TACKLING MBA

INTERVIEW
EVERYTHING YOU NEED TO ACE
YOUR DREAM CALL

CONTENTS
Introduction ....................................................................................................................................................... 2
What should I wear to the Interview............................................................................................................... 2
Resume Writing .................................................................................................................................................. 4
How to write a good Resume? ........................................................................................................................ 4
Group Discussion ................................................................................................................................................ 6
GD FAQs ......................................................................................................................................................... 7
Sample GD: What is Desirable - Love Marriage or Arranged Marriage? ......................................................... 11
Sample GD: Should we allow incurably diseased persons to live or not? ....................................................... 13
50 Commonly Discussed GD topics ............................................................................................................... 13
Case Studies ..................................................................................................................................................... 15
Case Study Discussion ................................................................................................................................... 15
Written Case Study ....................................................................................................................................... 16
Practice Case Studies .................................................................................................................................... 16
Essay Writing (Written Ability Tests) ................................................................................................................. 19
Tips for Essay Writing ................................................................................................................................... 19
Sample Essay: Are Reservations In Jobs Justified? ......................................................................................... 20
Interview .......................................................................................................................................................... 24
The Proper Body Language ........................................................................................................................... 25
Group Interview ........................................................................................................................................... 26
Most Important Interview Questions ............................................................................................................ 27
Frequently Asked MBA Interview Questions ................................................................................................. 32
Top 30 Interview Questions - About You ....................................................................................................... 33
Top 50 Interview Questions - Work Experience............................................................................................. 34
Top 50 Interview Questions - Computer Science Engineering ....................................................................... 35
Top 50 Interview Questions - Mechanical Engineering .................................................................................. 36
Top 50 Interview Questions - Commerce ...................................................................................................... 37

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Top 50 Interview Questions - Economics ...................................................................................................... 38

INTRODUCTION
Congratulations!
All the hard work you have put in has finally shown results and now, having done well in the
Entrance exams, you have your Dream b-School Interview Call. But wait dont start celebrating
yet, as you are only half way there. As now begins the second stage of the selection process
known as GD-PI rounds.
The GD-PI has now been replaced by WAT-PI or CD-PI or a combination of WAT, GD, CD and
PI. In this booklet we will cover everything that you need to Ace this second stage.

WHAT SHOULD I WEAR TO THE INTERVIEW

The dress code should be comfortable as long as you take into account the protocol of the
interview.
Why is it important?
First impression is extremely important. A formal dress code asserts your commitment
to task.
A comfortable dress gives you the confidence and allows you to focus on the task at
hand.
It is a hygiene factor (everyone else will be well dressed).
It shows respect to the interviewer.

MALE DRESS CODE:

For males, the usual dress code is formal shirts, trousers and shoes. A tie is also the general
norm in the interviews and should be worn for the occasion. Some candidates wear a
suit/blazer to the interviews - this is also preferred but it is important to keep the weather in
mind. There is no point sweating outside the interview hall. The tie you wear, its color, the
pattern should suit the protocol of the interview. Please note that wearing slippers, jeans,
informal shirts etc. gives the impression that you are not serious for the interview.
R ECOMMENDED - D ARK B LUE B LAZER , W HITE SHIRT , R ED OR ANY D ARK COLOR T IE , G REY /F AWN
T ROUSER , G REY S OCKS , F ORMAL L ACE S HOES .

BullsEye

For ladies, the usual dress code is a salwar suit or a sari with a suitable footwear. A formal
skirt may also be worn. Here again, it is important that you feel comfortable with what you
wear. If you are wearing a sari for the first time, you might feel very uncomfortable, trip over
etc. It is important that you do not put too much of make-up and jewellery. Long hair should
be groomed or tied and preferably, not left open.

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FEMALE DRESS CODE :

Do's
Be aware of the brands you
are wearing.

Wear flashy / colorful clothes

Wear polished shoes / clean

footwear

Too much oil in your hair

Be clean shaven/support a
properly trimmed beard

Wear loose tie

Carry a plastic bag into the
Interview room.

Have your hair well groomed

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Don'ts

Carry a neat folder, with all

your certificates and their
photocopies.

RESUME WRITING
HOW TO WRITE A GOOD RESUME ?
The Chronological Resume arranges the activities in a proper time sequence. Include your
company/college name in the "bullet" describing each accomplishment. NEVER omit at least
a bare-bones chronological listing of your work experience, in your functional resume.
Ensure that your resume meets the following accepted norms:
Length: The resume length should be between one to two pages.
Be Consistent: Choose a pattern of spacing, an order of information presentation or a
format of highlighting and be consistent throughout.
Present information in reverse chronological order within categories. List education
and work experiences, starting with the most recent first. Separate education from
training. (Training includes seminars, in company training and computer courses)
UNLESS the hobbies / activities / memberships of associations are somehow relevant
to your job objective OR they clearly reveal a characteristic that supports your job
objective, do not mention it.
Visual Appeal: Choose high quality paper in white, off-white or other conservative
colors. Fonts like Times Roman and Arial are easy to read. The font size should be
between 11-13. Use highlighting sparingly, so that the impact is not lost. The margin
should be about one inch each on all sides.
Check for grammar: Misspellings communicate negative impressions about a
candidate.
The following information is included in most resumes. The particular arrangement of some
of the information is a personal choice. Make sure that the information flows logically and
sequentially.

3. Education
In reverse chronological order, starting with the most recent one, list all degrees and
universities, dates attended or dates of graduation. State the specialisation or special subjects
taken. Include special assignments, projects, or any pertinent information about course work.

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2. Career Objectives/Summary
A career objective is not mandatory; though it has the advantage of telling the interviewer at
a glance, whats your vision and aim in life. A well-designed objective statement enables you
to focus the information in the resume and convey a sense of your career direction. In place
of the objective, or sometimes in addition to it, you may prepare a short summary of skills
and/or background.

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1. Name, Address, Telephone Number, Email ID

Be sure all contact details are current and that you can be reached.

4. Honors and/or Extra Curricular Activities

Academic honors (merit list, scholarships, rank in the Board / University). Include those extra
curricular activities that display evidence of leadership, initiative, team involvement, or the
use of special skills. E.g. being a member of basketball/tennis team is cool. If set up an NGO
for environment care at college, then it's cool.
5. Experience
If you have part time/full time work experience, it is a plus point. Present your experience in
reverse chronological order, by function, or in some combination of the two with most recent
one in the beginning. The chronological approach would organize your experience by date,
beginning with the most recent and working back to the earliest that seems appropriate for
your career goal.
6. Other Background Information (Optional)
Demonstrate other assets, skills, or experience relevant to the career objective which are not
easily organized under another heading. This may include language skills, publications,
professional associations, community service, travel, interests, etc. Part/full time learning of
a foreign language is a plus point. Publication of articles in journals is considered very good.

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7. References
Normally, references are not included on the resume. Simply state that references will be
furnished upon request. Former employers or professors in relevant fields are most
appropriate. Be sure to request permission before using anyone as a reference.

GROUP DISCUSSION
Group is a collection of individuals who have regular contact and frequent interaction,
mutual influence, common feeling of camaraderie, and who work together to achieve a
common set of goals.
Discussion is the process whereby two or more people exchange information or ideas in a
face-to-face situation to achieve a goal. The goal, or end product, maybe increased
knowledge, agreement leading to action, disagreement leading to competition or resolution
or perhaps only a clearing of the air or a continuation of the status quo.
Group Discussion, popularly labeled as GD, is a methodology used by an organization
(company, institute, business school etc) to gauge whether the candidate has certain
personality traits and/or skills that it desires in its members.

SO WHAT HAPPENS IN A GD?

In a typical situation, the group of candidates is given a topic or a situation. They are given
some time to think about the same, and then asked to discuss it among themselves for a
specific duration (which may vary from one organization to another).
As in a football game, where you play like a team, passing the ball to each team member and
aim for a common goal, GD is also based on team work, incorporating views of different team
members to reach a common goal.

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1. When proposing an idea or argument, you must be very clear in your communication
and thinking. Your proposal should be structured and systematically put across to
others in the group.
2. Charm and personality takes you up to a certain point but after that it is simply your
intelligence, thought process and command over the language which pulls you
through.
3. After proposing your idea, your must put forth a question. The person who answers
the questions will have to look at you while answering, giving you a chance to
intervene with another idea. Once you learn to handle the group discussions in a
scientific way, there is no need for you to resort to techniques such as shouting,
hammering your fist on the table, etc.
4. Before you start speaking, think through the major issues in the topic in the first two
minutes. Jot down points on the paper or mentally work out the framework for
analysis.
5. Start speaking only when you have understood and analyzed the topic.
6. If another participant has started the discussion, even before you have read and
understood the topic, you could try to ask the person to wait while you finish. It may,
however, be better to continue with your analysis, while listening to what is being
said, and to speak only when you are ready.

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MAKING YOUR WAY THROUGH GD THE ESSENTIALS

7. The success of an interjection depends not only on assertiveness but also on the
receptiveness of others. If you interject when someone else has just begun speaking,
it is unlikely that he will let you have your way.
8. On the other hand, if you wait till he has made at least some of his points, he will be
more amenable to letting you speak. Avoid speaking in turn as it leads to an unnatural
discussion.
9. A GD involves a free-flowing exchange of ideas among participants. Even though there
will definitely be chaos in most competitive GDs as all participants will be keen to be
heard, any suggestion of order such as speaking in turn is unacceptable. A discussion
has to flow naturally. Group members, most likely will ignore your suggestion and try
to speak when they have something to say.
10. Whenever you face a tough situation, go back to basics and that is where you will find
the answer. Remember your movie or picnic venue discussions. What works there will
work here also!

GD FAQS
IS IT CORRECT TO CHANGE YOUR STAND DURING THE COURSE OF A GD?
Yes, if it is genuine and you can rationally explain why you have changed (you may not be
asked this during GD but you could be asked during the interview). Changing your stance due
to genuine reasons conveys flexibility and openness / objectivity on your part. However, it
should not arise out of confusion. If you do change, it is recommended that you do not change
again.

If, instead of changing the stance and arriving at a new, firm stance, you have just become
unsure about your original stance, you can say this (if at all necessary) with something like "I
did believe that reservation was necessary but some of the issues raised here seem to

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For Example:
If at the beginning of the discussion you believed that women ought to be given reservation
in elections and subsequently changed your opinion to against reservation, you can say
"Initially, I believed that we should have reservation for women. However, I am now
persuaded by the argument that there can be no basis for differential treatment, which is
what the reservation is all about, in a democracy. On this basis, I think I would prefer a
different means to uplifting women. May be we could look at subsidising the education of
women up to graduation or make it mandatory for girls to study up to 12th. There may be
other such measures which may be more effective. Can we identify such means?" Note the
statement ending in a question, thus throwing the issue open for discussion. Also note that
the opinion has been changed without being too open about it.

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A good way of changing your stance would be to say "When we began the discussion, I
believed .. to be so; however, considering ..stated in the discussion, I think ..to be more
appropriate". An improvement over this would be an ending question such "do you agree?"
or "am i right in my conclusion?". This leaves the conclusion open for discussion and allows a
more gradual transition of your stance. This is better than announcing a changed stance
abruptly.

contradict the need and are compelling." There can be no one-size-fits-all solution, it depends
on the situation at hand!

IF SOMEBODY BECOMES OPENLY ANTAGONISTIC TO ME IN THE GD, AND SAYS THINGS

DIRECTLY CONTRADICTING MY POINTS OF VIEW OR MAKES PERSONAL ATTACK, WHAT
SHOULD MY REACTION BE ?
It is quite possible that people are opposed to your view point rather than to you, as a person.
Also, it may be a genuine opposition rather than an emotional reaction. It is important to keep
this in mind. Actually, a situation like this is a good opportunity for you to demonstrate your
conflict handling skills and maturity, factors considered important by the evaluators. Be calm
and relaxed and don't let this get to you. If you get aggravated, you will be seen as incapable
of handling stress and this might go against you.

There are two Scenarios:

If you have started speaking but subsequently, due to noisy interjections, the discussion has
become a "fish market". Then you can:-

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IF THE GD IS BECOMING NOISY AND DEGENERATING INTO A " FISH MARKET", WHAT SHOULD
I DO?

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Consider the following:

Is the counter-argument valid? Would you have accepted it if it had come from your
best friend? If yes, then concede the point gracefully through statements like "I think
you have an important point there that I did not think of".
If the counter-argument is not valid but the discussion has been going on for some
time, then defer the issue in the interests of the group, with statements like "we have
discussed this issue and it appears to me that we seem to have some differencescan
we defer it for the time being so that we may move forward?" or you can seek others'
opinion by turning to others and seeking their opinion with statements like "we seem
to have different views herewhat do you feel?"
In some cases, more than one person may be having an opinion different to yours. In
such cases, you may want to really rethink your stand with statements like "I see that
some of you have an opinion different than mine. While I am not able to reconcile the
two immediately, can we defer it for the time being and return to it later?" There is
really no point in taking on a group, no matter how strong your point is.
If the attack is directed against you as a person, then the best strategy is to just ignore
it and get on with the discussion, without any animosity towards the attacker. This is
hard to do but if you manage, it will be the best advertisement for your maturity.
Be assured that "losing" an argument is not bad - even if you are convinced about the
correctness of your stand, don't stand on it - let the other person "win" it (just say "I
know that you may disagree, but my point is.., however, we need not keep debating
this, maybe we need to proceed").
Losing an argument does not lead to loss of points. Sometimes, it even helps
demonstrate your flexibility and maturity.

Try to play the role of a mediator if you can. Try to bring down the tempo through
statements like "excuse me, can we step back for a moment and revisit the topic?" or
can you please just hold for a moment?" or sir/mam, we are coming to your
point in a sequence.
Letting the aggressive go through with their thoughts and then suggest some form of
equal participation - such as rotation or giving silent ones a chance by prompting them
to speak.
Use gestures like hand movements to attract attention from where you could provide
some discipline.
The above steps may normally not succeed - however, what it does achieve is that it
conveys to the invigilator that you can play the role of a leader whenever the situation
demands. This is all that the invigilators are looking for.

