for an economy. While pursuing
the same One must not forget the food Security needs and Food requirement of this Billion mouth as
indicated in the Swami Nathan Report on Agriculture. It [report] also observed that Although Land
acquisition is an issue but it is one among much other issue like environmental, market conditions, govt
policies etc.
Land Acquisition and past Experiences [Challenges]
1 only a third of land acquired for SEZ has been utilised, Cage also reported underutilisation. For Mining
Coal India utilised mere 25% of total land acquired
2 Rehabilitation and compensation to Displaced has been inadequate and leakages ridden .Social character
seem Missing
3 Unskilled workforce are among other issue, which has caused unequal pace of employment Vis a Vis
Growth/ new project
Way ahead
1 proper and efficient utilisation of land
2 Rehabilitation and Honest compensation through technological intervention in social schemes Like using
Jam trinity number, Postal banks[ 90% post office in rural] and Mobile Money
3 Skilling and partnering the local communities through employment can lessen the resistance and Ensure
welcoming of new projects

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One must note that trade off should not be between development Vis Displacement, But a trade-off
between New projects with Skilling proper utilisation and honest compensation.
9. Examine the salient features of National Telecom Policy 2012 and evaluate its performance in
meeting its objectives. (200 Words)
India 2015, Chapter 8, Communications and Information Technology
Answer:
Salient features of National Telecom Policy 2012 are1. Unified License- To achieve the objective of NTP-2012, to create one
nation-one license across services and service areas, DoT has issued guidelines on Unified License. In thata) Allocation of spectrum is de-linked from the license and has to be obtained separately via bidding
process.
b) Only one Unified License is required for the country.
c) ISP, Long distance calls, International calls are done separately
d) Single authorization for Unified License except ISP (B) n (C)
2. Spectrum Auction- The 900 and 1800 bands are reserved for GSM technology and 800 for use of CDMA
technology. The new policy seeks to liberalize spectrum. Further, spectrum would be de-linked from all
future licenses. The policy aims at making 300 MHz of additional spectrum available for mobile telecom
services by the year 2017 and another 200 MHz by 2020. Recently in spectrum auction fetched 1.10 lakh
crore has boosted this sector.
3. Govt/ has raised FDI limit for telecom sector from 74 to 100% in 2013, helps to boost the sector.
4. Implementation of voice over protocol (VoIP) is one of the policy directives of NTP 12 and Policy
mentions that Unique Identification (UID) will become an integral part of electronic authentication
framework. VoIP can be used for anonymous communication which poses a threat to security of the State
and same as UID, so these needs formal checks and maintain security.
5. Connectivity- Connect 2.5 lakh Gram Panchayats under project named National Optical Fibre Network;
executed by SPV namely Bharat Broadband Networks Limited (BBNL). The policy aims to increase rural teledensity from the current level of approximately 39% to 70% by 2017, and 100% by 2020. Idukki in Kerala
becomes Indias first district with high-speed rural broadband network.
6. Promotion of domestic industry: - The policy seeks to incentivise and give preference to domestic
telecom products in procurements that (i) have security implications for India; or (ii) are for the
governments own use.
It also seeks to establish a Telecom Finance Corporation to mobilise and channelize finances for telecom
projects.
NTP12 does not include any policy mandate for providing accessibility for person with disabilities. The
Policy should mandate implementation of systems that would enable better accessibility for persons with
disabilities in future.

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10. There are many schemes which government of India has introduced to provide electricity to all
villages as part of its rural development agenda. Critically analyse these schemes. (200 Words)
India 2015, Chapter 11, Energy
Answer:
Different schemes for rural electrification by GOI:
RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA,2005(by merging all ongoing schemes)
Goal:
Electrifying all villages and habitations as per new definition.
Providing access to electricity to all rural households
Providing electricity Connection to Below Poverty Line (BPL) families free of charge
The National Rural Electrification Policy, 2006
Goal:
access to electricity to all households by the year 2009,
quality and reliable power supply at reasonable rates,
minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012.
Remote Village Electrification Programme (By the Ministry of New and Renewable Energy)
Goal:
financial support for electrification of those remote un-electrified census villages and un-electrified
hamlets of electrified census villages where grid-extension is either not feasible or not cost effective and
are not covered under RGGV Yojana
Such villages are provided basic facilities for electricity / lighting through various renewable energy
sources. Small Hydro Power Generation systems, biomass gasification based electricity generation systems,
solar photovoltaic power plants, etc., in distributed power generation mode may be used depending upon
the availability of resources for generation of required electricity.
Village Energy Security programme
Goal:
to go beyond electrification by addressing the total energy requirements for cooking, electricity, and
motive provide access to electricity through renewables to households in remote villages and hamlets,
which are not likely to get covered through grid extension.
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Goal:
This scheme focuses on feeder separation (rural households & agricultural)
strengthening of sub-transmission & distribution infrastructure including metering at all levels in rural
areas.
providing round the clock power to rural households and adequate power to agricultural consumers.
The earlier scheme for rural electrification viz. RGGVY has been subsumed in the new scheme as its rural
electrification component.
Achievement:
under RGGVY As many as 96% of un-electrified villages have been electrified across the country as on May

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2014 and intensive electrification of 80% villages has been completed while free electricity connections
have been provided to 77% BPL households under the flagship programme, RGGVY of Government of India.
Failure:
The GOI missed the target to provide electricity to every household by 2009. The reason is delay in policy n
schemes implementation at every level.
Solution:
To overcome this weakness, under DDUGJY govt is planned to give grant portion.
Grant portion of the Scheme is 60% for other than special category States (up to 75% on achievement of
prescribed milestones) and 85% for special category States (up to 90% on achievement of prescribed
milestones).
The milestones for the additional grant are: timely completion of the scheme, reduction in AT&C losses as
per trajectory and upfront release of subsidy by State govt.
All North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand are
included in special category States.
11. Write a note on the objectives, key components and potential of newly proposed Sagar Mala project
of the union government. (200 Words)
The Hindu (Sagar Mala will boost GDP by 2 per cent)
Reference
Answer:
[1]
---On implementation of Sagar Mala initiative, India will be witness to a holistic development of ports for
the first time. As yet, the centre and the states have been pursuing port development haphazardly in their
own separate ways.
---The blueprint of the Sagar Mala projectan infrastructure-cum-policy initiative being readied by the
shipping ministryseeks to allow the central government to have a say in the development of non-major
ports without adopting a confrontationist approach with the state governments.
---A key element of the project is the setting up of some 10 coastal economic regions (CERs), which will be
the focal point for economic development along Indias vast coastline of over 7,000km.
---By linking major and non-major ports, industrial clusters and evacuation infrastructure into a single
system at a larger regional level, a CER will enable seamless and efficient movement of cargo through
gateways.
---Ports will thus be able to actively participate in driving the economic development of a wider region,
which is similar to the role large global ports are playing in their respective countries.
---The Sagar Mala project would be implemented by a company set up at the national level. Each CER will
be developed through a special purpose vehicle having equity participation from the state government
concerned and the company.
---Sagar Mala would not have come at a more opportune time for the central government-owned ports,
many of which are losing market share to non-major ports mainly due to regulatory reasons. Extending a
collaborative hand would help stem the rot and allow both set of ports to grow without eating into each
other.

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[2]

The prime objective of the Sagarmala project is to promote port-led direct and indirect development and to
provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively.
Therefore, the Sagarmala Project shall, inter alia, aim to develop access to new development regions with
intermodal solutions and promotion of the optimum modal split, enhanced connectivity with main
economic centres and beyond through expansion of rail, inland water, coastal and road services.
The Sagarmala initiative will address challenges by focusing on three pillars of development, namely (i)
Supporting and enabling Port-led Development through appropriate policy and institutional interventions
and providing for an institutional framework for ensuring inter-agency and ministries/departments/states
collaboration for integrated development, (ii) Port Infrastructure Enhancement, including modernization
and setting up of new ports, and (iii) Efficient Evacuation to and from hinterland
Presently, Indian ports handle more than 90 percent of Indias total EXIM trade volume. However, the
current proportion of merchandize trade in Gross Domestic Product (GDP) of India is only 42 percent,
whereas for some developed countries and regions in the world such as Germany and European Union, it is
75 percent and 70 percent respectively. Therefore, there is a great scope to increase the share of
merchandising trade in Indias GDP. Against a share of 9 percent of railways and 6 percent of roads in the
GDP the share of ports is only 1 percent. In addition high logistics costs make Indian exports uncompetitive.
Therefore Sagarmala project has been envisioned to provide ports and the shipping the rightful place in the
Indian economy and to enable port-led development.

