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Approach Answer: General Studies Mains Mock Test 700 (2015)
All the questions are compulsory and carry 12.5 marks each.
1.

How has the process of liberalisation, which has otherwise led to high economic growth, affected the
employment rate and the nature of employment in India?

Approach:

Briefly describe how the liberalisation has led to high economic growth in India.
Analyse the effect of liberalisation on the employment rate and the nature of employment in India
both in organised and unorganised sectors.
Bring out both positive and negative effects.

Answer:
The process of liberalization, which began in 1990s is seen as a milestone in the economic history of
India. Since the liberalization, the economic condition gradually started improving and today India is one
of the fastest growing economies in the world with an average yearly growth rate of around 6-7 per cent.
Theoretically, acceleration in GDP growth of a labour-abundant country characterised by the market
regime should push employment growth rate as well. However the impact of liberalisation on growth of
employment in India is not as per the expectations.
A comparative analysis of GDP growth rate and employment growth rate is given below:

It is clear from the above table that even though the liberalisation process has resulted in higher
economic growth, the growth in employment rate has declined.

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Discuss the importance of unorganised sector in the Indian economy. Examine the measures taken by
the government to overcome the challenges faced by the unorganized sector in the country.

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Even during the high economic growth phase of 2005-12, employment growth rate was just 0.4%
with the addition of just 13 million jobs. There has been continuous decline in employment elasticity
as well. It declined sharply from 0.3 during 2000-05 to 0.05 during 2005-12.
Most of the new jobs were located in the informal sector with low earnings and no social protection
resulting in casualization of jobs.
In the economy as a whole, the worker-population ratio declined in the 1990s for men and women in
rural and urban areas in most age groups in the range 5-59.
Amongst the young school participation has increased as child and youth labour have declined.
There is an across the-board improvement in the growth rate of labour productivity and wages and it
is estimated that average per capita earnings per annum increased.
However the liberalization process has mainly benefited the top 10 per cent of wage earners who
now make 12 times more than the bottom 10 per cent, up from a ratio of six in the 1990s.
As per the NSSO data, only 18% of working people have regular wage salary employment. Roughly
30% are casual labourers, dependent on daily or periodic renewal of job opportunities. The
remaining 52% are self-employed. Most of them are in agriculture, working as helpers in family
owned businesses without salary.
Employment share of public sector has gradually reduced as the public sector withdrew from many
areas. A healthy growth rate in employment has been registered in the private sector.
The liberalisation and globalisation process brought in more technological upgrades in manufacturing
sector which increased the mechanisation and reduced the employment.
In case of service sector, the employment growth has not matched the growth in GDP contribution.
The sector presently contributes nearly 55% of total GDP but has employed a mere 27%. The
problem of skill development enabling labour migration to services remains inadequately addressed.
The conditions of employment in unorganised sector have not improved. The middlemen and
employer continue to enjoy the benefits derived from their labour.
In the Index of Economic Freedom World Rankings for 2013, India was ranked 119th among 177
countries, putting India in the category of mostly unfree countries. The report clearly states that
although there is improvement in labour freedom, it is offset by declining scores in other areas.
Further, the report states that corruption is endemic throughout the economy and is becoming more
serious.

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Approach:

Answer:

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The answer should start with a general definition of unorganised sector. Statistical references are
required to highlight its importance- contribution to employment, GDP, exports and downstream
industries. Second part should begin with the challenges faced. The government initiatives mentioned
must be specific and in consonance with the challenges mentioned. Examining requires evaluation of the
potential of these initiatives against requirements. The answer should conclude with further steps
required. The answer has been kept long for greater understanding; the student should exercise
discretion in selecting for answer writing.

Unorganised sector constitutes a pivotal part of the Indian economy. Various estimates (National Account
Statistics, National Commission for Employment in Unorganised Sector, National Economic Census, etc.)
suggest that about 90 per cent of workforce outside agriculture and 50 per cent of GDP are accounted
for by this sector. Contribution to exports is also estimated around 40 per cent. According to NSSO, there
are about 57.7 million non-corporate business units outside construction sector, mostly unregistered and
self-employment units.

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A majority of these operate in the rural areas, where the government finds it difficult to provide nonfarm jobs. Also, a high proportion of socially and economically underprivileged sections of the society are
concentrated in the informal economic activities. NSSO survey says that two-thirds of enterprises in this
sector are owned by SCs, STs and OBCs.
The high growth witnessed in Indian economy in past two decades has been accompanied by increasing
informalisation. There are now greater interlinkages between formal and informal economic activities.
From providing finished goods for assembly line productions to e-waste collection and reprocessing, the
unorganised sector is now deeply intertwined with the formal economy.
However, there are major hurdles that this sector faces. Apart from definitional problems, there are
following challenges:

Access to finance- with most of the 57.7 million units unregistered, banks, perhaps rightly, do not
finance them. Lack of institutional credit means exploitation by usurious moneylenders.
Access to technology partly because of limited finance and partly due to inertia. This hampers
productivity and renders the enterprise uncompetitive.
Lack of skilled workforce
Managerial competence
Vulnerability of informal labour
Market uncertainty

Apart from these, lack of proper infrastructure poses greater difficulty due to the inability of unorganised
sector to access costly means of transport and logistics.

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Setting of MUDRA bank with a corpus of 20,000 Cr. and a credit guarantee fund of 3,000 Cr. It will
refinance the last mile financers - micro-finance institutions - which provide credit to the sector.
However this model carries a financial risk. Also, it requires millions of these private financial
intermediaries to be registered and integrated into the new architecture.
Skill India initiative for skilling of new entrants and existing labour force. However, the program is
still falling way short of desired target of 50 million skilled workers each year.
Social sector schemes such as Atal Pension Yojana aim to provide pension cover to workers in
unorganised sector. This will require mobilisation of almost 10cr. beneficiaries into the network.
Setting up of venture capital and technology upgradation fund and establishing a network of
technology centres around the country. Also, technology upgradation is being encouraged
through tax rebates.
Dedicated e-commerce portal with the help of National Small Scale Corporation has been
launched to provide wider market coverage.

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Various commissions such as NCEUS (National Commission for Employment in Unorganised Sector) have
deliberated on the definitional aspects as well as other challenges faced by the sector. However, lack of
proper data for this hugely diverse sector makes the diagnosis difficult and prescription even harder to
implement. Recognising the importance of this sector, the government has tried to address these
challenges. Some of the initiatives have been examined below:

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The government programs are ambitious in nature but their success depends upon implementation and
not just on targets. As such, it requires scaling up of execution. Jan Dhan accounts and AADHAR ids would
be instrumental in achieving the above targets. In future, skill development programs can be offered not
only for labours but also for entrepreneurs in a structural way such as at ITIs. Also, government would
have to invest in R&D for this sector, including analysing changing consumer tastes and marketing of
products.
Only recently has the potential of this sector been recognised and documented. For achieving a doubledigit growth of Indian economy, it is imperative that the unorganised sectors needs are met in a
sustainable manner and it moves gradually towards the formal economy.

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3.

"Labour reforms are often cited as the key to unlock the potential of Indian economy." In this context
discuss the importance of labour reforms in India. Enumerate the measures taken by the government
recently in this regard.

Approach:

Briefly elaborate the statement.

Discuss the need of labour reforms in India, the present issues and the benefits arising out of labour
reforms.
Bring out the various measures taken by the government recently with regard to labour reforms in
India.

Answer:
The real development of any country depends on the productive activities of labour force. With one of
the largest labour force in the world, India has a great potential for growth and development. However
due to many inherent issues and challenges, India has failed to reap the true potential of its labour force.
The need of labour reforms in India can be explained as:

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Indias labour force was estimated to be about 490 million, or 40 % of the population, but 93 % of
this force was in the unorganised sector. These workers are most likely to be not covered by most
labour laws.
The primary policy challenge is to increase the employability of our labour force. And to shift labour
from agricultural to non-agricultural jobs (where there is a projected need for 120 million skilled
hands), along with social security measures.
The law on minimum wages and its implementation urgently needs reforms. There is no definition of
minimum wages in the law. The penalties prescribed for violations of this law are absurdly low.
Minimum wage boards are not re-constituted in time and minimum wages are revised after a
considerable time lag.
Labour flexibility measures, especially in respect of hire and fire and contract labour, have caused
industrial unrest and violence at many locations.
The Trade Unions Act, 1926, merely provides for voluntary registration of trade unions and not for
recognition of trade unions, which is more relevant for collective bargaining.
The introduction of self-certification in some states and sectors, relaxation in inspections in several
states, high person-power deficits and multiple tasks of inspectorates in the labour department have
weakened the inspection regime. Labour inspections and conviction rates have significantly declined
in the post-reform period.
Due to the inadequate number of judicial bodies and judicial officers, there are delays in
dispensation of justice. These are costly not only for the workers but also for the employers.

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The Industrial Disputes Act (IDA) requires firms employing more than 100 workers to seek permission
from their respective state governments in order to retrench or lay off workers.
Restrictive labour regulations make labour adjustments by firms very difficult and lead to rigidities in
the Indian labour market. Since these laws apply to registered firms above a certain threshold of
employment size they encourage firms to stay informal and small.
The industrial relations is a concurrent subject and the state governments have been able to make
their own amendments to the IDA. Also the implementation of labour laws lies with the states. This
has resulted in variation in labour-market rigidity across states.
Restrictive regulations raise effective labour costs and constrain the scale of production as the laws
apply to firms above a certain threshold level of employment. This prevents firms from reaping
economies of scale and being competitive in the world market.

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From the perspective of market, India has a multitude of restrictive labour laws and these have been
found to adversely affect economic performance of manufacturing firms.

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These laws also discourage firms from employing a large number of permanent workers, and hence
they tend to employ more casual or contract workers, who have limited incentive to learn on the job
and acquire firm-specific skills.

Some of the important measures taken by the government recently with regard to labour reforms in
India are:

Pandit Deendayal Upadhyay Shramev Jayate Karyakram: The programme seeks to improve
employability, skill development and other conveniences for labour. The five components of the
programme are:
A dedicated Shram Suvidha Portal
An all-new Random Inspection Scheme
Universal Account Number
Apprentice Protsahan Yojana
Revamped Rashtriya Swasthya Bima Yojana
The recently passed Apprentices (Amendment) Bill, 2014 makes various changes to the Apprentices
Act 1961 to make apprenticeship more responsive to youth and industry. The bill seeks to provide
apprenticeship training to non- engineering graduates and diploma holders, and new trades,
including IT-enabled services, would be included in the scheme, allowing more employers to
participate in training and employment of such workers.
The Factories (Amendment) Bill, 2014 aims to bring several changes in provisions of overtime, better
working conditions, overnight work for women, adequate safeguard and transport facilities.
The labour ministry has recently proposed changes to the Industrial Disputes Act, 1947, for easier
retrenchment of workers in the National Investment and Manufacturing Zones (NIMZs).

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What are Offshore Rupee Bonds? Giving examples, discuss their benefits with regards to mobilisation
of resources for domestic sector. Also, comment on their role in internationalisation of Indian Rupee.

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Even though many reforms have been made with respect to welfare of labour, very few measures have
been taken to liberalise the labour laws in India. The pending second generation labour reforms should
ensure reforms in both the aspects i.e. benefiting labour as well as the investors.

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Approach:

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The definition should clearly explain the meaning of all the three terms Offshore, Rupee and bonds.
Giving examples of IFC (Masala bonds), or Railway finance corp. bonds, benefits such as alternate and
cheaper source of finance, increasing foreign investor base, hedging, etc. can be provided.
Internationalisation through greater offshore trading should be mentioned. The role of retaining investor
confidence must be emphasised.

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Offshore Rupee Bonds (ORBs) are debt instruments offered in capital markets outside India and are
denominated in Indian rupees (meaning that the principal amount is linked to exchange rate of rupee).
They are offered and settled in dollars to raise Indian rupees from international investors. The issuer
converts bond proceeds from dollars into rupees in the domestic (Indian) market and uses them to
finance its requirements in India. As such, the currency risk in these bonds resides with the investor. The
investor base in these bonds is much wider than the FIIs, which invest in the Indian markets.
ORBs have been issued in past by the International Finance Corporation (IFC) with a maturity upto seven
years. The latest issue is called Masala Bonds which have a maturity of 10 years and are the first ORBs
to be listed on London Stock Exchange. They are named so because masala is a globally recognised term
that invokes culture and cuisine of India. Similar bonds are proposed to be offered by Indian Railway

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Finance Corporation and Asian Development bank. Reserve Bank of India has also allowed Indian
corporates to issue ORBs. There are several benefits of ORBs, such as

Bringing liquidity and depth to offshore rupee market

Crowding in foreign investors to invest in rupee bonds and fund domestic investment
Paving the way for an alternative source of funding for Indian Companies
As currency risk is borne by the investor, the cost of borrowing as compared to External
Commercial Borrowings (ECBs) comes down for the investor as there is no need for hedging.
The cost of borrowing has also been lesser than government bonds in domestic markets.

It has been estimated that domestic corporates are likely to raise $30 billion in ECBs this fiscal year,
while their Offshore Bond issues are likely to be $6 billion. In the next fiscal year, the bond issuances are
likely to be $12 billion, but the quantum of ECBs will remain stagnant at $30 billion. However, the cost of
funds for Indian companies will significantly depend on their ratings, which will be lesser than AAA rated
Masala bond.
Internationalisation of the currency has two essential features:

A state where exporters from other countries (such as Oil companies in Saudi Arabia) agree to
take payments in rupees, and
Where currency risks in international borrowings are borne by lenders rather than borrowers in
India.

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At the heart of internationalisation lies stability and confidence in the currency which makes it
acceptable for cross-border transactions. Internationalisation is desired because countries that can
borrow in their own currency are less susceptible to international crises. Please note that
internationalisation is different from capital account convertibility, which means that domestic and
foreign assets can be freely exchanged.

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Despite being an efficient and cheap means of transport, railway has consistently lost its share of
freight to road transport. Enumerate the reasons for the same. How far can the high-speed freight
corridor help in addressing this issue?

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ORBs are a significant step towards internationalisation of rupee - they are international borrowings with
currency risk at lenders' side. The Masala bonds were well received by foreign investors, notwithstanding
the fact that rupee is still not fully convertible. ORBs are launch pad to sell strength of rupee to overseas
investors as listing on foreign bourses will provide visibility and set benchmarks for yields in future
issuances. Views on rupee will now be partially formed offshore, albeit in a very small way as ORBs will
be subject to caps on external commercial borrowings. They could also increase demands for similar
products as liquidity of these bonds rises. This also shows the confidence of international investors in
Indian economy and rupee. This will require the government and the central bank to impart stability and
confidence in the rupee internationally. Critical elements such as fiscal policy, current account balances
and inflation have to be benchmarked to best standards to retain investor confidence in rupee. Putting
these elements on a firm footing will be essential requirement for rupee internationalisation.

Approach:
Enumeration of factors, behind the declining share of railways, like price differentials, investment in
roads as compared to railways, last mile connectivity, etc. is required. In the second part the benefits of
Dedicated Freight Corridor (DFC) should be linked to regaining the share of railways in freight- the gap
between existing capacity and requirements can be utilised to highlight the same. The candidate must

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not fall for undermining roadways for railways. An integrated approach, mentioning the
complementarities of the two should form the conclusion.
Answer:

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The Indian railways market share in freight movement, which was once 90 percent has now come down
to nearly 30 percent. With most of the freight traffic being lost to roads, this has affected railways
finances and its ability to invest in infrastructure.

The major reasons for declining share are:

Lack of capacity. Most of the freight traffic is carried between metro cities. The railway lines in these
routes are already over-utilised, leading to shift of freight to roads.

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Lack of investment in infrastructure. The major source of revenue for railways is budgetary allocation
generated through cross-subsidisation of passenger traffic. Lack of investment from other sources
like bonds and private institutions has compromised the ability of railways to invest further. On the
other hand, private participation through PPP mode has been an important factor to develop
Highways along major production centres.
Service Delivery - Effective Freight rates, Speed and Frequency. Even though railways costs are
cheaper on per kilometre basis, the additional costs incurred due to slow movement and delays add
to overall costs. The average speed of a goods train has come down to about 25Km/hr. The road
sector on the other hand is competitive and offers better services and service quality.
Last mile connectivity provided by roads is not possible for railways which are linear and point-topoint.
According to a study by RITES, Indian railways discontinued the small and wagonload traffic in 1980s
in order to concentrate on end-to-end transport of single commodity trainloads. While this resulted
in significant growth of freight traffic by rail, the share of road transport in total freight traffic started
increasing at a faster rate. This is reflected in steep drop of railway share in 90s.

Assuming an economic growth of 7-9 percent, freight traffic is expected to grow 6-7 times and passenger
traffic about 15-16 times over the next two decades (according to Report of National Transport
Development Policy Committee, 2014). As such, investments in High speed freight corridors are
necessary to realise this potential. Currently, the government is developing two dedicated freight
corridors (DFC) the Eastern and Western DFC. Overall the government plans to develop six high
capacity, high-speed corridors along the Golden Quadrilateral and its diagonals. It can address some of
the above constraints in the following manner:It requires huge investment in capacity building - it has been estimated that with the establishment
of DFC, 55-70 percent of the existing freight traffic of the Indian Railways will move to it.
This decongestion will lead to easier and speedier movement of goods and passengers. The creation
of additional capacity is expected to guarantee efficient, reliable, safe and economical options for
carriage of goods to its customers, helping the railways to regain some of its lost share.
Also, the DFC will provide non-discriminatory access to qualified private operators, unlike CONCOR
(Container Corporation of India), which was accused of discrimination such as prohibition of
transport of ores and minerals by private operators.
Simultaneously, new passenger trains can then be added to the Indian Railways network without
affecting movement of goods.

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Food processing industry needs a fillip in the form of better logistics, access to credit, technology
indigenisation and implementation of food safety laws. Discuss.

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Overall, the road and rail network must complement each other. The high speed freight corridors will
only be linear projects running through proposed industrial regions and connecting major production
and consumption centres to ports. They will be serviced by feeder roads, railways and waterways, which
will provide hinterland connectivity. Seamless integration of modes of transport at network hubs will be
a challenge to ensure fast movement. Therefore, an integrated development of all means of transport is
necessary to realise the potential economic growth.

Approach:

Briefly introduce the potential of food processing industry in India.

Explain the need for the development of better logistics, access to credit, technology indigenisation
and implementation of food safety laws in order to exploit the complete potential of food processing
industry.
The given issues can be discussed under separate headings along with the suggestions.

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Answer:
Food and food products are the biggest consumption category in India, with spending on food
accounting for nearly 21% of Indias GDP. But the overall processing level is just 10% in India whereas it
has reached nearly 80% in some developed countries. Its share in exports of processed food in world
trade is just 1.5%.
Some of the major constraints to food processing industry are: inadequate logistics, access to credit,
technology indigenisation and implementation of food safety laws.
Need for better logistics

The national highways are highly strained by low capacity and high traffic volumes, leading to delays
in transit.
Rail freight network suffers due to lack of last mile connectivity, inefficiency, low availability of
wagons, lack of private participation etc.
The dependence on manual labour and low technology usage affects turnaround times at ports,
including cost.
There is an urgent need to develop dedicated freight corridors in rail, supplemented by concretised
dual carriageways for the State and national highways.
There is a need to support development of organised strategic logistics hubs and incentivise
operators in setting up end-to-end logistics and warehousing.

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Access to credit
The Government should establish a national bank, on the lines of NABARD, or extend the scope of
NABARD, to lend credit to food processing industries.
This will ensure speedy disbursal of funds to the food processing sector, which is always grappling
with the issue of lack of access to credit from banks.
State governments should play a catalytic role in partnership with banks, financial institutions,
technical and management institutions and farmers groups, so that small and unorganised players
become globally competitive.

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Technology Indigenisation
Most R&D institutions have not been able to develop innovative products, processes and machinery
of a global stature. The key reasons for this are segregation of academics from applied research,
inadequate industry interface, low commercial orientation and lack of collaborative efforts with
global peers.
Technology is still being imported for the establishment of large-scale, exported-oriented units for
production of items such as even banana paste, concentrates of various fruit juices, sorting, cleaning,
washing, waxing and packaging of raw fruits and vegetables.
In order to achieve global standards and self-sufficiency there is an urgent need for technology
indigenisation in food processing industry.

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Implementation of Food Safety Laws

The Government should ensure enforcement of the Food Safety and Standards Act (FSSA) in spirit,
including increasing radically the number of trained inspectors and state-of-the-art lab facilities.
Given the objective of the FSSA and the mandated transparency, it is important that: food
authorities, scientific panels and scientific committees must be given defined tasks with specified
objective of rule-making; public and industry participation at an early date.
In order to increase the exports of processed foods, there is a need for enforcing strict safety
standards as per the global requirements. There have been many incidents of rejection of Indian
food products due to safety concerns.
The National Mission on Food Processing is an important initiative of the government, which aims to
overcome the above constraints and reap the potential of food processing sector in India.

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7.

Agricultural marketing in India is the weakest link in the agricultural economy. In this context discuss
the problems of agricultural marketing in India. How far can setting up of national markets help in
addressing these problems?

Approach:
The answer should start with a very brief introduction of agricultural marketing. The next part should
discuss the major problems besetting the agricultural marketing. The answer should also discuss the
possible advantages of setting up a national market. The answer should end with the challenges to
setting up such a market.
Answer:
Agricultural marketing involves many operations and processes through which the food and raw
materials move from the cultivated farm to the final consume. Agriculture provides goods for
consumption and exports and manufacturing sectors. The suitable marketing system can be instrumental
to give proper reward or return to the efforts of the tiller of the soil. However, presently in Indian
agricultural economy, agricultural marketing is the weakest link due to the following reasons:

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There is no organized and regulated marketing national system for marketing the agricultural
produce. Farmers have to face many hardships and overcome several hurdles to get a fair and just
price.
Presence of multiple channels of procurement and distribution eat away the pockets of both farmers
and consumers.
At present there is no free flowing to agricultural produce across states. For example, different states
have different tax structure, ranging from 5 percent to 14 percent, which they levy in APMC mandis.
This leads to price variation and thus hampers trade across states.
The exploitative nature of APMCs regulation, which force the farmers to sell their produce at the
sub-optimal price levels. The provision of APMCs empowers the state to impose the mandi fee on
buyers even if the trade is done outside of market without utilizing any infrastructure of the
committee.
Other problems include- the inadequate storage facility of food grains, improper transportation,
problems of packaging facility and cold storage facility etc.