In other situations, you may not have uttered a word and yet the discussion turns chaotic. In
these situations: Be patient. The aggressive ones generally run out of ideas soon and there will be
sufficient time for everyone to speak.
For example, the typical noise levels during the course of the discussion is higher in
the beginning and at the end of the GD, but there are also periods in each GD where
there is a very brieffull which you could capitalize on.
Whatever be the case, the following are some DON'Ts in such a situation:
Don't jump into the fray yourself - it is natural to want to get started, particularly if
your past mild attempts at establishing order had failed.
Don't make long points - when you get an opportunity, don't be greedy, say what you
want to say briefly and hand it over to the next person - this will be appreciated.
Don't be rude or offensive or carry grudges against those who created the commotion.
Dont stand up or use rude gestures like finger pointing and foot thumping.

WHAT IF THE TOPIC OF DISCUSSION IS SOMETHING I KNOW VERY LESS ABOUT AND I HAVE
NO WORTHWHILE POINTS TO MAKE?

BullsEye

There are other ways of participating in the GD, such as:

Active Listening: Through making notes and understanding the views expressed. Quite
often the invigilators see how active and involved the participants are and active
listening is considered as a good way of participation.
Seek clarifications: Another way is to seek clarifications from the speaker. You may
not have understood some part of what was said in which case you can interject with
"excuse me, I didn't quite get it can you clarify the first/last part" or "are you saying
that .".

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In this case it is suggested to enter late. This would make you reasonably aware of the issues
involved, enable you to take a thread and develop your view point. If you want to say
something, then ensure that it is relevant and sensible. You can also identify new thoughts by
looking at issues from your point of view (for e.g. if you an arts student and the topic relates
to software engineering, you could peak of the relevance of software in fields related to
arts).

Play the role of mediator: This is recommended in case you have good inter-personal
skills and can coordinate the discussion at certain critical points.
Summarizing the discussion: Highlighting the key points that were covered in the
discussion and any conclusion that might have been reached.
Structuring thought process: By breaking down the topic into smaller parts and
thinking through each part, one can easily identify a lot of angles which have not been
thought of or discussed. So, if you do not have any idea about the topic, try and break
it down into its parts (depending on the given topic).

SHOULD I HAVE STRONG VIEWS FOR OR AGAINST A NOTION OR SHOULD I BE MORE

CONCILIATORY ?
It is not at all necessary to have strong views on an issue. Even if you do have strong views, it
is important to be objective and state your views unemotionally with fact and reason. The
objective is to conduct a meaningful discussion rather enter into an emotional debate.

WHAT IS MORE IMPORTANT - MANNER OF PRESENTATION OR THE CONTENT ?

Both, However, it is far more important to say something sensible than to say something at
all. Hence, between the two, content is more important than presentation. Once content is
in place, it helps to present your point in as nice a manner as possible.

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Beyond a point, being conciliatory is not very helpful. It is important to be objective, which
means that if you are wrong, you accept gracefully; if you are convinced of your view point,
put it across gently without being offensive or else defer the issue saying that it could be taken
up a little later. A compromise may also be possible, in case both the viewpoints have some
merits - be ready for this with a statement like "I think both the views have some merits and
some demerits. May be we could discuss this further". Also you can involve the other group
members by asking open ended questions like "does anyone have a different perspective on
this?

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A discussion has four components:

State your views objectively- state your views with both positives and negatives
together. Don't over emphasize either. Be ready to substantiate your points with fact
and reason with statements like "the reason why I say this is because and ..".
Understand the opposing viewpoints- understand what others have to say, including
both positives and negatives. Validate these specifically with statements like "I think
the positives with your view are . and the negatives are ., do you agree?" (positives
should always be stated first).
Concede, if your view point is proven to be wrong or accept the fact that some view
points are not immediately reconcilable. Accept gracefully with statements like "I
think you have a point there which I may have overlooked. Thanks". Apart from
displaying flexibility, it will also earn you a few friends which will be handy.
Be willing to explore grey areas which might arise in the course of the discussion with
statements like I think we need to understand the issue more clearly".

10

Presentation has more to do with conciseness and clarity, than with using archaic vocabulary
intensive language. It is okay if your method of presentation is "poor" as long as you can get
your point of view across effectively without being rude or impolite.
Examples of rude, impolite or unacceptable presentation/behavior are:
Even as another person is speaking, jumping into the discussion and starting to speak.
In such cases, wait for a pause or if the speaker is not pausing, first establish eye
contact and when firmly established, start with "if I may, what I think is." Or "I agree
with you. We could look at other facets such as .."
If you disagree with a point that has been made, then launching an attack on the point
or worse still, on the person who made the point? The correct method is to start with
"some of you have said which I disagree with. What I think is."
Using colloquial language like "the fundae is", "cool" or mixing vernacular with English
(unless the vernacular is a relevant quote and can be understood by all - if not, follow
the quote with its meaning in English)
Forming a sub-group and carrying out a parallel discussion amongst yourselves or
looking away from the group and focusing on something else - this will be considered
as a sign of disinterest.

SAMPLE GD: WHAT IS DESIRABLE - LOVE MARRIAGE OR ARRANGED

MARRIAGE ?

Young people should be allowed to choose their own partners because nature has so
made them that upon reaching the age of consent young boys and girls feel naturally
attracted towards the member of opposite sex whom they find to be Mr. Right or Miss
Right for themselves.
In arranged marriages, parents are not in a position to know the girl well enough; that
is, they may not be aware of her personality traits. In arranged marriages, we generally
get to know about the family background and outward appearance of the girl or the
boy, their educational attainments, career plans, etc. and in the case of girls, their
interest and proficiency in household affairs cooking, knitting, tailoring, etc. But
success or failure of married life depends on the basic temperament, nature and
compatibility or otherwise of the partner. Therefore, to make marriage a success,
young men and women should be supported in selecting partners of their choice
suiting each other's temperament.
The presumption that love is blind and hence a young girl or boy will just pick up for a
husband or wife, the first boy or girl they come across when they are grown up is not
justified. We cannot say with certainty that a young boy or girl will not take all aspects
into consideration before embarking on a love affair. They are not Romeo and Juliet
of our Bollywood variety who convert their first love affair into a marriage. Now we
have the concept of dating gaining currency in which a young man gets engaged to his
girl friend only when he has fully understood her and the same is the case with young
girls who now feel more confident to speak their mind in matrimonial matters. During
their courtship, they get enough opportunity to study each other and can easily break
off the relationship if either side is not found to be as expected.

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IN FAVOR OF LOVE MARRIAGE:

11

Love marriage may have its defects as well, but we must admit that it has come to
stay. Today educational facilities have spread and are easily and equally available to
girls, too. Besides, there are greater employment opportunities for girls than in the
past. These together ensure that there is more intermingling of members of the
opposite sex and the parental influence is diminishing. Therefore, boys and girls are
getting freer in the choice of their spouses. In these circumstances, it would be better
for the elders to take it easy and not to come in the way of their children's happiness.
Yes, of course, they can still play the role of marriage counselors than that of matchmakers. Young people, on their part, would do well generally to respect the wishes of
their elders while deciding to go steady with their boy or girl friend.
Love is the main factor that binds two individuals. Saints and poets alike have praised
it. Therefore love marriages have more chances of success because there is premarital understanding between the would-be couples. More often, unpleasant
consequences arise only when love is obstructed or the period of courtship is very
short. If love is given way to and the latter is taken care of, love marriages succeed and
nothing else.

The much talked of understanding in love marriages is not so easy to have when the
two meet for the first time because love takes place at first sight and not after due
deliberation. Moreover, love marriages mainly result in divorce or are the cause of
quarrels with parents and thus unpleasantness in relationships. As against them,
arranged marriages are based on more solid foundations. Here, experienced people
have their way and they naturally choose a partner who is sure to prove more faithful,
devoted, mature and with predictable.
Parents are more rational, mature and experienced to deal with such matters and they
are always capable of selecting suitable life partners for their children. Loves being
blind, young people usually do not give a thought to the suitability and compatibility
of their love. They generally lack sound judgment and are carried away by passion.
In arranged marriages, boys and girls are weighed in their totality. Their family
background, character, temperament, compatibility, all are taken into consideration,
for marriage is supposed to be a union of two families and not just two individuals.
Naturally, girls coming from families which cherish harmonious relationships are more
likely to make better wives than those coming from broken homes. The latter may
have their own psychological problems.
All this new-found love for love marriages is because of the influence of Western films
and culture on our life. Whether love or arranged one, marriage is a gamble either
way. Even much trumpeted love marriages have been seen to be foundering on the
rock of reality. Hadn't our fathers, grandfathers and their forefathers all enjoyed
arranged marriages? Is our culture or society any worse for it? If we compare both
love and arranged marriages we find that chances of success in the latter are much
more for they are finalized after due consideration of various aspects of a happy and
successful married life.

CONCLUSION :
What is important in marriage is love, whether it develops before or after the marriage.

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IN FAVOR OF ARRANGED MARRIAGES :

12

SAMPLE GD: SHOULD WE ALLOW INCURABLY DISEASED PERSONS TO LIVE OR

NOT?
POINTS IN FAVOUR :

If we feel sad to kill even an animal or a bird, how can our conscience allow us to kill a
fellow human being just because he is incurably ill? Moreover he has done no harm to
society and his illness is not because of his fault. Therefore, we must provide him
proper treatment and allow him to live as long as nature has willed it
God has gifted us life. So, he alone has the right to take it back. Once on this earth,
every man has a right to live as long as God does not want him to die. Therefore, the
reasoning that just because a man is suffering from an incurable disease, he should be
put to death is untenable and beyond reason
It is not always the case that incurably diseased persons spread contagious diseases
as some might argue. Even in those rare cases where it may be true, these persons are
not real health hazards because it is medically established now that all incurable
diseases are not contagious. However, as a precautionary measure, we should open
separate hospitals or isolation wards for persons suffering from incurable contagious
diseases and thus quarantine them.

POINTS AGAINST :

This world is governed by Darwin's survival of the fittest principle. An incurably

diseased person is weak and has no value whatsoever to the society. Therefore, it
would be in the fitness of things to kill him even against his wish.
An incurably diseased person is the cause of constant worry to his family, his demands
are unending and notwithstanding the best possible attention, care and treatment
given to him, he always remains dissatisfied and disgruntled.
These days we are saddled with the responsibility of reducing our burgeoning
population. The many diseased persons constitute a good part of it. Even otherwise
their contribution to society being nil and burden great, it would be justified and
reasonable not to allow them to drag on their agonizing life.

CONCLUSION :

1.
2.
3.
4.
5.
6.

Is the concept of Non- Violence still applicable?

Rural Vs Urban development.
Social Networking is a menace.
100% privatization - good or bad?
20 years of liberalization has pushed India to pre 1991 era.
A black man motivating people against America on grounds of social, economic,
injustice and inequality.
7. Mobilizing masses on basis of caste, creed, and colour. Is it right or wrong?

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50 COMMONLY DISCUSSED GD TOPICS

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Defining gray areas is something which any amount of legislation can never achieve. Our
policies need to ensure that the group of people taking a decision to terminate the life is doing
so in the best interest of the patient and society.

13

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8. A video on rural India was shown and a bicycle was used to work as a washing machine
and the topic to discuss was "What drives innovation?".
9. A video shown on rural India, showing initiative by the government and the author
spoke about sustainable income. The topic to discuss was "How has India incorporated
inclusive capitalism in its growth model".
10. Animal research is a moral Crime.
11. Anna Hazare movement on Lokpal Bill, whether India needs it or not?
12. Appropriate age for adulthood is 18, 21 or 25 years?
13. Are call center employees cyber coolies?
14. Are we producing a generation of burnt out children?
15. Are women capable of taking more stress as compared to men?
16. Are women fit to join Army?
17. Arranged marriages vs. love marriages.
18. Black money- How black is it?
19. Brain Drain is good for the country.
20. Are women good managers?
21. Why MBA?
22. Is there a rat race to do an MBA?
23. Marketing decisions at shopping mall.
24. Privatization in India and its impact.
25. Advertisements- helpful to customers or just eye wash.
26. Is blackboard learning superior to managerial experience?
27. Does Corporate World promote Entrepreneurship?
28. B-schools fit square nuts into round holes.
29. How professional are the professional companies today?
30. Make any advertisement in group of 3 students.
31. Advertising is all glitter and no substance.
32. MBAs do not make good business leaders.
33. Consumer is never satisfied.
34. Outsourcing: Boon or Bane?
35. Customer is always right.
36. Is management degree essential to be a manager?
37. Consumer is the king in today's market.
38. What matters more - Outlook or Talent?
39. You would not like to be the Prime Minister of India because
40. Hope for ill gains is the beginning of loss.
41. Happiness is a mystery; like religion and it should not be rationalized.
42. Law is the creation of the strong to rule the weak.
43. Haste makes waste.
44. Food is more important than Ethics.
45. Indians perform better as a group?
46. A bullet for a bullet - is this a right strategy.
47. Is it necessary to wear a tie to office meetings?
48. A ship docked on the shore cannot move into the storm
49. There is no right way to do a wrong thing.
50. Year 2025.

14

CASE STUDIES
A case study is a detailed investigation of a single individual or group. Case studies can be
qualitative or quantitative in nature and often combine elements of both. The defining
feature of a case study is its holistic approach-it aims to capture all of the details of a particular
individual or group which are relevant to the purpose of the study, within a real life context.

CASE STUDY DISCUSSION

A case study, just like a group discussion, is designed to assess certain group performance
skills of the individual. The difference stems from the fact that a Case Study tests a larger and
slightly different skill set as compared to a normal group discussion. The following is a list of
special traits, which the evaluators look for while assessing a candidate.

Analytical Skills: The core competence of an MBA is analysis of the situation - breaking
down data, formulating it into a pattern that makes sense and deriving a sensible
conclusion or recommendation. You should display this skill through efficient,
targeted and accurate piecing together of the data while wrestling the group towards
a solution to the case. After self-analysis, you should clearly and logically present the
findings and recommendations for the group to discuss further.
Quantitative Skills: Some case studies involve working with numbers to reach an
effective solution. In that situation, a quick calculation on a rough sheet to present the
relevant figures for the group will make you stand in a very good light with the
evaluator.
Flexibility: This refers to the ability of the candidate to consider the opposing point of
view in light of the facts/figures presented in the case. There is no single solution to
the case and thus a flexible candidate should not leave out good options in his analysis
even if they were presented with an opposing point of view.
Leadership Skills: Leadership is demonstrated by taking charge of the discussion and
trying to achieve a consensus solution. This consensus solution need not be the best
one according to you, instead it should aim to incorporate all viewpoints and yet
measure well on the feasibility scale.
Presentation/Communication Skills: Like in group discussion, effective communication
forms an integral part of a case study too. The skills tested are articulation in
presentation, fluency, body language, eye contact and coherence. Remember - When
you're speaking, slow down and smile appropriately (if the situation demands). It's
always better to take a small pause rather than babble; however, this should not come
across as non fluent.
Behavioral/Personality Traits: The personality traits being evaluated are: attitude,
controlled aggression, team membership, patience, amenability and assertiveness.
Goal Orientation: This parameter is evaluated through the candidate's willingness to
arrive at a solution and intelligent use of other's content.
Confidence: Last but not the least, the level of confidence, pro-activeness and action
orientation form an important part of a candidate's evaluation.