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Investment models
1. The most recent union budget and the economic survey have pointed out that many big infrastructure
projects under PPP model are stalled thanks to variety of reasons. They suggest revisiting and revitalising
PPP model to complete stalled and new projects in a time-bound manner. In this regard, what
amendments have been proposed to PPP model? What challenges these amendments would face?
Examine. (200 Words)
Business Standard (Move forward on infrastructure, not back)
Answer:
[1]
With India aiming for double digit growth in coming years, infrastructure sector development was rightly
identified by budget for such growth. The PPP model, especially in infrastructure currently followed was
under stress due to structural reasons and budget offers following amendments to revitalise it.
1. Coming forward to take more risk in a PPP contract than the private partner to encourage private sector
to invest.
2. Willingness to renegotiate the already finalised PPP contracts through Independent Renegotiation
Committee as few PPP projects have become unviable due to delays in land acquisition, legal procedures,
environmental clearances etc.
3.On an encouraging note, to reduce the stress of NPA's on banks and thus a possible legal hassle for
players involved in long gestation infrastructure projects, government proposed to institute a National
Investment and Infrastructure Fund (NIIF) with an annual inflow of Rs 20,000 crore to finance infrastructure
projects.
4. A promise on new Bankruptcy law for early recognition of stress to refinance them and also enabling an
early exit for private players in case on unviability will increase the private sector confidence to partner in
PPP projects for infrastructure.
5. Decision to increase the capital expenditure of PSU's to develop infrastructure.
Challenges to these proposals:
1. Greater commitment to finance infrastructure may undermine fiscal credibility of government in short
and medium term.
2. Respecting Land Acquisition, environmental and other laws while continuing with fast paced
infrastructure growth is challenging.
3. Negotiation of contracts should not completely take-off risk and responsibility from private players.
[2]
India is looking to remove the hurdles in various sectors of our economy. With many PPP infrastructures
being stalled, government has decided to revisit and revitalise it. The major risk identified is rebalancing of
risk. GOI has said the sovereign will have to bear a major part of the risk without, of course, absorbing it
entirely.
A major push of public investment will be seen. For this purpose, the fiscal deficit target date of 3 percent is
postponed to 2017-18.
Setting up of a National Investment and Infrastructure Fund (NIIF): It will have an annual inflow of Rs
20,000 crore. The model will work through leveraging - the NIIF will raise debt and invest it as equity in

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infrastructure finance companies such as the Indian Railway Finance Corporation and National Housing
Bank, who, with a stronger equity base, in turn, will raise more debt to invest in infrastructure.
It also suggest a high-powered Independent Renegotiation Committee for deals gone sour, and a better
clean-up policy in the form of bankruptcy laws and guidelines for asset restructuring.
It endorses combining construction and maintenance responsibilities to incentivise building quality, and
recommends that states be allowed to experiment with concession agreements.
Challenges will be there with state pushed capital as it happened in the past. In the past money was spent
with political motivations in fixed areas like for railway in VIP constituencies rather than expanding
congested rail corridors with maximum freight and passenger needs.
Inefficiencies, delays and failures took years to come to public notice. Recently, regulatory reasons
accounting for the bulk of stalled infrastructure projects in the public sector came to the public notice
expeditiously.
But now there will be a mix of both and also this push by government is temporary and it cannot be
continued, so in future it will more benefits.
Implementing an efficient PPP model requires building up capacity to accurately specify service quality in
the contract, to distinguish between viable and unviable bids, and to respond to economic shocks or
unanticipated demand shortfall.
This will happen from learnings after doing some of the projects.
2. It is said that the proposal to transfer risk away from the private sector to the government under PPP
model essentially returns India to a pre-2000 model for investment. Examine the Pre-2000 model of
investment and why this model is despised by some economists. (200 Words)
[Linked with: changes in industrial policy and their effects on industrial growth]
Business Standard (PPP problems)
Answer:
PPP as a model for investment only started in India in 1997.Pre-2000 model of investments in India had
following characteristics:
1. Government /Public sector was the main risk bearer and guarantor in all projects of economic and social
importance .Public units were mainly used to build infrastructure because the private sector was far less
available or welcomed.
2. While private players cooperated in completing the projects, the government carried the maximum
responsibility for their quality, standard and maintenance and expected outcomes of the projects.
3. Projects choices were often saddled with politicization, populism and appeasements while their
economic viability and other aspects were not properly analysed.
4. Since, the government bore the risks, it used to pump huge capital on operation of completed projects,
eradicate their failures, their revival and improvement in quality building huge burden on exchequer.
5. Very rarely, private players who entered into contract to build projects were held liable for their failure,
delays and rising cost of their uses. They were guaranteed returns on the projects built by them. In case
they failed to collects their expected revenues, the government used to pay from its own exchequer to
compensate their deficit.
There are several detractors of such model. The main reasons being:
1.Projects viability was less cared.
2. When the state takes all the risks, there is little reason to think that right projects will be picked.
3. Such model of PPP leads to politicization and serves as an excuse for vast transfer of scarce resources to
the private sector in guise of guaranteed returns.

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4. Decreases inefficiencies and accountability; dampens quality and competitions; often escalates costs of
projects.

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Science and technology - developments and their applications and

effects in everyday life
1. What do you understand by Big Data? Discuss some of its applications. (200 Words)
The Hindu (Big Data is changing the way we look at food)
Answer:
Big data is a catchphrase used to denote a set if data, both structures and unstructured, so large that it is
not possible to analyse and process it by using conventional database management systems. Such a huge
surge in data has occurred due to burgeoning number of information capturing devices like mobiles,
cameras, sensors, etc. and a less increase in our storage capacity despite the latter being digital now. The
challenges associated with Big Data are storage, analysis, and processing, querying, management and
information privacy.
The use of such voluminous data can help us spot and understand new business trends, opinions, prevent
diseases, combat crimes, etc. and governments and business organizations are increasingly becoming
interested in more effective uses of big data. Consequently, the data management industry and analytics is
growing immensely.
Applications:
1.Government: Big data can be analysed for targeted delivery if schemes, maintain record of beneficiaries,
analyse the response of the electorate to policies; predict future trends and demands of population.
2. Businesses: Help to understand customers profile and needs, keep centralized data of sales, and
maintain individual history of each customer and deliver customized services.
3. Science and Technology: Research data can be captured at more depth and analysed in a better way. For
example: data at Large Hadron Collider for atomic research. In future we are moving to the Internet of
Things which will be based on machine-to-machine communication and each machine will have several
Gigabytes of data about itself and others for simulating processes.
4. In social surveys also, now we can capture a larger sample of population for evaluating trends and
undercurrents. For example a recent big data analysis has shown that Indian cuisines are mostly anchored
around spices and have dissimilar ingredients paired.
However, as data capturing devices flood the market, what is big data today might be very small tomorrow
and this has been the trend so far.
2. It is said that that AC supply for basic domestic and commercial power needs, rather than DC, is a
highly inefficient way of using energy in the present times. Explain why. Also examine if it is possible to
use DC supply to provide round the clock power using solar source. (200 Words)
Frontline (An end to power cuts)
Answer:
[1]
An AC supply is far more efficient than a DC supply because of following reasons:
1. An AC current can be transmitted over a long distance due to ease of changing voltage with the help of
transformer which can be used to magnify or lessen the voltage as desired .A DC voltage is difficult be
increased or decreased to a desired level using a transformer especially when a large voltage like the one
used in transmission is involved. It poses a great technological challenge.

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2.Power loss during transmission due to resistance of wires are compensated by using transformers at the
user end .In AC ,transformers are cheap and far more technologically simple than those in DC making it
practical for use in electric distribution and easily maintainable and corrected in case if malfunction
happens .
3.Converting DC power from one voltage to another required a large spinning rotary converter or motorgenerator set, which was difficult, expensive, inefficient, and required maintenance, whereas with AC the
voltage can be changed with simple and efficient transformers that have no moving parts and require little
or no maintenance.
Yes, it is possible to use DC supply to provide round the clock power using solar source. It can be achieved
by converting the DC voltage generated from the solar source to a grid -based AC voltage .The recent
finding by researchers at IITM is based on this very concept. DC power from solar panels has to be
converted to AC and synchronised with the grid and be reconverted to DC if required, to run the connected
appliances that need the DC current. So DC/AC and AC/DC conversion becomes necessary at different
stages even when we use solar DC power.
[2]
The standard method of transmission of current in India and across all countries is in AC and not DC
because of following reasons:
Transmission losses in AC is less compared to DC
AC can be transmitted over long distances through cheap Infrastructure
Feasibility of step-up and step-down of voltage in AC
But the transmission of energy in AC has its own disadvantages, like:
Majority of house hold appliances used in current generation works with DC current.
There is lot of power losses in conversion from AC to DC at various stages.
Losses in conversion even from the solar panels, where DC converted to AC then connected to main
supply and again reconverted DC at appliances end.
Batteries: Batteries store energy only in DC and supply DC. So energy loss happening here also from DC ->
AC and AC ->DC
So from above explanations, it can be inferred that the AC is inefficient way of using energy in present
times. Hence it is time for technological innovations to provide solution for using power in DC and
completely avoid the black-out in rural and urban India.