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Creating a national market would do away the trade barriers, and thus there would easy flow of
produce across the states. Removing market distortions will create greater competition in markets,
promote efficiency, growth.
National market, if created, would lead to the creation of much needed infrastructural facilities, like
storage and transportation facilities which are the big hurdles in the present scenario.
It would override the APMCs committees thereby their exploitative regulations.
It may prune down the unnecessary intermediaries, thereby increasing efficiency, and ensuring fair
price both to the producers and the consumers.

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Thus, the 2013-14 Economic Survey calls for creation of a national common agriculture market by
removing restrictions and bottlenecks for free trade. It further said that the country was in an anomalous
situation of being largely self-sufficient in foodgrains, yet registering high food inflation. This may due to
the plethora of interventions by the government, which actually served as barriers to trade. Such a
market can address the above challenges in the following ways:

However, agriculture is a State subject and thus all the States have set up Agricultural Produce Marketing
Committees (APMC) to regulate the marketing of agricultural commodities. To implement this initiative,
consensus among the states and the center is necessary. In fact, the 2015-16 Budget has proposed the
setting up of a national agriculture market if the states themselves do not reform their agricultural
markets (APMCs).

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8.

Animal rearing is a key livelihood and risk mitigation strategy for tribals and small and marginal
farmers, particularly across the rainfed regions of India. Substantiate. Also, discuss some strategies to
realize the potential of this sector.

Approach:

Briefly discuss the scope of the sector.

Bring out its significance for tribals and small and marginal farmers.
Discuss steps that need to be taken to realize the potential of the sector.

Answer:
Livestock have been an integral component of Indias agricultural and rural economy. Livestock
contribute over 1/4th to the agricultural GDP and about 5% of the countrys GDP and engage about 9% of
the agricultural labor force. The livestock sector has been growing faster than crop sector.
Its growth has special significance for small and marginal farmers, landless laborers and tribals and
farmers in rain-fed areas as they are more dependent on livestock for supplementing incomes and
generating gainful employment. To elaborate:

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In India, livestock wealth is much more equitably distributed than wealth associated with land.
About 70 per cent of the livestock market in India is owned by 67 per cent of the small and marginal
farmers and by the landless. Thus, growth of the livestock sector would reduce poverty more than
growth of the crops sector.
Distribution patterns of income and employment show that rural poverty is less in states where
livestock accounts for a sizeable share of agricultural income as well as employment.
The small ruminants and poultry livestock provide livelihood support to the poor underprivileged
landless, and marginal farm households as there upkeep cost is low and are source of milk, eggs and
meat.
Rain-fed regions face uncertain and erratic weather conditions which negatively impact crop
productivity and wage labor in the agriculture sector. Animals are natural capital, which can be easily
reproduced to act as a living bank with offspring as interest, and an insurance against income shocks
of crop failure, natural calamities and climate change.
Tribals have community controlled lands which provide them large pastures for their animals.
Moreover tribals are still engaged in subsistence agriculture. Thus, livestock is a good source of
income and support to them.

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Livestock producers, including traditional pastoralists and smallholders, are both victims of natural
resource degradation and contributors to it. Corrective action related to environmental protection,
ecosystem services, community led interventions and through incentives for private investment
should be taken.
Improving livestock-related technologies for livestock feed, breeding, processing, technical
manpower and infrastructure.
Frequent outbreak of diseases and poor productivity should be tackled with improved focus on
animal health and outreach of veterinary services.
Development of a better paying markets for livestock and commercialization of livestock.
Livestock sector did not receive the policy and financial attention commensurate to its contribution.
Systematic implementation of loans and insurance schemes particularly in remote areas is needed.

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In the light of immense potential of the sector in providing inclusive economic growth to the rural folks,
government has come up with several projects. Yet, the sector has shown a decline in recent years.
Following steps can be taken to improve the potential of the sector:

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9.

What is precision farming? How does it help in soil fertility management? Given its high costs, suggest
some measures to make it economically viable in India.

Approach:
Clear definition of precision farming should be provided it essentially involves GPS/ Satellite systems for
monitoring etc. It should not be confused with other techniques of increasing farm production like
chemical control, fertilizer, irrigation techniques, etc. Soil management should highlight testing for
chemical composition, water availability, colour codes (use of Soil Health Cards), etc. For viability, private
leasing of services, cooperative farming, government subsidies, etc. can be examined.
Answer:
Precision farming is a crop management technique based on observing, measuring and responding to
inter and intra-field variability in crops with the help of modern means like satellite data and information
systems. Since crops vary both spatially and temporally, every patch on the field has different
requirements at different times. Precision farming ensures adding right amount of treatment (like water,
fertiliser, pesticide, etc.) at the right time and right location in a field.
Essential features:

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With use of technologies like Global Positioning System (GPS) and Geographic Information System
(GIS), more and accurate data can be collected and decisions to optimise crop output can be made
more scientific.
Typically, the GPS and GIS devices are mounted on tractors or sprayers so that exact mapping of the
entire field is done.
Next, to assist in implementation of the decision, modern equipment supporting Variable Rate
Technology (VRT) controlling rate of dispersion of say, water and chemicals, based on information
gained from remote sensors, is used.

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It should be noted that there are several scientific farming methods like laser planning of land, chiseling,
minimum tillage, weed control, drip and sprinkler irrigation, etc. However, the concept of precision
farming is outside the domain of these techniques. It necessarily involves satellite based observations
and information systems.

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With the use of GPS, the farm can be divided into small and equal sub-divisions and soil can be
collected from each of these. This is known as Grid Sampling.
Samples are tested in a modern soil laboratory for about 17 parameters including physical and
chemical characteristics of soil and recorded.
Using the results, a composite colour coded chart can be prepared. The sub-divisions on the field can
be marked based on colour codes and compared with the colour chart or a Soil Health Card.
The colour coded map of the field can be stored on the on-board computer of the tractor/
equipment.
The soil fertility can then be balanced and maintained through use of Variable rate technology,
supplying nutrients to the field based on colour codes of sub-divisions.

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Role in Soil Fertility Management

In a similar manner, other variables of soil fertility such as texture and water content can be maintained
using suitable equipments.
Economic Viability in India
Precision farming involves large initial investment in modern equipments. There are several ways to
make it economically viable in India:

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Establishment of farm machine leasing agencies in rural areas. Such agencies already exist for leasing
out harvesters and trained man power to use them.
Creating R&D base and a huge pool of engineers, scientists and agriculturalists to develop various
components of technology like robots and drones.
ICAR scientists, industries and farmers can work together to develop machinery and establish leasing
agencies.
Corporate Social Responsibility funds can be channelled towards Precision Agriculture activities.

Even though the savings can be significant, the small farm holding size in India makes it difficult to reap
the returns to scale. To overcome this, cooperative leasing in of equipments and development of smaller
robotic equipments is necessary. The village panchayats and government extension agencies would have
to take lead in this regard.

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The scope of Land reforms needs to be widened beyond the mere activity of redistribution of land and
fixing land ceilings to a systemic restructuring that undertakes reforms in the sector of energy and
water. Discuss.

Approach:

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The answer should first explain the inadequacy of the current land reforms to make farming more
productive and viable. Then it should illustrate the need for a multipronged approach, which includes
building requisite infrastructure and distribution of services, with focus on irrigation and electricity, to
develop the agricultural sector.

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Land reforms in India have been undertaken with the objective of achieving social equity in access to
land and improving farm productivity to make agriculture economically more viable. Both the targets
have met with only little success. One of the many reasons for their failure has been a
compartmentalised approach to land reforms adopted in the country. The overall target of robust
agricultural growth can only be achieved when land reforms are increased in scope from a mere
redistribution exercise to an activity to improve inherent productivity and farming capability. Provision of
infrastructure in form of electricity and water supply would be crucial for this.

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Indian agriculture is now characterised by low viability and high vulnerability. High input costs and lesser
realisation of final costs make agriculture less viable. Smaller size of landholdings, about 63 percent with
less than 1 hectare, constrains the use of mechanised farm inputs to increase production. Also, in cases
where land distribution has taken place, the land is often of poor quality, making economic viability even
more challenging. Vagaries of monsoon, with about 2/3rd of total area dependent on rainfall for
agriculture, lend high vulnerability to agriculture. Apart from it, exposure to volatile markets also
increases vulnerability.

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To address these issues, comprehensive agricultural reforms are required. Structural reforms include
development of irrigation infrastructure and access to continuous power; institutional reforms include
making available modern scientific inputs and data, along with modernisation of agricultural marketing
methods and provision of insurance cover.
Following reforms in irrigation and energy sector can be considered for national rural development:

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Rationalizing water charges, improving collection rates and reforms in irrigation financing in order to
make state irrigation departments financially self-sufficient.
Improvements in irrigation systems by organizing farmers to take up operation and management
responsibilities.

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Flood irrigation systems, which are wasteful as well increase salinity and water logging should be
replaced by more efficient drip and sprinkler irrigation with government support.
Institution of a system of water rights and modernization of irrigation agencies to make them more
autonomous and accountable.
Rationalisation of energy pricing flat rate system should be disbanded to disincentivise over
extraction from ground.
Jyotigram scheme of Gujarat, where electricity to farm tube wells is provided only for certain part of
the day, which achieved considerable success, should be tailored to all India level after incorporating
local agricultural requirements.
To address theft, High Voltage Distribution Systems (HVDS), which use Direct Current for transmission
can be installed (as is being done in Punjab and Andhra Pradesh). These require initial high
investment, but are efficient and will almost eliminate theft through technical barriers to tapping of
power lines.

The movement from agriculture to other economic activities in past has been because of push from
agriculture rather than a pull from the other activity. To make agriculture sustainable, it must continue to
grow at least at 4 percent when national growth is 6-7 percent. It must be made economically attractive
as well as sustainable to pursue as an occupation in order to sustain food security of the nation.
Widening the scope of land reforms to energy and water sector would help meet these requirements.

What are the reasons for under-representation of women in science in India? How does it affect the
prospect of holistic development of the nation? Suggest some measures which should be taken to
tackle the above problem.

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Enlist the reasons for under-representation of women in science in India.

Discuss its implications over overall development of India.
Write measures to increase participation of women.

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The under-representation of women in science is a global reality and in India too, very few women could
take up doctoral studies and research. The women constitute only 15.6% of total manpower employed in
R&D establishment.

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Social conditioning of Indian families dictates soft disciplines for girls like home science and life
sciences.
Studying science is privilege of urban women and those from financially sound and educationoriented families.
Traditional mindset and security concerns hinders women moving out of home city
Fears of not getting suitable match for highly qualified and educated girls restrain their educational
growth.
Family and marriage liabilities force them to drop out after post-graduation or PhD
Problems faced by women researchers and scientists - non-cooperative male colleagues, gender
discrimination in rules and practices, sexual overtures and lack of facilities discourage others.

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Reasons:

The skewed female-to-male representation in science has deleterious effect on the holistic development
of a nation.

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Social: Women in different spheres of scientific research can bring in a different perspective on critical
social issues such as hunger, poverty. Development of appropriate drinking water and sanitation
technologies could progress much faster by engaging more women.
Science: By disallowing participation of half the population in the field of science, a huge pool of talent is
getting unutilized productively. They can bring in the much-needed human touch to science and
engineering research.
Economic: The womens business council report makes the point that while women need work, work
also needs women. Equalizing the labor force participation rates through adequate education and
training could increase GDP growth enormously.
Though, there is increased proportion but it is restricted to only few science disciplines like life sciences
but job-oriented fields like engineering, management are grossly under-represented. We need more
women in science at all levels and in every field of science.
Therefore, it is very much required to promote women in research and science. Certain ways can be
adopted:

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How do Regenerative Medicines work? Discuss the initiatives taken by the Government of India to
develop this field. What are the ethical issues that arise in the use of regenerative medicines?

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Traditional notion of society that women are suitable for soft disciplines has to be dispensed with
through awareness.
The successful examples of Anandibai Joshi, Janaki Ammal, kalpana chawla should be made known
to people through radio programmes, chapters in school books etc.
Design policies that allow women to resume their research career after a break
Grievance redressal cell in each institutions, improve security and law enforcement
Promote women education through scholarship schemes and affirmative actions.

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Explain how Regenerative medicines work.

Enumerate the steps taken by the government to develop this field in India.
Discuss various ethical issues in clinical use of these therapies (emphasize on the ethical concerns
peculiar to this field instead of explaining general clinical ethical issues).

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Regenerative Medicine is a field devoted to the development of treatments for repair, replacement or
enhancement of biological function that has been lost due to injury, disease, or aging. Stem cells are a
core feature in the development of these medicines.
In organ transplants, instead of replacing the diseased organ by a donor, regenerative medicines
create organs from pluripotent stem cells. This organ created in cultured medium is replaced with old
one.
Many of the regenerative therapies begin with the particular patient's own cells. For example, a
patient's own skin cells may be collected, reprogrammed in a laboratory to give them certain
characteristics, and delivered back to the patient to treat his or her disease.
Stem cells have the ability to develop through a process called differentiation into many different
types of cells, such as skin cells, brain cells and lung cells. Stem cells are a key component of
regenerative medicine, as they open the door to new clinical applications.

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Initiatives taken by the Government:

Pre-clinical studies- Government has initiated pre-clinical studies in this field. A number of animal
models for various human diseases have been developed at AIIMS, New Delhi; National Centre for
Cell Science, Pune and Asian Healthcare Foundation, Hyderabad.
Clinical Research- Various pilot, multi-investigators clinical trials have been conducted using
autologous adult stem cells to determine the safety and efficacy of these cells. A pilot clinical study
has been initiated on treatment of large segmental bone defects on children using scaffold.
Human Resource Development- A number of students and young researchers have been trained at
training Centre supported jointly by Jawaharlal Nehru Centre for Advanced Scientific Research and
National Centre for Biological Sciences, Bangalore to provide training for both embryonic and adult
stem cells. Several Indian scientists/clinical researchers have been trained in reputed international
laboratories and now they have joined back to carry out research in this area at various institutions
in the country.
Infrastructure- Institute for Stem Cell Science and Regenerative Medicine has been established at
Bangalore with state of art laboratories for research in the field. Clean room facilities established in
medical schools around India for conducting stem cell research and developing the medicines for
future projects.

Ethical Issues in the use of regenerative medicines:

One of the common ethical issues in regenerative medicine is progress in 'componentation' (being
treated as parts) of the human body. 'Componentation' of the human body represents a preliminary
step toward commodification of the human body. The 'componentation' of the human body,
regardless of the degree of regenerative medicine's contribution to it, is considered as a challenge to
the traditional view of human bodies and the abstract value of "Human Dignity".
This field shares same ethical concerns as the conventional therapies. The problem of irrevocable
changes in the patient used for clinical trials. The problem of consent of the patients when brought
for testing the new technologies.

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What are Unmanned Aerial Vehicles (UAVs)? Discuss the opportunities and challenges that have arisen
with the private use of UAVs on the rise.

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Describe the Unmanned Aerial Vehicles (Drone) technology.

Enumerate the Opportunities of UAVs in civilian sector.
Discuss the Challenges emerging from their civilian use.

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Unmanned Aerial Vehicle, which is an aircraft with no pilot on board. UAVs can be remote controlled
aircraft (e.g. flown by a pilot at a ground control station) or can fly autonomously based on preprogrammed flight plans or more complex dynamic automation systems. UAVs are currently used for a
number of missions, including reconnaissance and attack roles.
Aside from defence utilities, plenty of opportunities for civilian drone usage exist, and it is likely that well
see those unfold in coming years.
Opportunities in Civilian Sector:

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Disaster management: Tracking of cyclones, floods, epidemics and range of disasters is easily
possible with the use of UAVs. Hurricanes are recurrent phenomena in North Atlantic oceans,
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perception by directly placing UAVs into storms. UAVs act as aerial eye for search and rescue
operations worldwide.
Conservation and protection of environment: Tracking of migratory birds, endangered species, antipoaching mechanisms can easily employ UAVs for better management of their activities in
preventing destruction of wildlife.
Uses in agriculture: The precision agriculture movement uses technology to monitor fields,
increasing yields and saving money. Precision applications of pesticides, water, or fertilizers, which
drones can help by identifying exactly where such resources are needed and delivering them there, is
better for the environment and for a farmer's bottom line.
Commercial applications: Goods and service delivery is possible with the help of UAVs. E-commerce
and package delivery platforms are using UAVs in American and European cities.
Law enforcement and firefighting: Law & order agencies are using UAVs for surveillance and vigilance
purpose. Crowd, traffic and riots can be managed well with aerial surveillance from UAVs. Firefighters
from France use UAVs in fire events for better management.

Challenges of Civilian use:

Regulatory challenges:
o The challenge is regarding the structure of the ATC (Air Traffic Controller) and the network of
ground-based radars that are currently not equipped to track all kinds of drones, especially small
and micro drones. Drones flying below 1,000 feet pose a challenge in this regard. So tracking
movement of drones is difficult with current systems.
o The second challenge lies in the physical and electronic identification of drones. The current
aircraft numbering system is inadequate to accommodate the vast variety. Since drones are
increasingly becoming part of a networked environment, it is critical to give each drone a unique
electronic code, akin to an Internet protocol address, for quick, easy and clear identification.
o There are practically no standards for the manufacture of small and micro-drones, resulting in
UAVs with an exceptionally high failure rate. So standardizing their quality and construction is
major policy challenge for governments.
Privacy and Security challenges: Use of drones for vigilance and surveillance has potential to invade
the personal space and privacy of civilian population. Aerial imagery can be counterproductive in not
worked out with due care.

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With growing concerns w.r.t. global climate change and energy security, biofuels have been gaining
popularity. What are the advantages of using biofuels? Discuss the implications of biofuel expansion
on food security, social welfare and environment in the context of India.

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Briefly elaborate the statement on biofuels gaining popularity.

Bring out the various advantages of using biofuels.
Write about the implications of biofuel expansion on food security, social welfare and environment in
the context of India.

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Approach:

Biofuels are fuels produced directly or indirectly from organic material biomass including plant
materials and animal waste. Biofuels have been in usage from the beginning of 20th century itself. But
discoveries of huge petroleum deposits kept petrol and diesel cheap for decades, and biofuels were
largely forgotten. However, with the recent rise in oil prices, along with growing concern about global
warming caused by carbon dioxide emissions, biofuels have been regaining popularity.
Various advantages of using biofuels are:

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Biofuels produce less greenhouse gases overall than fossil fuels when they are burned.
Since plants absorb carbon dioxide as they grow, crops grown for biofuels should suck up about as
much carbon dioxide as comes out when these fuels are burnt.
Whereas oil is a limited resource that comes from specific materials, biofuels can be manufactured
from a wide range of materials including crop waste, manure, and other by-products. This makes it
an efficient step in recycling.
Biofuels are alternative sources to fossil fuels - allowing for greater fuel security for countries with
little or no oil reserves of their own.
Biofuels may not produce any particulates, such as soot and other fine particles.
Because biofuels are produced locally, biofuel-manufacturing plants can employ hundreds or
thousands of workers, creating new jobs in rural areas.
Biofuel production will also increase the demand for suitable biofuel crops, providing economic
stimulation to the agriculture industry.

Presently, Indias position in the global biofuel map is not very prominent. However, the country has
ambitious plans to expand the biofuel sector, though cautiously. Implications of biofuel expansion on
food security, social welfare and environment are as follows.
Implications on food security:

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There are strong apprehensions that as more and more land is brought under biofuel crops, food
prices would increase substantially affecting poor consumers particularly those from low-income
countries like India.
Using valuable cropland to grow fuel crops could have an impact on the cost of food and could
possibly lead to food shortages.
Even though India is food self-sufcient in terms of food production, almost 50% of children and
practically the same number of women suffer from protein calorie malnutrition. Therefore, any largescale biofuel programme has to ensure that it does not compromise with the nations food and
nutritional security.

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Huge sums of outlays for subsidies on biofuels essentially means a shift of money away from the
poor and vulnerable who end up spending more on food due to increased food prices, with little left
for energy, even though cheaper.
However, diversion of forest and wasteland for cultivation of energy plantations may cause a conict
with pastoral livelihoods.
The promotion of biofuel development has potential for creating employment opportunities for the
rural poor, promoting local level entrepreneurship and enhancement of womens participation.
Local institutions like Joint Forest Management (JFM) committees, self-help groups (SHGs) and
panchayats can play an important role in involving village communities in bio-fuel programmes.

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In some countries large areas of land are being used for biofuel crops. Such practice in India can
result in loss of habitat and the extinction of some species of animals and plants.
Massive quantities of water are required for proper irrigation of biofuel crops as well as to
manufacture the fuel, which could strain local and regional water resources.
While biofuels may be cleaner to burn, there are strong indications that the process to produce the
fuel - including the machinery necessary to cultivate the crops and the plants to produce the fuel has hefty carbon emissions.
To refine biofuels to more efficient energy outputs, and to build the necessary manufacturing plants
to increase biofuel quantities, a high initial investment is often required.

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Implications on environment:

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15.

What do you mean by eco-tourism? Discuss the need for developing eco-tourism in the light of
increasing tourist activities in ecologically sensitive areas of India.

Approach:

Introduce the answer by explaining the concept of ecotourism.

Write briefly about the increasing tourist activities in ecologically sensitive areas of India.
Then discuss the need for developing eco-tourism in these areas in order to maintain the balance
between tourism and conservation of ecology.
Note: Do not write general content on tourism. Also, there is no need to compare eco-tourism with
general tourism or bring out the distinction between the two.

Answer:
Ecotourism means management of tourism and conservation of nature to maintain balance between the
requirement of tourism and ecology on one hand and needs of local communities on the other.
Ecotourism is about uniting conservation, communities, and sustainable travel. This means that those
who implement, participate in and market ecotourism activities should adopt the following ecotourism
principles:

Minimize physical, social, behavioral, and psychological impacts.

Build environmental and cultural awareness and respect.
Provide direct financial benefits for conservation.
Generate financial benefits for both local people and private industry
Design, construct and operate low-impact facilities.