BullsEye

www.hitbullseye.com

SKILLS UNDER THE SCANNER IN A CASE STUDY:

15

WRITTEN CASE STUDY

While writing a case, remember that unlike an essay, the freedom of expression and ideation
here is confined by the parameters defined by the case material. Hence, pay very close
attention to the information provided, the choice of words and the environment suggested
by the tone of the material.

STEPS FOR EFFECTIVELY HANDLING A CASE:

Understanding the case - the PACER approach
P = identifying the PROBLEM
A = generating ALTERNATIVES
C = CRITERIA for evaluation
E = EVALUATING the alternatives
R = RECOMMENDATIONS
Introduction: Following are the tips for writing a good introduction.
1. State the problem indicated by the case.
2. Identify and state key points that support your interpretation of the problem.
3. Save time by keeping your introductory paragraph brief
Body Paragraphs: Discuss the A-C-E.
1. Begin with defining the dimension to be discussed
2. Next, state the Criteria that needs to be considered
3. Mention the Alternatives and Evaluate them on the basis of the identified criteria
Conclusion: This part includes the Recommendations to help prevent the problem.
1. This is in the nature of a solution, but NOT a distinct solution.
2. Re-state the problem briefly-then, provide your recommendations.
3. Emphasis again is not on providing an answer so much as on a stream of thought

PRACTICE CASE STUDIES

CASE 1:

How should Mc Pinsey approach the selection of the non family CEO?

BullsEye

Kina has now decided that her successor would be someone outside of her family. As the
CEO's position was always held by family members there has been neither internal
competition nor grooming of other managers at Goldmoon Hotels for the CEO spot resulting
in a deficiency of internal candidates. With the support of the Board, Kina has hired an
external firm, Mc Pinsey, to lead the search process for her successor, which would consider
candidates both inside and outside the company.

www.hitbullseye.com

Goldmoon Hotels have been run by the Kadia family since the 1940s. Kadia Group, through
its subsidiary companies is also into travel and tourism, event management, and marketing
services. Kina Kadia is the present Chief Executive. Her only son and heir apparent, 18 years
old Dina Kadia recently died in an air crash.

16

CASE 2:
Alok shook his head when he saw the client getting restless as Prakash bungled again trying
to complete a sales transaction on the new MATRIX software system. Alok Dhir is the manager
of the Men's Wear store of Fortune Group well known for their world class retail store chains.
Alok was selected as a management trainee by Fortune at the MBA campus three years ago
and is now one of the younger group managers having over 25 full-time and part-time
employees including two supervisors for the two units - Leisure wear and Formal wear.
Prakash a commerce graduate is 5 years older than Alok with about that many years more
experience than Alok in retail trade. After years of hard work as a sales representative,
Prakash was rewarded for his excellent people skills and promoted as the supervisor of
Leisure wear unit a year ago.
Six months ago Fortune began a systems migration program to replace the existing
decentralized store based computer and information software with MATRIX, an enterprise
wide integrated system. As a result of this migration there were major changes required in
each employee's work, especially those in sales. They had to learn operating the new system
and complete all transactions at point of sale while the customer waited across the counter.
As the implementation date of MATRIX approached an extensive 3 days training program was
organized; first for managers and supervisors and then for the other sales representatives.
Alok and Prakash attended the training together. The trainers demonstrated and explained
every process and transaction in detail, each participant was given time to practice and a basic
user manual provided to each participant. Alok was happy as Prakash who had not worked
much with computers approached the training with enthusiasm.
It is now over a month since MATRIX was introduced. Alok is disappointed because in spite of
the training and time spent on demo terminals, Prakash has not mastered the new system
and it is affecting his performance as well as the store's customer service. Initially Prakash
sought his assistance many times to complete the same set of transactions. When Alok asked
Prakash to refer to the user manual, Prakash said it was not very useful and he had misplaced
it. Alok frequently observed Prakash getting stuck and using a trial and error process or
seeking help from other sales associates.

CASE 3:
XYZ is a well established, smooth running, multi-crore manufacturing giant, aspiring to be the
"No.1" on not only business fronts but political and management horizons too.

BullsEye

What should be done?

www.hitbullseye.com

Alok is now sensing that Prakash is feeling uncomfortable and stressed. He is not seeking
Alok's help anymore. Prakash's discomfort with the system has added additional burden on
other employees besides affecting customer service. Alok knows he has to take action quickly.
He wants to help but thinks that Prakash also has to take some initiative and show progress
or he may be forced to take some drastic action.

17

You are about to complete tenth year of service in this business house. You are happy and
expecting a second promotion. One fine day you board the company bus in the morning to
notice a very special silence. All the chirping, joking, gossiping has come to a stand still .You
get to know that your company has accepted the VRS recommendations by the central
government. Your bus partner enquires about your age and the number of years of service.
The grapevine is that the company may shut down this plant possibly in the next fiscal year
due to taxation and infrastructure problems. To begin with they want to cut down the
manpower, beginning with managerial cadre, then the vendors followed by the workers.
The facts are that earlier the Govt. did not allow job termination so easily. The recently elected
govt. has a commitment of "job creation" in their electoral "Magna Carta" of promises. One
brainy idea has come in the form of termination of "old, experienced but sometimes difficult"
employees under the disguise of offering "golden shake hand" or "voluntary retirement. On
one side the country is facing grave shortage of skilled, experienced manpower on the other
they are promoting schemes like VRS!!

BullsEye

www.hitbullseye.com

The challenges before you are:

You have family of five to support.
You have to shoulder a housing loan and a car loan.
Having spent ten years in a particular industry it may not be easy to find a new job.
VRS is for the employees above forty years of age and / or have completed ten years
of service.
Maximum package of Rs. Five Lacs is for those having completed 15 years and above.
You can get a maximum of Rs. 2.90 Lacs only.
Once you accept VRS, getting a new job may not be easy.
If you do not opt for a VRS, possibility of transfer to a remote place or you may be
asked to resign, and go without any compensation being in management cadre.
What will you do?

18

ESSAY WRITING (WRITTEN ABILITY TESTS)

An essay is a short literary composition, providing a personal view on a single subject. An
essay is not just an exercise in research; it is also an exercise in communication. Essays require
you to demonstrate that you understand the question asked, that you understand the issues
involved and that you have done the appropriate amount of reading.
Essays also allow you to demonstrate your analytical thinking and force a deep and powerful
form of learning to take place for both the author as well as the reader. The length of the
essay should be apt enough to meet the purpose, keep the reader gripped and conform to
any pre stated space constraints. It is important to understand that a redundant detail may
take the charm away from an essay while an over condensed one may elude certain relevant
details; in fact, someone has rightly said "An essay should be like a mini-skirt: long enough to
cover everything, but short enough to keep it interesting"!?
An essay is a reflection of one's personality. It gives an insight into an individual's ability to
express. It gives the reader an idea about the person's attitude, aptitude and vision.
In fact, the purpose of an essay is to evaluate the following aspects of one's personality: Knowledge: This is an important parameter as it measures the awareness levels of the
writer; more so in case of factual topics. It reflects a well rounded and aware
personality with a strong environmental sensitivity.
Written ability: This parameter evaluates the writer's expression of interest. A well
written essay demonstrates good written communication skills.
Logical structure: This parameter displays the writer's logical thinking and ability to
prioritize. It is important to cluster and group different sets of ideas and arrange them
in a manner that reflects logical progression and proper sequencing.

TIPS FOR ESSAY WRITING

In a essay three components are very important, and they are:

1. Introduction
2. Body (paragraph)
3. Conclusion.

BullsEye

For example: If one is asked to write an essay about globalization, one must develop the essay
around the following points:
What is Globalization?
How does it impact people or the world?
What could be its prospective results?
What could be a proper conclusion for the discussion?

www.hitbullseye.com

An essay reflects an individuals personality, ideas, views, analysis, inferences, attitude,

aptitude, ability to make written communication effective etc. A good essay contains
originality of thought. It also includes correct, clear and concise sentences. It opens the
concept with a topic sentence, maintains coherence, unity of thoughts, economy of
expression, appropriate elaboration and an impactful conclusion.

19

One of the styles of composition of an essay should be like:

Introduction
The issue of ____ is controversial, on the one hand____. On the other hand ____.
However, I believe ____.
Paragraph 2 - 4
One reason for my belief is...
Another reason is ...
e.g. ...
Perhaps the best reason is
Closing
For all these reasons, I therefore believe
By the rule introduction and conclusion should cover the first and last 10% of the space. Rest
80% is covered by the body paragraphs. As introduction is very important part of an essay so
it has to impressive and should introduce the main theme of an essay.
Conclusion is restatement of the introduction using different words. An essay should have
minimum two to three body paragraphs. A body paragraph is expansion of the main points
generated while brainstorming.

SAMPLE ESSAY: ARE RESERVATIONS IN JOBS JUSTIFIED ?

NO, THEY AREN'T:

BullsEye

By rejecting people of higher competence from general category and accepting the reserved
category with lower competence, the reservation policy acts as a disincentive to the
meritorious and more capable. Thus inhibits healthy growth or development of an individual.
Such brilliant students, victims of unfair favoritism of our reservation policy, get frustrated
and leave for foreign countries which favor merit alone. This brain-drain adversely affects the
intellectual capability of our country. Not only this, the system of reservation, says Justice
Chinnappa Reddy, has in many cases paradoxically generated a spirit of self-denigration each community of caste competing to be more backward than others.

www.hitbullseye.com

The very idea of providing reservations to any segment of the population is based on
negatives. It allows for preferential treatment without a thought being given to the caliber or
eligibility aspect. Just about any individual from the reserved castes scheduled castes,
scheduled tribes and backward castes can get a Government job or admission in an
educational institution on a much lower eligibility criterion for percentage of marks and a
higher age. This lowering of standard breeds inefficiency, discourages the really meritorious
and negates the very concept of equality of opportunity. 49.5 percent reservation means that
half the administrative machinery has inbuilt inefficiency, while Article 335 of our Constitution
lays down that reservation should be consistent with the maintenance of efficiency of
administration.

20

Private enterprises, being interested in efficiency alone, do not follow the retrograde policy
of reservation. Their sole criterion of selecting people is merit and ability to deliver the goods.
This is why they are doing extremely well. But, of late, demands for introducing reservations
in private sector have been raised in some influential quarters. Should this come about, God
save whatever efficiency we still have in at least a few segments of our administration and
economy.
It is a shame that in this computer and space age we, by institutionalizing our reservation
policy, admit that we are a decadent society based on caste. What image does it convey in
the international field? Can casteism be done away with by having caste based reservations?
Should we not follow economic criterion instead so that only a few families do not benefit
perpetually by this unfair policy? The criterion of creamy layer is patently humbug, for it is so
applied that even those with sufficient means and standing in society succeed in getting the
benefit of reservation. All this breeds discontent and occasions social unrest. Therefore, the
sooner we do away with reservations the better for the nation.
Reservations were supposed to be an interim arrangement for 10 years as per our
constitution so that the low caste people could come up socially. But encouraged by our
shortsighted politicians with their sights fixed on this sizeable vote-bank, its beneficiaries have
formed it into a habit to claim reservation as a matter of right. Instead of striving hard to
excel, they seek the shortcut of reservations and the vested political interests perpetuate it.
This vicious circle can be broken by the Government by having a firm cutoff year for
reservations and spreading education among the depressed classes on a priority basis. But
can we do so by assigning low priority to education with a mere 4 percent budget allocation
for it?

The only hope of the children of ordinary families for a better future is through education and
open-to-all competitive examination. This has been shattered by the additional 27 per cent
job quota for other Backward Class (BC) candidates following acceptance of the Mandal
Commission Report. That is why they resorted to agitation and even self-immolation, but to
no avail. It has further fractured our caste-ridden society. The author of the Mandal
Commission Report himself admits that the system followed by the Commission in compiling
the list is unscientific.

BullsEye

A further reservation of 27 percent to the other backward classes has aggravated the
employment problem and has formed caste animosities and hatred. This retrograde step is
not going to do any good to the nation. In the name of social justice, an injustice of the worst
type is being perpetrated because of the accident of birth in a higher caste. Moreover, the
argument that since the new reserved categories have suffered injustice through centuries at
the hands of upper caste people, the latter should atone for that, is beyond comprehension.
How could a young boy or girl be held responsible and guilty for an alleged crime supposed
to have been committed by his or her forefathers? Two wrongs do not make one right?

www.hitbullseye.com

Instead of facilitating spatial growth of education and development among the depressed
classes, reservations have spawned a new elitist group a mere 5 percent among them, which
has cornered all the benefits meant for 22.5 per cent. The same is going to be the fate of the
most backwards among backward classes.

21

It is really damaging to the nation as a whole that instead of tackling our population problem
largely due to the illiterate, backward and superstitious people of backward classes, we give
them the lollipop of reservations! In spite of their wretchedness and poverty they produce
more children and make the life of these innocents more miserable than theirs. Therefore, if
at all reservations are to be given they must be linked with adoption of family-planning
methods. This will prove to be an effective deterrent against population explosion and will
also benefit these classes themselves.

YES, THEY ARE :

The obnoxious caste system might have served some purpose when it originated centuries
ago but now it is a hindrance to our social progress. The claim of the apologists of caste system
that caste was changeable according to merit and competence of the individual and was not
strictly hereditary is disapproved by the story of Karna in the Mahabharat who in spite of
being equal to or even more in valor, skill, warfare and charity than the Kshatriyas was made
to suffer humiliation for being a Sut Putra (Son of a Shudra) till his death. Again we have the
story of Eklavya, a low-born. Dronacharya, the teacher of Arjun, the great archer of the epic
Mahabharat, demanded his thumb as Gurudakshina (Fee), even though he had refused to
teach him archery fearing that he might surpass.