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Achievement of Indians in science and technology; indigenization of

technology and developing new technology
1. Critically discuss Indias policy on science and technology. (200 Words)
The Hindu (For a renaissance in Indian S&T)
Answer:
[1]
The evolution of scientific temper in the Nehruvian era is a great way to start the revolution in Science and
Technology for India. Establishment of Institutions likes DRDO, ICMR, and CSIR etc. have done a great
contribution shouldering the responsibility of growth in plank of Science and Tech in India. India's Policy on
Science and Technology was clear initially with Agriculture and Industry as emphasis during initial five year
plans. Later coordination with Soviet Union has led to the organized development of Nuclear and Space etc.
technologies.
India's policy on S&T has become blurred in recent years due to many problems like unethical practices in
promotions, lack of funds, no academics industry collaboration, plagiarism, brain drain, lack of political will
etc. Despite conducting successful missions like Chandrayaan, Mangalyaan, Agni V, Brahmos missiles etc.
there is a disconnect between the different departments and lack of vision for the overall science and
technology as a field of development. The organized way of development and clear vision coupled with
coordination among different ministries like agriculture, industry, science and tech itself and their
departments with states, research wings, policy making heads, academia etc. is a dire need for bringing
back the glory of Nehruvian era fulfilling the Directive principles of the Indian constitution with Scientific
Temper and a clear vision.
[2]
India's policy on science & technology:
-use ST for faster, sustainable and more inclusive growth.
-will position India among the top five global scientific powers by 2020
-release more research papers.
-Encourage private sector to invest in Research and Development.
-Achieve gender parity in S&T. (meaning bring more female scientists)
-Global cooperation, science diplomacy
-increase the spending in sci-tech-innovation to 2% in next five years.
Criticism
#resource crunch- India barely spends around 1% of its GDP in research, Development, innovation.
#on one hand, ST policy wants inclusive Development and social goods. But on the other hand, it says the
investment in R&D sector is very low and there is need to bring more investment from private sector.
Problem: When private sector invests in R&D, their aim is always profitability.
In this policy, Government says additional R&D investment will come from private sector, which indirectly
means the State not interested in R&D investment because they want to control fiscal deficit. But history
tells us that no country has developed without massive State investment in R&D.

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Awareness in the fields of IT, Space, Computers, Robotics,

Nanotechnology, Biotechnology and Issues related to intellectual
property rights
1. Write a note on different scientific theories on origin of life. Recent experiments by NASA suggest that
life might have evolved abiologically. Examine how. (200 Words)
Business Standard (The ABC of life on Earth)
Answer:
[1]
The Origin of life is one of the greatest unsolved questions in science. Over the years, many theories have
been put forwards regarding the origins of life.
1- Panspermia- this theory states life did not begin on earth but was brought from outside, maybe from
mars as some scientists have controversially suggested.
2- Electric spark theory- This theory states that lightning might have helped create the building blocks of
life.
3- Communal clay- This theory states that life evolved from clay, which helped concentrate organic
compounds together.
4- Deep sea vents some suggest that life might have started in deep sea vents, which spew hydrogen rich
molecules
5- Cold start it is said that the cold nature of the earth could have preserved key organic molecules in the
ocean from UV light. But recently, scientists at NASA discovered that neucleobases which form the basic
structure of DNA and RNA can be synthesised abiologically.
The scientists discovered that when water contain pyrimidine was frozen to extreme temperatures in
vacuum and was then exposed to UV radiation, it broke down to form Uracil, Cytosine and Thymine.
Scientists argue that since many amino acids and neucleobases can be created abiologically, key ingredients
for DNA, RNA and proteins can be synthesised the same way too.
[2]
There are several theories that try to explain the origin of life on the Earth. Some of them are:
1. Abiogenesis or biopoesis: It postulates that biological life arises from inorganic matter like amino acids
which serves as the building block of life through natural processes
2..Materialistic theory: According to this theory, origin of life on Earth is the result of slow and gradual
process of chemical evolution in which molecules like DNA, RNA and protein evolved over time into new
living things some 4 billion years ago.
3. Theory of Consecutive creation: it believes the Earth was struck by sudden, short lived violent events that
completely destroyed the existing one while creating life forms different from the previous ones.
4. Clay Theory: complex organic molecules gradually formed on the pre-existing inorganic replication
platform, silicate crystal solution.
5. Spontaneous generation: certain complex, living organisms are generated by decaying organic
substances and non-living matter

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6.Endosymbosis: It believes, certain organelles originated as free-living bacteria that were taken inside
another cell as endosymbionts. Mitochondria developed from proteobacteria and chloroplasts from
cyanobacteria. Multiple forms of bacteria entered into symbiotic relationship to form the eukaryotic cell.
The recent experiments by NASA suggest that life might have evolved from 'abiological process. It probably
confirms the theory of Abiogenesis which is based on similar assumption. In the research by NASA about
the origin of life, three of the five key bases found in DNA or RNA called nucleobases ,uracil (U), cytosine (C)
and thymine (T) have been generated abiologically from a chemical called Pyrimidine (a hexagonal ring
made of carbon and nitrogen and which is also found in meteorites in space) in vacuum at extreme cold
temperature of -257degree Celsius, similar to condition in space and then subjected to UV radiations which
finally breaks up into three components in forms of nucleobases U,C and T.
2. Fifteen years after it rose and went limp, the biotech sector, globally, as well as in India has seen a bull
run of sorts and India has become the worlds 12th biggest biotechnology economy having the second
highest number of USFDA-approved plants. Examine the factors responsible for this rise and also
examine if this run is sustainable in coming years. (200 Words)
[Linked with: GS1: Location factors]
Down to Earth (Will the boom last?)
Answer:
Biotechnology Sector has seen an unprecedented growth in the recent times. The phenomenon is seen not
only in India but also in US. Some of the factors which are responsible for the growth are as follows:
1) R&D and new compositions: There has been a surge seen in biotechnology R&D and new
composition formations in last 3 to4 years. For example last year Biocon has developed Alzumab for the
treatment of Psoriasis.
2) USFDA approvals: USFDA is approving new medicines at a much faster rate than they ever did, this is
been done with the ambition to control some of the deadly diseases.
3) Biosimilar: There has been a surge noticed in this area as well, its organic similar of the
inorganic medicines and it comes relatively cheaper.
4) Patents: A lots of patents are completing their 20 years of regime and henceforth the list of
generic manufacturer will increase.
5) Merger and Acquisitions: As generic manufacturers are seeing an increase in their list the
big MNCs are also trying to get into generic market by means of M&A. Last few years have seen an increase
in the M&A activities in Pharma sector.
6) International demands: USA healthcare programs need more and more generic medicines, generic
medicines constitute 75% of their market which is expected to rise further. Similarly, India is seeing a huge
demand from African countries.
Currently, the sector seems bullish, however there are a few concerns. A lot of new entrants have come to
make quick money in this sector, which would also run away faster in case the sector gets bearish, that can
make the Industry fragile. But, over all the good performance seems to continue in the coming years, as
additionally, Indian Government is also pushing up the health expenditure under National Health Policy.