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Many of the Indian natural tourist destinations come under the ecologically sensitive areas such as
protected areas, tiger reserves, important bird areas, elephant corridors etc.

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Eco-tourism endeavors to encourage and support the diversity of local economies for which the
tourism-related income is important. With support from tourists, local services and producers can
compete with larger, foreign companies and local families can support themselves.
Ecotourism is labour extensive sector and is becoming one of the fastest growing sectors of the
tourism industry.
By increasing capacity building opportunities, ecotourism is also an effective vehicle for empowering
local communities to fight against poverty and to achieve sustainable development.
Ecotourism raises the local awareness about the value of biological resources, increasing local
participation in the benefits of biodiversity conservation.
The balanced approach of ecotourism helps in a sustainable growth of tourism. Through new sources
of jobs and incomes, it generates revenues toward conservation of biologically rich areas.
By recognizing the importance of protecting biological diversity, ecotourism raises the appreciation
for biological resources and leads to better conservation practices.
Providing positive attitude and experience among the travelers.

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In recent times, there has been a tremendous increase in the number of tourists, both domestic and
international, visiting these ecologically sensitive areas. This creates a need for developing eco-tourism in
these ecological areas due to the following reasons:

The Government should work upon its policies and involve locals to participate actively in it. Tourist
should be made aware of Dos and Donts such as carrying back all non-degradable litter and cutting of
noise pollution.

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16.

What is eutrophication? Analyse how cultural eutrophication is different from natural eutrophication.
List the measures to control the phenomenon of eutrophication.

Approach:
In the introduction, write what is Eutrophication.
Explain how eutrophication is a natural phenomenon. Then write about Cultural eutrophication,
which is nothing but artificial eutrophication by human activities. Explain how it is different from
natural eutrophication.
List the various measures to control eutrophication.
Answer:
Eutrophication is the enrichment of a terrestrial or aquatic ecosystem by the addition of nutrients,
especially nitrogen and phosphorus that results in a superabundant growth of plants, algae, or other
primary producers. It can be a natural process (natural eutrophication) or result from human activity
(cultural eutrophication).
Difference between natural and cultural Eutrophication

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1. In natural eutrophication nutrient are introduced from the natural environment around the body of
water e.g. dead aquatic and nearby terrestrial plants, dead fish, waste from all the living organisms,
runoff etc.
Cultural eutrophication means any eutrophication that occurs due to human activities eg industrial
waste, sewage dumping, and increased runoff in areas with poor erosion control due to human
development etc.
2. Natural eutrophication is a slow process whereas process of cultural eutrophication depends on the
degree to which excess nutrients are dumped into the water supply.
3. Very large natural bodies of water do not experience eutrophication on a measurable level due to
their exceptionally low bio-load compared to the volume of water. These natural redistributions over
time help keep the maximum amount of land mass healthy and productive as possible whereas
cultural eutrophication can be catastrophic. High levels of nutrients may cause a massive algae
bloom, which places a huge bio-load on the area in a relatively short amount of time. The algae block
a large percentage of the sunlight that naturally filters down through the water, which may in turn kill
many plants and animal life in the water body.

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Some of the important measures to control eutrophication are:

17.

Controlling application amount and timing of fertilizer

Planting vegetation along streambeds to slow erosion and absorb nutrients
Controlling runoff from farmlands
Uprooting and removal of macrophytes in eutrophic lakes
Removing the sediment entirely, thus both taking away the internal source of nutrients and
deepening the lake
Ultrasonic irradiation to control algal blooming
Use of Calcium hydroxide to neutralize low pH values in streams and lakes in areas where acidic rain
has a significant impact
Use of biological controls such as the process of denitrification uses specialized bacteria that convert
nitrates to harmless molecular nitrogen
Enforceable standards for major point-source discharges and high-risk non-point sources

Technology is an indispensable tool in disaster management. Explain the role of GIS in context of the
above statement giving recent examples from India.

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In the introduction, discuss about increasing usage of technology in disaster management. Then, discuss
how GIS can assist in different types of disaster and in different stages of disaster management. Include
examples from India only. Example: cyclone management in Odisha.

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Technology has considerably enhanced the potential of mankind to manage the disasters. For instance,
exact prediction of Phailin cyclone considerably reduced the loss of life and property. Similarly
technologies are today extensively used in prediction and protection from other disasters like tsunami,
earthquakes. In this regard Geographic Information System (GIS) is turning out to be an excellent tool for
disaster management. GIS is an effective, economic and efficient tool for storing, manipulating, and
presenting spatial and geographic data in an integrated manner.

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It can assist in Disaster Management in following ways:

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It can assist the disaster managers in vulnerability mapping. For example it can be used to map the
areas vulnerable to earthquakes and classify them under various zones. For example it is used to
Indian ocean region to identify the areas vulnerable to earthquake and tsunami.
It can also assist in developing alternate routes to shelters, camps, and important locations in the
event of disruption of normal surface communication
In case of disasters like floods and tsunamis, GIS can help in identifying locations likely to remain
unaffected or remain comparatively safe. Then routes and signboards can be placed guiding the
public to such safe locations in the event of hazards. . For Example: GIS has been used in Odisha
against cyclones. For example: it has been used in the identification of location for construction of
multipurpose cyclone shelters.
Locations suitable for construction of shelters, godowns, housing colonies, etc. can be scientifically
identified by using information regarding landforms, nature of disasters, etc.
Areas where no construction should be taken up or existing habitations require relocation, could be
identified by using vulnerability data which can be created using GIS.

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PRE DISASTER PHASE

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DURING DISASTER

It can be used for planning of rescue and evacuation operations. In Sikkim GIS was useful in search
and rescue operations in areas affected by landslides.
GIS can also be used to identify the areas where the disaster is likely to spread. It can act as a
warning system and thus it can help in controlling the further spread of disaster.

POST DISASTER

18.

Accessibility of data through GIS can assist in rehabilitation by identifying the most damaged area.
For example, it was used in earthquake region of Gujarat.
It is also useful in post-disaster reconstruction works. New houses can be constructed in the less
vulnerable areas.

Transnational security threats posed by non-state actors in the IOR have considerably risen in recent
years. What are the threats and challenges posed by them? Explain the need for cooperation between
the States and associated maritime agencies.

Approach:

Enlist the threats from the non-state actors in the Indian Ocean region.
Discuss challenges to the stability and security of littoral countries from non-state actors.
Emphasis on the need for co-operation in light of the current global security environment.

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The Indian Ocean Region (IOR) has emerged as the worlds major energy and trade route. The IOR
littorals are concerned about the insecurities in the region due to various non-state actors. In the current
global security environment, they threats pose a grave challenge to national and international stability

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Piracy, terrorist activity, drug trafficking, human trafficking and arms smuggling are major threats
from the non-state actors in region. Lawlessness and failure of state apparatus in various rim
countries fuels the activity of non-state actors in the region.

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Maritime Sovereignty- Armed robberies and piracy along the Strait of Malacca and Gulf of Aden close
to the coastlines challenges the sovereignty of littoral countries. Island nations and small islands face
persistent threat of attacks from non-state actors.
Challenges to freedom of navigation- The Indian Ocean sea lanes of communications (SLOCs) are
vitally important to the interests of regional and extra-regional actors. Freedom of navigation to
facilitate trade and permit the legitimate passage of warships and other activities, like scientific
research, studies and conservation faces challenges due the activities of non-state actors.
The Straits of Malacca and the Hormuz Strait are the most important strategic chokepoint in the IOR
as they constitute the major global oil export passage-way The security of these oil arteries is integral
to the security of energy supplies for the oil-importing countries. Any non-state activity along these
points challenges the energy security of the South and South-East Asian nations.

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Challenges posed by non-state actors:

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Threats posed by non-state actors:

Need for cooperation:

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Unfortunately, despite a shared heritage of colonial subjugation, common maritime threats and an
increasing dependence on seaborne trade for their existence, the IOR has witnessed minimal

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maritime bonding amongst its littorals. While these commonalities and drivers should have
encouraged a strong sense of supra-regional cohesion and identity, issues about the sea have
regrettably not been given the importance they deserve.
The IOR is noted for its complex sub-regional geopolitical and geostrategic associations, each with its
own vested interest. Cooperation occurs mostly in the spheres of economy and trade, rather than in
security, and is largely hampered by distrust and lack of interaction. The task of ensuring the security
of waterways, especially of strategic chokepoints in the IOR, is beyond the capacity of a single littoral
state.
Much can be gained from cooperative regional approach that promotes consultation, not
confrontation. In such circumstances, navies can contribute towards enhancing maritime security,
providing humanitarian assistance and limiting security challenges. Regional cooperation can
therefore be a force multiplier and is desirable in the vast and relatively poorly policed Indian Ocean.
To work together, these nations, who have vested interest in maritime security, would need to defeat
these threats and challenges.
The Indian Ocean Naval Symposium (IONS) and Milan are consultative and cooperative efforts, which
can be used to find commonality regarding the growing asymmetric threat.

Multilateral naval exercises such as the Komodo 2014 should bolster future efforts of IOR nations to
counter the challenges. It is imperative to continue combined international efforts to tackle the non-state
actors challenges at sea. The fight against these challenges is a multilateral endeavour that requires
global cooperation and resolve.

Cyberspace, like outer space, is unbounded and equally accessible to all. In this context, evaluate the
merits and demerits of having a body like the United Nations to govern it. Also, comment on the role
that India has played so far in reforming internet governance structures.

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The introduction should reflect clear understanding of the current governance structure. Discuss
multilateral approach arguments- democratisation v/s centralisation and multiple governments
exercising control. Mention the independent position taken by India regarding multilateral approach with
participation of multiple stakeholders.

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Answer:

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Cyberspace is virtual space of all IT systems linked at data level on a global scale. The basis for cyberspace
is the Internet as a universal and publically accessible connection and transport network. Currently, the
Internet is governed largely by three non-profit institutions- ICANN (International Commission for
Assigned Names and Numbers), IETF (Internet Engineering Task Force) and the Internet Society. ICANN is
the body that manages Critical Internet Resources (CIRs), such as Domain Name Servers (DNS). These,
along with private companies like Verisign, which own .com and .net domains, are incorporated under
Californian laws and all the edits they make are audited and approved by the US Department of
Commerce (US-DoC). This political oversight by US gives it unilateral power over control of Internet. As
Internet has grown and spread across the globe, many countries question as to why the US should have
outsize influence over how internet is run.
Cyberspace governance comprises of both issues the public policy aspects, i.e. freedom, privacy, access
and human rights, as well as technical aspects, i.e. management of CIRs. Even though states have laws
regarding the former, their implementation will depend on if the states have access to manage of CIRs. In
this regard, various models of management of CIRs or, more specifically, the oversight of ICANN have
been put forward by different countries. This process has gained currency due to abuse of position by the
US as exposed by Edward Snowden.

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Countries like Russia and China, which exercise large degree of control over their domestic internet
access, have proposed multilateral oversight through International Telecommunications Union (ITU) of
the United Nations.
Merits:

Democratisation of oversight mechanism, with representations of various governments.

Making nation-States capable to exercise their sovereign right, as per Geneva declaration, to
formulate internet public policy with the power to enforce it.
Curtailing the power of non-state actors to make public policy decisions via technical governance.
Making use of International Law to extract accountability from ICANN, rather than US specific laws
which it is subject to currently.

Demerits:

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Erosion of bottom-up processes- states represent their interest as States (like security and defence)
and not as interest of their Citizens. Geo political meddling in a multipolar world will lead to
fragmentation of internet.
Inter-governmental oversight will slow down the advancement and decision making process. With
limited understanding of internet architecture and requirements, and threat of veto powers, the hard
work of technical community would be vulnerable to be overturned.
With ITU dominated by telecom service providers, net-neutrality, if not the growth of internet itself,
would be under serious threat.
The institutions meant to enforce international law are only remotely accessible, slow and
ineffective. ICANN under the oversight of various countries will make it even less accountable to
grievances of individual users.

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It can be seen that demerits for having a multilateral body like the UN far outweigh the merits. Upending
the fundamentals of the multilateral model is likely to balkanize the Internet at best and suffocate it at
worst.

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Role played by India in reforming Internet governance structure:

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Although insurgency groups are present in both Kashmir and the North-east, their nature and model of
sustenance are entirely different. Analyse. Also, compare the linkages between organised crime and
terrorism in both these areas.

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India has been critical of the unilateral control enjoyed by the United States and has advocated for a
democratic, transparent and inclusive arrangement for running the medium. Earlier, the Indian position
was for a multilateral approach, but lately, it has changed to a multi stakeholder approach involving civil
society and private organisations, so that national governments are held accountable to other
stakeholders and vice-versa. Along with proposing a UN Committee for Internet Related policies (UNCIRP), another demand has been that traffic originating and terminating in a country should stay within
that country, rather than routing through servers located under foreign jurisdictions. Even though it has
argued for making current system of IP address allocation by ICANN as fair, just and equitable, its
(ICANN) relationship with CIRP, absence of clear definitions, composition of governing body and precise
role of stakeholders is still shrouded in ambiguity.

Approach:
Mention the identity based nature of conflict tribal v/s religious in the two areas. Comparison of the
relationship between organised crime and terrorism should follow from presence (in NE) and absence (in
Kashmir) of parallel governments, kidnapping and extortion, percolation of government funds to
terrorists, etc. should be mentioned. Role of external factors should also be mentioned.

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Answer:
Insurgency is a violent rebellion against a constituted authority, where those taking part are not
recognised as belligerents. The parameters to differentiate the nature of insurgencies roll back to their
originating factors and the targets desired. Differences in models of sustenance can be gauged by (i)
structures which support them, such as external state and non-state assistance, (ii) sympathy of locals,
mostly through propaganda, and most importantly, (iii) access to sound financial resources. Both J&K and
North-east India have witnessed insurgency during larger part in post-independence period; however,
there are certain differences in its nature and model of sustenance.
Difference in Nature

While conflicts in North-east have their origin in distinct tribal identities, the one in Kashmir is based
on religious identity.
Perceived alienation from the mainland has been an important factor in case of north-east, but there
is no such element in Kashmir.
Conflicts in North-east range from insurgency for secession (in Nagaland) to insurgency for autonomy
(Karbi-Anglong), from sponsored terrorism (ULFA, NDFB) to ethnic clashes (Meities v/s Nagas) and
to conflicts generated as a result of continuous inflow of migrants from across the border as well as
from other states. Conflict in Kashmir, on the other hand, is instigated and sponsored from across the
border, with an overt demand for independence and a tacit understanding for uniting with Pakistan.
Guerrilla tactics are an important element in case of north-east militants. In Kashmir, however, the
attacks are more overt with an intention to keep alive the separatist cause by flaring up anti-India
sentiments.

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With extremely weak governance structures in the north-eastern states (Nagaland and Manipur in
particular), the insurgents mostly run parallel governments through extortion, kidnappings and
keeping people under constant fear. In Kashmir, the governance structures are better established and
insurgents have to regularly play victims of the state in order to win some support.
External state, i.e. Pakistan is heavily involved in sponsoring of terrorist activities in the valley directly
through ISI and indirectly through jihadist terror outfits. While many groups in north-east receive
support from external states, their role has been limited and the major source for finance is
trafficking, smuggling and extortions.

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Difference in model of sustenance

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Comparison of linkages between Organised Crime (OC) and Terrorism in J&K and NE:

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In India, linkages between OC and terrorism exist both at national and transnational level.

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The organised crime network and the militants are virtually inseparable. Apart from kidnappings and
extortions as criminal sources of finance, much of the government funds and food supplies are also
siphoned-off due to mal-governance. Government servants are often threatened or bribed to award
contracts to individuals patronised by the militants. These are clear examples of linkage between OC
and terrorism.
These activities are, however, not sufficient to finance their nefarious acts. This is where
transnational linkages through drugs and arms syndicates come into play. Insurgent groups mobilize
funds by becoming couriers of drugs, arms and human beings. Moreh in Manipur and Chittagong hill
tract on India-Bangladesh-Myanmar border are crucial transit points of the Golden Triangle. Initially
the international crime syndicates (ICS) had their own network; however, with these routes being
taken over by various insurgent groups in the NE, the ICS have started using these groups as couriers
rather than bribing them.

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In North east:

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In Kashmir:

There is minimal reliance on funds from extortion and other means. There are no parallel
government structures and the government resources do not easily reach the terrorists, even if they
may be lost due to corruption.
However, external funds compensate more than enough for lack of internal mobilisation. Funds
mobilised in Pakistan and Gulf countries, mostly in name of religious or philanthropic activities reach
Kashmir through Hawala (money laundering) route.
Besides, it is also believed that funds from drug trade in the Golden Crescent finance terrorist
activities in Kashmir. Counterfeit currency, estimated to be Rs 300 Cr annually, mostly emerging in
Pakistan is another major linkage between OC and terrorism, terrorists being the couriers and part
beneficiaries.

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When ethnic identity, religious fundamentalism and extra-territorial sponsorship of terror fuel violence
and disorder, the challenge becomes particularly grave. Such threats to national security need to be
addressed by concerted and consistent State action, backed by swift justice, competent governance and
democratic legitimacy.

Copyright by Vision IAS

All rights are reserved. No part of this document may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without prior permission of Vision IAS
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VISION IAS
www.visionias.in
Approach Answer: General Studies Mains Mock Test 633 (2015)

All the questions are compulsory and carry 12.5 marks each. NOT MORE THAN 200 WORDS.
1.

How are SDGs an improvement over MDGs? What are the challenges that are foreseen in the
implementation of SDGs? What are the lessons that India can learn from the progress made on MDGs
that could inform and enhance its performance on SDGs?

Approach:

Introduce MDG and SDG in brief and compare them in various aspects
List out challenges of SDGs implementation in brief
Discuss learning for India from MDGs failures and successes
Conclude on positive note with a brief way forward.

Answer:
The sustainable development goals (SDGs) are a new, universal set of goals, targets and indicators that
UN member states will be expected to use to frame their agendas and political policies over the next 15
years. The SDGs follow and expand on the millennium development goals (MDGs), which were agreed by
governments in 2001 and are due to expire at the end in 2015.

MDGs provided a framework around which countries could develop policies to end poverty and
improve the lives of poor people but they were too narrow. While the MDGs were set to get us half
way to the different goals, the SDGs are designed to finish the job. They are more comprehensive
than the MDGs: There were 8 goals and 18 targets in the MDGs but the draft SDGs have 17 goals and
169 targets.
MDGs were written without any large-scale consultation process with stakeholders. While for SDGs
the UN conducted the largest consultation programme in its history to gauge public opinion.
Alongside the Open Working Group (OWG), which involved over 90 nations, it conducted a series of
global conversations, which included 11 thematic and 83 national consultations, and door-to-door
surveys.
The MDGs, in theory, applied to all countries, in reality they were considered targets for poor
countries to achieve, with finance from wealthy states. Unlike the MDGs, the SDGs, however, are
applicable to all countries.
The MDGs made no mention of human rights and did not specifically address economic
development. It was recognized that addressing these in SDGs was necessary to reduce the barriers
that have limited the pursuit of the MDGs.

Major challenges foreseen in the implementation of SDGs:

Financing due to the ongoing financial volatility, national development plans in many developing
economies are under strain. Also, developed countries may not be able to contribute much.

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Technology - While the question of access to technology runs across the SDGs, there is no agreement
on a technology facilitation mechanism which developing countries like India strongly support.
Political will Countries and leaders must have the will to adopt SDGs as the core of development
agenda in their respective countries as well as to ensure a supportive international environment for
implementation. Committee on SDGs has insisted that major financing to be generated from the
private sector, through tax reforms, and through a crackdown on illicit financial flows and corruption.
These require immense political will.
Policy and institutions Countries often lack adequate data to frame relevant policy and there is a
gap in institutional mechanism in poor countries as reflected during MDGs implementation.
Lack of effective in-built monitoring mechanisms are a concern as well.

The lessons that India can learn from the progress made on MDGs that could inform and enhance its
performance on SDGs:

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Accelerate broad-based and employment creating economic growth - Across states in India,
economic growth is closely related to MDG performance. It is due to indirect impact of growth on
MDGs from governments expanding revenues; and direct impacts of growth from employment
creation and increased incomes for poor households to invest in nutrition, health and education.
Channel resources into human development - Across India, states spending more on health and
education in per capita terms have seen their human development surpass others.
Promote good governance and effective delivery of public services - States with better, more
accountable and responsive service delivery have also performed better on the MDGs. For example,
states that provided more work to the poor under the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) and provided more food grains for poor households from the Public
Distribution System (PDS) also achieved better overall MDG performance scores.
Extend basic infrastructure networks - States that have extended roads and transport and promoted
access to electricity have seen more improvement in MDGs such as health and education than other
states. States with better access to all-weather roads have a greater proportion of births attended by
skilled health personnel. States with better access to electricity tend to perform better on literacy.
Promote gender equality and empowerment of women - helps achieve the MDGs by reducing
fertility, population growth, and child mortality; improves nutrition, hygiene and health of
households, childrens performance in schools, allocation of household resources, and economic
growth in general. States that have empowered women more than others measured by the
Gender Empowerment Measure (GEM) have also performed better on MDGs.

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Discuss the possible reasons behind China's recent decision to devalue the yuan. Also, examine the
impact that yuan's devaluation may have on India and rest of the world.

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The MDGs played a key role in how we think of development, shifting the debate away from how much
is being spent on development towards how much is being achieved. They have been partially successful
in achieving targets also. Now, India needs to tackle the challenges and learn from MDGs experience to
move ahead and achieve SDGs fully.

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Approach:

First bring out the reasons, which compelled China to devalue Yuan.
Secondly, write on the critical aspect of the Chinese move i.e. the negative and positive impact on
India as well as on the world.
Finally conclude the answer.

Answer:
Chinese economy is passing through a transition phase. The slowdown in economy made government to
take some drastic steps and devaluation of Yuan is one of them.