Being a Welfare State, we owe it to the weaker sections to ensure their well-being through
governmental action. Their economic backwardness, poor state of education and social
deprivation are all due to our society which even at this late hour should not prevent their
upliftment. It is because of this oppressive, humiliating and torturous caste system and

BullsEye

Our constitution lays down equality among equals and not among un equals. Through the
policy of reservation, our depressed and backward class people are sought to be brought to
the status of equality with others. It is really shameful for a modern civilized society like ours
that even after 55 years of independence, a scheduled caste barat party is not allowed to go
through a Rajput dominated village near Agra, young lovers belonging to higher lower caste
are hanged in village panchayats in broad daylight without a whimper of protest! Hence,
reservation is an affirmative action to bring about socio-economic betterment of these classes
and must, therefore, continue.

www.hitbullseye.com

Thus centuries of oppression and untouchability cannot be undone in just a few years of
honest and sincere efforts. Therefore, the makers of our Constitution stipulated reservation
for scheduled castes and tribes for a period of ten years but it had to be extended again and
again because they could not come up in such a short time. It is only fair and just to reserve
some seats for these deprived and oppressed people, who could not enter even temples and
educational institutions. The question of any inefficiency creeping in or harm or injustice
being done to others does not arise because one, these classes too must fulfill certain basic
minimum educational or technical qualification, and, too, some states like Tamil Nadu,
Andhra Pradesh and Karnataka have over 50 percent reservations yet their efficiency is
second to none. Again, no hue and cry of lowering efficiency or standards is raised when a
son of a rich father gets admission in a technical or professional course in spite of lower marks.
Then why these double standards?

22

resultant deprivation that has led thousands of scheduled castes people (From Dr. Ambedkar
to Ramraj now Uditraj) to get converted en masse into other religions. Resort to such
conversions as a means of escape from caste-based oppression is a shame on the entire
society.
If the Brahmins can work as pujaris and act as agents of God for all auspicious occasions like
births, marriages, deaths, etc. as a birthright, why should the Hindu society not view some
reservation for backward class people with charity and generosity.
Even now the total reservation is only 49.5 percent for about 76.5 per cent of the population
while over 50 per cent seats are available for about 23.5 per cent candidates of higher castes.
Besides, true social justice can come with a price and reservations are the prices that are
privileged classes should be willing to pay so that the accident of birth is no more used against
their lowborn brethren.
Mahatma Gandhi once said, Swaraj for me means freedom for the meanest for our
countrymen. I am not interested in freeing India merely from the English yoke. I am bent upon
freeing India from any yoke whatsoever. It goes to prove that Father of the Nation would
ensure individual freedom for one and all. But can such freedom be possible for the exploited
and oppressed weaker sections?

BullsEye

www.hitbullseye.com

The depressed and backward class people cannot fare well in an open competition because
of centuries of suppression and deprivation, and, hence, they cannot develop themselves. In
this modern age of knowledge explosion through mass media, they may get alienated from
the main stream of our society. This can generate dangerous consequences for the nation as
a whole. Therefore, to avoid such an eventuality, we should accept our downtrodden
brethren with an open arm and give them a helping hand in realizing their potential. This way
only we can achieve our common destiny, for didn't our ancient seers proclaimed Sarve
Bhawantu Sukhinah ma Kashchid duhkh bhag bhavet. (Let all be happy, let no one be
miserable).

23

INTERVIEW
A personal interview is a physical interface between the interviewer (called the panel) and
the interviewee (called the candidate) with the objective of assessing the interviewees
potential for a purpose.
B-Schools conduct interviews to assess the candidates suitability for a program in
management. Candidates are tested on parameters like initiative, team skills, task orientation
and willingness to learn, leadership capabilities, goal clarity and stress management.

Introduction: This is that part of the interview where you set yourself up. This is where
the panel gets a first look and evaluates your personality. The question type in itself is
a vast one and you can cover a host of information in this area. You should make sure
you mention your positive traits in this section and drop the right hints for the panel
to connect with you later in the interview. This is an opportunity for you to
demonstrate an ability to prioritize information and lead the panel.
Education: This is the place where you portray your overall learning skills and
demonstrate that you have a well-rounded personality. Academic learning is checked
with the help of your subject knowledge, questions can be sourced from favorite
subjects, recent most subjects, core subjects and subjects related to management
(depending upon graduation stream). Technical training and projects also become a
probable source for questions. Your knowledge is co-related with your performance
and this gives the panel a fair idea about your learning levels. Extra-curricular activities
are evaluated on the basis of their nature, relevance and level of achievement.
Performance in competitions is a further proof of your passion.
Current Affairs: Questions on current affairs can become an Achilles heel for many
students. These questions are designed to check of your knowledge, awareness and
ability to process current information. The larger challenge is to assess the candidate
on an overall environmental sensitivity. Knowledge in areas such as political,
economic, business and socio-cultural domains is required to well in these questions.
Career Planning: What the panel is evaluating here is your time bound plan and it is
extremely vital that you provide a clear and logical guide for your future plans. The
important consideration here is that you should not appear to be too over-ambitious
in your plans and you should strike a balance between being practical and ambitious.
You can always state that you wish to start a business but if you have no inkling of
what you are going to do or you do not have any basic plan to back up your claims,
this kind of a statement can be hard to justify in an interview. You can always say that
you wish to be the Business Leader of a company but then you need to have a defined
career path to justify the same. Making tall claims requires a lot of backing and you
would do well to keep a humble profile that can be justified easily. The focus, while

BullsEye

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Following is the list of parameters upon which you are likely to be evaluated in a Personal
Interview, accompanied with a list of things you need to keep in mind for scoring well in these
areas. An understanding of these parameters will help you to assess what the panel needs.
It is only then that you can state a value proposition and market yourself well !

24

discussing your long term plans, should always be on the skills you wish to learn rather
than the posts and positions that you want to occupy.
Personality based questions: Interviews often feature questions on areas such as
strengths, weaknesses, role-models etc. Each of these questions is actually based on
your self-awareness levels and the degree to which you know your own self. In case
you know yourself well enough and have enough time figuring out the intricacies of
your personality, you would have no difficulty in providing examples for your strengths
and detailing your weaknesses and how these could be overcome. After all, a B-school
would appreciate a personality carved out for management someone with strong
initiative, willingness to learn, ability to contribute and work in teams!

THE PROPER BODY LANGUAGE

Hand Shake: There are times when the panelist puts forth his/her hand for a
handshake. Extend your hand in the vertical plane to reciprocate smartly by producing
a firm handshake. Make sure the hand is not moist and that it is not passed on
languidly. Please also note that a hand shake is recommended only if the panel takes
an initiative.
Eye Contact: While answering questions, you are required to hold an upright posture
and look at the panelist who asks you that particular question. However, you are also
supposed to acknowledge the presence of other panelists. Thus it helps to start
answering while looking at the panelist who initiates, and gradually spreading the eye
contact to other people in the panel. It may help to conclude your answer by either
looking at the same panelist who asked that question or by converging onto someone
who shows apparently more interest by means of nodding or sustaining a welcome
smile.
In Stress Situation: Typically, one tends to fumble and gesticulate anxiously while
confronting a difficult question; this tends to magnify incase the question is a
complete bouncer. In such a situation the panel is likely to put an extra ounce of
stress, which may further aggravate nervousness as manifested in a parched throat,
hands clamped together or shaky limb movement. Please appreciate that you are not
required to be a know all; such situations demand even greater levels of poise and
composure. However, your verbal communication has to act as a parallel anchor to
help you cross this critical hurdle.
While handling tougher questions requires you to be calm and balanced, you are
cautioned not to be too jumpy while answering a question where your comfort levels
are proportionately high. Success needs to be contained within and not be leaked out
through jubilant gestures.

BullsEye

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Body Language is a critical part of non-verbal communication and is demonstrative of certain

core elements of ones personality. It becomes a yardstick for the panel to assess you on
attitudinal and behavioral correctness. The challenge begins the moment you walk into the
interview room. An upright posture, with file held as an inclined plane with both the hands,
graceful confident steps and eye contact with all the panelists, projects a composed, balanced
and poised personality. On the other hand, someone walking with quick, short steps with a
constant gaze at one of the panelists and the file held casually casts a negative spell.

25

Smile: Maintain a pleasant disposition throughout the interaction; smile appropriately

as and when the situation demands. However, dont overdo the smiling bit- a question
which requires you to elaborate the problems faced by our economy or finding
solutions to incurable diseases should not be accompanied by smile or even worse,
laughter!!

While you must uphold the basics of body language, you must also be vigilant enough to
gauge the body language of the panelists. This helps you to strike a better connect with the
panel. A constant vigil with respect to the non-verbal communication of the panelists may be
conducive in assessing the right entry and exit points.
While closing the interview, strike a proper eye contact with all the panelists, thank them for
the opportunity and part with the interview chair noiselessly (without any jarring sound on
the floor). Walk out gracefully without looking back and dont let your emotions surface on
your face!

GROUP INTERVIEW
An alternative to a Personal Interview and Group Discussion is a "Group Interview". Some
institutes use this tool as their selection procedure. The Group Interview can last for 30 - 50
minutes. Here, a student's individual skills as well as group skills are tested. The students may
be allowed to interact amongst themselves or the interview may be a controlled one to
maintain the protocol of the Group Interview. If the session is a controlled one, you should
be very attentive to the interaction within the Group Interview. You might be asked his
reaction over some other student's statement. The formation of the group is normally done
on the basis of a common binding factor e.g. all students who have opted for a particular
specialization in management or all students with a common academic background.

Group Interviews have been historically conducted by S.P Jain Institute of Management,
Mumbai. These interviews have been supported by psychometric testing to assess the
students suitability for the program.

BullsEye

The interview panelists observe your overall approach and where you help or hinder the
overall group progress. They will observe how you emotionally respond to the group and how
well are you able to take stress. Your leadership skills and ability to take criticism will also be
evaluated. In case you chair the meeting, the observers will check your planning and how
effectively you manage the meeting. In case you are leading the group activity, the observer
will check you efficiently as to how you delegate tasks and how you go about your own tasks.

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This homogeneity makes it easier for the panel to engage the group members in a discussion.
The student gets very little time to make an impression on the evaluators. Another way of
conducting a Group interview is a variant of a Group Discussion. Here a group may be given a
situation, case-study etc to discuss.

26

MOST IMPORTANT INTERVIEW QUESTIONS

TELL US SOMETHING ABOUT YOURSELF
Introduction sets the tone for the subsequent interview and is therefore of prime importance.
In fact, a smart introduction helps you to leverage the wisdom in the age old saying well
begun is half done!
When asked to introduce, start with your strengths and try creating innocuous teasers for the
panel; these have a strong probability of translating into discrete questions if presented well.
For example: Starting with your name and place of belongingness can lead to certain
questions around these elements of identity, from something as basic as the meaning
of the name to something as intricate as recent industry initiatives in the place you
belong to. It helps to research information surrounding these challenges try
familiarizing yourself with any mythological story that forms the genesis of your name
as well as the economic, historic, geographic, socio-cultural and political environment
of the place of belongingness.
Kindly appreciate that the interview follows an action-reaction mechanism whatever you say
goes into creating the basis for the next question.
For example: If you begin the introduction by telling the panel that you are a creative
and passionate person with good interpersonal skills, the panel is likely to test you
on a basic understanding of these terms, examples to validate these traits/skills
through practical experiences and the relevance of these strengths to your
professional life. The panel may even graduate to the extent of asking you to prove
certain traits at that very moment- a creative person may be questioned on doing
something creative at the spur of the moment while passion may be assessed by
the way you connect with the panel!
There is no right sequence to the inputs you pass on to the panel. However, the
introduction should reflect a gradual progression from one aspect of your life to anotherrandom hip hop from one pedestal to another could demonstrate inability to prioritize and
sequence.

BullsEye

The introduction part is also an opportunity for the candidate to highlight his/her comfort
areas, leading the panel to ask questions on these desirable points.
For example: An engineer graduate can highlight the application orientation of the
program and then single out a subject or project work, particularly the ones reflecting
empirical learning. Similarly, a commerce graduate can showcase the practical link
between commerce subjects and industry performance.

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Try laying emphasis on learning from varied aspects of life.

For example: A candidate projecting life as a wonderful learning experience with
opportunities to learn from both family and education, may come across a more multirounded personality as contrasted to someone anchored to only academic activities.
The B-school looks at your willingness to learn from diverse facets of life.

27

While the introduction part assesses your ability to create wishful entry points for
subsequent discussions, it also tests your ability to exit the discussion on a smart note. A
suggested way of doing so would be to conclude by asking the panel if they would like you to
highlight any part of what you said in the introduction. This may be appreciated as an ability
to exit gracefully and pass the baton back to the panel!

WHY MBA?
This question is core to an MBA selection interview and finds a representation in one form or
the other. The answer needs to address both generic and specific dimensions of your
candidature.
On a generic note, it needs to address what an MBA program is all about and how it prepares
a prospect to become industry ready. The answer should focus on the following objectives of
a well designed MBA program:

To equip students with the necessary concepts and interpersonal skills and a sense of
social cause for effective managerial decision making
To develop leadership capabilities to act as change agents and be a source of
motivation in organizations
To nurture the desire to excel without compromising on integrity, honesty and
fairness

You may support the above objectives with an understanding of the integrated approach
adopted by B-schools to make the curricula more industry oriented. Integration is ensured at
two levels amongst the various management domains (Finance, Marketing, Human
Resources, Information Technology), and amongst the academic and industry learning
systems.
It may also be of help to mention the unique pedagogy followed by B-schools--- the case study
methodology. This tool of learning ensures that the management graduate sharpens his/her
decision making ability through role play and simulation techniques created around actual/
near-real business situations. Further, you may also highlight the team play required by Bschools and project it as a core skill for enhanced organizational effectiveness.

BullsEye

For example, it may be of help to tell the panel that you took up commerce for graduation
because you were enthused by the scale at which economic challenges are handled by nations
& organizations, and by the organic linkage of different economies of the globalized world. It
fascinated you to understand the reasons for trade and investment, to appreciate the
principles of general management and to get an insight into the challenges of financial
accounting (however do have a back-up plan and preparation to handle basic questions on all
these dimensions of commerce and management). Graduation in commerce introduced you
to the challenges faced by organizations at the micro and macro levels and also excited you
with respect to the different functions of management, particularly finance (or

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On a specific note, your answer to why MBA? needs to link the management pursuit with
your profile, background, vision and mission. This is an opportunity for you to establish a clear
link between the past, the present and the intended future.