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3. A woolly mammoth has been discovered in a very well preserved state. If scientists want to to
recreate a live mammoth at present, what possible technologies would they use to do so? Explain the
procedure. (200 Words)
The Hindu (Scientists close to recreating woolly mammoth)
Answer:
Mammoths are close relatives of Asian elephants, arising out of common ancestors that lived in colder
regions surrounding the poles around 2.5 to 5 million years ago; In last ice age mammoths died out possibly
because of climate change and/or human hunting.
Shrinking of polar permafrost cover caused by global warming has revealed many well intact "woolly
mammoth" carcasses in the last few years; by utilizing DNA obtained from cells of such carcasses scientists
are trying to recreate a live mammoth.
The possible ways are:
1. Cloning: look for a well intact carcass of woolly mammoth to find a cell containing nucleus with a
complete viable genome in it; by employ cloning techniques put that nucleus into an elephant embryo;
implant this embryo into a female elephant.
2. Crisp technique: preserved bodies could give scraps of mammoth's DNA which could be used to map
mammoth's genome; Using genome map as guide, to make stretches of DNA that would be put into an
Asian elephant embryo; continue this process with many separate pieces of mammoth DNA ultimately
completely replacing the DNA in elephant embryo with mammoth DNA; Thus we obtain an embryo with
mammoth genome in it; implant it in female elephant which would give birth to a mammoth.
4. What do you understand by agroecology? Why do some scientists advocate harnessing agroecology
for safe and sustainable agriculture? Examine. (200 Words)
The Hindu (Stop making us guinea pigs)
Answer:
Agro-ecology is concerned with maintenance of productive agriculture that sustains yields and optimizes
the use of local resources while minimizing the negative environmental and socio-economic impacts of
modern technologies in agriculture.
In a run to boost production, there has been an over reliance on technology & an utter neglect of local
environment & farm practices in the field of agriculture. The evidence & manifestation of which are:
1. increased usage of chemicals: in form of herbicides, pesticides in agriculture and hormones in fruit,
veggie & milk production has been linked to various types of cancers in human beings.
2. High yielding varieties: being used requires more water & nutrition; leading to depletion of resources &
degradation of environment (soil degraded due to fertilizers usage); making agriculture unsustainable.
3. GM crops: being promoted by MNCs will surely lead to loss of local varieties; causing an irreversible
damage to local biodiversity; wiping out of indigenous farm practices & local knowledge.

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4. socio-economic aspects: above farm inputs are too expensive particularly for small & marginal farmers;
go on to increase profit margins of MNCs at expense of local community; evident from increased instances
of suicide cases among farmers in India.
To establish agriculture as safe & sustainable activity, we should combine agricultural science with
traditional farm practices; re-establish agriculture as way of life that respects people, water, land & local
community.
5. Recently scientists have proposed that natural tunnels known as lava tubes could safely house
permanent bases on the Moon. Examine the rationale behind this proposal. (150 Words)
The Hindu (Lunar tunnels can house future human colonies, say scientists)
Answer:
Lava tubes are tunnels formed from the lava flow of volcanic eruptions. The edges of the lava cool as it
flows to form a pipe-like crust around the flowing river of lava. When the eruption ends and the lava flow
stops, the pipe drains leave behind a hollow tunnel.
The volcanic features are an important target for future human space exploration because they could
provide shelter from cosmic radiation, meteorite impacts and temperature extremes on the moon.
The researchers' suppositions about lunar lava tubes are based on the large, river-like grooves visible on
the moon's surface, are thought to have been caused by the flow of lava from ancient volcanoes. A lava
tube of 5000 metres wide would be large enough to house a colony bigger than the city of Sydney, or alike.
But, it is important that the costs of accessing the geological shelter not exceed the costs of a surface
shelter. There is a lot of discussion about whether it would be easy to access a lava tube or not on moon.
6. Write a critical note on cooperation between USA and Russia in Space exploration. Also examine if
straining relations between two countries have any bearing on their mutual cooperation in future space
missions. (200 Words)
The Hindu (U.S., Russia feud on Earth but keep the peace in space)
Answer:
USA and Russia being two poles in cold war era came near to each other in 1975 when they collaborated
their efforts to set up ISS. Such collaboration was needed to complete such behemoth task as none of them
when able to complete it by their own. Russians are pioneer in rocket engineering while USA pioneered in
communication, logistics, and robotics and life support system in space. Since last 40 years both are jointly
managing ISS at about 350 km in LEO above earth where they carry out research on gravity, life sciences,
space materials etc. As cold war progressed both of the nations compete each other in almost all fields of
human endeavours including space too, however once they realised that they are not self-sufficient so they
collaborated on ISS. In other fields of space exploration like deep space research, extra-terrestrial voyages,
satellite engineering etc. they are working independently and often compete each other. Tensions between
two nations are on rise since 2008 for various political issues like earlier Georgia crisis and latest one is
Ukraine crisis. The impact of these political tensions between two is not likely to be seen in their
collaboration in space as they complementary to each other. The space collaboration is remarkable event in
human history when two rivals collaborated to carry out such a great task of setting up ISS.

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7. Critically comment on the salient features of the Protection of Plant Varieties and Farmers Rights
(PPV&FR) Act of India 2001. (200 Words)
Economic and Political Weekly (Farmers' Rights to Seeds)
Answer:
There
is an understanding arising from the analysis of traditional livelihoods, that context-specific user groups are
rightfully entitled to the greatest degree of control of the said livelihood and its associated components. In
the context of the PPV&FR act of 2001, farming livelihood should then rightfully under control of farmers to
the control that there is a direct linkage between them and the markets: to produce, sell, market and
distribute. Given the volatility of traditional farming practices within developing economies across Asia, it is
imperative that where governments fail, user groups take precedence. An analysis of the features of the
PPV act would further clarify this position.
1) The Act theoretically recognizes the importance of farmers as contributors to the efforts of preserving
bio-diversity while sustaining them. The belief that farmers are not knowledgeable and incorrectly utilize
resources is only half the truth. The governments pressure on subsidies forces farmers many times to
adopt these measures. Couple this with bad credit histories, and farmers have no other option.
2) More importantly, the importance of indigenous rights and user groups are recognized. Although similar
in spirit to the previous point, the importance is that farmer groups and tribal communities more
importantly are kept informed about intellectual property rights which can only benefit the communities
further.
3) The registration of crop varieties is a further inclusion into economic mobility for these groups. Similar to
the practice of geo-tagging special breeds of basmati from states such as MP, registering certain products
would enable farmers to expand their markets, not only limited to India. The act would then allow them the
choice of breeding and sale, and transferring to other persons. Expanding with such a wide array of options
further empowers these communities.
The PPV act should mark a watershed in farmers rights as it allows them to ben more than just detached
producers with no direct impact on the end product. This act keeps them in them loop.

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Conservation, environmental pollution and degradation, environmental

impact assessment
1. It is said that India has a de facto Carbon Tax. Critically examine how this tax is imposed, what are its
objectives and if these objectives have been met. (200 Words)
Business Standard (Decoding the Budget's 'carbon tax')
Answer:
Carbon tax refers to levying of such taxes on the use of carbon emitting fossil fuels which discourages their
usage by increasing their cost-price. The De-Facto Carbon Tax referred in the Economic Survey is the high
excise duties, clean energy cess being levied on petroleum products like Petrol, Diesel and Coal Usage. The
basic objectives behind levying the carbon tax are,
1. Promoting cleaner sources of Energy by artificially inflating the price of fossil fuels to reduce
consumption.
2. Incentivises researchers to create more fuel efficient technologies.
3. Assigning economic value to carbon emissions will help in green accounting where adverse effect on
environment is factored into balance sheets and creates awareness amongst public.
Indias De-Facto tax i.e. it isnt explicitly stated to be Carbon Tax instead collected as Excise duties etc.
Considering the same India has one of the highest Carbon Taxes, $ 140 per tonne of CO2 for petrol, $64 per
tonne CO2 for Diesel though we lag on the tax levy on Coal usage.
The objective of discouraging and rationalizing fossil fuels consumption has been only partially successful.
The basic shortcomings are,
1. Unavailability of viable green technology or cleaner source of Energy to substitute Fossil Fuels.
2. Despite the Carbon-Tax fossil fuels remain cheaper than resources like-solar, wind energy
3. Coal based Thermal Plants fuel Indias power requirement (almost 60 %). Higher Cess could lead to spurt
in Inflation through high energy prices.
Where alternatives like Metro Trains and other efficient public transport have developed, Carbon Tax will
be more effective otherwise, long term environmental concerns be sacrificed for short term gains and
Carbon Tax ineffective.
2. Write a critical account on the measures taken by the government to conserve natural vegetation and
wildlife in India. (200 Words)
NCERT (Class VIII, Resources and Development, Chapter 2)
Answer:
---Conservation of natural resources has become a serious issue in todays world, which is being engulfed
by the forests of concrete day by day.
---A vast expanse of the worlds forest cover is being used by industrialists today to manufacture
commercial products, leaving little space for the wildlife to dwell upon, paving the path for their
endangered nature in the world.
---Several measures have been taken by our govt to counter the flow of deforestation and poaching, like:

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1. Wildlife Protection Act of 1972 and Forest Conservation act (1980) were passed for conservation of
wildlife and forests, while banning the poaching of lion, tigers, deer, elephants, etc.
2. Biosphere reserves, national parks and wildlife sanctuaries help in conserving the wildlife and protecting
them from human interference in habitat in a large extent.
3. To promote concept of sustainable development, environmental clearance has been put as a
requirement, to check the amount of industrialisation in the country.
4. India is also a member of CITES (Convention on International Trade in Endangered Species) which
prohibits the trade of animals and plants included in its list.
5. Biological Diversity Act, 2002 was passed, which primarily addresses access to genetic resources and
associated knowledge by foreign individuals.
6. At the CoP-11, India has launched the Hyderabad Pledge and announced that the Government will
allocate a sum of $50 million during Indias presidency of the CoP to the Convention on Biological Diversity
to strengthen the institutional mechanism for biodiversity conservation in India.
---Although such measures have been introduced and some commendable results have been achieved, the
implementation on ground level has not been up to the mark in majority of the areas, due to low level of
surveillance and local public support.
---The govt needs to put the issue of environment conservation on a priority issue, as the slowdown in
industrial growth can be recovered after a few years, but the loss of environment occurred can act as a
severe negative externality on the superficial development and cost our future generations dearly.
3. Recently it has been pointed out that India has moved from a carbon-subsidisation regime to the one
where carbon spewing is taxed i.e. the shift from a negative price to a positive price on carbon
emissions. Elaborate and examine advantages and disadvantages of this shift in policy on climate
change. (200 Words)
Business Standard (Carbon tax facts)
Answer:
[1]
He shift to carbon taxation combined with Indias ambitious solar power program suggests that India can
make substantial contributions to the forthcoming Paris negotiations on climate change
The advantages of this move include:
1. Help in Reduction of carbon emissions
2. Enable India to come out with a blueprint of "intended nationally determined contributions" (INDCs)
towards fighting global warming.
3. India can play a constructive role in the global negotiations, thereby changing its image from a game
spoiler to a facilitator
4. It can more forcefully put forward its plea for higher weighting to adaptation vis--vis mitigation in
climate action to reduce developing countries' vulnerability to climate change.
5. Push forward the need for adhering to the concept of CBDR in mitigating climate change
6. India can seek liberal financial and technological assistance for the developing countries to cope with
global warming
It will be important to maintain this carbon tax even when prices of petrol and diesel increase in the
international market. But certain disadvantages/drawbacks can be seen
1. The prices of these fuels are lower today and, so the signal to change consumption is weak and

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inadequate.
2. Will not lead to change in consumption behaviour unless supplemented with robust public infrastructure
3. Price of diesel remains lower than petrol, mainly because of differential levels of taxation. So it is not
enough to make a dent
4. It does not say that the excise duty collected on dirty fuel will be used to upgrade refinery technology
Though this can be seen as a progressive step, this tax must be used to help shift to less carbon-intensive
ways of production. A strong political will and partisanship approach will be able to mitigate the effect of
climate change due to carbon emissions.
[2]
Advantages:
-- It will force the industries to come up with environment friendly techniques.
-- Government wants to maintain a stable petrol price so as to NOT encourage the use of petroleum.
-- help in the reduction of carbon emission and hence countering the climate change problems which can.
-- Assigning a value to the carbon emission (through tax) will help in checking the carbon emissions in
future.
This imposition of carbon tax will encourage other developing countries that are vulnerable from adverse
effects of climate change to adopt a similar taxing strategy. Also it will give India global negotiation powers
by claiming that India is already doing more than its fair share to combat climate change.
Disadvantages:
-- India does not have enough technology to back up its energy requirement through renewable/clean
resources. Most of the power production requires coal. High taxes will certainly increase the production
cost of energy.
--Production may shift to countries with no or lower carbon taxes.
--Possibility of tax evasion. Higher taxes may encourage firms to hide carbon emissions.
--Higher tax wont significantly reduce the consumption unless there is a good supplement to it, but instead
add to the sufferings of common people.
4. It is said that fight against harmful emissions affects industrial growth which in turn affects economic
development. Critically discuss what strategies need to be adopted by countries to fight environmental
pollution without affecting economic development. Also comment, if it is worth to let economic growth
take a beating at the cost of measures taken to mitigate environmental pollution. (200 Words)
The Hindu (War on emissions rattles steel industry)
Answer:
The pressing need for economic development and growing environmental degradation has posed a
challenge to all policy makers. A middle path called sustainable development has emerged as the way
forward reconciling the two, not fully but mostly.

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Strategies need to be adopted:

Increasing focus on renewable energy moving away from fossil fuel- India lead the path by an ambitious
target of 175 GW by 2022.
Recycle, reuse and efficient use of natural resources
Environmental clusters like national parks, sanctuaries and biosphere reserve in line with industrial
cluster- compensates the negative effect on environment
Promoting community participation in decision making- take care of the development need as per local
requirement preventing unnecessary harm to environment
Emphasis on public transport, energy efficient techniques, waste treatment, reviving old traditional
techniques which are often in sync with nature
Laws protecting indiscriminate exploitation of environment
In the tag of wars between development and environment, tilting heavily in favour of one will harm both in
long run. Relentless focus on development disregarding environment will make it unsustainable and
resulting health and environmental cost will off-set all economic gains.
Similarly environmental fundamentalism will slow down much needed development to reduce poverty,
disease, malnutrition etc. Low generation of economic resources will impact the welfare of both people and
environment. Thus countries need to the tight rope walking balancing the two aiming for sustainable
development.
5. What do you understand by Black Carbon? Examine its impact on ecosystem. (200 Words)
Down to Earth (Short-lived pollutants: the other part of climate agenda)
Down to Earth (Black carbon's impact on ecosystems)
Answer:
Black Carbon or soot refers to the solid particle emitted during incomplete combustion of fossil fuels,
biofuels, and biomass. BC is the solid fraction of PM2.5 that strongly absorbs light and converts that energy
to heat.
Emissions of BC comes from mobile sources especially diesel vehicles, biomass burning (including wildfires),
residential heating and industry.
It has much shorter life span a few hours to 20 years than CO2 (lifespan of more than 100 years) but plays
a far greater role in global warming as it traps more heat. Because of its short lifetime in the atmosphere
the effects of BC are most important regionally, especially in South and East Asia. Other hotspots occur in
Mexico, Brazil, Peru, and parts of Africa.
IMPACT ON ECOSYSTEM:
1. Melting of snow and ice, by absorbing heat in the atmosphere and by reducing albedo (the Earth's ability
to reflect sunlight, when deposited on snow and ice)
2. Interference with cloud formation and changes in precipitation patterns.
3. Reduced agricultural production in some parts of the world.

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4. Soiling and damage of material

5. Global temperature change
6. Visibility impairment
7. Respiratory and cardiovascular diseases in human beings
Mitigating BC by using clean fuels, making emissions standards for industries and clean and efficient
household cooking solutions, especially in rural areas could prove effective in slowing down the planets
warming.
6. Recently, the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) issued guidelines
on access and benefit sharing (ABS) of biological resources. Examine the objective behind these
guidelines and their impact on traditional medicines manufacturing industry. (200 Words)
[Linked with: GS2: Government policies and interventions for development in various sectors]
Down to Earth (Bitter ABS medicine for AYUSH)
Answer:
There are many small and big players in the field of AYUSH medicines (AYUSH means Ayurveda, Yoga,
Unani, Siddha and Homeopathy) which have seen a growth in the last decade in their business but have not
shared a bit of the profit with the State Biodiversity Board (SBB) and National Biodiversity Board (NBB), in
spite of the provision for Access to Benefits (ABS) of biological resources clause in the Biodiversity Act,
2002. MoEF&CC recent guidelines on ABS would help the SBB and NBB to get their due share which runs in
thousands of crore. Thus, it would strengthen the financial position of the Government. However, the
traditional medicines
manufacturing industry are not happy over this guideline, as this would create a dent in their profit
margins. They are already suffering due to the vagueness in NTAC (Normally Traded as Commodities) list.
The NTAC list has also drawn criticism to the Governments from the environmental groups for exempting
much more plants than actually required. Thus, the guideline would help state generate more revenue,
control over use of rare plants, punish the offenders but it will also throw the small players out of business,
hence, can create a livelihood issue for many.
7. Critically highlight the hazards of indoor air pollution. Suggest what measures are needed to address
this issue. (200 Words)
Down to Earth (Almost half of worlds population exposed to indoor air pollution)
Answer:
Air pollution is a major concern in this rapidly industrialized world. Indoor air pollution out of that can be
easily controlled than controlling outdoor. Most of the indoor pollutants are released by using solid fuels
(wood, charcoal, coal, dung), kerosene lit lamps.
Fine particles and carbon monoxide are also damaging pollutants indoors.
Hazards:
1) Women and children are more susceptible to these. It can create serious health issues to women.
2) They cause many diseases like chronic obstructive lung disease, lung cancer, and cataract.
3) They can also cause high blood pressure and heart diseases.
4) They are responsible for more than a million deaths in the country every year.