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The Peoples Bank of China resorted to two successive devaluations recently in a very short time by 1.9%
and 1.6% respectively using Managed Floating Exchange Rate Mechanism, which created ripples around
the world.
Reasons for Yuan Devaluation

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Recession across the world (due to eurozone crisis, disturbances in the middle east, global economic
slowdown, fall in Hong Konk and Shanghai stock exchange and many other factors) had a bearing on
Chinaa export
led growth strategy
negatively, as a result the demand of the
Chinese goods decreased world over.
Thus, in order to give a boost to its
economy (in July, the Chinese exports
witnessed a decline of 8.3%) it devaluated
Yuan to give its exporters a price
advantage in foreign markets.
To achieve market dominated agenda of
present regime i.e. its move to allow a
floating exchange rate, which is market
driven.
China has wanted the yuan to steadily rise
against trade-weighted partners for a
while. To keep that appreciation gradual,
as the dollars value rise upwards, it had to
devalue a little.
Desire to include renminbi a SDR in IMFs
reserve currency category.

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Implications- The decision of the Peoples

Bank of China to devalue the yuan by 1.9% will
have global ramifications, in the short,
medium and long term.

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Rupee volatility will increase and will force

the Reserve Bank to hold on to high
interest rates, which will hamper the
ongoing economic recovery.
Since India runs a trade deficit (imports
are more than exports), chances are the
current account deficit will also rise, which
will further pressure the rupee.
Falling rupee is bad for those companies
that have dollar-denominated loans and
also for foreign flows because stock
market returns become unattractive.
Pressure on exports especially because both China and India compete for several export items such
as textiles, gems and jewellery, etc. which will also go against Indian domestic exporters.
There's fear that the sharp devaluation in yuan will help China dump goods into the Indian market,
which will impact domestic manufacturers.
Indian currency will also weaken due to yuan devaluation and it would lead to import of inflation.
Credit ratings of India would decline and yuan devaluation would also affect our further investments
in infrastructure expansion and might lead to prolonged stagflation.

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On a positive note, it will make imports of Chinese imports like electronic goods cheaper; China also
acts as an exporter of some crucial raw material for India. This will provide a boost to Manufacturing
sector and a growth in capital goods (machinery); if Yuan is added as a hard currency under SDR, it
will increase India's Foreign Reserves; many Pharmaceuticals industries are based in inputs from
China which will make these products cheaper in the world market .

On World

3.

It will make Chinese exports competitive in the global arena. It is expected that central banks of
other countries might also resort to devaluation in order to boost their country's exports leading to
currency war.
This move has led to increase in demand for dollar, and hence weakening of currencies like Euro, Yen
and Rupee against Dollar e.g. Vietnam allowed its currency to weaken in response to China's move.
Yuan devaluation is also seen as a move to pursue beggar thy neighbor policy (an international
trading policy that utilizes currency devaluations and protective barriers to alleviate ones own
nation's economic difficulties like boosting the demand for exports and reducing its reliance on
imports at the expense of other countries. However, while the policy may help repair an economic
hardship in the nation, it will harm the country's trading partners, worsening its economic status.)

An unmanaged border accentuates threats from unconventional sources by providing easy points of
ingress and egress. Discuss in the context of India's international border along the north eastern states.

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Give a very brief account of vulnerability to North Eastern Region to unconventional threats.
Second part should discuss in detail the border management in the NE region.

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Answer:

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peculiar geo-strategic location,

hostile elements inhabiting the region, and
porous borders with neighboring countries.

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The NE Region of India is vulnerable due to its

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The porous nature of these borders, which pass through difficult terrain of forest, rivers and mountains,
make the task of guarding all the more challenging.

Militancy: The presence of militant outfits in most of the North Eastern States and their ability to
indulge in hit and run operations across borders is detrimental to both inter-state and intra-state
relations.
Drug Trafficking: Due to their proximity to the Golden Triangle (Drug haven in Southeast Asia) has
led to growing incidence of substance abuse and drug trafficking in the NE states.
Smuggling: While the issue of human, cattle smuggling and counterfeit currency in Indo-Bangladesh
border is the main threat, it is illegal arms and narcotics that passes through porous Indo- Myanmar
border and destabilize the whole region.
Illegal Migration and human trafficking: Improperly managed borders have led to unhindered
migration from neighboring countries, severely impacting the demography of the region. Further,
there have been cases of human trafficking from across the border.

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The NE borders with our neighbors poses different challenge owing to varying nature of our relations. In
an increasingly interconnected world it is the unconventional sources that present a greater threat.
These threats are:

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The Indian government started fencing of Bangladesh border from 1985 onwards to curb illegal
migration. Simultaneously, efforts have been done in collaboration with the Myanmar government to
conduct joint operation for destroying safe havens and militant training camps.
The Government has taken the following measures:

Increased cooperation with some neighbouring countries: For example, "Operation All Clear" of
2003 by the Bhutanese Army flushed ULFAs cadres out and India's borders with Bhutan are more or
less secure today. The Land Boundary Agreement with Bangladesh is another example.
Strengthening of the Department of Border Management: The department has been entrusted with
the task of fencing of the borders in NE region on priority. The Border Area Development Programme
has been expanded to cover the border blocks of the 8 North Eastern states as well.
Setting up of Integrated Border Check Posts: India and Bangladesh are in the process of setting up
integrated check posts, along with the development of the regional economy. This is expected to
reduce anti-India activities.

Challenges to effective border management

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Geographical reason Difficult terrain, marshes, rivers, etc.

Infrastructural gap in the eastern region
Stability of relation with neighbors is affected by the change of regimes and/or stability with the
adjoining states. For example: Bangladesh government changes , Junta rule in Myanmar have a
prominent effect on our relationship and consequently effects border management also.
Manpower and Funding.
Land acquisition ( in Meghalaya and Tripura) and environmental clearance (Mizoram) delays
Lack of economically integrated with the rest of country.
Border demarcation especially along China border.

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Flood light system along the fence. Floating fences across river streams.
There is a need to settle friendly population along the fencing as a second line of defence.
Friendly relations with neighboring countries, as far as sound border management is concerned,
have to be vigorously pursued.

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Suggestions

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While India's disaster response in recent times has improved significantly in saving lives, it needs to
improve its capacity in saving livelihoods as well. In context of the above statement, examine India's
Disaster Risk Reduction System.

Approach:

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Since India's international borders in the North East present an interesting mix of both friendly and
unfriendly neighbours, a far greater effort needs to be put into the entire strategy of border
management. While India's North East stands to gain from a cooperative framework in the region,
important issues of security and development can only be addressed through effective border
management.

First start by explaining what is Disaster Risk Reduction System in context of the statement that India
has improved significantly in saving lives. Cite some examples.
Then discuss that India's Disaster Risk Reduction System is still tilted towards minimising causalities
and not much attention is given to livelihood. Briefly introduce about livelihoods and its importance.
Highlight the measures for securing livelihood and incorporate the importance of focusing on it
during disaster and post disaster.

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Answer:

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Disaster Risk Reduction System refers to the concept and elements considered with the possibilities
to minimize vulnerabilities and disaster risks, to avoid (prevention) or to limit (mitigation and
preparedness) the adverse impacts of hazards, within the broad context of sustainable development
and aims at strengthening the capacities and resilience of households, communities and institutions
to protect lives and livelihoods.
During
emergency
response,
communities and relief agencies focus
on saving lives and property. In post
disaster situations, the focus is on
recovery and rehabilitation including
livelihoods.
Disasters and livelihood insecurity are
directly interconnected. A livelihood
is a means of making a living. It
encompasses peoples capabilities,
assets, income and activities required
to secure the necessities of life.
Disasters can destroy agricultural,
livestock and fishing and food processing infrastructure, assets, inputs and production capacity. They
interrupt market access, trade and food supply, reduce income, deplete savings and ultimately erode
livelihoods.
Since the passing of the Disaster Management Act of 2005, there was a shift in the paradigm, from
the erstwhile relief-centric response to a proactive prevention, mitigation and preparedness-driven
approach for conserving developmental gains and for minimising loss of life, livelihood and property.
In recent past the efforts were heavily tilted towards the disaster preparedness and savings the lives
of people during the disasters while livelihoods security after the disaster was ignored. This was
evident when cyclone Phailin that hit the Indian east coast in October 2013. Unlike the super cyclone
of 1999 there was low loss of lives despite the severity of Phailin, a lesson built on the states' past
experiences with dealing such disasters. The success of minimising human casualties was due to the
better disaster preparedness and preparatory activities by concerned authorities and civil society.
Disaster Risk Reduction for securing livelihood includes:
o Prepare to respond, seeks
to strengthen capacities
at
all
levels
in
preparedness to improve
response to, and recovery
from, future threats to
food
and
nutrition
security, and to reduce
their potential negative
impact on livelihoods.
o Enabling environment by
institutional strengthening and good governance and flexible and participatory approach.
o Strengthening and diversifying livelihoods
o A flexible and participatory approach
o Building social security including access to health and education
o Provision of a risk/loss spreading mechanism for those who are excluded from insurance.
o Providing micro credit.
The goal of any Disaster Risk Reduction System is to build a disaster resistant/resilient community
equipped with safer living and sustainable livelihoods to serve its own development purposes. A
livelihood is sustainable when it enables people to cope with and recover from shocks and stresses
e.g. natural disasters and economic or social upheavals. It enhances their well-being and that of
future generations without undermining the natural environment or resource base.

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5.

Given the threat of climate change, there is an urgent need to move towards Climate Smart
Agriculture. Elaborate. Also, discuss the strategies to make high cost technologies accessible to the
Indian farmers.

Approach:

Start with the meaning and objectives of Climate-smart agriculture.

In light of climate change observed worldwide, list out how it helps to mitigate climate change
effects, creates a framework for sustainable agricultural practices.
List out major recommendations for making available high cost tech.
Relate the need and importance of high cost technologies in current era from above, in brief, to
conclude.

Answer:
Climate-smart agriculture is an integrative approach to address the interlinked challenges of food
security and climate change that explicitly aims for three objectives:

Sustainably increasing agricultural productivity, to support equitable increases in farm incomes, food
security and development;
Adapting and building resilience of agricultural and food security systems to climate change at
multiple levels; and
Reducing greenhouse gas emissions from agriculture.

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Climate change is likely to reduce agricultural productivity, production stability and incomes in some
areas that already have high levels of food insecurity. Climate change would not only increase
temperature but also skew the distribution of rainfall and temperature throughout the year.

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For e.g., in India, apple yield in Himachal Pradesh has declined due to lower cold periods. Also, simulated
yield of rice under changed climate scenarios indicate decrease in yield by 9.7 and 18.4 per cent with
increase in maximum and minimum temperature by one degree C and two degrees. A one per cent
increase in rainfall intensity is estimated to result in soil loss from crop lands by 1.5 per cent.

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Soil and nutrient management: Using practices that increase organic nutrient inputs and retention
reduce the need of synthetic fertilizers, which due to cost and access, are often unavailable to
smallholders and, through their production and transport, contribute to GHG emissions.
Water harvesting and Irrigation: move towards optimum saving and utilization of water through
modern technology can enhance productivity by huge proportion and help maintain the water table,
which is falling a metre every year in some regions. This helps in building resilience against climate
change conditions too. E.g. Drip irrigation, which is initially capital intensive but is more sustainable
in the long run.
Genetic resources: genetic make-up determines the plants and animals tolerance to shocks such as
temperature extremes, drought, flooding and pests and diseases. It also regulates the length of
growing season/production cycle and the response to inputs such as fertilizer, water and feed.
Hence, preservation of genetic resources of crops and their wild relatives as well as generating
tailored varieties is essential. Example - Breeding and selection of bio-fortified plants such as ironrich pearl millet and zinc rich rice and genetically bio-fortified crops such as golden rice
Precision farming: Using technologies like Remote sensing, GIS, etc. to provide precise inputs like
fertilizers, pesticides, water etc. This would reduce the greenhouse effect and environmental
pollution both directly by minimizing quantity in a field as well as indirectly by reducing overall
demand for inputs.
Selection of crops based on agro-climatic conditions: to prevent scenarios like Marathawada growing
sugarcane and GM cotton despite lack of adequate water resources.

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Climate-smart agriculture can help mitigate such effects in multiple ways, like:

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Developing climate-smart agriculture is thus crucial to achieving future food security and climate change
goals.
Making high end technology available to Indian farmers, who are majorly poor with small land holdings,
can be done using:

ICT tools Broadband connection of gram panchayats through the initiatives like digital India and
proliferation of mobile phones can enable timely access of information on latest sustainable
practices. Example Farmers can get the latest weather and price information on their mobile
phones.
Self-help groups or Producer Company a group of small farmers can pool in money and resources
as well as get help from credit schemes through banks easily. Through this collective effort, they can
get access to mechanization tools, scientific equipment etc. which otherwise would be inaccessible.
Example - using computer systems to make sure land is even so that it can be watered optimally
Government schemes Central government as well as state governments run a host of schemes like
National Horticulture mission, ISOPOM, etc. through which access to high end technology is enabled
at subsidized rates. Government run institutions develop and transfer new varieties of crops and
equipment free of cost to farmers through KVKs and other mechanisms.

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Instead of running piecemeal schemes that do not address the specific challenge of poverty-ridden
households it is better to use concrete tools such as SECC. In light of the above statement, explain how
SECC data can be utilized to address multi-dimensional aspects of poverty.

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Projections of monsoon rainfall pattern over the Indian subcontinent indicate that by 2050, a 10 per cent
increase in the amount and intensity of rainfall each are likely due to climate change. It would also
increase temperature average as well as range of temperatures experienced. New climate risks require
changes in agricultural technologies and approaches, which often lead to the need of high cost
technologies to improve the lives of those still locked in food insecurity and poverty.

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Highlight failure of earlier approaches in getting results. Discuss benefits of a targeted approach.
Enumerate the criteria for determining deprivation in SECC.
Mention how can various schemes be targeted based on these criteria.

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Anti-poverty programmes in the past have been based on National Sample Surveys, covering 1,50,000
households nationally. However, reliability and utility of even such a large survey declines as one moves
down administrative levels. The programmes and targets have been based on national averages, which
have less relevance in the local context. Further, these have been based on households consumption
expenditure and sources of livelihood, and do not consider asset ownership pattern, which is also an
important determinant of design of poverty alleviation program.

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The SECC data, on the other hand addresses multi-dimensionality of poverty by identifying indicators of
deprivation and consequent inclusion or exclusion of households from poverty alleviation programmes. It
divides the total rural households (17.91 Cr) into three categories:

Automatically included: Based on fulfilling any of the 5 of the criteria viz. Primitive tribal Groups,
Released bonded labour, those living on alms, manual scavengers or households without shelter.
Automatically excluded: Based on fulfilling any of the 14 parameters of exclusion such as motorised
vehicle/fishing boat, mechanised agricultural equipment, KCC limit more than Rs. 50,000, etc.
Households based on 7 markers of deprivation:
o Households with Kutchha house

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o
o
o
o
o
o

No adult member in working age

Household headed by female and no working age male member
Household with handicapped members and no able bodied adult
Household with no literate over 25 years
Landless households engaged in manual labour
SC/ST households.

Households of third category show poverty on some markers, even though the depth of poverty may not
be enough to categorise them as absolute poor. Rather than using income as a sole determinant, SECC
data addresses this multidimensionality of poverty. It provides information to assess dimensions of
poverty in a household income, literacy, disease, social or gender inequality, indebtness, exploitation
and landlessness.
The data can be utilised for a convergent, evidence based planning with Gram Panchayat as a unit. It
provides for criteria based selection, prioritisation and targeting of beneficiaries in different programmes.
For example, 2.34 Crore households with one room or less and kutchha house should be the first
claimants of any rural housing scheme when targeted properly. Instead of extending monetary help to a
homeless family, the government should be providing them with a house under one of its schemes and
use the funds for sustaining livelihood through skill development, MGNREGS, etc.
The data shows inter-state and intra-state variations in states that were presumed similar Bihar has
much higher landlessness (51%) than UP (31%); Tamil Nadu (56%) is more than Karnataka (22%). It will
help governments at all levels to delve into variations across regions, identify the causes of deprivation
and design differentiated approaches to tackle poverty.

While a strong and vibrant democracy is our shield against radicalizing forces such as the ISIS, we
should not neglect the threat of radicalisation through cyber space where modern day wars are
fought. Comment.

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Used effectively, the SECC data can be leveraged to combine economies of scale with benefits of
precision targeting. With use of technology, progress can be monitored on real time basis and targets
and targeted groups updated regularly.

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Highlight the role of Indias multi-cultural and democracy in acting as a shield against radicalization.
Discuss the active presence of ISIS on social media and explain how Indian youth is vulnerable to
such threats.
Suggest measures on how Indian security and intelligence agencies can counter such radicalization
programs.

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India has the largest population of youth in the world, yet it has been able to shield it from becoming a
victim of radicalization and participating in Islamic State Recruitment. In western countries, personal
grievances and a sense of alienation among youth are the main reasons why they are joining the IS. In
India, however, multi-cultural democratic values and respect for human rights, have allowed for
individuals to feel included in society. A testimony to this fact is the fatwa issued by over 1,000 Indian
Muslim clerics against ISIS terming its actions as "un-Islamic and inhuman.
The Islamic States vast presence on the internet poses a threat to Indian security. It is exploiting social
media to attract fighters and supporters from across the world. Given below are a few pointers to the
threat faced by Indian youth.

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Almost 90% of the recruitments for ISIS take place online.

According to official estimates, around 25 youngsters have been identified across the country as
having been attracted to the idea of ISIS.
A lot of interest has generated in the outfit, with many people visiting the ISIS websites particularly
in states like Jammu & Kashmir, Assam and Andhra Pradesh.
The groups biggest propagandists in India worked via a Twitter handle, allegedly run by an engineer
living in Bengaluru.
ISIS-affiliated social media accounts have claimed that five Indians have died fighting for ISIS in Syria.

The Government of India can take the following measures to counteract the activities of the ISIS:

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While the Ministry of Home Affairs has identified 12 states in the country which face a problem, a
de-radicalization program should ensure that it does not hurt the sentiments of a community.
Elders of the communities should be roped in for any counter-radicalization programs to persuade
and counsel younger generation to not get influenced by any extremist ideology.
Cyber patrolling should be enhanced and state police departments should be empowered to
monitor such activities in their respective states.
Real time sharing of information with state police departments should be done to quickly respond to
any report of youth involvement in such activities.
Special training programs must be organized by central intelligence and security agencies to
strengthen the capacity building of the police officers in states.
In vulnerable states, youth should be prevented from travelling to sensitive risk prone areas such as
Syria and Iraq.
Making arrests should not be first in the line of action as this may further radicalize youngsters. The
elders and family members must be involved in anti-radicalization efforts.

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According to UNEP report, up to 90% of the worlds electronic waste is traded or dumped illegally in
Asia and Africa, with India being one of the main destinations. Mention the hazards of this illegal
dumping and discuss how India can tackle this challenge.

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The ISIS may not be a serious threat at present. However, it certainly has the potential to destabilize the
social fabric and rule of law in the country. We must get our act together to neutralize the threat well
before it gains disturbing proportions.

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Highlight the reasons as to why e-waste is dumped in India and other developing nations.
Explain some of the hazards of e-waste on environment and human health.
Bring out the possible measures to address these challenges.

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E-waste is one of the fastest growing waste streams worldwide today. Most developed countries are
dumping their e-waste illegally into developing nations across Asia and Africa owing to cheap labor costs,
poor environmental and occupational regulations and demand for valuable metals in developing
countries.
Hazardous Waste (Management, Handling and Transboundary Movements) Rules, 2008 regulate the
import and export of e-waste. Under these rules, import of e-waste is permitted to actual users in the
country with permission of MoEF and license issued by Directorate General of Foreign Trade (DGFT) for
reuse or recycling or reprocessing.
Hazards of illegal dumping in India: E-waste is an important global environmental and health issue. It is
difficult to handle because it is made up of multiple-components, containing toxic substances. These

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materials are complex and difficult to recycle in an environmentally sustainable manner often applying
improper recycling and disposing methods in "backyards."

Workers handling e-waste are the worst affected and suffer from high incidences of birth defects,
problems related to skin, stomach and respiratory tract.
Disposal of e-wastes in landfills produces contaminated leachates, which eventually pollute the
ground water and acids released cause acidification of soils.
Underdevelopment of brain in children and damage to several organs in nervous and blood systems
has been observed.
Long range transport of pollutants has enhanced the risk of secondary exposure. Burning and
dismantling activities cause atmospheric pollution which is believed to be the main cause of
occupational and secondary exposure.
Environment-to-food-chain contamination is widespread as contaminants may accumulate in
agricultural lands.
Most of the hazardous chemicals in e-waste have a slow metabolism in animals, which may bioaccumulate in tissues and be excreted in products like eggs and milk.
Uncontrolled fires may arise at landfills leading to melting of metals and depositing highly toxic byproducts.

Measures suggested: Under the concept of Extended Producer Responsibility (EPR), the government
has laid down certain guidelines to fix the responsibility for collection of end of life products on the
producer. Some other measures that may be taken up are:
Most e-waste finds its way into the ports labeled as waste or mixed waste paper consignments as
customs officials are unable to check every container because of shortage of men and machinery.
They should be empowered with proper resources and trained functionaries.
Indias EXIM (export-import) policy allows for the import of the secondhand computers not more
than 10 years old, besides letting computers in as donations. This provision should be modified
appropriately.
As an extension of EPR, all major electronic brands, particularly MNCs, must designate collection
points at their service centers, throughout the world. Producers may also designate agencies to set
up an effective take back system for all electrical and electronic equipment at the end of their life.
Reduction of waste at source: Nearly 94 per cent of the materials extracted becomes waste before
the product is manufactured. Reducing waste at source can clearly promote economic and industrial
competitiveness.
Safer technologies and cleaner substitutes can be chosen. For e.g. Digital thermometers, digital
thermostats or other devices use mercury substitutes.
Monitoring of Compliance Rules and strengthen Manpower and technical expertise is important.
State Pollution Control Boards should be empowered to take action against violations of rules.

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Barium

Cadmium

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Health Hazard
Arsenic is classified as a
carcinogen.
Barium toxicity can lead to kidney
damage, respiratory failure, and
death.
Batteries, pigments, solder, alloys, circuit boards, A carcinogen. Long-term exposure
computer batteries, monitor cathode ray tubes causes Itai-itai disease, which
(CRTs)
causes severe pain in the joints
and spine.