28

marketing/human resources depending on the specific interest domain). Now you plan to
take your interest in finance (if that is the case) forward and understand the various
dimensions/verticals of finance management, particularly from an empirical, industry point
of view. An MBA program with its strong industry interface would help you to realize your
aspirations. It would also give you a clear growth path in the field of investment banking,
which interests you more than other areas of finance management (be ready to answer basic
questions on investment banking).
If you are from non-commerce/ non-BBA background, the link which you need to create
would require even greater conviction. Typically, engineers are investigated on the fact that
doing an MBA would de-engineer them. At this juncture, do not take an escapist approach
by coming up with vague reasons for pursuing engineering, like extreme parental pressure!
On the contrary, take responsibility for your action and show the upside in this application
oriented program. Project the co-relation between engineering and management by
highlighting the industry interface in both the programs. You may also showcase how the
engineering program trained you to think empirically and how this would aid you in your
management study. Analysis and problem solving are central to both the programs. It may
also be of help to tell the panel that while engineering focuses on the production side of
the industry value chain (IVC), management focuses on the delivery side of this chain.
Hence, a management program would enable you to understand the complete spectrum of
creating value for the customer.
Your answer to the why MBA? question is critical for the panel to assess you on basics of
career planning. All you are required to do is to create points of connect between what you
plan to do and the takeaway from the management program!

WHAT ARE YOUR STRENGTHS AND WEAKNESSES ?

An important question used to judge how well do you know yourself and further how do you
use this knowledge to do well professionally.

BullsEye

Some commonly quoted strengths are:

Intelligence...management "savvy".
Honesty...integrity...a decent human being.
A team player
Likeability...positive attitude...sense of humor.
Good communication skills.
Dedication...willingness to walk the extra mile to achieve excellence.
Definiteness of purpose...clear goals.
Enthusiasm...high level of motivation.
Confident...healthy...a leader..

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You should have a list mentally prepared of your greatest strengths. You should also have, a
specific example or two, which illustrates each strength, an example chosen from your most
recent and most impressive achievements. You can use this question to direct the interview
to your strong areas.

29

While quoting your weakness, you may disguise a strength as a weakness however this
strategy is so widely used, it is transparent to any experienced interviewer. So rather quote a
weakness and how you overcome it.

WHY DO YOU WANT TO DO MANAGEMENT FROM THIS INSTITUTE ?

This question is in two parts. First, the evaluators would like to know "Why you want to do
Management". Secondly, the evaluators would like to know how much you know about the
Institute for which you are giving the interview.
Do's

Talk about your career objectives and strike relevance between the MBA program and
your career objectives.
Highlight the nature of the program and the value it will create in terms of industry
readiness.
Mention the salient strengths of the Institute, its pedagogy and how it fits into your
career goals.
Give examples of students who have passed out from the Institute and the valuable
knowledge and opportunities they have gained.
Give examples of people from the Institute you have met. (This shows that you did
your homework well).

Don'ts
Dont tell the panel that an MBA is a gateway to money, power and glamour.
Don't compare with the other Institutes.
Don't brag about facts that you are not sure of (I believe that 50% of the class gets
foreign placement)
Don't give blanket statements like "This is the best Institute in the country" or "I will
not get in anywhere else".

How should you Answer such questions?

Find out your area of interest. Also, be clear about how the field of your specialisation
relates to
Your Strengths and Weaknesses
Your educational qualifications
Work experience
Future Expectations and Ambition in life.

BullsEye

Why do evaluators ask this question?

To know that you have thought over what subject you should specialize in and your
curiosity to know about the different areas in Management.
You should demonstrate that you would like to do an MBA in a particular field because
there is a "need" for you and not because it is the latest fad.
You could say that you would like to do an MBA in a particular field because that
functional area "interests" you.
To assess your career goals, degree of focus, reasoning for it.
If you state a functional area for specialization, more questions could be asked on it.

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WHICH FIELD OF MANAGEMENT WOULD YOU LIKE TO SPECIALIZE IN ? WHY ?

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Are you comfortable with the area of specialisation you would like to opt for? Once you say
that you would like to specialise in a particular field, evaluators would ask you basic questions
on the same. You can demonstrate that there is a need for you to specialise in the particular
area. Do some introspection. If you can convince yourself that you need to specialise in a
particular area, then you can also convince the interviewers.
Poor Answer
"I am not sure as to which field to opt for, but I think Finance will be good as there is
more money in it."
Analysis:
Too short to reflect your knowledge of different fields of Management.
No adequate reasons for choosing Finance as the field of specialization.
Focus is money and not career or job satisfaction.
Good Answers
For a candidate with no work-experience:
I have had no industry experience, and hence do not have exposure to functional areas
like Finance, Marketing and Systems. I would like to get an idea of these subjects in
the first year of MBA and be in a better position to decide which functional area to
specialise in. I am certain that I will be comfortable and successful in any functional
field."
If you would like to specialise in a functional area where you have prior work-experience:
"I would like to specialise in Systems. I have experience in the "Software Industry", in
particular to coding and software programming. However, since I lack knowledge of
functional areas like finance and operations, I could not play an effective role in client
interaction. These skills, I feel I would learn when I specialise in Systems from ""
Moreover, an MBA would open up new opportunities for me in the field of IT
Consultancy."

WHY HAVE YOUR GRADES DROPPED OVER YEARS?

BullsEye

Please appreciate that academic performance is only one of the measures of your ability to
learn and not the only one. It may be conducive to show an over ability to learn from varied
sources and not just the academic ones. Participation in extra-curricular activities, with
greater involvement in recent years, may be a smart way of taking the burden off the
academic pedestal. Further, activities with an authentic certification come across as more
convincing than the ones which are merely stated verbally but are not backed by any
testimony. Any achievement in these activities will further corroborate your candidature and
indicate your ability to create a potent competitive advantage. Apart from multi rounded
dimensions of your personality, participation in such activities will also demonstrate the core
traits of flexibility and adaptability.

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If your performance has declined over the years, it is apparently indicative of the fact that
your learning ability/willingness has declined proportionately. Thus it becomes imperative to
refute this deductive reasoning.

31

It may also be of help to tell the panel that the dip in the performance is only numerical in
nature and that you are fairly confident with respect to core concepts of your graduation
stream. If possible, extend this confidence to a subject or two, thereby taking the panels
attention towards these comfort areas. The panel always tends to assess you on any claims
which you make in the academic arena; however, the next challenge for you is to validate
these claims by responding to at least the basic questions on these concepts/ subjects.
Engineering students may seize this opportunity to lead the panel towards their internship
project. Commerce and other non-engineering students (without project work in the
academic curricula) may project certain topics from the graduation program, either by stating
them as the ones which interested them more or by telling the panel that these were topics
for paper presentations etc.
It may also be beneficial to tell the panel that the dip in performance was predominantly in
the first year of graduation (if that was the case) and was a consequence of the transition
from school to college life. Gradually as you progressed towards the final year, your
performance improved, particularly in select subjects (if that was the case). This reflects your
ability to analyze data and find reasons for deviation. However this statement will be counter
-productive if you happen to tell the panel, somewhere in the course of interaction, that one
of your strengths is adaptability.
If none of the above is true for you and you are not able to find just about any reason for your
poor academic performance, the last resort is to acknowledge this fact and take responsibility
for your negligence. However, such an answer needs to be enveloped in a blanket of guilt and
remorse. At the same time, this has to be supported by a promissory statement assuring the
panel that this shall not be extended to your management study!

BullsEye

1. Do you know what IIMBs logo means?

2. Do you read blogs? What kind of Blogs? How often do you read these blogs?
3. Do you read philosophy?
4. Do you see any role of the private sector in education?
5. Do you think the concept of open mandi is good?
6. Do you think there is a need to enhance rural healthcare situation?
7. Don't you think cricket is given more importance in our country than hockey?
8. What do you understand by entrepreneurship?
9. Estimate your expenses in our college.
10. Explain the stress curve.
11. Explain the theory of relativity?
12. 30 years down the line where do you see yourself?
13. Can you tell me any change of rules that has taken place in the last 10 years in the
game of hockey?
14. Can you tell me what a reverse swing is?
15. Describe the role that you will play after your management degree?
16. Difference between marketing and sales?
17. Do you have any other MBA calls?
18. Do you watch movies? About 3D & 4D movies.
19. Don't you think you should focus on activities apart from the "one you mention"?

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TOP 30 FREQUENTLY ASKED MBA INTERVIEW QUESTIONS

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20. Don't you feel your four years of engineering would go waste by doing MBA?
21. Don't you know any one HR person who is famous?
22. Explain a few principles of management.
23. Have you read Kane and Abel? What is the central theme?
24. How does a B School prepare you for the industry when it cannot mimic an industry
environment?
25. How many types of guitars are there?
26. How MBA gives you credibility?
27. How will MBA be advantageous to you?
28. How MBA will help you out in achieving your aim?
29. How much time do you take to complete a Sudoku puzzle?
30. How will your graduation help you in MBA?

TOP 30 INTERVIEW QUESTIONS - ABOUT YOU

BullsEye

Introduce yourself.
Tell us something about your family background.
Why do you want to study in this college?
Can you explain a situation where you did not meet your goals and objectives?
Explain a situation where you faced conflict and communication problems.
What are your strengths and weaknesses?
Where do you see yourself in 5 years time?
Are you a team player or a team leader?
Have you ever had a conflict with a boss / colleague / professor or with your family
members? How was it resolved?
10. Tell us something about your interests.
11. Do you really think that your skills are appropriate for MBA?
12. Which aspect of your personality needs an improvement?
13. Explain how you would prove to be an asset to this college?
14. Do you believe in hard work or smart work?
15. Explain a situation where you have worked under pressure. What were the results?
16. Who is your role model and why?
17. What has been the toughest decision in life that you have had to make?
18. If you win $10 million in a lottery, would still continue to work?
19. Why is there a gap year in your education?
20. Why have your grades dropped from 10th standard to 12th standard?
21. Explain a situation when your work was criticized. How did you react in that situation?
22. What feature of your colleagues would be the most irritating for you?
23. What qualities do you look for in your teacher?
24. Which achievement of your life are you the most proud of?
25. What do you want to do with your life?
26. Tell us a situation you have faced with a huge challenge or worked to an unreasonable
deadline?
27. Tell me about a time when you were held accountable for the mistake you made. Did
you take the responsibility? What did it result in? Do you have any regrets?
28. Tell me about a situation where you tried to accomplish something and you failed.
How did you react in that situation? What was your next step?
29. Tell me about a situation that made you angry? How did you handle the situation?

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1.
2.
3.
4.
5.
6.
7.
8.
9.

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30. Tell me about a situation when you were totally unprepared for something but you
had to undertake the task. What were the results?

TOP 50 INTERVIEW QUESTIONS - WORK EXPERIENCE

BullsEye

Apart from your regular work, what else have you done in your company?
Are you not happy with your job? Then why do you want to leave the company?
Can you describe any innovation that has taken place in ignition systems?
Challenges you had in your work?
Describe the current product that you have been working on? People say it is full of
innovations? What is your take?
6. Describe your final year project?
7. Describe your job profile?
8. Did you face problems motivating your team?
9. Did you have foreign clients?
10. Discuss the appraisal process at "Company Name". How has "Company Name"
benefitted you?
11. Do you know any strategy consultants who helped Indian companies?
12. Do you think you are a bad performer and won't get a better opportunity?
13. Elaborate on your experience while working in "Your Companys Name".
14. Explain the concept of total quality management.
15. Explain the different levels of organization.
16. Explain your job responsibilities?
17. For how many months have you taken a work experience?
18. Have you been placed somewhere? Will you join the company?
19. Have you interacted with your customers?
20. Have you worked on any project in MS?
21. How can you improve upon the current profile that you are working in?
22. How do you analyze the market?
23. How do you do sales forecasting?
24. How do you get the estimate for the likely time required?
25. How do you make sure people work under you?
26. How good was your company?
27. How is quality measured at your job?
28. How is your company performing in the wake of recession?
29. How much time did you need to understand your client's business?
30. How will your current experience help you if you go on to become a manager?
31. I know the VP of the company you have provided solutions to. Should I confirm with
him?
32. Introduce your organization. What role you play in the organization? Tell us about
your projects.
33. Is "Your Companys Name" taking adequate measures for sustainable growth in the
next 5 years?
34. Is there any impact of the slowdown in the west on the business that you people get?
35. Name some company where you'll get the kind of cross-functional exposure?
36. On which technology do you work?
37. Saying that you will give important job to a subordinate is easy, but have you ever
done that?

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1.
2.
3.
4.
5.

34

38. Since your company has a high growth potential, then why do you want to leave the
job and change the field?
39. So what are steps of Requirement Gathering?
40. So what was your experience as a Lead?
41. Tell me about the job sites that you have worked at?
42. Tell me something about unit processes?
43. Tell me what you did as the magazine editor?
44. Tell something about the CSR initiative of "Your Companys Name".
45. Tell us about one creative work that you have done in your job?
46. Tell us about your work responsibilities?
47. There are 5 people working under you. Who would be responsible for managing them?
48. What are the financial implications of the sales cycle?
49. What are the latest happenings in your industry?
50. What are the managerial aspects of an organization?

BullsEye

1. Variables should be stored in local blocks. Yes or no?

2. A switch statement is better than multiple if statements in what all situations?
3. Can a switch statement be written without a default case?
4. Is it possible for the last case of a switch statement to skip including the break?
5. Barring the for statement, where else is the comma operator used?
6. How do you determine whether a loop ended prematurely?
7. Differentiate between goto, long jmp( ) and setjmp( )?
8. Explain lvalue?
9. Can an array be an lvalue?
10. Explain rvalue?
11. Is right-to-left or left-to-right order guaranteed for operator precedence?
12. Differentiate between ++var and var++?
13. Explain the function of the modulus operator?
14. What is the most efficient way to store flag values?
15. Explain "bit masking"?
16. Are bit fields portable?
17. Is it better to bitshift a value than to multiply by 2?
18. What is meant by high-order and low-order bytes?
19. What is the way to store 16-bit and 32-bit numbers?
20. Explain macro and its usage
21. What purpose does preprocessor fulfill for a program?
22. How can you avoid including a header more than once?
23. With the help of #include , can a file other than a .h file be included?
24. What is the benefit of using #define while declaring a constant?
25. What is the benefit of using enum while declaring a constant?
26. Why is it better to use an enum rather than a #define constant?
27. In demo versions, how are the portions of a program disabled?
28. What is better? Using a macro or using a function?
29. Explain the best way to comment out a section of code that contains comments?
30. Differentiate between #include and #include "file"?
31. Can it be defined which header file to include at compile time?