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Measures:
1) We need to switch to clean fuel.
2) Government need to expand the reach of LPG so that it reaches to more and more rural areas.
3) Government can extend the subsidies to people in lower strata for LPG.
4) Government need to stop subsidies on kerosene, so that its use as fuel is discouraged.
4) People should make their homes with proper ventilation and airy.
Indoor air pollution can be stopped with few small measures if government and people themselves make
effort for it.
It will help in improving the health of women specially and will protect children from its harmful effects.
8. Many species of plants and animals are endangered in India. Explain why and evaluate if policies taken
by the government are effective in protecting these species. (200 Words)
NCERT (Class IX, Contemporary India, Chapter 5)
Answer:
India is one of the 17 mega biodiversity countries of the world and accounts for 7.8% of the recorded
species of the world. However, catering to the resource needs of its massive human population takes a hit
on its natural resources like forests, atmosphere and water bodies which in turn leads to loss of
biodiversity.
About a fifth of these species are now endangered and nearly one fourth of the species listed in the
Convention of International trade in endangered species (CITES) are found in India.
A substantial national system of natural reserves which started from nothing in 1956 has been built to
conserve these species and their environment. In spite of this system being under financed, overextended
and patchy in its coverage India has had some remarkable success stories in its conservation programme.
-The Tiger Project has led to an increase in the tiger population throughout the country
- The Gir Forests are now the last home of the Asiatic Lion- extinct elsewhere
- One horned rhinoceros finds a protected home in Assam and Bengal
-inbreeding programme for endangered species like crocodiles, turtles, vultures and the Indian Bustard
have ensured their survival
-The Forest Conservation Act 1980 was enacted to lessen the large-scale habitat destruction caused by
deforestation.
-An end to the alteration of first-growth forests into eucalyptus plantations, but it also swung the
importance from a commercially-centred forest management to the conservation-centred forest
management.
-Elephants have enjoyed an absolute protection since the promulgation of a Wild Elephant Protection Act
1879 and ban on the commercial trading of Asian elephants and one horned rhinos which involved the
export of ivory.
-Biospheres reserves for sustainable management of forest produce and protection of flora and fauna

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-Cultivation of endemic herbs and plants in botanical gardens; and seed banks to preserve indigenous
species.
There is always scope for adopting more effective policy measures to plug the gaps (continued poaching
and loss of habitat etc.) considering India can draw from its various success stories.
9. A recent study report has concluded that the Indian thermal power plants are way behind the global
best in terms of performance. Critically analyse the major issues with coal based thermal power plants
and what and why urgent actions are needed to improve their efficiency and performance. (200 Words)
[Linked with: Infrastructure energy]
Business Standard (Cleaning up power)
Answer:
Thermal Power Plant (TPP) generates 60% of Indias energy. It is huge amount and still growing to gap the
Indias energy deficit situation. It is a concern because of many reasons and all nations want to decrease
the non-renewable resource energy generation as it threatens the climate.
Some major issues with TPP and actions needed to improve performance and efficiencies are:
(1.) Indias TPP are based on old technologies of steam boilers and are lesser efficient. This leads to lesser
energy for same amount of coal. New technology machineries from developed nations need to be used in
TPP.
(2.) Indian TPP directly use coal mainly Lignite which emits lots of smoke and GHG, while in developed
nation, they first convert coal into coke or some intermediate process makes coal more efficient in energy
emitting.
(3.) Indias TPP doesnt burn Coal completely; instead go for efficient use of furnace fire by rejecting last
steps for burning. In better performed TPP, they have processes to change burning coal also; to use 80%
burnt coal in lighting up new coal and not generating heat for steam. Indian TPP rejects this Coal at last
stage and leads to heat pollution in water resources and Carbon Monoxide formation.
(4.) TPP produces vast amount of fly-ash because of low quality Indian coal, which has many harmful effect
and can create if get mixed to rivers or rainfall to slowly find way in Ocean. Initially Govt made rules to
make bricks only of Fly-ash and cement factory should use fly-ash, but these regulations are not followed
correctly. Govt must be strict on these. Already Million tonnes of fly-ash are accumulated with each TPP.
(5.) Coal handling in Indian mines is mostly manually and in open trucks and train freight, which get
exposed to moisture and reduces calorific values (proper measures to keep it dry and use of sunlight to dry
it).
Hence, cleaning up the TPP process is essential and required.

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10. In recent years, municipal corporations prefer scientific closure over bioremediation for garbage
recycling process. Examine why. (200 Words)
[Linked with: Science and Technology- developments and their applications and effects in everyday life]
The Hindu (Scientific handling of waste soon)
Answer:
Solid waste management in India has been a problem due to improper techniques and lack of a stringent
public policy in this regard. India has been fighting with these problems from open dumping, burning,
landfills etc. the recent techniques involve bioremediation, scientific closure etc. which have been seen to
be more efficient than the conventional techniques.
Bioremediation is a waste management technique that involves the use of organisms to remove or
neutralize pollutants from a contaminated site.
The main Problems with bio remediation:
1. It is very costly. ULBs are already starved of finances and this process adds to the financial burden leading
to improper handling of the solid waste.
2. It is possible the organic contaminants may not be broken down fully resulting in toxic by-products that
could be more mobile than the initial contamination.
3. If an ex-situ process is used, controlling volatile organic compounds (VOCs) may be difficult.
4. Problem of disposal after the process is complete
Scientific closure wherein, waste in each dump yard will be isolated in a smaller area and methane gas
generated from the mass will be tapped.
Scientific closure has many positive externalities:
The capture and combustion of methane gas will result in a substantial reduction of greenhouse
emissions and thus has the potential to earn carbon credits.
The carbon credit finance mechanism can catalyse environmentally sustainable and financially viable
closure of existing dumping sites
Ex: The Scientific Landfill Closure and Methane capture project at Gorai sets a benchmark in urban
rejuvenation.
Replicating of the models used in Mumbai and Chennai will benefit the municipalities in handling solid
waste along with the basic sort-at-generation site system. This will have positive externalities on the
human health, environment and economy at large
11. Examine the institutional mechanism that India has set up to conserve its wildlife. Do you think this
set-up has succeeded in conserving wildlife? Critically evaluate. (200 Words)
India 2015, Chapter 12, Environment
Answer:
Wildlife is a national resource that maintains ecological balance and is beneficial for economic, recreational
and aesthetic purposes.

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Government has enacted

1. The Biological Diversity Act-1972
2. The Wildlife Protection Act 1972
3. National Forest Policy 1988
4. National Wildlife Action Plan (2002-2016) is also in action.
Government strategies to conserve wildlife:
1. In-situ conservation: It emphasis protection of wildlife in original habitats. Managed by 381 protected
areas (biosphere reserves, National Parks, and wildlife sanctuaries), covering about 4.7 percent of the land
surface designated in this set-up.
2. Ex-situ conservation: If species are near to extinct or loss of habitat and breeding ground they are
maintain in artificial conditions like, botanical gardens, zoos, aquarium, parks, agricultural research centres.
3. Captive Breeding: The goal of most captive breeding programmes are for endangered species which
helps to maintain healthy age structure, reliably reproduction, preserving gene pool, and protection against
diseases. Ex: White Tiger, Garial, etc.
Due to illegal trade, various species are endangered. Above strategies and plans are working in distorted
fashion. Currently most of In-Situ conservation is facing challenges of Pollution, climate change,
deforestation and infrastructure development. While Ex-situ conservation is facing challenges of lack of
funds and experts.
Captive is quite successful and it should be encouraged by state governments.
There is several committees report like K. Kasturirangan committee for Western Ghats, etc. which need to
be rectifying by government/s and apply effectively.
Strategies of wildlife conservation need to be more pragmatic. There is need to amend laws and bring
stringent punishment for outlaws in woods who are mass-killers of this vital resource of nation.