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Used In
Semiconductors, diodes, microwaves, LEDs (Lightemitting diodes), solar cells
Electron tubes, filler for plastic and rubber, lubricant
additives

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It is imperative that the safe management of waste is done in an organized manner with sufficient
resources and sustainable recycling technologies on the one hand and effective legislations and
monitoring mechanisms on the other.

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Chromium Dyes/pigments, switches, solar

Mercury

Lead

9.

Inhaling chromium 6 can damage

liver and kidneys and cause
bronchial
maladies
including
asthmatic bronchitis and lung
cancer.
A small amount now exists in every household light- Affects the central nervous
bulb (the new energy efficient CFLs), thermometers system, kidneys and immune
etc.
system. It impairs foetus growth
and harms infants through
mothers milk.
Lead rechargeable batteries, solar, transistors, A neurotoxin that affects the
lithium batteries, PVC
kidneys and the reproductive
system.

What constitutes the MSME sector in India? Examine the reasons for its slow growth and enumerate
the initiatives taken by the Government to revive MSMEs.

Approach:

Introduce the answer by highlighting what constitutes MSME.

Secondly bring out the reasons for MSMEs underutilization despite the potential.
Thirdly mention the initiatives taken by the Govt. to revive MSMEs.

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Service
where the investment in equipment does
not exceed Rs. 10 lakh
the investment in equipment is more
than Rs.10 lakh but does not exceed Rs. 2
crore
the investment in equipment is more
than Rs. 2 crore but does not exceed Rs. 5
crore

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Small

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Micro

Manufacturing
an enterprise where investment in plant and
machinery does not exceed Rs. 25 lakh
investment in plant and machinery is more
than Rs. 25 lakh but does not exceed Rs. 5
crore
the investment in plant and machinery is
more than Rs.5 crore but does not exceed
Rs.10 crore

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The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED)
Act, 2006 in terms of which the definition of micro, small and medium enterprises, separately for
manufacturing and services as under:

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Loan and Credit accessibility - With more than 94% of MSMEs unregistered there exists a high risk
perception and high transaction cost of loan appraisal . MSME players are not in a position to provide
collateral for credit, hence they are denied access to credit.
Lack of access to equity market. This is especially problematic for first generation entrepreneurs.
Procurement issues - Problems with government procurement due to requirement of high turnover
and experience requirement; inefficient raw material procurement due to smaller scale and local
procurement.
Low technology levels and lack of access to modern technology. As a result lack of access to global
markets.
Lack of availability of skilled manpower.
Lack of awareness about marketing and branding - Problems in design, storage and display of
products.
Poor infrastructure like roads, power, sewage etc. to MSME industrial area.

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Reasons for slow growth:

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Absence of suitable mechanism for quick revival of sick units and easier winding up and distribution
of liabilities.

Govt. Initiatives to revive MSMEs:

Since MSME sector accounts 45% of the manufacturing output and 40% of total exports of the country,
reviving MSMEs become important for the national objectives of growth with equity and inclusion of the
Govt. Also this sector has a high growth potential and employment generation while performing a critical
role in the manufacturing and value chains.
Recently, the govt. introduced policies like, Skill development mission to open more training centers
throughout India, with intention of adequate trained man power; Mudra bank to finance MSME at low
interest rates to meet their financial requirements; Govt. made regulations to involve MSME in Make In
India drive; creation of CGFT (Credit Guarantee Fund Trust ) and SIDBI to facilitate credit flow into this
sector without the need for collateral/third party guarantees; National Manufacturing Competitiveness
programme, etc.
In addition, to strengthen this sector Govt. should help entrepreneur to develop expertise production
and marketing capacities, techniques and machinery for optimal uses, national consortium for successful
idea exchanges and business friendly of tax regime and labour laws.

RBI has recently classified some banks as 'Domestic Systemically Important Banks' (D-SIBs). What is the
rationale behind this move? Examine the possible implications of this step.

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Introduce with the concept of D-SIBs and background.

Explain the reasons for this move in detail.
List both positives and negatives associated with the step.
Conclude with a balanced opinion.

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Financial Stability Board (FSB), an international body affiliated with G20 recommended identification of
systematically important banks (SIB), which are too important to fail as their failure would have cascading
impact on the entire financial system.

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RBI issued guidelines and listed two banks SBI and ICICI as part of an annual process to declare such
banks as Domestic Systemically Important Banks. These banks would have to set aside 0.2 per cent to 0.8
per cent extra capital, based on the category under which they fall.

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However, it might not be easy for banks to arrange these additional funds. SBI has already stated the
need for government help in this regard. RBI has kept the requirements already lower than other
countries in face of the capital stress that banks in India are currently experiencing. For most global
banks it ranges from 1 to 2.5 per cent. This could threaten the stability and dilute the original objective of
the provision.
Also, the list included only two names instead of 6 originally considered. This can prove to be dangerous
as these banks are big and systemically important with deep and wide exposures across the market.
The biggest benefit would be in increasing stability. Even in case of a financial crisis, these banks will find
it easier to run their operations. Also, it reduces government bailout chances as well as quantum.
RBI's implementation of its domestic SIB framework is less stringent than that of other countries, as it
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well as assets to GDP ratio. Also, global banks are exposed to riskier inter-connected and complex
financial products which Indian banks have negligible.
The Reserve Bank of India has taken a well-balanced step as it followed the broad principles laid down by
the Basel Committee for making such a selection, which would protect it from failure of financial system.
At the same time, the decision has been made with an eye on local conditions.

11.

INDCs signal the end of CBDR as well as the underlying principle of historic responsibility and
respective capabilities. Critically analyse. How far do technology and finance hold the key to viable
progress on restricting global warming within reasonable limits?

Approach:

Describe the INDC mechanism.

Compare INDCs with CBDR-RC and principle of historic responsibility.
Discuss how INDC preserves both principles in different forms.
Discuss the global warming scenario in light of best technology and financial efforts.

Answer:

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In last two decades, principles of Common but Differentiated Responsibilities and Respective
Capabilities (CBDR-RC) and historic responsibility dominated the climate talks.
INDCs will replace the earlier and firmer concepts of commitments or pledges. They are post2020 targets and goals that each country takes for itself to reduce GHGs emissions that cause global
warming.
INDCs are perceived to be diluting the core principles agreed in the UNFCCC in 1992. Under article 3
and 4, CBDR-RC and historic responsibilities formed basis for legally binding commitments of
emission reductions for industrial and developed countries. The finances and technologies required
to adapt to and mitigate the effects of climate change demanded from the developed and industrial
countries are based on these core principles.
INDC was expected to include historic responsibility by securing ambitious emission reduction targets
by developed countries. However, the worlds worst historical carbon emitters submitted pledges
under the INDCs do not reflect their immense historical responsibility or show any real willingness to
address the scale of the climate crisis.
INDC framework retained CBDR in new form. It uses a new phrase drawn from the recent agreement
between the US and China, that countries responsibilities will be based on common but
differentiated responsibilities and respective capabilities in light of different national circumstances.
Over the last twenty years as the larger developing countries such as China, Brazil, India and South
Africa have emerged as economic superpowers and major emitters of greenhouse gases. The
reformed CBDR-RC principle takes this change into account and expects more ambitious targets from
these countries vis--vis their changed capacities.
Developed countries are expected to each submit an offer to reduce their overall domestic
emissions, specifying a goal for 2025 or 2030. Such offers/pledges are economywide and tally up
reductions across all sectors.
Developing countries are also generally expected to submit an offer that addresses their domestic
GHG emissions. However, offers from developing countries are not expected to come in the form of
an absolute reduction in current emissions.
A small number of countries, including smallisland developing states and some nations classified as
Least Developed Countries, may not be required to submit an INDC.

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The Lima Call for Climate Action adopted by countries at the end of the UN Climate Change Conference
in December 2014 called on members to submit their Intended Nationally Determined Contributions
(INDCs). The INDCs will be the building blocks of the new international climate change agreement
expected to be finalized in Paris in December 2015.

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Progress on restricting global warming:

Even though Flyash is a valuable resource material, but if not managed well, it may pose
environmental challenges. Comment. Also list a few steps that have been taken by the government to
promote the use of flyash.

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12.

The Fourth Assessment Report of the IPCC concluded that for the rise in average global temperatures
to keep within 2C above pre-industrial levels, global emissions must peak before 2020 and be
reduced to 50-85% below 2000 levels by 2050. There needs to be urgent worldwide deployment of
climate friendly technologies in very short-time frames. Unfortunately evidence suggests a mismatch
between the urgency of climate challenges as set out by the IPCC and the time taken for transfer of
technology systems.
There are many barriers to technology development and effective transfer of technology to
developing countries. Intellectual Property Rights (IPR) is major issue on transfer of technology.
Global technology Pool is proposed to mitigate the barriers to technology transfer.
As per the understanding in CoP in 2010, a financial commitment of $100 billion per year by 2020 is
required from developed countries to promote the reduction of emissions in developing countries to
stabilize emission in prescribed limits. The Green Climate Fund (GCF) was finalized in Durban summit,
which aim to allocate fund for adaptation and mitigation measures in developing countries. The Paris
climate meet in December 2015 will operationalize projects under the GCF. Contribution from
developed countries holds to key to mobilize fund.
The next decade will likely determine if the response of the global community to climate change,
especially that of developed nations, is sufficient to avoid or lessen the effects of the worst predicted
impacts of climate change.

85

The answer should start as to why and how Flyash has traditionally been viewed as an environmental
nuisance, but is also a useful resource.
The next part of the answer should discuss some steps taken by the government to promote the use
of Flyash.

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Approach:

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Answer:

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Fly ash is one of the residues generated by coal combustion, and is composed of the fine particles of
toxic elements, like SiO2, Al2O3, and Arsenic etc. It has long been rued as an industrial pollutant, as it
flies in the slightest air and is easily inhaled. Its inhalation has been linked to silicosis and results in TB,
asthama etc. However, this otherwise pollutant can be used as a resource by appropriate technology.

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Concrete production, as a substitute material for Portland cement and sand.

Embankments and other structural fills (usually for road construction).
Stabilization of soils. It has been found to support growth, survival of plants in wasteland areas.
As a construction material, like Flyash bricks. This would substitute already overstressed resource
base of soils, which being mined for the production of fired-bricks.
Using flyash in all above would also yield revenue through sale of carbon credits.

Th

rs

Potential uses of Flyash:

Considering its potential beneficial uses, the Government, through Flyash Mission, is promoting the use
of flyash in various applications:

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It has made it mandatory to use flyash brick or blocks in construction within a radius of 50 to 100 Km
from a coal based thermal power plant.

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It has made it mandatory to mix at least 25 % flyash by weight in manufacturing bricks, blocks, tiles
within 100 Km radius of coal based thermal power plant.
It has made it mandatory to use flyash in land filling, construction of roads, flyover etc. within the
radius of 100 Km of coal based thermal power plant.
It has made the provisions for using flyash in filling the mining voids, reclamation of land, levelling of
low lying areas etc.

Thus, the erstwhile waste of the power plants has become a resource for the building industry struggling
to seek environment friendly, high quality and affordable alternatives. The use of fly ash bock technology
has shown a way to reduce the consumption of energy and the use of scarce agricultural soil required for
the production of traditional fired bricks and at the same time provides a solution to the environmental
hazard of dumping ash as has been the practice of most power plants in India.

13.

Rising income inequality is a widespread concern for advanced as well as emerging economies.
Illustrate how inequality impedes economic growth. Also, examine the steps taken by India to tackle
income inequality.

Approach:

Introduce the answer by illustrating the rising income inequality.

Discuss the impact of income inequality on economic growth.
Analyze the initiatives by India to reduce income inequality.

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Answer:

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Widening income inequality is the defining challenge of our time. In advanced economies, the gap
between the rich and poor is at its highest level in decades. Inequality trends have been more mixed in
emerging markets and developing countries (EMDCs), with some countries experiencing declining
inequality, but pervasive inequities in access to education, health care and finance remain.

is
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Inequality affects growth drivers. Higher inequality lowers growth by depriving the ability of lowerincome households to stay healthy and accumulate physical and human capital.
For instance, it can lead to underinvestment in education as poor children end up in lower-quality
schools and are less able to go on to college. As a result, labor productivity could be lower than it
would have been in a more equitable world.
Increasing concentration of incomes could also reduce aggregate demand and undermine growth,
because the wealthy spend a lower fraction of their incomes than middle- and lower-income groups
Inequality dampens investment and hence growth by fueling economic, financial and political
instability. Extreme inequality may damage trust and social cohesion and thus is also associated with
conflicts, which discourage investment.
A growing body of evidence suggests that rising influence of the rich and stagnant incomes of the
poor and middle class have a causal effect on crises, and thus directly hurt short- and long-term
growth. In particular, studies have argued that a prolonged period of higher inequality in advanced
economies was associated with the global financial crisis of 2008.

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Economic Growth and Income Inequality:

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Wealth is now even more concentrated at the top level, exacerbating the overall disadvantage of lowincome households. In 2012, the bottom 40% owned only 3% of total household wealth. In contrast, the
top 10% controlled half of all total household wealth and the wealthiest 1% owned 18%. The top 1%
share almost 10% of total income worldwide.

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Examining steps taken by India to reduce Income inequality:

14.

Social protection is a cushion for those at the bottom against the effects of inequality. Social
protection policies play an important role in reducing poverty and inequality and supporting inclusive
growth by boosting human capital. However, India fares poorly in case of social protection measures.
The global average on social spending is 8.8% of GDP. Among BRICS nations, India spends the lowest
proportion of public expenditure on social protection around 4%, while the highest is Brazil with
21.2%.
The performance of existing protection measures is dismal in terms of access, quality and equity.
Health, education and nutrition schemes face great challenges.
Taxation policy is critical in income redistribution. Regressive tax code and complex tax structure has
resulted in widespread tax evasion in India. The redistributive role of fiscal policy could be reinforced
by greater reliance on wealth and property taxes, more progressive income taxation, removing
opportunities for tax avoidance and evasion. Government is in the process to reform the tax code in
India. However, the rate of reforms is dismal. Direct tax code, Goods and Services tax proposals are
still awaiting the approval by the Parliament.

What are biosimilars? How are they different from traditional generic drugs? Enumerate the
regulatory requirements present for biosimilars in India.

Approach:

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Explain what are biosimilars.

Explain how they are different from generic drugs.
Discuss the regulation of biosimilars in India.

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Answer:

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Many important medications are biological products made from living organisms. They are manufactured
through biotechnology, derived from natural sources such as humans, animals or microorganisms and
also produced synthetically. These are called biologics.

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Biosimilars are highly similar to an already approved biologic known as reference product. Biosimilars
have no clinically meaningful differences in terms of safety and effectiveness from the biologics. A
biosimilar needs to have the same mechanism of action as the biologic, which means it will work in the
same way as biologic.

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Many leading biologic medicines, worth more than $81 billion global annual sales, will lose their patent
protections by 2020. Biosimilars being cheaper imitation of biologics can help cut drug costs and hence
they are gaining importance in the pharmaceutical industry.

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Difference from generic drug: A generic drug is identical to a branded drug in dosage, form, safety,
strength, route of administration, quality, performance characteristics, and intended use and is typically
sold at discounted price of the original. On the other hand biosimilars are not the exact copies but are
very similar to original.
The rest of the differences between generics and biosimilars is same as that with biologic. For example,
biologics/biosimilars are 200 to 1,000 times the size of a small molecule (generic) drug, and far more
structurally complex. Biologics/biosimilars are manufactured in living cells, extracted, and purified,
whereas small molecule drugs /generics are manufactured purely via chemical synthesis. Generics are
more stable while biosimilars/biologics are more sensitive to handling and storage.
Regulatory environment: In India, biosimilars are regulated by the Drugs and Cosmetics Act, 1940, Drugs
and Cosmetics Rules, 1945 , Rules regarding GMO under Environment Protection Act, 1986, Recombinant

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DNA Safety Guidelines, 1990 and Guidelines for Generating Preclinical and Clinical Data for rDNA
Vaccines, Diagnostics and other Biologicals, 1999.
Central Drugs Standard Control Organization (CDSCO) is the highest regulatory authority in India. It
addresses issues and challenges for ensuring the safety and efficacy of biologics/biosimilars and
establishes the appropriate regulatory pathways. It grants import/export licenses, clinical trial approvals
and permission for marketing and manufacturing.
The Department of Biotechnology (DBT) is responsible for overseeing the development and preclinical
evaluation of recombinant biologics.
CDSCO along with DBT is responsible for monitoring all research scale activity and the approval of
nonclinical studies. They have also issued guidelines that detail the regulatory requirements, such as data
requirements for the manufacturing, characterization, preclinical studies and clinical trials, for receiving
marketing authorization of biosimilars. These guidelines are applicable for biosimilars developed in or
imported into India.

15.

Discuss the sectoral composition of workforce across India and the problems associated with it.

Approach:
Discuss the sectoral composition of workforce.
Discuss the problems of limited farming land, unequal industrialisation and urbanization.

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Answer:

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Indian economy has made transition from earlier led by primary sector to service sector. But it was not
adequately reflected in the sectoral composition of workforce.

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In pre-economic reform of 1991 period, the decline in employment share of agriculture was mostly being
compensated by an increase in the share of secondary sector. However in post 1991 period, the service
sector has been the main gainer of the shift in employment. Yet, increase in its employment share has
not been commensurate with the increase in its share of GDP during the period.

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The primary sector, which includes agriculture, mining employs around half of total workforce. The
secondary sector employs around 17 percent and remaining workforce is employed in tertiary sector. The
MSME sector forms significant part of Indian economy and employs about seventy millions workforce.

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In terms of sectoral composition of the self-employed, it can be seen that self-employment is highest in
agriculture, followed by trade. In terms of employment in the emerging sector, a large number of people
are employed in the retail sector, IT sector, transport sector, hospitality and health care.

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Post 1991, India recoded a slowdown in the public sector employment. On the other hand, employment
in the private sector has increased its share. More aptly, there has been a transition from the public
sector to the private sectors.
Further, only a small segment of the workforce is employed on a regular basis at reasonable levels of
wages and salaries whereas an overwhelming majority works in unorganised sector.
There are various challenges arising out of uneven sectoral composition such as:

18

Limited farming land is putting pressure on agriculture resulting into low productivity and disguised
unemployment
The fast growing sectors need to create more jobs and policies need to be reoriented to develop
labour-intensive sectors such as handloom textiles

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The widening rural-urban gap in providing employment opportunities led to overcrowding of cities
and pressure on urban resources. This has been reason for development of slums.
The unequal industrialisation created unequal growth across nation and led to emergence of sons of
soil like theory.
The labour laws applies to only organised sector leaving huge workforce under unorganised sector
unregulated, with limited rights and work under deplorable work condition.
The regulatory arbitrage between organised and unorganised sector has prevented expansion of
industries.

It is imperative for India to address these challenges, which requires efforts on all fronts such as skill
development, reforms in labour laws and infrastructure development.

16.

India needs a national common market for agricultural commodities by making the Agricultural
Produce Market Committees just one among the many options available for the farmers to sell their
produce. Discuss.

Approach:

The answer requires both benefits that can be accrued by a national common markets and
drawbacks of the APMC system, with a clear focus on the former.
Preferably give benefits in terms of overcoming lacunae of APMC as well as new opportunities.
Some constrains of the national market can also be mentioned.

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Answer:

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The Government of India has recently taken a decision to set up a Unified National Agricultural Market,
which would involve integration of 585 major regulated mandis through electronic platform over three
years. This is a step towards increasing competition by allowing farmers to sell their produce to a wider
market, rather than being constrained to the local mandi, governed by the monopolistic APMC.

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The existing system, apart from suffering from several non-transparent levies and charges restricts
farmers access to marketplace. The average area served by a mandi is 450 sq. Km., making it inaccessible
to large number of farmers. The proposed model has a national agriculture market as a virtual platform
having APMC controlled mandis at the backend. In addition, private mandis can also participate, but
without government infrastructural support. This will ease the accessibility problem to a large extent as
trading becomes technology dependent.

rs

Fragmentation of state into multiple market yards (mandis), which lead to multiplicity of fees levied,
ultimately borne by the farmer.
Requirement of multiple licenses by a trader to trade in different markets; licensing barriers.
High variability of prices both inter-state and intra-state due to low use of technology for
transparent price discovery; information asymmetry.
Wide gap between prices realised by farmers and those paid by consumers.
Poor infrastructure and movement controls.
Lack of industrial linkages and private participation in agro-industry supply chain.

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The need for a unified market can be gauged from some of the problems that it can address:

The Rashtriya e-market Services (ReMS) system of Karnataka, a JV between State government and NCDEX
Spot exchange offers modern facilities like grading, dissemination of different grades of commodities in
different market yards, weighing, loading/unloading, washing and scientific warehousing. The proposed
unified market, on the similar lines, plans to grant a single trading license for trading across different
markets and single point of levy of market fee. It will also increase access to warehouse based sales and
obviate the need to transport the produce to mandis. The integrated system of distribution enabled by

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better infrastructure will help farmer fetch a premium through better quality and minimisation of postharvest losses.
However, the APMCs would continue to earn the mandi fee on transaction as it will be recorded as
having been conducted through mandi where the seller would normally bring his produce.
States have been encouraged in past to allow farmers more choice in accessing markets and seek a fair
value for their produce. Measures such as reorienting their respective APMC acts (Model APMC Act,
2003) to provide for establishment of private market yards or even the incremental steps like dropping
fruits and vegetables from list of regulated commodities have been resisted. Political leaders do not want
to forego the mandi revenue, which does not form part of the states consolidated fund or the political
clout associated with control of APMCs. It therefore remains to be seen how successful will the eintegration of the mandis will be in face of resistance.

17.

Banking is hobbled by policy, which creates double financial repression, and by structural factors,
which impede competition. Comment.

Approach:

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Give a general introduction of banking sector in India.

Further elaborate on the two points how policy is impeding the banking sector leading to double
financial repression and how structural factors are a cause for holding the banking sector back.
Conclude by giving measures to tackle the above problem.

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Answer:

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The problems in Indian Banking Sector fall in 2 categories policy and structure.

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The policy challenge relates to financial repression. The Indian banking system is afflicted by what might
be called double financial repression which reduces returns to savers and banks, and misallocates
capital to investors.