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TOP 50 INTERVIEW QUESTIONS - COMPUTER SCIENCE ENGINEERING

35

32. Is it possible that include files be nested?

33. How many levels deep can you nest include files?
34. Explain the significance of concatenation operator?
35. How do you create type-insensitive macros?
36. What are the standard predefined macros?
37. Explain the way to make a program print the line number where an error occurs?
38. Explain the way to make a program print the name of a source file where an error
occurs?
39. How do you tell whether a program was compiled using C versus C++?
40. What is a pragma? What is #line used for?
41. Explain the usage of #line?
42. Explain the significance of __DATE__ and __TIME__ preprocessor commands?
43. How do you make sure that a program follows the ANSI C standard?
44. What is the procedure to override a defined macro?
45. How do you check whether a symbol is defined?
46. Do array subscripts always start with zero?
47. Can we address one element beyond the end of an array?
48. Is it possible to tell the size of an array passed to a function with the help of the size
of operator?
49. What is better to navigate an array of values? To use a pointer or to use a subscripted
array name?
50. How is it determined whether a stream function or a low-level function should be
used?

BullsEye

1. Explain bending moment?

2. Differentiate between a Shaper Machine and a Planner Machine.
3. Explain the importance of Thermodynamics in the field of Mechanical Engineering?
4. What is the nomenclature of a 6203-ZZ bearing?
5. Give the full form of SCADA, DCS and HMI.
6. How does the failing of Knuckle pin occur?
7. What is the heat rate of a power plant?
8. Which of these have a higher efficiency: Diesel engines or Petrol engines?
9. What are the points in the stress/strain curve for steel?
10. What is ductile-brittle transition temperature?
11. Differentiate between Relay and Conductor?
12. Differentiate between shaper and planner?
13. What is the immediate superclass of Menu?
14. State the laws of conservation of energy.
15. What is a gear box and what are its applications?
16. What is Carnot engine?
17. Which formula forms a link between Thermodynamics and Electrochemistry?
18. How will you calculate the tonnage of Mechanical Press?
19. What is maximum continuous rating?
20. What is the difference between Critical speed and Whirling speed?
21. What is plant load factor?
22. What is hard material cast iron or mild steel?

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TOP 50 INTERVIEW QUESTIONS - MECHANICAL ENGINEERING

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23. How would you find the amount of natural gas required to produce 1 KWhr of energy?
24. What is annealing?
25. How do you measure temperature in a web bulb thermometer?
26. What is the purpose of governor in automobile?
27. What is bearing stress?
28. What is the difference between SCADA and BMS?
29. Explain Otto cycle.
30. What is the efficiency of v-type four stroke diesel engines?
31. Is the boiler a closed system?
32. How many joules are there in one BTU?
33. How many laws of Thermodynamics are there?
34. What is the consequence of not maintaining hydrogen (or air) pressure in generator
casing at a value above atmospheric when seal oil system is in service?
35. Explain the effect on the basis of which the cricket ball swings.
36. What is the method for testing Light Emitting Diode?
37. What is the function of EGR value?
38. In a heat exchanger, if I have given pressure on tube side, can I perform hydro test of
shell side simultaneously? Why?
39. Which is the hardest compound known?
40. What is gear ratio?
41. Define torque.
42. What is PS?
43. What is the mechanical advantage of a double pulley?
44. What is Hess Law?
45. How to control temperature (Electronics method)?
46. What is a Newtonian Fluid?
47. What is the significance of Torque (in N-m) given in the engine specification?
48. How to make operations by pressing a single push button (at least for 2 operations)?
49. What are the materials used for sliding wear pad?
50. Explain the second Law of Thermodynamics.

BullsEye

1. Are exports included in GDP?

2. Calculate income tax of this question.
3. Can operating profit be more than gross profit?
4. Can you comment something on the ongoing recession?
5. Can you describe how Private Banking works?
6. Can you elaborate on the various sub accounts of BOP?
7. Comment on this year's budget?
8. Difference between current assets & fixed assets?
9. Difference between revenue and profit?
10. Discount rate is the correct term. What else can you call it?
11. Do you know about the budget and economy?
12. Do you know of any mechanism by which RBI can withdraw excess money supply from
the FOREX market?
13. Explain PERT technique?
14. For a big MNC, What documents are covered in the Financial Statement?

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TOP 50 INTERVIEW QUESTIONS - COMMERCE

37

1.
2.
3.
4.
5.
6.

Any depreciation frauds in the recent news?

Can someone live for a day with 32 rupees?
Can you draw AC curve?
Can you draw the demand curve?
Can you explain what Indian English Literature is?
Can you name five emerging economies of the world?

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TOP 50 INTERVIEW QUESTIONS - ECONOMICS

BullsEye

15. Give me the responsibilities of RBI in simple points?

16. Give SEBI guidelines for a small investor.
17. Have you heard about CAG?
18. Have you heard about investment banking?
19. Have you heard about variance and standard deviation?
20. Have you read about standard deviation and other such statistical terms?
21. How do you determine dollar's rate and on what formula is it based?
22. How do you do breakeven analysis?
23. How do you record sundry allowances in accounts?
24. How does GDP contribute to the economy of the country?
25. How many banks are there in India?
26. How many different accounting standards are there?
27. How will you determine the discount rate?
28. How will you explain what is NPV to your grand-mother?
29. In which language accountancy was first established?
30. Is Forex a part of BOP?
31. Is there any proposal of opening new banks?
32. Questions on economics such as what inflation is, what equimarginal utility is, and
what macro economics is.
33. Suppose I am a layman how will you make me understand what a Subprime crisis is?
34. Suppose you have a balance sheet of an SME company, how will you decide whether
to finance the company or not?
35. Tell me something about double entry book keeping?
36. Tell me something about GST?
37. Tell us about accounts and taxation?
38. Tell us the functioning of RBI, who is the current governor of RBI?
39. What are CRR, Repo Rate, Reverse Repo Rate and Bank Rate, how they are used by
RBI?
40. What are direct and indirect taxes?
41. What are the different accounting ratios?
42. What are the different types of taxes?
43. What are the measures of central tendency?
44. What are the Taxation rules?
45. What do you mean by the word subprime?
46. What is a Budget?
47. What is a SEZ?
48. What is balance of payments?
49. What is capital budgeting?
50. What is centre's role and state's role in planning?

38

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7. Define inflation?
8. Define poverty line?
9. Do you have interest in world economics?
10. Draw demand curve. Why it slopes downwa0rd?
11. Draw the normal distribution curve?
12. Euro zone debt crisis?
13. Explain CPI, WPI?
14. Explain Elasticity of Demand & Supply?
15. Explain what consumer's risk is and what producer's risk is.
16. What is the difference between a customer and a consumer?
17. Give me the reason why is China depreciating its value of currency?
18. How does government make money?
19. How does macro-economic policy affect business?
20. How is economics different from business economics?
21. How is inflation calculated?
22. How is per capita income calculated?
23. How many times you gave exam for Economics honors?
24. How many types of markets are there?
25. How would economics help you out in MBA?
26. How would you improve agriculture?
27. How you will value inflation?
28. I am not very good in economics. Can you tell me the concept of liquidity?
29. If you are so much interested in Economics, why don't you pursue it as your career?
30. Monetary Policy & Fiscal Policy difference?
31. So which is a better system Capitalism or Communism?
32. Suggest a plan to increase sales of HB pencil by 5%?
33. Tell us about Indian economics?
34. Tell us something about the industrial economics and the management principles.
35. What are Substitute goods and economies of scale?
36. What are the different modes of communication?
37. What are the various types of depreciation?
38. What do you generally like in reading?
39. What do you know about the Indian economy?
40. What do you mean by liquidity and inflation?
41. What gains do companies get by charging depreciation?
42. What happens with overproduction?
43. What have you read in Economics honors?
44. What is a determinant?
45. What is CRR?
46. What is depreciation?
47. What is GDP, Budget?
48. What is India's per capita GDP?
49. What is Inflation/GDP?
50. What is inflation? What is its current rate?

39

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Basic of Indian
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Basics of Indian Economy

Economics is the science which studies human behaviour as a relationship between ends and scarce means
which have alternative uses.
Measuring health of economy:
Gross Domestic Product (GDP): Aggregate of goods and services produced by a country within its boundary
in a financial year
Net Domestic Product (NDP): GDP Depreciation
Gross National Product (GNP): GDP + Incomes from abroad Foreign repatriable earning
Net National Product (NNP): GNP Depreciation
What Does The Term PPP In Relation To GDP Refer To?
If we measure the GDP per capita of all countries in the same currency, say the US Dollar, we might present a
misleading picture of how well-off people in different countries are. This is because exchange rates do not
correctly reflect the purchasing power of currencies within their own economies. For example, although one
US dollar is worth almost Rs 50, a dollar in the US would not be able to buy as much as Rs 50 does in India.
To correct for this and make international comparisons more meaningful, we use the notion of purchasing
power parity (PPP). In effect, what we are doing here is to make the conversion based on a notional exchange
rate (one that tells you how many rupees you would need to buy the same things as you could with a dollar in
the US)
Methods of Calculating GDP:
a. Income Method
b. Expenditure Method
c. Gross value addition Method.

Share in GVA at Factor Cost at Current Prices

2004-05 series
2011-12 series
2011-12 2012-13 2013-14 2011-12 2012-13 2013-14 2014-15
Agriculture and allied activities
17.9
17.5
18.2
18.9
18.7
18.6
17.6
Industry
27.2
26.2
24.8
32.9
31.7
30.5
29.7
Services
54.9
56.3
57.0
48.2
49.6
50.9
52.7
Sector

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Poverty line in India is defined by national norms of a minimum of 2400 cal/day and 2100 cal/day
consumption for rural and urban areas respectively.
Central problems of economics
1. Problem of allocation of resources: what to produce and in what quantity; how to produce; for whom to
produce.
2. Problem of fuller utilization of resources: ensure that resources do not remain under-utilized.
3. Problem of growth of resources: to combat their scarcity, the resources must grow gradually.
To address these problems planning is needed.
Imperative planning: Government sets targets and uses its agencies and resources to achieve them.
Indicative Planning: Government acts as facilitator. Unlike a centrally planned economy, indicative planning
works through the market rather than replacing it. To this end, the planning process specifically brings
together both sides of industry (the trade unions and management) and the government.
Planning in India
Planning Commission estd. in 1950 formulates five-year plans for social and economic development of India.
The Eighth Five Year Plan introduced indicative planning in India. Following it government agencies act as
facilitators.
Growth through FYPs
Plan Period
First (1951-56)
Second (1956-61)
Third (1961-66)
Fourth (1969-74)
Fifth (1974-79)
Sixth (1980-85)
Seventh (1985-90)
Eighth (1992-97)
Ninth (1997-2002)
Tenth (2002-2007)
Eleventh (2007-12)
Twelfth (2012-17)

Target
2.1%
4.5%
5.6%
5.7%
4.4%
5.2%
5.0%
5.6%
6.5%
8.1%
9% (later revised to 8.1%)
8.2%

Actual
3.6%
4.0%
2.4%
3.3%
5.0%
5.4%
5.7%
6.78%
5.35%
7.7%
7.9%
-

Some Targets of 12th FYP

Agricultural growth of 4%
Industrial growth of 10%
$1 trillion investment in infrastructure
More investment in health and education
Better targeting of subsidy
Bring down poverty ratio by 10%
Emergence of NITI AAYOG (NATIONAL INSTITUTION FOR TRANSFORMING INDIA)
The NITI Aayog is the successor in interest to the Planning Commission. It was established on 1st January,
2015 by Executive action.

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Basic of Indian
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Main functions
NITI Aayog (National Institution for Transforming India):
a.
To evolve a shared vision of national development priorities sectors and strategies with the active
involvement of States in the light of national objectives.
b.
To foster cooperative federalism through structured support initiatives and mechanisms with the
States on a continuous basis, recognizing that strong States make a strong nation.
c.
To develop mechanisms to formulate credible plans at the village level and aggregate these
progressively at higher levels of government.
d.
To ensure, on areas that are specifically referred to it, that the interests of national security are
incorporated in economic strategy and policy.
e.
To pay special attention to the sections of our society that may be at risk of not benefitting adequately
from economic progress.
f.
To design strategic and long term policy and programme frameworks and initiatives, and monitor
their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for
making innovative improvements, including necessary mid-course corrections.
g.
To provide advice and encourage partnerships between key stakeholders and national and
international like-minded Think tanks, as well as educational and policy research institutions.
h.
To create a knowledge, innovation and entrepreneurial support system through a collaborative
community of national and international experts, practitioners and other partners.
i.
To offer a platform for resolution of inter-sectoral and inter departmental issues in order to accelerate
the implementation of the development agenda.
j.
To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and
best practices in sustainable and equitable development as well as help their dissemination to stakeholders.
k.
To actively monitor and evaluate the implementation of programmes and initiatives, including the
identification of the needed resources so as to strengthen the probability of success and scope of
delivery
l.
To focus on technology upgradation and capacity building for implementation of programmes and
initiatives.
m. To undertake other activities as may be necessary in order to further the execution of the national
development agenda, and the objectives mentioned above
Direct cash transfer of subsidy
The government had announced that direct cash transfer of subsidies to the bank accounts of the recipients
start in 51 out of Indias 659 districts from January 2013 and would be gradually extended to the rest of the
country by April 2014.
It is proposed that the cash equivalent of all subsidies, such as kerosene, LPG cooking gas (Operation
PAHAL), food, fertiliser, scholarships, old-age pensions, NREGS (there are some 42 government schemes),
would be eventually transferred directly to the Aadhaar-based bank accounts of all the recipients.
According to some estimates, the loss in subsidy distribution is as high as 40 percent, which will potentially
be eliminated through the implementation of the scheme.
Budgeting (fiscal policy)
What is main duty of Finance Minister?
Budget contains three sets of information: taxation (revenue), public expenditure, public debt management
Budgeting done at two levels:
1. Revenue budget - done for short time recurring in nature maintenance of roads
2. Capital budget - done for longer time non-recurring in nature construction of roads