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Disaster and disaster management

1. The UN Office for Disaster Risk Reduction (UNISDR), in a report, has said as much as US $314 billion
will have to be spent every year to meet annual average losses from just earthquakes, tsunamis, tropical
cyclones and river flooding. Critically discuss why its imperative for governments to invest in disaster
managements and risk reduction strategies and the cost of neglecting these measures. (200 Words)
Down to Earth (Natural disasters will soon cost the world $314 billion annually: UN)
Answer:
The Intergovernmental Panel on Climatic Change (IPCC) came to the conclusion that, worldwide the
frequency and magnitude of all types of natural disasters are on the rise. Disasters occur in India with grim
regularity causing enormous loss of life and property. Almost 85% of the country is vulnerable to single or
multiple disasters and about 57% of its area lies in high seismic zones. Approximately 40 million hectares of
the countrys land area is prone to flood, about 8% of the total land mass is vulnerable to cyclone and 68%
of the area is susceptible to drought.
The magnitude of loss of human lives and livelihood in our country due to such disasters is excessive by any
modern standard. In terms of erosion of resources, disasters have proved frightfully expensive. According
to a recent study by the World Bank, 2.25% of the GDP and 12.15% of the revenue of the country were lost
due to natural disasters. Globally, disasters have claimed over 1.3 million lives and costs the global
economy at least $2 trillion in the past 20 years.
Disaster risk is a consequence of hazard and vulnerability. Disaster risk can be reduced by forecasting
occurrence of hazards as accurately as possible and well in time, and preparing in advance for their onset
and even manipulating those natural hazards, which lend themselves to manipulation. It can also be
brought down by taking measures to reduce vulnerability.
2. Critically analyse how the Disaster Management Act, 2005, has performed in meeting its main
objectives since its enactment. (200 Words)
India 2015; Chapter 3 (The Polity)
Answer:
NDMA states its vision is to build a safer and disaster resilient India by developing a holistic, proactive,
multi-disaster and technology driven strategy for disaster management.
This vision was far from visible when the waters came cascading down the slopes in Uttarakhand, Flood
in J&K put role of NDMA under sharp scrutiny. The superb handling of the very severe cyclone Palin in
Odisha, increased optimism about NDMA has proved to be short lived.
NDMA problems: ineffective in core areas, ill equipped, ill prepared to handle a potential natural or
manmade disaster.
NDMA has not even prepared any national disaster management plan, any reliable communication
system.
No specific qualification is needed to become NDMA member, nor there any selection procedure.
Lack of co-ordination between ministries is also there in co-operating with NDMA.

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Absence of a disaster management plan at the national level have a trickle down effect on the states, as
they did not have a framework of reference to base their plan on.
The basic problem is the attitude of the people who think that disaster is all about rescue and not
preparedness. There needs to be a paradigm shift in thinking. NDMA needs more teeth.
3. Critically comment on the existing disaster response mechanism in India and critically examine the
role, objectives, structure and performance of the National Disaster Response Force (NDRF). (200 Words)
Frontline (Raw deal)
Answer:
The existing disaster response mechanism in India is as follows:
1.The new mechanism through National Disaster Management Act, 2005 has led to establishment of
disaster management institutions at the national, state and district levels as National Disaster Management
Authority (NDMA) headed by the Prime Minister, State Disaster Management Authorities (SDMAs) headed
by Chief Ministers, and District Disaster Management Authorities (DDMAs) headed by district
collectors/magistrates
2.A specialist response force called NDRF to tackle all types of disaster, including nuclear, biological and
chemical disasters.
3. National Crisis Management Committee that includes cabinet secretary and secretaries of other
departments that is in charge of dealing with crises and giving directions to the Crisis Management Group.
However, there are certain issues related to disaster response that has come out recently:
1. There are no provisions to make guidelines issued by the NDMA binding on state.
2. The National Disaster Mitigation Fund has not yet been established.
3. Communication systems for DM are not developed. Critical equipments have not been procured and the
satellite based communication network has not been developed.
NDRF: It is a disaster response agency under National Disaster Management Authority (NDMA) created by
the Ministry of Home Affairs, Government of India in 2009
Structure: It works at state and central-level under the National Disaster Management Authority (NDMA)
based in Delhi. At present, National Disaster Response Force consists of ten battalions, three each from the
BSF, CRPF and two each from CISF and ITBP. Each battalion will provide 18 self-contained specialist
searches and rescue teams of 45 personnel each including engineers, technicians, electricians, dog squads
and medical/paramedics.
Role and objectives:
1. To combat all natural disasters including radiological, nuclear, biological and chemical disasters.
2. To conduct search and rescue operations in the event of any natural catastrophe.
Critical issue:
The effectiveness of the National Disaster Response Force has been hampered because of shortage of
trained manpower and absence of appropriate training facilities, infrastructure and equipment. The
Standard Operating Procedures for deployment of the NDRF have not been finalised.

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Challenges to internal security through communication networks, role

of media and social networking sites in internal security challenges,
basics of cyber security; money-laundering and its prevention
1. The Reserve Bank of India (RBI) is likely to adopt a zero tolerance policy on Know Your Customer (KYC)
and Anti-Money Laundering (AML) norms. Examine what this zero tolerance policy entails and why there
is such strict policy against above mentioned violations by banks. (200 Words)
Business Standard (Zero tolerance policy on flouting KYC norms in the offing)
Answer:
RBI advises banks to follow certain customer identification procedures for opening of accounts and
monitoring suspicious transactions, to prevent banks from being used, intentionally or unintentionally, by
criminal elements for money laundering or terrorist financing activities.
Compliance to these Know Your Customer and Anti Money Laundering (AML) norms are likely to be more
stringent as RBI has announced to adopt a zero tolerance policy on flouting these. Zero tolerance policy has
the below implications:
1. 100% compliance required:
Even a single percent noncompliance will attract penalties. At present during inspection, RBI overlooks the
small violations by the banks which are 99% compliant with these norms.
2. More Restrictions:
Proposal to put operational curbs on banks; restrictions on branch expansion likely to be imposed.
3. Higher Monetary Penalties:
Monetary penalty likely to rise from the present level of Rs 5 lakh per violation. It may go up to 1 crore for a
single violation.
Reasons for adoption of zero tolerance policy:
1. To incorporate the Financial Action Task Force (FATF) Recommendations and Basel norms.
2. Combating money laundering and terrorism more efficiently.
3. BETTER RISK MANAGEMENT: KYC procedures enable banks to know/understand their customers and
their financial dealings better which in turn help them manage their risks prudently.
2. Critically comment on the intent and content of the Undisclosed Foreign Income and Assets
(Imposition of New Tax) Bill, which was recently cleared by the cabinet to introduce it in the Parliament.
(200 Words)
Business Standard (The wrong prongs)
Answer:
The Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill is aimed to monitor and check the
stashing of black money aboard .But there are some serious issues that are worth analysing as mentioned
below.

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1.The first issue is the mechanism that the bill proposes while dealing with tax evaders and trying to access
their evaded money after their identification:
Provision : The Bill gives a one-month long period for individuals to disclose their hidden money kept
abroad and such disclosures would allow them to escape prosecution after paying taxes and penalty.
Concern: While the government clarified that such provision is not like an amnesty or immunity scheme for
offenders but, this is likely to have a negative effect on the incentives of tax evaders. The tax evaders would
probably not abstain from evading the taxes as they know the worse that could happen would be that they
would be penalized for their tax evasion and not punished that too, only when they would be caught by tax
authorities. This would prove ineffective in dealing with the problem of tax evasion and weaken the real
intent of the bill.
2. The Second issue is the punishments being suggested under this bill for concealing income and assets.
Provision: Those who conceal income and assets could get ten years' rigorous imprisonment. They will not
be permitted, under law, to approach the Settlement Commission to resolve these disputes with the
taxman. Enforcement agencies will be empowered to confiscate assets in the course of their investigation.
Even the filing of returns with inadequate information could result in seven years' rigorous imprisonment.
Concern: These are very strong provisions. They place too much faith in the efficiency and probity of the tax
authorities. The word "inadequate" is too vague and could be entirely arbitrary and up to the personal
assessment of individual tax officers.
Thus, the new legislation is far short of dealing with the real issue of black money. It lacks strategy to check
the movement of black money across borders. A mere punishments through rigorous imprisonment is not
effective .It would be subjected to wide misuse and arbitrariness.
[Comments]
Suggestions: 1) avoiding cash in hand transection in both govt. as well as private sectors.
Can be achieved through promoting e-banking, e business, and DBT scheme; making easy and lucrative
schemes for more urban and rural participation.
2) Clearance of norms to public like punishments for both defaulter and public servant who provide short
cut, and there proper implementation.
3. Critically analyse the approach adopted by India to secure its Cyber Space. (200 Words)
India 2015, Chapter 8, Communications and Information Technology
Answer:
India's approach to cyber security is driven by national security and social harmony. India's cyber security
policy measures have been formulated on the basis of these two factors. However, India is considered a
sitting duck with respect to cyber vulnerability and its civil liberties protection regime.
Policy Measures:
-While India issued its National Cyber Security Policy in 2013, it has been severely criticised for its lack of
clarity and comprehensive objectives.
- The IT Act, 2000 also needs amendment and updating to accommodate e-commerce concerns. On the
social cohesion front it needs to be relooked with respect to civil liberties as well as incitement to violence
in the case of spreading mob violence (Dimapur lynching and Muzzafarnagar riots)
- There is also a need for an overarching cyber security law to deal with cybercrimes like cyber terrorism,
espionage and other forms of cyber warfare and security breaches.