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Financial repression on the asset side of the balance sheet is created by the statutory liquidity ratio (SLR)
requirement that forces banks to hold government securities, and priority sector lending (PSL) that force
resource deployment in less-than-fully efficient ways. Financial repression on the liability side has arisen
from high inflation since 2007, leading to negative real interest rates, and a sharp reduction in household
savings. As India exits from liability- side repression with declining inflation, the time may be appropriate
for addressing its asset-side counterparts.

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The structural problems relate to competition and ownership. First, there appears to be a lack of
competition, reflected in the private sector banks inability to increase their presence. Indeed, one of the
paradoxes of recent banking history is that the share of the private sector in overall banking aggregates
barely increased at a time when the country witnessed its most rapid growth and one that was fuelled by
the private sector. It was an anomalous case of private sector growth without private sector bank
financing.
Further, there is wide variation in the performance of the public sector banks measured in terms of
prudence and profitability.
The diagnosis to the above mentioned problems lead to a four-fold policy response captured in 4 Ds:
deregulate, differentiate, diversify, and disinter.
Deregulate As the banking sector exits the financial repression on the liability side, aided by the fall in
inflation, this is a good opportunity to consider relaxing the asset side repression. Easing SLR
requirements will provide liquidity to the banks, depth to the government bond market, and encourage

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the development of the corporate bond market, providing a case for deregulating the banking sector.
Further, the PSL norms need to be revisited.
Differentiate There must be differentiation between the PSBs which will allow a full menu of options
such as selective recapitalization, diluted government ownership and exit. Further, granting licenses to
two new banks, defining Systemically Important bank and going ahead with the concept of payment
banks is a step in the right direction to differentiate and leverage the specialization in the financial sector
Diversify implies there must be greater competition within the banking system, including liberal licensing
of more banks and different types of banks.
Disinter implies exit procedures must become more efficient. Mechanisms for distributing pain efficiently
amongst promoters, creditors, consumers, and taxpayers without creating moral hazard incentives for
imprudent lending by banks are necessary, i.e. it is an important lesson that the clean-up is as important
as the run-up.

18.

India's SAGAR approach to the Indian Ocean Region presents an opportunity for it to play the role of
security provider as well as facilitator of Blue Economy. Comment.

Approach:

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Highlight the renewed emphasis on the region extended neighbourhood.

On security aspects, mention the military exercises, equipment provision, etc.
On economy, mention the trade related aspects and regional integration.

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Discuss the role that India can play in the region from geographical, economic, political and security
perspective.

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Please note that SAGAR is not a new strategy, but only added emphasis. Students are expected to draw a
map of the region marking areas of activity.

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Answer:

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Indias approach to the Indian Ocean region has seen a remarkable shift in the past decade. As a rising
naval power, India is taking a much broader view of its responsibility than the mere pursuit of its
narrowly defined national interests. There is a shift away from the territorial approach of viewing the
region in terms of zones of sovereignty to viewing the ocean as a global common. As a net-security
provider and the lynchpin of the regions economy, India needs open seas rather than waters that are
enclosed in name of national boundaries. The SAGAR approach Security And Growth for All in Region,
clearly enunciates Indias interests and responsibilities in the region.

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India is active contributor to regional mechanisms for combating terrorism and piracy and
responding to natural disasters from Gulf of Aden to Malacca Straits.
Policy instruments such as transfer of arms, financial resources and devising frameworks for
intelligence sharing are being pursued more assertively than before.
There is new emphasis on building multilateral cooperative maritime security in the Indian Ocean.
India has invited Mauritius, Seychelles and other countries to join the trilateral security initiative it
already has with Maldives and Sri Lanka. This augurs well for having distant port of calls for Indian
navy, a prerequisite for developing blue water capabilities.
Some Current developments (i) Seychelles India gifted a second Dornier aircraft for maritime
monitoring, signed an agreement for conducting hydrographic surveys, and launched a coastal
surveillance radar project. The radar initiative is part of a project to build a maritime domain

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Opportunities as a Security Provider

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awareness network across the Indian Ocean. It calls for the establishment of surveillance radars in
Mauritius, Seychelles, Sri Lanka and Maldives. These will be linked to sites on Indian coast and
connected to an integrated analysis centre near Delhi. (ii) Mauritius Indian-made offshore patrol
vessel Barracuda was commissioned, Agreements to develop infrastructure for connectivity in the
Assumption Island in the Seychelles and Aga Lega in Mauritius. (iii) Maldives India supplied millions
of litres of fresh water to the nation during water crises this year.
Opportunity as a facilitator of Blue Economy
Indian Ocean channels carry two-thirds of the worlds oil shipments, a third of the bulk cargo and half of
all container traffic. A key element of SAGAR approach is sustainable economic development of the
region while addressing the concerns of island states and coastal regions.

There are opportunities for greater collaboration in trade, tourism and investment; infrastructure
development; marine science and technology; sustainable fisheries; protection of marine
environment and overall development of Ocean or Blue Economy.
More integrated and cooperative future in the region that enhances the prospects for sustainable
development for all.
During PMs visit to Seychelles, a joint working group was set up to expand cooperation on the blue
economy. It will increase littoral states understanding of ecology, resources, and allow them to
harness the ocean in a sustainable manner.

The multiplicity of labour laws and difficulty in coping with them are an impediment to industrial
development in India. Critically examine. What are the labour reform measures initiated by the
government for ensuring compliance and promoting ease of doing business.

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India is becoming more integrated globally. We will be more dependent than before on the ocean and
the surrounding regions. The SAGAR approach gives us a direction to assume our responsibility to shape
the future of Indian Ocean region.

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Discuss the need of labour reforms measures along with other constraints faced by industrial
development in India, like skill shortage.
List measures taken by the government recently in this regard.

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Indian economy has presented a unique example of direct transition from primary to service sector
missing the stage of secondary sector. The primary reason for it has been cited as stringent labour laws
and their difficult compliance.

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The labour laws are meant to protect and ensure welfare of labour force in country. However, India has
very less number of workers protected under law even as the countrys labour market has too many
laws. It is evident from 93 percent worker under unorganised sector, which is very less regulated.
The labour subject is listed in concurrent list of Constitution, which enables both Union and State
governments to legislate on this issue. As a result, a large number of labour laws have been enacted
catering to different aspects of labour. At present, there are 44 labour related statutes enacted by the
Central Government and many more enacted by state governments. This multiplicity of labour laws and
difficulty in coping with them are the impediment to industrial development in India.

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Further there is lack of flexibility in terms of freedom to hire contract labour, the freedom to retrench
workers and close down undertakings without prior government endorsement, and the freedom to
introduce technological changes that involve loss of employment.
In addition to this, there are differential labour laws for MSME sector and large industries, which became
inhibiting factor for increasing size of industries and production, thereby employability.
Instead, the industries are choosing automation over labour due to complex labour laws but eroding
employment base in India.
However, labour laws are not the only reason for impending industrial growth. The skilled labour force in
India is only about 4 percent. India is still backward in respect of its infrastructural facilities. The
industrial development is concentrated to few states leading to regional imbalances. The slow
investment in research and development of products and poor economic policies like inverted tax
structure has also contributed to poor industrial development in India.
In this context, the government has initiated following measures to reform labour market:

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Apprenticeship act was amended to make it more responsive to industry and youth
Apprenticeship Protsahan Yojana was launched to support MSMEs in manufacturing sector in
engaging apprentices
The Shram Suvidha portal was launched for timely redressal of grievances and for creating a
conducive environment of industrial development
Transparent software based labour inspection scheme has been introduced to check misuse of
discretionary powers in hands of inspectors
Universal Account Number (UAN) has been allotted to Employee Provident Fund (EPF) subscribers to
facilitate portability of member accounts
Allotment of Unique Labour Identification (ULI) will facilitate online registration by units will improve
compliance also
Promotion of self- certification and provided simplified single online return instead of 16 separate
returns by industry.

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Climate Change has the potential to create migrant crisis across the world and force people to become
Climate Exile. How serious is this problem for a country like India? Examine the adequacy of existing
global frameworks and institutions to deal with such crisis. In context of the upcoming Paris
Conference, discuss the measures that should be taken by the international community in this regard.

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In addition to these, the government has proposed to simplify all the labour laws and unify them into a
single code for better compliance and improving ease of doing business in India.

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Explain how climate change could trigger mass migration and discuss term climate exile
Explain its potential impact on India and other developing countries
Discuss conventions including UN Refugee Convention and organisations, their capabilities
Explain how upcoming Paris Conference can address this problem. Discuss importance of Loss and
Damage clause.

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Approach:

Answer:
Climate change can bring disasters such as intense storms and heat waves and slow moving changes like
droughts and sea level rise (SLR). They may exacerbate living conditions to such an extent that people
could be forced to move from their homes and become climate exiles. According to the 2006 Stern
Review, climate change may displace 200 million people by the middle of the century.

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The atoll nations such as Tuvalu or the Maldives will suffer the worst effects of storms and flooding. The
population of these small island states will have to leave their country without a viable nation state.
In case of India, its coastal population is expected to suffer inward migration as well as security
challenges because of climate change. High density population found in delta region is vulnerable to
coastal flooding. The increased salinity of ground water will affect availability of quality drinking water.
The economic activities will be impacted with destruction of beaches, reduced agricultural productivity,
and increased salinity of estuaries.
Simultaneously, the shrinking land of highly populous Bangladesh would create many climate refugees.
India being its neighboring country could become prime destination of climate exiles from Bangladesh. It
will have socio political as well as security implications in India.
Further, Maldives seeks to buy new homeland in India for their islanders to prevent them from becoming
climate refugees. Such demands are expected to increase from many nations facing similar threats.
To address this future migrant crisis, the international frameworks need to be reviewed. The United
Nations Refugee Convention is narrowly defined and does not include environmental refugees under its
ambit.
The International Organization of Migration is engaged in the activity of rehabilitating environmental
refugees but its membership is not as vast as United Nations covering all the nations.

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The worst affected nations have formed Alliance of Small Island States (AOSIS) but they lack technology
and finance to deal with the situation.

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The international community needs to provide technical support, guidance and finance to countries
facing these threats. Also, the UNFCCC programme of Loss and Damage need to be implemented.

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The Loss and Damage effectively covers the impacts due to sudden-onset events (climate disasters, such
as cyclones) as well as slow-onset processes (such as sea level rise). Under this, the countries will be
provided with compensation to loss and damage they suffered which would increase their resilience to
climate change.

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However, the implementation of this clause is a challenge as it implies liability and compensation on rich
countries, which are responsible for the bulk of the GHG concentrations in the atmosphere. In this
context, the upcoming Paris Conference provides significant opportunity.

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The Loss and Damage mechanism should become the part of the core agreement in Paris, so that its
centrality is established. The Paris Conference provides platform to develop consensus range of issues
such as inclusion of climate refugee in the UN definition of refugee, unconditional grant from Green
Climate Fund and financial mechanisms for post 2020 period.

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24

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VISION IAS
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Approach Answer: General Studies Mains Mock Test 637 (2015)
Answer all the questions in NOT MORE THAN 200 WORDS each. Content of the answers is more important than
its length. All questions carry equal marks.
12.5X20=250
1.

Many experts believe that India is a bright spot in the world economy today. However, indicators like
export growth, household savings, non-performing assets, manufacturing growth etc. paint a different
picture. Discuss these two contradictory positions.

Approach:

The answer should first provide a picture of contemporary world economy in brief and why India is
considered a bright spot.
Then mention the reasons behind the individual trend given in the question.
Accordingly conclude your answer.

Answer:
The world has still not recovered from the economic crisis of 2008-09 and worldwide economic difficulty
is being experienced by governments, markets and consumers. For example, decline of Chinese
economy, recent Eurozone crisis etc. In this looming economic scenario, many experts believe that India
is a bright spot. IMF expects India to grow at 7.5% next year, the highest in the world.
However, there are few trends in economy, which present a different picture. These issues have their
background in global economic slowdown as well as policy paralysis in the past. For example:

Despite declining crude oil prices and devaluation of rupee have declined steadily over the last 14
months.
o This is mainly due to a massive demand slowdown in global markets. Also, the decrease in oil
trade across the world has led to decrease in petroleum products, which forms a major part
of our export.
Household savings, which were the bulk of national domestic investments, dropped from 34% of
GDP in 2005 to 28% of GDP in 2015.
o The decrease in household saving can be attributed to high inflation in the past. This trend is
expected to change as the inflation has come under control.
The Non-Performing Assets (NPAs) of the public sector banks have risen sharply.
o The rise in NPAs can also be attributed to the effects of global recession coupled with
internal factors such as slowdown in the domestic economy. To deal with NPAs, government
has laid out a roadmap for Rs 70,000 crore capital infusion in PSU banks over a period of four
years.
The manufacturing sector, which provides the bulk of employment to the skilled and semi-skilled
labour force, grown at low rates.
o This has mainly been due to infrastructural bottlenecks, bureaucratic red tapes, rigid labour
laws etc. Government has taken initiatives to tackle these issues in Make in India campaign.

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As economic survey points out, Indian economy is recovering and not surging. The daunting challenges
remain however we must be realistic of our expectations. India needs to follow a persistent,
encompassing, and creative incremental reforms to address key problems of economy.

2.

In context of the recent surge in prices of pulses, explain the reasons for low production of pulses in
India and give the reasons behind the price volatility of pulses. Enumerate the measures that need to
be taken by Central and State governments to control the prices.

Approach:

The answer can be introduced by highlighting in brief the importance of pulses in common mans
diet or how the total productivity of pulses over the years has declined by substantiating with data
and figures.
Secondly, bring out the reasons for low production of pulses and how as a consequence has led to its
price volatility.
Finally bring out the steps that need to be taken and have been taken by the Govt. to address the
issue.

Answer:

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Pulses constitute an important part of Indian diet as it is a rich source of protein. Till 2008, Indias
production of pulses remained almost static in the range of 14 million tonnes or so. In 2013-14, India
produced 19.25 million tonnes of pulses which a year later came down to 17.3 million tonnes in 2014-15,
necessitating more imports. Thus, despite being the world's largest producer of pulses, India remains one
of the largest importers as well.

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Imbalanced cropping pattern : pulses are grown in marginal under-irrigated areas , only 15 per cent
of the 25 million hectares area sown annually for pulses in India is irrigated, compared to 60 per cent
for paddy and 90-95 per cent for wheat and sugarcane.
High MSP and assured procurement has led farmers to switch to crops like rice wheat sugarcane
encroaching on area where pulses can be grown.
Also, the moment farmers have access to irrigation, they tend to shift from chana to wheat or from
arhar to paddy and cane.
Green revolution provided technical support mainly for rice and wheat cultivation of pulses was
restricted to marginalised rainfed lands.
R&D regarding high yielding varieties of pulses has been lukewarm.

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Reasons for low productivity of pulses

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Lower production due to deficit monsoon in 2014-15 as well as in the current season as well,
impacted the arhar, urad and moong that farmers planted this kharif.
Unseasonal rains and hail had an impact on rabi chana( chickpea) and masoor(lentil) crops in March
this year.
Drought in Maharashtra and Karnataka, the two big states that lead in cultivation of pulses.
India imports almost 4-5 million tonnes of pulses every year, but unlike wheat, rice and oilseeds, the
global marketable surplus is limited to around 13 to 15 million tonnes. This makes international
prices shoot up even at the slightest increase in demand from India.
Poor PDS in many states: artificial scarcity of pulses created in the market by middle men.
Growing demand due to higher living standards ( change in dietary pattern) which is specially
manifested in the form of protein inflation.

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Reasons for price volatility of pulses

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Pricing of pulses: cap on stocking leads to glut in market and lowering of prices in short term and
high prices in long term; Export bans, zero duty imports and ban on future trading prevent farmers
from getting benefit of true market price.
On top of all this, there is the element of hoarding and black-marketing by big traders and
wholesalers knowing fully well that prices will increase as evident from the recent raids have
recovered around 36,000 tonnes of pulses hoarded by traders

Measures need to be taken

need to import pulses in short term to ease prices.

promote HYVs of pulses among farmers to improve productivity
extend National food security mission which further aggressive targets and funding.
rationalize MSP for Pulses in comparison to other crops.
promote irrigation in these areas with innovative ways like watershed development.
developing culture of mix farming and crop rotation to enhance production of pulses as well as
health of soil.
need for effective and efficient PDS which can be implemented through a Centralized system with
the help of e-governance and Digital India.

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Steps taken by Govt. recently : Government has taken some steps to increase area under pulse
cultivation like NFSM-pulses, developing 60,000 pulse villages, increasing MSP of pulses. It has banned
exports and waived import duty; taken strict action against hoarders and black marketers, bearing
transportation, handling and milling charges of imported pulses from the Price Stabilization Fund and
encouraging States to lift stocks of imported pulses; it has urged Kendriya Bhandars and Safal outlets to
sell imported pulses at a subsidised price of Rs.120/-among others.

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Skill India is a daunting task of keeping sight on the manpower requirements of the industry and the
infrastructure needed for achieving the targets of skilling. Discuss. Further examine how the 3I's of
skills - Investment, Innovations and Institutions - can help in improving the quality of training,
assessment and jobs.

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However, all these form short-term measures. In long term, the Govt. must increase MSP of pulses (over
wheat) which must induce farmers to cultivate pulses. In essence India must prefer to improve domestic
production rather than relying on imports.

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Explain briefly Skill India mission.

Discuss the importance of manpower requirements of industry and infrastructure needed in
imparting the skills.
Explain the merits of Investment, innovation and Institutions which might contribute towards the
success of the skill India mission.

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Approach:

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Answer:

Skill India mission seeks to provide skill training and recognize skills in atleast 40 crore people by 2022.
But the task is not very simple given the traditional approach of our education system, vicious cycle of
poverty and lack of access in rural areas.
Special focus needs to be taken that the skills imparted and the education provided also meets the
requirement of the industry or else providing employment becomes difficult because:

The skills should be able to deliver what the market demands, or else they become redundant.
The industry is dynamic and changing fast, traditional method of learning cannot adapt to it.

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To meet the requirement of the industry following steps have been taken in imparting skills:

National Skill development Corporation: Public private partnership programmes are being financed
and implemented to ensure creation of large, quality, for- profit vocational institutions.
Private sector is being incentivized to provide skills as per the requirements of their industry.

But Skill India mission will stay limited to tier1 cities alone if proper infrastructure is not created to
provide access to information and technology not only in rural but also less developed tier 2 and 3 cities.

Many of these skills and trainings are imparted with the help of the internet.
Even the trainers need to access the remote areas, for which basic infrastructure is inevitable in
these areas.
Machine infrastructure needs to be in place if the skills being imparted, are to be worked out on a
machine, along with land, electricity, telecommunications etc.

Without proper infrastructure the skills India Mission will remain only a dream, specially for the remote
areas and people.
The 3Is i.e. Investment, innovation and Institutions can help us give a boost to the mission:
Investment:

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Increased investment from PSUs and Private sector can help fulfill the resource crunch that
government faces in skilling such a large population totally on its own.
Increased investment will mean more manufacturing and service creation and thus more need of
skilled labors, and more jobs to skilled man-power.

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Different approach towards skilling people, thus making skills more suitable for the industry needs.
Skills which help people in becoming better learners than just expert of a subject, thus it will help in
better adaptability of skilled labor towards industry dynamics and changing technology.

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Innovations:

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Need of Policy framework that will clearly outline the need for integrating existing system of
education and training with existing market.
Greater role for private players and industry in imparting skills.

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Institutions:

Explaining the Hybrid Annuity Model, discuss how far it can help to revive private participation in large
infrastructure projects.

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If these methods are followed then we will not only produce world class skilled labors but also the labor
which can readily be employed by the industry and meet its changing demands.

The answer can be written in 3 parts:

First, discuss the Hybrid Annuity Model (HAM).

Secondly, explain how is it an improvement over other investment models (BOT, EPC) and how it can
help in reviving private participation in large infrastructure projects.
Finally conclude what more needs to be required to revive private participation in large infra
projects.

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Answer:

The hybrid annuity model was proposed by the Government in 2014 to reduce risks in public private
partnership format is likely to provide impetus for the next wave of PPP road projects.
The model is a mix of EPC and BOT formats, with the government and the private enterprise sharing
the total project cost in the ratio of 40:60, respectively.
A Hybrid annuity contract gives flexibility to allocate funds to both fixed and variable (which are risky,
but can give higher returns) annuity components.

How Hybrid Annuity Model will revive private participation in large infrastructure projects:

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National Highways Authority of India (NHAI) had recently laid down the guidelines for the hybrid
annuity model (HAM) in which the government funding to the extent of 40 per cent of the project
cost will come in five equal instalments during the construction period, thus reducing the financial
burden on concessionaire during the project implementation phase.
When compared with EPC projects, shift to HAM would ease the cash flow pressure on NHAI.
Moreover, spends can be recovered to an extent through tolling of these stretches by NHAI itself.
Therefore, NHAIs own upfront funding requirement will be lower in case of hybrid annuity
compared with EPC model.
Also, in the BOT annuity model, the government bears the commercial risk of toll collection. The
government pays the private operator the project cost along with interest in the form of a halfyearly annuity.
However, the hybrid annuity will involve the government paying a part of the capital cost at the
commencement of the construction work, thus giving the private company a revenue stream even
before the actual commercial operations begin.
Thus, a Hybrid annuity contract gives flexibility to allocate funds to both fixed and variable (which are
risky, but can give higher returns) annuity components.

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Thus, the HAM model may succeed as government has mitigated lot of risks for private sector. More
vigorous private sector involvement in PPP models can happen when the Government addresses some
other issues related with PPP MODEL like- timely regulatory clearances, timely land acquisition and
compensation, dispute resolution mechanism which is non - existent; The more sustainable and long
term solution to funding of infra projects with long gestation period lies in developing insurance and
pension markets in India as only their business is long enough to fund projects of long duration whereas
banking sector finds it difficult to fund projects beyond 5-7 years.

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The rail ministry is ignoring the fundamental change required to transform Indian railways to suit 21st
century demands. The way forward is to dismantle the archaic organizational structure set up during
the 19th century and establish a more efficient mechanism to operate the 17 zones. Discuss in the
context of Bibek Debroy panel committee recommendations.