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Revenue budget consists of

a. Revenue receipts received on regular basis (taxes, profits made by PSUs, financial services like postal,
railways)
b. Revenue expenditure spent on regular basis (developmental like maintainance of hospitals, roads; nondevelopmental like defence, pension, salaries)
Capital budget consists of
a. Capital receipt received one time (recovery of loan, disinvestment, borrowings)
b. Capital expenditure spent one time (repayment of loan; construction of roads, railway tracks)
Public expenditure = Revenue expenditure + Capital expenditure
Government Initiatives:
Agriculture:
Review of Agricultural Produce Marketing Committee (APMC) act.
Contract farming
Water access: Micro Irrigation, Accelerated Irrigation Benefit program (AIBP), PM Krishi sinchayi
Yojna.
Availability of Good quality seeds, fertilizers and technology.
Credit access: Kisan Credit Card, Jan Dhan Yojna etc.
Industry
1991 Reforms
Facilitation of technology
Improvement in infrastructure: Railways, Dedicated freight corridors
International collaborations (FDI and acquisitions),promotion of Make in India.
Promoting Small and Medium Enterprises (SMEs)
Services
FDI inflows
Digital India campaign.
Rural penetration: National Optical fiber network
Benchmarking by government companies
Tourism Promotion: e-Tourist Visa.
Some terminology
Contract farming
Agricultural production carried out according to an agreement between a buyer and farmers. Benefits such as
the assured market and access to support services for the farmers. It is also a system of interest to buyers who
are looking for assured supplies of produce for sale or for processing.
Microfinancing
Providing banking facility to people belonging to lower and middle economic strata in rural and semi-urban
areas who are otherwise outside the coverage of formal banking system. Schemes like Jan Dhan Yojna focus
on financial inclusion. Also MUDRA bank was constituted to create an inclusive, sustainable and value based
entrepreneurial culture, in collaboration with other institutions in achieving economic success and financial
security. The bank will Finance Micro finance Institutions in order to facilitate excess to capital to Micro,
Small and Medium Enterprises (MSMEs)
Foreign Direct Investment (FDI)
Investment made by a foreign individual or company in the productive capacity of another country. It grants
the investor control over the acquired asset. Government wants to provide impetus to investment in India
which shall provide employment opportunities and thus missions like Make in India have become most
prominent.

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Basic of Indian
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Foreign Institutional Investment (FII)

The term is used most commonly in India to refer to outside companies investing in the financial markets of
India. These include investments in hedge funds, insurance companies, pension funds and mutual funds.
These are primarily concerned with Capital Market (Primary and Secondary).
Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests
or best practices from other industries. Dimensions typically measured are quality, time and cost.
Growth vs Development
Economic growth is a narrower concept than economic development.
The definition of economic development given by Michael Todaro is an increase in living standards,
improvement in self-esteem needs and freedom from oppression as well as a greater choice. It relates to
overall development which is expressed as a measure of HDI.
Human Development Index (HDI) was devised and launched by Pakistani economist Mahbub ul Haq,
followed by Indian economist Amartya Sen in 1990.
Starting with the 2011 Human Development Report the HDI combines three dimensions:
1. A long and healthy life: Life expectancy at birth
2. Education index: Mean years of schooling and Expected years of schooling
3. A decent standard of living: GNI per capita (PPP US$)

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India has an HDI Rank of 130

Human
developme
nt index
(HDI)

HDI
rank
Country
Value
Very High Human Development
Norway
0.944
1
Australia
0.935
2
Switzerland
0.930
3
Denmark
0.923
4
Netherlands
0.922
5
High Human Development
Belarus
0.798
50
Russian
0.798
50
Federation
Oman
0.793
52
Romania
0.793
52
Uruguay
0.793
52
Medium Human Development
Botswana
0.698
106
Moldova
(Republic
0.693
107
of)
Egypt
0.690
108
Turkmenist
0.688
109
an
Gabon
0.684
110
Guatemala
0.627
128
Tajikistan
0.624
129
India
0.609
130
Honduras
0.606
131
Bhutan
0.605
132
Low Human Development
Kenya
0.548
145
Nepal
0.548
145
Pakistan
0.538
147
Myanmar
0.536
148

(years)

Expecte
d years
of
schoolin
g
(years)

(years)

Gross
national
income
(GNI) per
capita
(2011 ppp$)

81.6
82.4
83.0
80.2
81.6

17.5
20.2
15.8
18.7
17.9

12.6
13.0
12.8
12.7
11.9

64,992
42,261
56,431
44,025
45,435

5
17
6
11
9

71.3

15.7

12.0

16,676

14

70.1

14.7

12.0

22,352

-1

76.8
74.7
77.2

13.6
14.2
15.5

8.0
10.8
8.5

34,856
18,108
19,283

-23
10
7

64.5

12.5

8.9

16,646

-41

71.6

11.9

11.2

5223

23

71.1

13.5

6.6

10,512

-12

65.6

10.8

9.9

13,066

-28

64.4
71.8
69.4
68.0
73.1
69.5

12.5
10.7
11.2
11.7
11.1
12.6

7.8
5.6
10.4
5.4
5.5
3.0

16,367
6929
2517
5497
3938
7176

-42
-11
27
-4
7
-17

61.6
69.6
66.2
65.9

11.0
12.4
7.8
8.6

6.3
3.3
4.7
4.1

2762
2311
4866
4608

9
16
-14
-12

Life
expectanc
y at birth

Mean
years of
schoolin
g

GNI per
capita rank
minus HDI
rank

Deficit Financing

Promoted by JM Keynes
Practice in which government spends more money than it receives as revenue
Helps in stimulating growth
Extra money to fund more expenditure comes from printing extra money or external borrowing. Extra
money in pockets will create demand. It will facilitate production. Jobs will be created. Economy will
be back on track.
More money in market, however, also leads to inflation.

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Inflation
In a broad sense, inflation is that state in which the prices of goods and services rise on one hand and value of
money falls on the other.
Inflation is of two types
1. Cost Push Inflation: Due to an increase in production cost that gets translated into higher price for that item.
2. Demand Pull Inflation: When the item being purchased is in short supply
Monetary policy
Monetary and credit policy is the policy statement, through which the RBI targets a key set of indicators to
ensure price stability in the economy. Monetary policy is reviewed every two months.
It helps in taming inflation.
Fiscal policy
It is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
Union budget that is prepared every year is used to shape the fiscal policy of the country.
Budgeting is done at two levels:
1. Revenue budget - done for short time, recurring in nature eg: maintenance of roads
2. Capital budget - done for longer time, non-recurring in nature eg: construction of roads
Deficits
Budget deficit = Total expenditure Total receipts
Fiscal deficit = Total expenditure Total receipts excluding borrowings
Fiscal deficit gives the signal to government about total borrowing needs
Primary deficit = Fiscal deficit Interest payment on the borrowing

Goods and Services Tax(GST)

"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and consumption of
goods and services throughout India, to replace taxes levied by the Central and State governments. Goods and
services tax would be levied and collected at each stage of sale or purchase of goods or services based on the
input tax credit method. This method allows GST-registered businesses to claim tax credit to the value of GST
they paid on purchase of goods or services as part of their normal commercial activity. Taxable goods and
services are not distinguished from one another and are taxed at a single rate in a supply chain till the goods or
services reach the consumer. Administrative responsibility would generally rest with a single authority to levy
tax on goods and services. Exports would be zero-rated and imports would be levied the same taxes as
domestic goods and services adhering to the destination principle.
The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect
taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or
double taxation, facilitating a common national market. The simplicity of the tax should lead to easier
administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of
a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%.
But Goods and Services Tax Bill or GST Bill, officially known as the Constitution (One Hundred and
Twenty-Second Amendment) Bill, 2014, is still stalled in Rajya Sabha though it was passed by Lok Sabha on
6 May, 2015.Therefore the application of GST is still pending.

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Banking Sector in
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Issues

Banking Sector in India and Related Issues

Basics of Banking Sector in India
Introduction
In general, banking is the business activity of accepting and safeguarding money owned by other individuals
and entities, and then lending out this money in order to earn a profit
Accounting for trillion in assets worldwide, the banking system is a crucial component of the global economy.
While money-changing and money-lending may be as old as money, banking dates back to 15th century
medieval Italy, and played a major role in the rise of the Italian city-states as world economic powers. Ever
since, the health of an economy and the health of its banks have been interrelated; the global credit crisis,
precipitated by the collapse of the subprime-fueled U.S. housing bubble, is only the most recent example.
Banks are just one part of the world of financial institutions, standing alongside investment banks, insurance
companies, finance companies, investment managers and other companies that profit from the creation and
flow of money.
What do banks do?
Accept Deposits / Make Loans
At the most basic level, what banks do is fairly simple. Banks accept deposits from customers, raise capital
from investors or lenders, and then use that money to make loans, buy securities and provide other financial
services to customers. These loans are then used by people and businesses to buy goods or expand business
operations, which in turn leads to more deposited funds that make their way to banks. If banks can lend money
at a higher interest rate than they have to pay for funds and operating costs, they make money.
Provide Safety
Banks also provide security and convenience to their customers. Part of the original purpose of banks, and the
goldsmiths that predated them, was to offer customers safe keeping for their money. Of course, this was back
in a time when a person's wealth consisted of actual gold and silver coins, but to a large extent this function is
still relevant. By keeping physical cash at home, or in a wallet, there are risks of loss due to theft and
accidents, not to mention the loss of possible income from interest. With banks, consumers no longer need to
keep large amounts of currency on hand; transactions can be handled with checks, debit cards or credit cards,
instead. While banks do not keep gold or silver bullion as currency on hand anymore, many, if not most,
banks still maintain vaults and will rent out space to customers, in the form of safe deposit boxes. This allows
customers to keep precious or irreplaceable items in a secure setting and gives the bank an opportunity to earn
a little extra money, without risk to its capital.
Act as Payment Agents
Banks also serve often under-appreciated roles as payment agents within a country and between nations. Not
only do banks issue debit cards that allow account holders to pay for goods with the swipe of a card, they can
also arrange wire transfers with other institutions. Banks essentially underwrite financial transactions by
lending their reputation and credibility to the transaction; a check is basically just a promissory note between
two people, but without a bank's name and information on that note, no merchant would accept it. As payment
agents, banks make commercial transactions much more convenient; it is not necessary to carry around large
amounts of physical currency when merchants will accept the checks, debit cards or credit cards that banks
provide.
Banking in India
Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were
Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct.

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The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company. The three banks merged in 1921 to form the
Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many
years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of
India was established in 1935.
In 1969 the Indian government nationalised all the major banks that it did not already own and these have
remained under government ownership. They are run under a structure know as 'profit-making public sector
undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector
is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s
by new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in
rural India and to the poor still remains a challenge. The government has developed initiatives to address this
through the State bank of India expanding its branch network and through the National Bank for Agriculture
and Rural Development with things like microfinance.
Structure of the organized banking sector in India
RESERVE BANK OF INDIA
Central bank and supreme monetary authority

Scheduled banks
Co-operatives

Commercial banks
Foreign
banks
(40)

Regional
rural
banks
(196)

Public sector
banks (27)

Urban
cooperatives
(52)

Private sector banks

(30)
Old
(22)

State bank of India

and associate
banks (8)

State
cooperatives
(16)

New
(8)

Other nationalized
banks (19)

Reserve Bank of India

The origin of the Reserve Bank can be traced to 1926, when the Royal Commission on Indian Currency and
Financealso known as the Hilton-Young Commissionrecommended the creation of a central bank to
separate the control of currency and credit from the government and to augment banking facilities throughout
the country. The Reserve Bank of India Act of 1934 established the Reserve Bank on April 1, 1935 as the
banker to the central government and set in motion a series of actions culminating in the start of operations in
1935. Since then, the Reserve Banks role and functions have undergone numerous changesas the nature of
the Indian economy has changed.

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Banking Sector in
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The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to
Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though
originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government
of India.
A central board of directors governs the Reserve Banks affairs. The Government of India in keeping with the
Reserve Bank of India Act appoints the board.

Appointed/nominated for a period of four years

Constitution:
Official Directors
Full-time: Governor and not more than four Deputy Governors
Non-Official Directors
Nominated by Government: ten Directors from various fields and two government Officials
Others: four Directors - one each from four local boards

Main Functions of RBI

1. Monetary Authority:
Formulates, implements and monitors the monetary policy.
Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.
2. Regulator and supervisor of the financial system:
Prescribes broad parameters of banking operations within which the country's banking and financial
system functions.
Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective
banking services to the public.
3. Manager of Foreign Exchange
Manages the Foreign Exchange Management Act, 1999.
Objective: to facilitate external trade and payment and promote orderly development and maintenance of
foreign exchange market in India.
4. Issuer of currency:
Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
5. Developmental role
Performs a wide range of promotional functions to support national objectives.
6. Related Functions
Banker to the Government: performs merchant banking function for the central and the state governments;
also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.
Current Issues in Banking Sector in India
Introduction
During the year ended March 2015, banking business slowed down with a decline in both deposit and credit
growth. The ratio of gross non-performing advances (GNPAs) of scheduled commercial banks (SCBs)
marginally increased between September 2014 and March 2015. The capital to risk-weighted assets ratio
(CRAR) of SCBs registered some improvement during this half-year. Public sector banks continued to record
the lowest CRAR among the bank groups. Profitability of SCBs, however, remained around the same level
during the past two years. There are concerns concerns about asset quality and profitability of banks in India.

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While the banking sector shows resilience due to string fundamentals, the system could become vulnerable if
the macroeconomic conditions deteriorate sharply.

I.

Deterioration of Assets Rising NPAs

Non-performing Assets: An asset becomes non-performing when it ceases to generate income for the bank.
RBI defines non-performing asset as a loan where interest and/ or installment of principal remain overdue for
a period of more than 90 days in respect of a Term Loan.
Current Status: The NPAs of SCBs as percentage of gross advances/ loans increased to 4.6 per cent from 4.5
per cent between September 2014 and March 2015. Public Sector Banks recorded the highest level of stressed
assets at 13.5 per cent of total advances as of March 2015, compared to 4.6 per cent in the case of Private
Sector Banks.
Why are the PSBs NPAs rising?
1.

Slowdown in infrastructure sector: Five sub-sectors, namely, mining, iron & steel, textiles,
infrastructure and aviation, which together constituted 24.8 per cent of the total advances of
Scheduled Commercial Banks (SCB), had a much larger share of 51.1 per cent in the total stressed
advances.