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-Infrastructure like NETRA, CMS exist but what they do is unclear.

-India has also proposed a triservice cyber command for its armed forces and a National Cyber Coordination
centre of India which needs to be implemented on an urgent basis
-Companies Act 2013 has significantly increased the cyber security obligation of various company directors,
but other gaps need filling. There is a lack of defensive capabilities to protect its banks and ecommerce
transactions, financial institutes, biometric information etc.
-A Cyber Crisis Management Plan and an Email Policy have been declared but they are yet to be
implemented.
In spite of a large talent pool of IT and communication professional, India has not leveraged their expert
opinion in its policy measures which is evident in the vague generalisations in its legislation like the IT Act
and the Cyber Security Policy. There also a number of measures (some discussed above) that exist on paper
but have not been implemented.
India needs to step up on the cyber security front with active collaboration in bilateral (US, Israel etc.) and
multilateral forums (BRICS, Wassenar Convention etc.). But more importantly, for Digital India to amount to
something, it needs to build a robust policy framework by strengthening its cyber laws and infrastructure.
4. Critically examine the role of social media websites such as twitter in creating challenges to internal
security. Do you think blocking these sites is a solution if they pose security threat? Justify. (200 Words)
The Hindu (Twitter evolution)
Answer:
Social media websites in last few years have become so famous and are being used by millions of people
these days.
Twitter these days is being used for campaign which may be support or revolt and twitter is being used by
various government agencies to tell their policies, to send the message to a larger audience with in
seconds. Indian government agencies, leaders tweet on almost each and every topic and now any event
popularity is counted by the number of tweets it has received.
This is also creating some problems because this has become a medium of freedom of speech and
expression which sometimes is misused by people
and can be easily used for hate campaigns and by anti-social elements to disturb the harmony of society. So
governments face many times a dilemma where they need to request these social media companies to
delete some parts some times which are antinational.
There was a recent example of a person who was handling the twitter handler of ISIS from India and when
a foreign countries security agency found out this he was arrested, he was using it for support of their
campaign and to recruit people.
In this type of cases government and security agencies have to take some actions which are very much
necessary and recently while striking down sec 66A of IT act, SC upheld Section 69A and the blocking rules
framed under it. The blocking rules are distinct from online takedowns.
Also, Supreme Court said for online media rules should be different as this is a different medium. Totally
blocking these sites is not a solution in the contemporary world although some countries like China, turkey
follow it but for a country like India it is not good.
If government feels that something is anti-national then it can very well ask these social media companies
to take it down but it should not be a dissent, it should only in case where it poses the danger to harmony
and raises any anti national feeling.

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Security challenges and their management in border areas; linkages of

organized crime with terrorism
1. The United States with cooperation from other Western countries is increasingly depending on
eliminating top leadership of terrorist organisations as counter-strategy to fight terrorism and weaken
those organisations. Do you think this is a sound strategy? Critically analyse. (200 Words)
The Hindu (Targeting top terrorists is not enough)
Answer:
Terrorism is cancer to International peace and economics. U.S and her allies have always been in forefront
to tackle terrorism first-hand because of their economic interests and responsible position in international
foras.
The concept of Decapitation to eliminate terrorism by killing and effort fully targeting the members in
highest cadre of organisation was tried since the US invasion in Iraq and killing Al-Qaeda leaders. Though it
appears that such decapitation would lead to organisation collapse but in reality its not always. If only
target killing of leaders are sole purpose than it evokes mass emotions and raises the new recruitments.
Also, terrorist organisation may appear for some time to be dormant but its not as evident from 2007-08
USs mission in Iraq to finish Al-Qaeda top leaders and later part of 2012 again Al-Qaedas operation started
emerging also many old members joined ISIS. Terrorists also switch their organisation once there are left
leaderless.
Hence, we need to take following steps:
(1.) We need to understand what message terrorists like ISIS want to convey. They want new recruit from
social media, they want to send terror waves, glorify their beastly deeds to attract extremists thinking
people. Hence, govt should stop broadcasting their any act, disabling any content ISIS want to post in social
media and not giving any voice to them to interact with young minds.
(2.) Govt should equally focus on top leaders as well as mass training centres to eliminate future of
terrorism.
(3.) Images and graphics of decapitation should not be publicised. Also, making people aware that terrorism
is because of wrong interpretation of religious book and not the other way round.
Terrorism can be effectively eliminated only with long term prudent plan which should include: eliminating
terrorists->There social media presence-> preventing new recruits-> cutting off their economic channel ->
providing stable democracy in the region -> and then monitoring peace in the region with domestic govt
cooperation for at least 10 years period and then phasing out.

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2. India is yet to sign the Mine Ban Treaty which has been signed by eighty percent of the governments
worldwide. Critically examine why there is growing argument against the use of anti-personnel landmine
and why is India still reluctant to sign the treaty. (200 Words)
The Hindu (Its time for India to join the Mine Ban Treaty)
Answer:
Landmines have been extensively used by Indian army in borders areas especially along the LOC and
international border line.
All over the world there is a consensus not to use mines anymore and 80% of the world has signed the
treaty known as Mine Ban treaty.
There are many problems with Mines:
1) Indiscriminate: Landmine once is laid; dont know whether it is civilian or a combatant who is getting
killed. So many times our own soldiers, civilians are killed.
2) Long Lasting: Landmines remains even after the war is over or the fight is over so there is always a risk.
Also, after some time the extent and exact geographical area is not known to anyone who keeps the ear
alive.
3) Agricultural Land: Military has many times taken agricultural land which affects lakhs of peoples
livelihood.
4) Civilian Casualties: Apart from soldiers dying due to unknown mines but many civilians also die to due to
these mines and always fear is there in the minds of communities.
5) Infiltration: These mines have not stopped any infiltration or attacks on Indian cities.
Now with fencing and more security these mines have become burden and these should not be encouraged
anymore.
We need to rethink our policy of protecting our borders and save the lives of soldiers, civilians and
agricultural land. Most importantly we need to remove the fear among communities that are living in these
areas. Times of mines have gone and we need to join the world and sign this treaty.

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Various Security forces and agencies and their mandate

1. Write a note on the structure and mandate of Indo-Tibetan Border Police (ITBP). (150 Words)
The Hindu (ITBP to have women officers)
Answer:
ITBP is a multi-dimensional force. It is basically a mountain trained Force and most of the officers and men
are professionally trained mountaineers and Skiers. It was initially raised under CRPF Act, later in 1994
ITBPF Act was enacted and rules were framed.
It is headed by DG rank officer with ADG as assistant and other posts like IG, DIG to constables like police
force.
ITBP was the first to establish Regional Response Centres in HP, Uttarakhand, NE regions and carried out
numerous rescue and relief operations in various disaster situations took place in these areas since 1994.
Mandate and Tasks1. Vigil on NE borders, detection and prevention of border violations, and promotion of the sense of
security among the local populace
2. Check illegal immigration, Trans border smuggling and crimes
3. Security for sensitive installations, banks and protected persons
4. Restore and preserve order in any area in the event of disturbance.
They are stationed at forward border posts at altitudes from 9000-18000 feet. They are
called Himveers and provide security to VIPs in Delhi, deployed in UN Peace Keeping Force; they are
providing security to Embassy of India in Kabul, and Consulate General of India, Jalalabad, Khandar also.
"ITBP inspires men to put duty before self."

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