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The question should focus on Bibek Debroy panel committee recommendations mainly.
First, discuss the highlighted problems and the suggestions given by the Committee to amend these
problems.

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Approach:

Answer:
Indian Railways is more than 150 years old and has played a vital role in the socio-economic
development of the country. It is one of the largest rail networks in the world, transporting around 23
million passengers every day and employing 1.4 million people.

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However, railway has suffered from various issues like cost and revenue problems, safety issues, last mile
connectivity etc.
In that respect, Bibek Debroy committee has made following recommendations:

Changes in Human Resources: The Committee recognizes that the zones of Railways have evolved in
different ways and have different requirements. Thus, it favours substantial decentralization of
powers to DRMs and General Managers. It is also in favour of lateral entry for various specialists that
the railways require.
Gradual Liberalisation: The committee is in favour of gradual entry of private operators in freight
operations, but only after an independent regulator with statutory backing is appointed to ensure
that the Ministry does not continue to do both the jobs of policy formulation as well as regulation.
Restructuring of functions: The committee favours a separation of the core functions of railways from
its additional responsibilities like running hospitals and schools, catering, real estate development,
manufacturing locomotives etc.
Commercial Accounting: The present system of accounting is very complicated The panel favours a
shift to commercial accounting which will provide better information about the cost-benefit analysis
of different activities and thus help railways take sound operational decisions based on its merits.
Merging the Railway budget into the general budget after all such reforms are done in a time frame
of 5 years.
Railways must make more investments in track modernisation and must decongest the popular
routes.

Digital currency represents a decentralized form of money that is more secure, more fungible and more
functional than anything weve seen before. Examine.

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These recommendations if adopted and implemented will help decentralize and corporatize the working
of the railways making it more agile.

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In brief explain the arguments provided by proponents of digital currencies regarding independence
from a central authority and focus on peer to peer transaction. Technicalities of digital currency are
not required.
In second part of the answer discuss the importance of central banks and the risk of digital
currencies.
Accordingly conclude.

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Answer:

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The nature of money changed after the Bretton Woods Conference in 1944, when most countries tied
the value of their currencies to the US dollar, rather than to gold or silver. When the US went off the gold
standard in 1971, all currencies essential became fiat moneys, with their value derived from the
governments that issue them rather than from commodities. Thus, global financial system is decided by
small group of bankers and this gives enormous control to central banks over economic activity.
Therefore, many people object to the concept of fiat money.
In this context, innovating the concept of money through a digital currency which is more decentralized
and democratic has been a recurring theme in technology circles. This can be understood for the
following:

Low transaction fee:

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The core innovation is that digital currency uses consensus in a massive peer-to-peer
network to verify transactions. Thus, there is vast potential in using digital currency as a
medium of exchange at a much lower cost than Visa and Mastercard.
o It also transacts business instantaneously, so there is no float (i.e. the bank cant keep
money in limbo while it earns interest on it) and because processing is automated, fees can
be lowered substantially.
No central authority: The supply of Bitcoin is capped. So no one can create unlimited Bitcoins.
Theres no Federal Reserve or other central bank that can intervene.
Impervious to attack: Digital currencies have a widely distributed ledger, so its much more
impervious to attack than a centralized institution like a bank.
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However, there are issues with digital currency. For example,

Volatility of currency: Bitcoins, the most famous digital currency, popularity led to a massive
speculative bubble, rising in value to almost $1000 and then crashing down to under $400.
There are apprehensions that digital currency can be used to finance illegal activities due to
anonymity of the transaction.

Thus, there is much uncertainty associated with Digital currencies. Many think that this may be the
future of world economy while others are afraid that it can destroy economies. However, if digital
currency works and people starts trusting it to work without the middlemen i.e. central authorities, the
way worlds economy functions could be transformed for better.

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Maritime Transport is critical for the social and economic development of a country. What are the key
features of the 'Vision for coastal shipping, tourism and regional development' released by the
Ministry of Shipping? What are the challenges in realizing that vision?

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Identify the features of Vision for each aspect.

Enlist the broad objectives mentioned in the Vision document.
Discuss the challenges in realizing the vision.

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Approach:

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Coastal shipping plays important role in development of domestic industry and boosts economy of the
nation. Experience of other nations in South-East Asia, Caribbean Islands indicates that huge amount of
foreign exchange and employment can be generated on shore through growth in shipping and cruise
tourism. In order to overcome the constraints on coastal shipping tourism and to promote greater
activity in these sectors, Ministry of Shipping has prepared a vision for coastal shipping and cruise
tourism.

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Coastal shipping:
o It aims to increase the share of the coastal and inland waterway transport in modal cargo mix
to 10% by 2020.
o Development of coastal shipping as a part of an end-to-end logistics supply chain.
o Integration of inland waterways with coastal routes.
o Development of regional centers to generate cargo for coastal traffic.
o Simplification and rationalization of procedures relating Indian Customs, Immigration Port
Health Authorities.
o Providing cheap source of funding for the coastal shipping sector.

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Salient Features of Vision

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Addressing the infrastructure issues including port capacity augmentation, dedicated coastal
cargo handling berths and special facilities to handling vessels.
Regional Development:
o Development of coastal economic regions (CER) comprising industrial parks, captive
industries and ancillary facilities such as ship building, repair and breaking.
o Development of a hub and spoke model of cargo consolidation near ports, involving creation
of distribution and storage centers together.
Tourism:
o India has a long coastline which can attract international cruise lines and is also
geographically located in proximity to already popular cruise destination.
o Coastal Tourism: Up-gradation and development of world class tourist friendly infrastructure
and facilities near ports and terminals. Rationalization of fiscal regime and port changes to
encourage growth of cruise tourism.
o Inland waterway tourism: To promote cruise tourism on inland waterways by active
collaboration between state and central agencies.
o Lighthouse tourism: Lighthouses are not merely significant as aids to navigation for vessels,
but are also part of countrys social and cultural. India also has a number of larger maritime
histories of the country. Many of them are located in beautiful scenic locations and when
developed as part of the tourist circuits, they have ample potential to generate tourist
footfalls.
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Challenges:
Development of tonnage: The growth of coastal shipping tonnage is challenged by numerous
factors. Funding support, restriction on river-sea movement, skilled and efficient manpower, and
availability of vessels, ship building technologies are some of the challenges to overcome in
development of the tonnage.
Port Infrastructure: Waiting time at ports, mechanization and shore infrastructure is critical for
coastal shipping. In India long waiting times and non-availability of modern mechanized units to
handle various cargo operations makes it difficult for coastal shipping to operate. To realize the vision
of coastal shipping agencies have to work on reducing these impediments in coastal shipping.
Regulatory and Policy framework: Coastal shipping is one of the highly regulated sectors in India as
compared to other transport facilities. Strict regulations on ownership, management, safety, security
and additional custom regulations add to the cost of doing cargo operations. It makes the coastal
shipping less viable as compared to other means of transport and international operators.
Coordination: Coordination between Central and state agencies, taxation authorities and maritime
boards is key challenge to the shipping sector. The Port Community System (PCS) is novel step in this
regard to address the problems of coordination.

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The central government has recently launched KISAN project for crop insurance in agriculture sector
that will use geo-informatics system along with high-resolution data from UAV based imaging. How
can space, drone, weather and other high-end technologies be used for crop insurance programme?
What are the challenges in their implementation? Discuss.

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Introduce with objectives, components and working of KISAN Project.

Elaborate usage of space, drone, weather and other high end technology in various crop insurance
related applications.
List down the various associated challenges.
Conclude with a brief way forward/recommendation

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Answer:
Kisan project will use space technology and drone-based imaging for estimating crop yields. It will use
geo-informatics system along with high resolution data from UAV/drone-based imaging for improvement
in yield estimation and better planning of 'crop cutting experiments' which are needed for crop insurance
programme. The scientific data collected by drones and collated with satellites imagery will be matched
with traditional crop cutting experiments to arrive at a foolproof data. This will help in deciding crop loss
more objectively and in a very fast manner.
Some significant ways in which space, drone, weather and other high end technologies can be used for
crop insurance programme

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Data collection: Drones can be used to gather widespread data across an entire growing season,
allowing insurance companies to test their business models and develop new revenue streams.
Weather data from satellites and ground stations is required for weather based crop insurance.
Analysis: statistical models are critical to calculating payouts and premiums. These often use multiple
types of data, including remote sensing data, pictures from drones, weather information etc. to
create complex models that require high end computing systems. GIS has capacity to integrate data
from multiple sources.
Timely information: Drones can provide a higher degree of all-around knowledge of how crops are
progressing day-to-day in different parts of a given field. Weather information from satellites is
crucial for weather based crop insurance companies.
Monitoring: Monitoring can be done using sensor systems, cameras, drones, virtual field maps,
analytics, etc. for increasing efficiency of decisions and increase market response. Partial loss
assessments due to hazards can be made by remote sensing using UAVs etc.

Acceptability: The acceptability of technological tools to estimate loss remains low among the
farmers who either dont trust the systems or remain oblivious to their benefits against cost.
Availability: The technology like drones and space tech are not easily available to companies due to
limitations in domestic market as well as regulations governing the usage of such high end
technology.
Accessibility: The Indian market is composed of small and marginal farmers predominantly and
hence, viability of widespread usage of technology is compromised to an extent.

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Challenges in their implementation

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The long-standing demand of merging FMC into SEBI has materialized recently. How is this move
expected to affect the commodity trading space in India? Explain.

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Crop insurance, especially weather based crop insurance is in its infancy stage at present in India. There
is a need to integrate technology through collaborative efforts of government and private sector for
increasing efficiency and suitability of insurance products to reach every farmer.

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Start with basic background about the merger.

List the expected impacts of the merger on the commodity trading space.
Conclude with a balanced outlook.

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Answer:
The recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) and Rs 5,600-crore
payment crisis at the NSEL led to the merger of FMC and SEBI, which was first officially mooted over 12
years ago when the commodities market was just opening up.

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The merger has led to several important changes as well as expectation of further changes in the
commodity trading space in India:

Better regulation: The FMC only regulated the exchanges, and had no direct control over brokers.
Also, SEBI has a far superior surveillance, risk-monitoring and enforcement mechanism. Market
players feel that commodity markets will now be better regulated, with more stringent processes and
will thus evoke greater confidence.
FCRA to SCRA: The Forward Contracts Regulation Act (FCRA) stands repealed, and the regulation of
the commodity derivatives market shifts to SEBI under the Securities Contracts Regulation Act
(SCRA), 1956. SCRA is a stronger law, and gives more powers to SEBI than FCRA offered to FMC.
Foreign investment: While foreign institutional investors are allowed to invest in Indian equities and
debt markets, they are currently restricted from participating in commodities trading at exchanges.
SEBI may allow FII participation in commodities trading too in future, which would provide more
depth to the markets, and increase liquidity, investor participation and better price discovery.
Increase in scope: In time, SEBI may introduce option contracts (call and put options) in commodities
trading on lines of equity trading, thereby providing better hedging tools to investors. Also, enlarging
the field of players can happen, for example, banks are not allowed to trade as banking regulation
does not permit it. But, banks can play a role as aggregators for farmers and also cover themselves
for the credit risk in lending to farmers once backed by a futures contract.
Reducing redundancy: if there is integration of the two trading platforms and single registration
process for brokers, it will reduce work for the trading entities. The compliance burden also stands to
be reduced.

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Despite these great opportunities there are some looming concerns as well that threaten the success of
the merger.

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It is not known if the stock exchanges will be allowed to deal with commodities and vice versa for
commodity exchanges. In such scenario, major consideration is to ensure that risk from one market does
not spill into the other. This was the primary reason for commodities being separated from securities.

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Also, as a commodities regulator, SEBI would have to expand its infrastructure substantially to effectively
oversee each of the traded commodities otherwise it will suffer from the same kind of regulatory
infirmities that had hobbled the FMC. Some feel that SEBI lacks knowledge of the commodities market.
However, since several FMC officials will move to SEBI in line with the merger, such issues are likely to be
sorted out.

Indradhanush- the seven-pronged strategy for public sector banks announced by the governmentlacks measures to tackle NPAs. Discuss the various internal and external factors responsible for NPAs.

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Introduction why NPAs are a matter of concern.

Mention internal and external factors responsible for NPAs.
Mention Indradhanush Plan in context of above.
Critical analysis of Indradhanush Plan.

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Answer:
A strong banking sector is important for a flourishing economy. The failure of the banking sector may
have an adverse impact on other sectors. Non-performing assets are one of the major concerns for banks
in India.
NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number
of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the

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asset. The NPA growth involves the necessity of provisions, which reduces the overall profits and
shareholders value.
The various factors responsible for NPAs are:
Internal factors:

Funds borrowed for a particular purpose but not use for the said purpose.
Project not completed in time.
Poor recovery of receivables.
Excess capacities created on non-economic costs.
Inability of the corporate to raise capital through the issue of equity or other debt instrument from
capital markets.
Business failures.
Diversion of funds for expansion\modernization\setting up new projects\ helping or promoting sister
concerns.
Willful defaults, siphoning of funds, fraud, disputes, management disputes, mis-appropriation etc.
Deficiencies on the part of the banks viz. in credit appraisal, monitoring and follow-ups, delay in
settlement of payments\ subsidiaries by government bodies etc.,

External factors:
Sluggish legal system

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Long legal tangles

Changes that had taken place in labour laws
Lack of sincere effort.

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Scarcity of raw material, power and other resources.

Industrial recession.
Shortage of raw material, raw material\input price escalation, power shortage, industrial recession,
excess capacity, natural calamities like floods, accidents.
Failures, non-payment\ over dues in other countries, recession in other countries, externalization
problems, adverse exchange rates etc.
Government policies like excise duty changes, Import duty changes etc.

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The government launched the Indradhanush framework for transforming the PSBs, which represents the
most comprehensive reform effort undertaken since banking nationalization. It touches upon several
incremental reform measures such as the creation of a Bank Board Bureau (BBB), linking the
compensation of banks' top management to performance, improving governance standards, focusing on
quality of business rather than the quantity and fresh additional capital infusion within one month.

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It is said that the proposals can help public sector banks effectively deal with the malaise of nonperformance assets (NPAs).

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But it is said to have fallen short of three crucial ingredients:

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Setting up a 'bad bank' to address the issue of non-performing assets (NPAs),

Disproportionately higher upfront capital infusion,
Tackling human resource problems in mid-to-senior levels.

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Suggestions:
The government should act on these three points if banks NPA problems need to be addressed
effectively:

11.

Banks need autonomy to operate. Unless the government ceases to be the single largest stake holder
in these entities, this autonomy will remain only on paper.
A well-thought-out plan to recover the existing bad loans from large willful defaulters is key to
resolve the menace of NPAs in the banking sector. An action plan for this was missing in the
Indradhanush document. As per data obtained from the All India Bank Employees Association, there
are 7035 cases of wilful defaulters that have bad loans to the tune of Rs 58,792 crores as on 31
March, 2015.
A strong bankruptcy law, like in the west, is necessary for banks to deal with crisis-ridden companies
and promoters. Presently, there are no strong laws that enable banks recover money from wilful
defaulters. In most such cases, the defaulters seek legal recourse to delay the process of loan
recovery.

Food and nutritional security, increasing farm income, poverty alleviation and minimizing crop
production risks on account of climate change are the priority challenges faced by Indian agriculture.
Comment. Also, suggest measures to address these challenges on priority basis.

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Discuss the challenges facing agriculture sector under various themes listed in the question.
Discuss the remedial measures to address the challenges identified in the first part.

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Food and nutritional security: Though government has given statutory status to food security
covering around 67% of population, our main focus has been on making available staple food
comprising of cereals wheat and paddy. Also, there are many issues regarding access to these food
items. On account of nutritional security, we have launched few missions focusing on increasing
production of oilseeds and pulses like Integrated Scheme for Oilseeds, Pulses, Oilpalm and Maize
(ISOPOM) and the latest push has been given through launch of Protein mission in annual budget
2014-15, but tangible benefits are yet to be achieved as we are still importing them. Also, there are
major problems in extension program regarding the transfer of the technology from research
institutions to the farmers field.
Increasing Farm Income: Focus must be diverted from just increasing crop production to farm
income, which includes income from livestock, poultry and other related agricultural enterprises.
However, this has not been encouraging on account of institutional drawbacks, lack of access to
modern technology, market information which needs to be corrected.
Poverty Alleviation: India resides in villages main source of income agriculture lack of synergy
between Policy initiatives, technology extension and welfare program results in persistent poverty
among rural population.
Minimizing the crop production risks on account of climate change: Climate change is the reality
and since India is an agrarian economy, we have lot of reasons to be concernedlack of awareness

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India is an agrarian nation where half of population is still dependent on agriculture and allied sectors for
livelihood. But its GDP contribution is around 19% (2014-15). Also there is a huge disparity in land
distribution with average landholding size of 0.2 ha, majority of whom are small and marginal farmers.
However, since the merger of global economies many new issues are arising while many old ones are
getting more concerning which is evident from the logjam in Doha round of WTO negotiations. Some of
the priority challenges and their possible solutions are discussed as follows:

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among the farmers, slow pace of R&D in development of Good Farming Practices climate resilient
agriculture.
Some remedial measures to tackle above mentioned challenges on priority basis:

12.

Increasing agricultural productivity - focusing on the technology development and its effective
dissemination; focus on access to inputs in timely manner along with attention to output sector.
Attention to rainfed regions of India can constitute Rainfed Authority of India focus on crop
diversification, availability of modern technology.
Linking farmers with markets with least possible intermediaries.
Increasing investment in agriculture, especially in new potential areas like North east, collaboration
with private sector with proper legal reforms creating conducive environment.
The introduction of climate-smart agriculture to adapt the sector to changing environment and
climate characteristics.
All the above measures should inter alia include the sustainable development approach tackling
climate change challenges.

Despite their ecological richness and contribution to national economy, coastal and marine ecosystems
have not received adequate protection. Discuss the challenges in marine management. How does the
Integrated Coastal Zone Management Project seek to balance development with the protection of
vulnerable ecosystems?

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In the introduction, elaborate the statement of the question.

Then discuss the challenges that are faced in marine management.
Finally, explain how the ICZM project seeks to balance development with the protection of
vulnerable ecosystems.

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Indias coastal zone is endowed with abundant coastal and marine ecosystems that include a wide range
of mangroves, coral reefs, sea grasses, salt marshes, mud flats, estuaries, lagoons, and unique marine
and coastal flora and fauna. However, in spite of their ecological richness and contribution to the
national economy, Indias coastal and marine areas have not received adequate protection and are under
stress.

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Almost all coral areas are threatened; marine fish stocks are declining; and several species of ornamental
fish and sea cucumbers are fast disappearing. About 34% of Indias mangroves have been destroyed since
1950. Such rapid depletion and degradation, unless arrested, will impact the livelihood, health and well
being of the coastal population, affecting in turn prospects for Indias sustained economic growth.

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Habitat Destruction: Unplanned and unregulated growth and development as well as infrastructure
projects along the coast have destroyed critical marine habitats.
Ineffective fisheries management: Large-scale mechanisation in the fisheries sector has had a huge
impact on fish resources. Trawlers often operate near the shore due to poor enforcement and
monitoring by the fisheries department and Bottom-trawling has impacted lower fauna.
Over-exploitation of bio-resources: Living bio-resources in coastal zones are heavily exploited which
is unsustainable
Pollution: The coastal zone receives waste generated by a number of point and non-point sources,
especially sewage, industrial effluents, sediment, and agricultural chemicals, notably fertilizers and
pesticides. These contribute to the degradation of the quality of coastal waters.

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Following are the challenges in marine management and conservation:

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Weak Implementation of Laws: Amendments to Coastal Regulation Zone (CRZ) have undermined its
efficacy e.g. Permission to allow SEZs in the no development zone of CRZ3 has resulted in threat to
coastal biodiversity and habitats.

Integrated Coastal Zone Management (ICZM) is a World Bank financed project and is a part of the
national coastal zone management program. It seeks to balance the diverse needs of development with
the protection of vulnerable ecosystems. The projects multi-sectoral and integrated approach represents
a paradigm shift from the traditional sector-wise management of coastal resources where numerous
institutional, legal, economic and planning frameworks worked in isolation, at times with conflicting aims
and outputs. Integrated in ICZM refers to integration of objectives, relevant policy areas, sectors and
levels of administration.
The project puts equal emphasis on conservation of coastal and marine resources, pollution
management, and improving livelihood opportunities for coastal communities. It involves the
participation and cooperation of all stakeholders to assess the societal goals and balance environmental,
economic, social, cultural and recreational objectives.
The project is working at the national level and in three states: Gujarat, Odisha and West Bengal. At the
national level, the project is working to expand the knowledge base and build institutional capacity for
the integrated management of coastal zones. This includes the mapping, delineation and demarcation of
hazard lines and ecologically sensitive areas along the mainland coast of India, in addition to setting up a
National Center for Sustainable Coastal Management.

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The heat wave in 2015 was the 5th most deadliest one in the recorded history. Describe the
phenomenon of Heat Wave. What are its health impacts? What measures can the government take to
avoid casualties from this recurring phenomenon?

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Define heat wave and highlight the severity of heat wave 2015.
Discuss the general health impacts of a heat wave.
Give suggestions on how government may prevent casualties.

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Heat Wave is a prolonged period of excessively long spells of summer with periods of intense heat.
Severe heat waves cause crop failures, casualties from hyperthermia, power outages etc. Lack of general
awareness in community, compulsion of daily wage earners to work in the heat, failure of public health
system in remote areas and lack of foresight and intervention by Government are some of the leading
causes of such high casualties.

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Although every year India experiences severe heat waves in summer, the casualties in 2015 crossed the
2000 mark, making this year the worlds fifth deadliest heat wave ever, according to the Emergency
Events Database (EM-DAT) maintained by the Centre for Research on the Epidemiology of Disasters
(CRED) based in Brussels, Belgium. IMD declares heat wave when the actual maximum temperature is
above 45 degree C. Most of the casualties were concentrated in Andhra Pradesh, Telangana, Odisha,
Punjab, Uttar Pradesh, and Bihar.
Following are the health impacts of heat wave:
1. Hyperthermia or Heat Stroke is caused due to failed thermoregulation in body. Symptoms include
heat exhaustion, poor perspiration, nausea, vomiting, headaches and low blood pressure which may
lead to dizziness or fainting.
2. Mortality: Extreme heat stroke may even cause death due to dehydration and associated effects.

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3. Psychological effect due to heat affects performance and is also associated with violent crimes.
4. General Symptoms include: Diarrhea, headache, nausea and vomiting, dizziness, tachycardia,
malaise, and myalgia.
5. Heat rashes or heat cramps are also common.
Central and State Governments may take the following measures to Treatment/Preventive Measures:

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Upon prediction of the heat wave conditions by the ESSO-IMD, various State Governments must have
disseminate information on Dos and Donts through advertisements in Print and audio-visual media.
Opening up of drinking water camps at identified places in rural and urban areas to mitigate the
impact of heat waves.
The schedule of National Rural Employment Guarantee Scheme workers is adjusted to avoid
exposure to extreme hot weather duration periods.
Facilities for administration of basic treatment are provided at the local health centres.
Shelters and Water coolers may be installed at regular intervals.

Urban waste management is a crucial part of Smart City project. How can scientific treatment be
utilized to tackle urban waste? What are the policy measures taken in this regard?

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Start with brief intro of smart city and its urban waste management integration.
List scientific methods proposed or used for the urban waste disposal/ management.
List the policy measures/regulations already in place or being proposed.

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The Smart City Missions objective is to promote cities that provide core infrastructure and give a decent
quality of life to its citizens, a clean and sustainable environment and application of Smart Solutions.

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Sanitation, including solid waste management is a core infrastructure element in a smart city. Also, Solid
Waste Management (SWM) is a crucial component of Swachch Bharat Mission.

Recycling There are lot of waste materials that can be efficiently extracted and reused, like steel,
paper, aluminium, glass, etc. Several scientific methods of segregation like magnetic separation,
gravity and vacuum filtration, etc. can be pursued. Newer technologies are emerging like less energy
and water consuming recycling methods.
Waste to energy WtE has the advantage of being able to completely remove waste, rather than
reuse or process it. Traditionally, WTE plants have operated by incinerating waste and converting the
resulting heat into energy. However, better methods have now evolved like Gasification and plasma
arc gasification are used to convert organic materials into a synthetic gas (syngas) made up of carbon
monoxide and hydrogen.
Anaerobic digestion - The process is degradation of waste by microorganisms in an environment
starved of oxygen. It can be used to treat organic solid waste and wastewater of almost any kind. The
process works quickly and the remainder can be used as fertilizer while the biogas produced is
converted into energy.
Zero Waste - The idea of reusing every bit of waste possible and turning the remainder into energy.
There are several buildings and even towns in India and abroad that utilize multiple scientific waste
management techniques to achieve zero waste. Eg - Bobbili town in Andhra Pradesh is a zero-waste
zone, which means that all its garbage is recycled or reused.

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Scientific management of urban waste can be undertaken in many ways including:

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Laws and Regulations

The Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008
o Fixes responsibility of all the steps necessary to contain contaminating substances and prevent
harmful effects on human health and the environment.
o Furthermore, it mandates that the necessary training and equipment must be provided to
persons who are working on a site that involves hazardous waste.
o It establishes guidelines for environmentally sound and scientific recycling, recovery or reuse
facilities and arrangement for treatment and disposal of wastes generated.
The Plastics (Manufacture, Usage and Waste Management) Rules, 2009
o It mandates that recycling of plastics are to be undertaken in accordance with the Bureau of
Indian Standards specifications. It prescribes marking, registration and standards for recycled
products and processors.
E-Waste (Management and Handling Rules) 2010
o For scientific and environmentally safe E-waste management. It has guidelines for bulk
consumers, collectors, dismantlers, reprocessors etc.

Other laws:

The Water (Prevention and Control of Pollution) Act, 1974, amended 1988
Bio-Medical Waste (Management and Handling) Rules, 1998
The Ozone Depleting Substances (Regulation and Control) Rules, 2000
The Environmental Protection Act

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New policy measures by the Government

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Is there a need for constituting a separate ministry and a National Executive Committee as envisaged
under the NDMA, 2005? Discuss in the light of recommendations by 2nd ARC.

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Government is mooting a waste-to-wealth scheme for which steps have been taken for commissioning of
waste-to-energy plants. In order to improve the scope for waste-to-energy projects, the Power Ministry
is in the process of amending the Electricity Act-2003 to include a provision for State Electricity Discoms
to mandatorily purchase all power generated from municipal solid waste. Also, Central Electricity
Regulatory Commission (CERC) is also working to determine the tariff for the power generated from
waste-to-energy plants to boost their financial viability.

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Its up to the student to deal with both issues separately or at the same place.
Mention the mandate of both the ministry and the NEC and tasks they are expected to perform.
Analyse the existing structures in place and give your (ARCs) opinion with regard to utility of these
bodies.

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Constitution of a separate ministry

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There have been demands for a separate ministry of disaster management for sustained and focused
efforts in the areas of disaster preparedness, mitigation and management.
It has been envisaged as a nodal ministry dealing with both man-made and natural disasters.
It will be expected to provide networking and coordination of national resources while the
concerned functional ministries would continue to discharge their responsibilities in accordance
with their respective disaster management plans.

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However, given the multi-disciplinary nature of activities in crisis management, creation of a separate
ministry is likely to lead to conflict and delays rather than coordination. The same has been
recommended by the ARC. It has further commented that such a coordination mechanism is now
available with the NDMA. Also, for the purpose of implementation, a coordination mechanism
headed by the Cabinet Secretary would be more effective.

Constitution of National Executive Committee

The National Executive Committee (NEC), setup under NDMA, 2005 functions under the National
Disaster Management Authority and consists of Secretaries of all relevant ministries.
The body has extensive powers including laying down guidelines and giving instructions to concerned
departments under the Centre or the State.
It can also summon resources men and material from any department or agency and make them
available to national or the state authorities.

The NDMA as well as the NEC have been given the role of not just planning, coordinating, monitoring and
providing assistance during disaster but also executive functions related to emergency relief and disaster
response.

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However, there is a similar and more effective National Crisis Management Committee (NCMC) headed
by the Cabinet Secretary already at the apex level. It coordinates and guides the work of different
departments of Government of India in times of crisis. Secretaries of ministries and departments
concerned and heads of other organizations are members of NCMC, which reviews and monitors crisis
situations on a regular basis and gives directions to the Crisis Management Group as deemed necessary.
The NCMC can give directions to any ministry, department or organization for specific action needed for
meeting the crisis situation.

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Tribal land alienation and socio economic deprivation has been linked to development of extremism. In
this regard, discuss the measures suggested by Virginus Xaxa committee for overall development of
tribals in India.

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The ARC has recommended that the NEC envisaged under NDMA would be duplicating the role of NCMC
to a great extent. The NCMC has inherent advantages of ensuring quick decisions and immediate
implementation. Creation of parallel bodies may lead to trespassing into each other, creating confusion
and blurring of responsibilities during crisis situations. Moreover, there is need to shift the focus from
managing disasters to managing crises and the NEC would not be in position to handle all types of crises.
This problem would be further compounded in case of multiple crises or disasters. Unity of command
and quick decision making are paramount in any crisis management situation. The ARC has therefore
recommended that NEC need not be constituted and that the existing coordination mechanism under
the Cabinet Secretary should continue. Similarly, at the state level the existing coordination mechanism
under the Chief Secretary should be retained.

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Explain how tribal land alienation and socio-economic deprivation is linked to extremism.
Discuss the measures suggested by Virginus Xaxa Committee for overall development with regards
to the above two problems.

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Answer:
The problem of tribal alienation has roots extending way back to the British rule where repressive forest
laws were passed which banned traditional activities like foraging, shifting agriculture, hunting etc of the
tribals.

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After independence also, these repressive laws continued which lead to usurpation of tribal land and
depriving them of their socio-economic development. Tribals were exploited by moneylenders, made to
work long hours in mines for petty wages thus hampering their growth.
Many minerals are located in these areas but the benefits of mining these minerals have not accrued to
the tribals living there. Rather they have been displaced due to such activities. It is no surprise then, that
most of the red corridor coincides with the major tribal population in central and east India.
To stop this alienation and to curb extremism in these areas, Virginus Xaxa Committee had presented
some solutions.
Key recommendations of Xaxa Committee

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Land Acquisition
o Amend new Land Acquisition Act to disallow acquisition of tribal land by non-tribal or
private company.
o Prevent all kinds of tribal land alienation and restore alienated land to tribal owners as per
the PESA Act and confirmatory acts. Further the govt must stop notifying rural areas as
urban areas in order to nullify the provisions of PESA
o Unutilized land with govt or with PSUs must be utilized for resettlement of tribal people.
Mining
o States must adopt the amended Andhra Pradesh Scheduled Areas Land Transfer Regulation,
1959, to facilitate Registered Scheduled Tribe Cooperative Societies taking up mining
activities.
o Minerals in Scheduled Areas should be exploited only by tribals.
Gram Sabha
o Make gram sabha consent mandatory for acquisition of land, even by the government for
its own use
o Gram sabhas should be empowered to restore alienated land pending a long legal battle, to
discourage a prospective non-tribal buyer.
Large Dams
o Large dams have harmed tribals. Evolve strategy for water-harvesting structures on various
small and large water sources, including big rivers.
o Development projects lead to influx of outsiders to tribal areas. Dont allow further
reduction of areas declared as Scheduled areas
Introduce penalties to prevent deliberate flouting of the Forest Rights Act, such as (through)
exception to linear projects, and (through) decisions of the Cabinet Committee on Investment
Grassroot Movements and Naxalism
o State should engage with grassroots movements against exploitation of tribals instead of
crushing them.
o Appoint a judicial commission to investigate cases of Naxal offences filed against tribals
and their supporters

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These recommendations can prevent tribal land alienation, especially through works defined for public
purpose. Many times it is found that the PPP mode is simply a backdoor method of alienating land in
violation of the provision restricting transfer of tribal land to non-tribals in scheduled areas.
Also, government officials should not be seen as negotiatiors on behalf of project authorities. Public
policies should learn from the experience of Niyamgiri and adverse lessons of Salwa Judum. These steps
will help in avoiding tribal alienation, promoting their socio-economic development and curbing
extremism.

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17.

Malabar-2015 and AUSINDEX are part of a broader collective effort to preserve the balance of
maritime power in the Indo-Pacific littorals. Discuss.

Approach:

In introduction mention the growing significance of Indo-Pacific region and its strategic importance
along with various collective efforts to maintain the balance of power.
In brief explain that how Maritime exercises like Malabar and AUSINDEX are part of it.
Discuss the challenges for India in the region in the context of such exercises.
Conclude.

Answer:
The waters of the Indo-Pacific region represent an increasingly critical arena for maritime geopolitics,
security, trade, and environmental policy action. This can be understood from the followings:

This shift of the United States and others toward the Indian Ocean region has been driven by the
dramatic economic growth of China, the steady rise of Indian economy and the escalating crude oil
exports of the Middle East.
Security challenges range from the flash points in the South China Sea, Korean Peninsula, Taiwan
issue, the Somali pirate threats etc. that affect a large part of the Ocean.
There is a struggle for power between China and India across the Indo-Pacific region.

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Recently India, US and Japan completed the Malabar, a joint multilateral naval exercise in the Bay of
Bengal. The interaction has transitioned from being an India-US bilateral engagement into a formal
structured trilateral exercise, signifying a strategic push, which maritime analysts say is aimed at
countering growing Chinese military presence in the Indian Ocean.
The AUSINDEX was held within weeks of Australias trilateral engagement with Japan and the US in
the Southwestern Pacific in July, raising the possibility of a potential alliance of democracies to
counter Chinese military activity in the Indian Ocean Region.
China is wary of the inclusion of Japan in an India-US naval exercise, a move that may eventually end
up reviving the maritime quadrilateral consisting of the navies of the US, India, Japan and Australia.

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Importance of Malabar and AUSINDEX:

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Indias reliance on the United States to curtail Chinas Indian Ocean ambitions has a significant
downside.
From an Indian perspective, the United States endorsement of freedom of navigation patrols in
the South China Sea might leave China with little option but to expand its military maritime presence
in the wider Indo-Pacific region.

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While technological innovation has been given a major thrust in recent times, there are certain
impediments in the inculcation of scientific fervour in youth. Elaborate. How can the Rashtriya
Avishkar Abhiyan help in fostering an innovative spirit?

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Challenges for India

Approach:

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Introduce with importance of innovation and science and technology in Indian context
List down the challenges in developing innovation spirit and ecosystem among youth
State the objectives and initiatives of Rashtriya Avishkar Abhiyan that help in addressing above issues

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Answer:
India ranked 81 out of 141 countries on the Global Innovation Index (GII) 2015. On the innovation subindices, the country performed poorly on institutions (ranked 104th), infrastructure (87th), and human
capital and research (103rd). Combine this with Indias ever increasing population and youth dominated
demography to understand the importance of innovation and science and technology in India.
There are multiple issues that have impeded the inculcation of scientific fervour in youth.

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Non-conducive education system: While industry craves solutions to their problems, the academic
institutions are generally too busy performing routine academic exercises, churning out educated
manpower that is often ill suited to either innovative industries or entrepreneurship. This situation
is further worsened by the inherent problems of lack of infrastructure and good facilities in the
educational institutions and delays in the funds or other support reaching innovation projects.
Poor infrastructure facilities in villages: Basic infrastructure facilities such as electricity, Internet,
roads and rail, and even the availability of a skilled teachers, are often weak in smaller towns and
rural parts of the country. Thereby, there is less scope for creativity, innovation and scientific spirit to
flourish in such areas. In most cases, students must travel long distances at their own expense to
receive mentorship or other support.
Attitude and information gap: There is poor information regarding science and mathematics among
students, parents and even teachers. Parents focus more on marks and teachers uninterested in
teaching. Most of the kids coming in from poorly educated households do not have the atmosphere
at home to aid learning. Parents are not capable of evaluating whether the kid is learning anything.
Pedagogical and curricula: the curriculum in schools is often outdated, devoid of practical
knowledge, problem solving and self learning is discuraged and rote learning focussed. There is lack
of teaching in vernacular languages. The teaching-learning equipment is out of touch with the
present scenario.

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Rashtriya Avishkar Abhiyan is a unique concept developed by the Ministry of Human Resource
Development that aims to inculcate a spirit of inquiry, creativity and love for Science and Mathematics in
school children.

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Under Rashtriya Avishkar Abhiyan, government schools will be mentored by Institutes like IITs/ IIMs/
IISERs and other Central Universities and reputed organisations through innovative programmes, student
exchanges, demonstrations, student visits, etc to develop a natural sense of passion towards learning of
Science and Maths.

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Sensitisation of parents and community through promotions.

Organised visits to science museums, innovation hubs and science fairs and mathematics melas.
Participation of students in inter-school, state/ national science and mathematics competitions/
Olympiads etc.
Expand outreach of programmes of ministry of science and technology to promote science learning.
Promotion of science & mathematics teacher circles and student clubs for children.
Strengthening teacher support institutions through use of technology.
Development of resource materials with association of scientific organizations and industry.
Use of technology in science and mathematics teaching.
Provision of teaching-learning equipment and materials with visualization and digital models.
Strengthening school science and mathematics laboratories for understanding of application and
problem solving.
Teacher preparation for science, mathematics and technology through capacity building and
mentoring at all levels.

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Some of the interventions through which it aims to address the issues discussed above are:

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19.

Astrosat launched by ISRO has been described as the miniature version of the famous Hubble
telescope. What are the objectives of this launch? How would it help in fulfilling the needs of our
scientific community?

Approach:

Brief introduction about the observatory.

List the prime objectives.
Elaborate on achievements and uniqueness of this project, along with impacts.
Conclude on a positive note/way forward.

Answer:
The successful launch of the space observatory, Astrosat by the Indian Space Research Organisation, has
put India in a select group of countries that have a space telescope to study celestial objects and
processes. Astrosat joined the elite group of three other space observatories Hubble of the US, Spektr
R of Russia and Suzaku of Japan.
Astrosat is intended to:
Understand high-energy processes in binary star systems containing neutron stars and black holes.
Estimate magnetic fields of neutron stars.
Study star birth regions and high-energy processes in star systems beyond our galaxy.
Detect new, briefly bright X-ray sources.
Perform a limited deep field survey of the universe in the ultraviolet region.

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Electromagnetic radiation from space is distorted during passage through Earths atmosphere, hindering
understanding of celestial objects. Hence, it was required to put up an observatory in space.

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The ability of Astrosat to simultaneously study a wide variety of wavelengths visible light, ultraviolet
and X-ray (both low- and high-energy) bands has tremendous implications for scientists globally,
particularly those in India. Though stars and galaxies emit in multiple wavebands, currently operational
satellites have instruments that are capable of observing only a narrow range of wavelength band.

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Without a space telescope, scientists so far relied on the telescopes operated by NASA and the European
Space Agency to study radiation bands that carry information about neutron stars, newly born or
exploding stars and the spiralling hot gases around black holes.

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Astrosat carries four X-ray payloads, one UV telescope and a charge particle monitor. Apart from ISRO,
four other Indian institutions Tata Institute of Fundamental Research, Indian Institute of Astrophysics,
Inter-University Centre for Astronomy and Astrophysics and Raman Research Institute were involved in
the payload development.

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In fact, ISRO has built just one of the five payloads for Astrosat; the rest comes from scientific institutions
based in India. Besides providing an opportunity to build world-class instruments, Astrosat will present
an ideal platform for researchers in these institutions. As is the norm internationally, for a year, the
teams that built the payloads would have exclusive control over what is observed by the satellite. This
would not only provide recognition but also spur research and innovation.
The Astrosat telescope will have no immediate commercial or societal implications. But the instruments
have been carefully chosen to allow scientists to pursue cutting-edge research. Chandrayaan-1 and
Mangalyaan returned invaluable information, although they were launched several years after other
countries sent satellites to the Moon and Mars. Given the uniqueness of Astrosat, it will enable Indian
researchers to work in the frontier areas of high-energy astrophysics.

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20.

While transfer of defence technology to India from the US could give a much needed shot in the arm
for modernization of our armed forces, harvesting the same pose some challenges. Elaborate. Also,
discuss the issues in the Defence Trade and Technology Initiative (DTTI) of the US Government that
have implications for the further growth of defence cooperation between India and the US.

Approach:

Give a brief introduction of US-India defence partnership and the challenges being faced in
harvesting technological transfers.
Introduce DTTI and its importance.
Highlight the issues involved in this initiative.

Answer:
Owing to its Foreign Military Sales (FMS) Programme the US has emerged as the largest supplier of arms
to India, surpassing Russia and Israel. As many as 17 technologies have been offered by the United States
for transfer to India and another 24 are believed to be in the pipeline. These are technologies that India
requires but does not possess which could give a much needed shot in the arm for modernisation of the
armed forces.

Long pending decisions: First 10 of the 41 technologies were offered by the US two years back and
the remaining seven within less than a year of the first offer. It has been long enough since then for
some decision to have been taken on these offers.
The Army is believed to have recently rejected the US offer of the Raven mini-UAVs.
As for the missiles India decided to go ahead with the Israeli offer of the Spike anti-tank guided
missile (ATGM) and launchers instead of the US offer of Javelin missiles, which was projected as one
of the groundbreaking offers.

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However, harvesting these technological transfers poses certain challenges:

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Also, four path finder projects were identified by the two countries for co-production of defence
products based on comparatively simpler technologies. Further, a dialogue for cooperating on design,
development and manufacture of the third aircraft carrier for India has been initiated. Technologies such
as nuclear propulsion and electromagnetic aircraft launch systems are also on the offer which could help
India possess one of the most sophisticated aircraft carrier fleets in the region.

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The first issue arises from the piling up of US offers without corresponding Indian swiftness in
responding to them. This flies in the face of DTTIs objective of strengthening Indias defense
industrial base by moving away from the traditional buyer-seller dynamic toward a more
collaborative approach. The UAV Raven and ATGM Spike episodes raise questions about the
mechanism for identification of the technologies and projects for co-development and coproduction. Flooding the MoD with offers may be of little use unless the offers are in response to
specific requirement projected by it. Equally importantly, sitting over offers does no good for Indias
image as a country that means business, both literally and figuratively. For things to move fast, it is
important that the initiative be driven by a crack team in the MoD.
Second, the Indian side has to be absolutely clear about what it wants and should place the specifics
of the requirement on the table when talks take place in several groups that have been set up under
the rubric of DTTI. There also has to be clarity within the MoD of where other countries, which want
to do similar business with India, figure in the changing calculus of Indias strategic outreach.

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The Defence Trade and Technology Initiative (DTTI) was expected to facilitate partnership in defence coproduction, wherein US will provide technology and guidance in co-development of next generation
equipment and weapon systems. These technologies could be produced by Indias growing industrial
base. It is a win-win opportunity for India and US companies. However, the history of the past three years
of DTTI of the US Government, started in 2012, raises issues that have implications for the further growth
of defence cooperation between India and the US.

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The third issue is that of finances. The defence budget, especially the segment that funds capital
acquisitions, is widely seen as inadequate for financing the modernisation needs of the armed forces.
Any substantial increase in budgetary allocations seems unlikely. If anything, the pressure on the
defence budget is likely to grow once the recommendations of the seventh pay commission start
getting implemented, probably next year onward. Funds are also required for making up the
shortage in ammunition, improving operational serviceability of the equipment held by the armed
forces and discharging the committed liabilities in respect of several ongoing contracts. There is a
need to do the math and press the co-development, co-production agenda to the extent it is
financially viable. No one, at least from the private sector, would enter the monopsonic defence
production market unless there are reasonable prospects of the products being bought. Eventually,
therefore, it is the MoD which will have to pay for whatever is manufactured as a result of joint
efforts.
Fourth, even government-to-government talks cannot yield much unless there is clarity about
procedures and the bureaucratic propensity to dawdle gives way to alacrity and boldness in decisionmaking.
Also, there are no laid down procedures for procurement of technology per se. The existing
procedures relate to procurement of equipment, weapon systems, myriad platforms and other
tangible capabilities. Technology is relevant only if it is tied to one of these. Therefore, the existing
procedures will have to be realigned to impart momentum for co-development and co-production
projects under the cooperation agreements with other countries.

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