2.

Slowdown in global economic recovery and continuing uncertainty in global markets leading to lower
growth of credit

3.

Public sector banks continued to be under stress on account of their past lending.

4.

Political interference limits banks from taking decisions based purely on commercial prudence.

5.

Public Sector Banks are instrumental in executing various social sector schemes of the government
and as such, decisions to give loans are not always guided by profitability and backed by adequate
collateral.

Solutions:
1.
Capital Infusion: PSBs are cash-strapped as compared to their private counterparts. The privately
owned banks have been raising money from FDI and FII. However, the government announced in
Aug 2015 to infuse Rs. 70,000 crores in PSBs over the course of the next 4 years.
2.

Disinvest in PSBs: This will allow more private sector participation in the working of PSBs, bringing
in more professionalism in asset management. In November 2014, the government announced plans to
raise about $14.4 billion by reducing its stakes in state-run banks to 52 per cent, as per the
recommendations of the PJ Nayak Committee. The government holds stakes ranging from 56 per cent
to 84 per cent in 24 state-run banks that account for 70 per cent of total outstanding loans of about $1
trillion. The state-run lenders are estimated to need as much as $60 billion in capital over the next four
years to meet upcoming global regulations and to build a buffer against rising bad loans.

3.

Improve Banking Governance: There is a need to grant more autonomy to PSBs w.r.t. their decision
making. The government of India accepted the recommendations of the PJ Nayak Committee and
formed the Bank Board Bureau (BBB), which will be an autonomous body in charge of
recommending the names for Chairman and Managing Directors (CMD) of PSBs. This will allow
greater transparency in appointments and objective, profit-driven decision making by the PSBs in
granting loans and advances.

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PJ Nayak Committee on Banking governance

PJ Nayak is a former MD of Axis Bank. A committee on Bank Governance was under him by the RBI. He
gave the following recommendations:
1.

4.

Government should repeal Bank nationalization Act (1970, 1980), SBI Act, and SBI Subsidiaries Act
as these acts require Government to keep majority shareholding in PSBs and appoint CMDs and board
directors.
Government to form a Bank Investment Company (BIC), which will be the parent holding company
of governments stake in all PSBs.
Form a Bank Boards Bureau to advice on all board appointment, bank chairman/CMD and Executive
directors. Once BIC is setup, this BBB will be dissolved.
Government to reduce its shareholding in PSBs

II.

Differentiated Bank Licenses:

2.
3.

Introduction:
Universal banks are the banks that are involved in all traditional and modern aspects of banking including
accepting Time and Demand Liabilities, granting loans and advances, etc. To start operating as a Universal
Bank, a company has to meet several requirements like, adequate capital, proven track record etc.
It was felt that only a few companies in the country are able to fulfill this criteria. Further, the need of
universal financial inclusion made the environment conducive for the RBI to extend differentiated banking
licenses, granting permission to companies to have smaller scope of functioning as compared to Universal
Banks. Also, the various eligibility conditions have also been relaxed for such Banks.
RBI announced two types of differentiated banking licenses - payments bank and small finance banks. In all,
the RBI received 41 applications for payments bank license and 72 for small finance bank license.
SMALL FINANCE BANKS

PAYMENT BANKS

1. CASA, FD and RD deposits

2. They can give out depositors money as
loans to other customers, but small area of
operation.
3. Target customers: MSME businessmen,
unorganized workers, small and marginal
farmers.
4. Focus: Deposit and loans

1. Can accept only CASA deposits

2. They cant give loans. They can invest depositors
money in Government securities (G-sec) only.
3. Target customers: poor, migrants, and unorganized
workers wanting to send remittances home.
4. Focus: Payment/remittances only. Including crossborder remittances.

III.

Financial Inclusion and PMJDY

Financial Inclusion is defined extension of formal financial services like, bank credit and insurance to all
sections of the society. The focus is on financial inclusion of vulnerable sections of the society like SC/STs,
women, disabled, etc.
Dimensions of Financial Inclusion:
1.
2.
3.
4.
5.
6.

Bank Accounts
Easy access to Small and Payment Banks
Easy Loan viability
Investment opportunities
General and Insurance
Consumer Rights and awareness

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Prime Minister Jan Dhan Yojana (PMJDY)

The PMJDY is the governments flagship programme for financial inclusion launched by the Prime Minister
on 28 August 2014. By October 2015, 19.02 crore bank accounts were opened with around Rs. 25913.56 crore
were deposited under the scheme.
Features of PMJDY:
1. Account holders will be provided a zero-balance bank account with RuPay debit card, in addition to
accidental insurance cover of Rs 1 lakh.
2. Those who open accounts by January 26, 2015 over and above the Rs. 1 lakh accident claim will also be
given life insurance cover of Rs. 30,000
3. After Six months of opening of the bank account, holders can avail Rs. 5,000 overdraft from the bank.
4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a
person can transfer funds, check balance through a normal phone, which was earlier, limited only to smart
phones so far.
JAM Trinity and Direct Benefit Transfer
Introduction
The estimated direct fiscal cost of subsidies in India is about Rs. 3,78,000 crore or about 4.24% of the GDP.
On the face of it, price subsidies do not appear to have had a transformative effect on the living standards of
the poor, though they have helped poor households weather inflation and price volatility.
Limitations of Indias subsidy regime:
1. Price subsidies are regressive: it means that a rich household benefits more from subsidies than a poor
household. This is true for subsidies in electricity, LPG, kerosene, water and railways.
2. Price subsidies can distort the markets in ways that ultimately hurt the poor: Subsidies distort the
incentive structure of producers and consumers and result in misallocation of resources across sectors
and firms which lower aggregate productivity and often disproportionately hurts the poor and
vulnerable.
3. Over subsidization could adversely affect environment and allocation of resources.
Direct Benefit Transfer (DBT)
Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by
Government of India on 1 January 2013. This program aims to transfer subsidies directly to the people
through their bank accounts. It is hoped that crediting subsidies into bank accounts will reduce leakages,
delays, etc. The primary aim of this Direct Benefit Transfer program is to bring transparency and terminate
pilferage from distribution of funds sponsored by Central Government of India.
Advantages:
1. Reduced pilferages
2. Better targeting of beneficiaries
3. Better record keeping
4. Reduced cost of implementation
5. Little or no delays in transfer of benefits
6. Do not distort the incentives of producer and consumers
The Solution - JAM Trinity
Eliminating or phasing down subsidies is neither feasible nor desirable unless accompanied by other forms of
support to cushion the poor and vulnerable and enable them to achieve their economic aspirations.
The JAM Number Trinity Jan Dhan Yojana, Aadhaar and Mobile numbers allows the state to offer this
support to poor households in a targeted and less distortive way.

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How?
By December 2015, the total number of Aadhaar enrolments in the country is expected to exceed 1 billion.
Linking the Aadhaar number to an active bank account is key to implementing income transfers.
With the introduction of Jan Dhan Yojana, the number of bank accounts is expected to increase further and
offering greater opportunities to target and transfer financial resources to the poor.
The Economic Survey 14-15 also gives two alternative financial delivery mechanisms:
1.

Mobile Money - With over 900 million cell phone users and close to 600 million unique users, mobile
money offers a complementary mechanism of delivering direct benefits to a large proportion of the
population.

2.

Post Offices India has the largest Postal Network in the world with over 1,55,015 Post Offices of which
(89.76 percent) are in the rural areas. Similar to the mobile money framework, the Post Office (either as
payment transmitter or a regular Bank) can seamlessly fit into the Aadhaar linked benefits-transfer
architecture by applying

If the JAM Number Trinity can be seamlessly linked, and all subsidies rolled into one or a few monthly
transfers, real progress in terms of direct income support to the poor may finally be possible.
Major Government Economic Schemes
Make in India
Make in India is an initiative of the Government of India to encourage multinational, as well as domestic,
companies to manufacture their products in India. The major objective behind the initiative is to focus on job
creation and skill enhancement in twenty-five sectors of the economy. The initiative also aims at high quality
standards and minimizing the impact on the environment. The initiative hopes to attract capital and
technological investment in India.
Five Mechanism of Make in India
1. Simplify processes: It involves further De-licensing and deregulation through the New Factories Bill, eBiz
portal to apply online, special teams to guide first time investor, etc.
2. Improve infrastructure: Government of India will undertake several new initiative to improve
infrastructure in the country like, New Industrial Corridors Authority, 3P-India, Smart City initiative, etc. For
this purpose, GoI plans to get to get funds from US, China, Japan, New Development Bank (NDB), AIIB, etc.
3. Skill Development: through Skill India mission and Deen Dayal Antyodaya Yojana
4. Focus on 25 manufacturing sectors: Like autoparts, pharma-chemicals, leather-textile, miningconstruction, food-processing-hospitality etc. These sectos have been chosen as weve potential to become
world top-10 in them as potential manpower and demand is available.
5. Open up sectors to attract more FDI
Skill India
Digital India
Skill India is an initiative of Government of India. It was in July 2015 with an aim to train over 40 crore
people in India in different skills by 2022. The initiatives include National Skill Development Mission,
National Policy for Skill Development and Entrepreneurship 2015, Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) scheme and the Skill Loan scheme.

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Digital India is an initiative by the Government of India to ensure that Government services are made
available to citizens electronically by improving online infrastructure and by increasing Internet connectivity.
It was launched in July 2015. The initiative includes plans to connect rural areas with high-speed Internet
networks. Digital India has three core components. These include:
1. The creation of digital infrastructure
2. Delivering services digitally
3. Digital literacy
There are ten pillars of the Digital India Programme:
1. Broadband Highways
2. Universal Access to Mobile Connectivity
3. Public Internet Access Programme
4. e-Governance Reforming Government through Technology
5. eKranti - Electronic delivery of services
6. Information for All
7. Electronics Manufacturing
8. IT for Jobs
9. Early Harvest Programmes
10. Upgradation of Indian IT

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POVERTY
A poor person is one who cannot secure his basic human needs such as clean water, nutrition, health
care, education, clothing and shelter.

Measuring Poverty
1.

In 2010, the World Bank noted that 32.7% of the total Indian people fall below the international
poverty line of US $ 1.25 per day (PPP) while 68.8% live on less than US$ 2 per day. According to
United Nation's Millennium Development Goal (MGD) program 270 million or 21.9% people out of
1.2 billion of Indians lived below poverty line of $1.25 in 2011-2012.
From 2005 onwards, Indian government adopted the Tendulkar methodology which moved away
from calorie anchor to a basket of goods and used rural, urban and regional minimum expenditure per
capita necessary to survive.
The present day debate is about inclusion of non-economic factors in measures of calculating poverty.
The biggest effort towards it is the formation of Multi-dimensional poverty index. Studies by thinktanks such as The Oxford Poverty and Human Development Initiative have calculated that about 650
million people (53.7% of population) living in poverty in India, of which 340 million people (28.6%
of the population) were living in severe poverty, and that a further 198 million people (16.4% of the
population) were vulnerable to poverty.
The World Bank reviewed and proposed revisions in May 2014, to its poverty calculation
methodology and purchasing power parity basis for measuring poverty worldwide, including India.
According to this revised methodology, the world had 872.3 million people below the new poverty
line, of which 179.6 million people lived in India. In other words, India with 17.5% of total world's
population, had 20.6% share of world's poorest in 2011.
Indian agencies such as the erstwhile Planning Commission had also constituted committees such as
Rangarajan committee and Tendulkar committee to measure poverty in india. For 2011-12, for rural
areas the national poverty line using the Tendulkar methodology is estimated at Rs. 816 per capita per
month and Rs. 1,000 per capita per month in urban areas. Chhattisgarh, Jharkhand, Manipur are the
three states with the highest percentage of BPL population.

2.

3.

4.

5.

Percentage and Number of Poor Estimated by Tendulkar method, using Mixed Reference Period (MRP)

1. 1993-94
2. 2004-05
3. 2011-12
Annual Average Decline: 1993-94 to 2004-05
(percentage points per annum)
Annual Average Decline: 2004-05 to 2011-12
(percentage points per annum)

Rural
501
41.8
25.7

Urban
31.8
25.7
13.7

Total
45.3
37.2
21.9

0.75

0.55

0.74

2.32

1.69

2.18

Number of Poor (million)

Rural
Urban Total
328.6
74.5 403.7
326.3
80.8 407.1
216.5
52.8 269.3

Reasons behind Poverty

1.

2.
3.

Over-reliance on agriculture- About 52% of the population depends on agriculture whereas the
contribution of agriculture to the GDP is about 14.5%.Scarcity of basic needs and resources such as
food and water which is further leading to health issues.
Overpopulation with we occupying just 2.4% of the worlds area supporting 17% of the worlds
population.
Lack of industrialization and unemployment with just 24% of the economy being manufacturing
based

4.
5.

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Illiteracy with just 11% of university going population having access to higher education
Strong Regulations and Corruption with about 45% of the economy being out of bound of regulatory
system

Government Initiatives to overcome Poverty

The government schemes can be mainly grouped into
1)
Wage employment programmes eg. MGNREGA
2)
Self-employment programmes eg. National Livelihood mission
3)
Food security programmes eg. Food security act, Annapurna scheme
4)
Social security programmes eg. National old age pension scheme, National maternity benefit scheme
5)
Urban poverty alleviation programmes eg. Swarna jayanti shehari Rozgar yojana

MGNREGA
Its objective is to provide enhanced livelihood security for the poor in rural areas by providing at least 100
days of guaranteed wage employment in every financial year to every household whose adult members
volunteer to do unskilled manual work. It mandates 1/3rd participation for women.
MGNREGS seeks to achieve the twin objectives of rural development and employment. This has been used
this year even more effectively due the drought in Karnataka, Maharashtra, Gujarat etc. Since its inception in
2006, around Rs.1,10,000 crore (about USD$25 billion) has gone directly as wage payment to rural
households and 1200 crore person-days of employment has been generated. On an average, 5 crore
households have been provided employment every year since 2008.
The scheme has attracted its part of criticism too. Comprehensive survey by the CAG documents lapses in
implementation of the act. The main problems identified in the audit included: a fall in the level of
employment, low rates of completion of works (only 30 per cent of planned works had been completed), poor
planning (in one-third of Gram Panchayats, the planning process mandated by the act had not been followed),
lack of public awareness partly due to poor information,[education and communication by the state
governments and shortage of staff.

Food Security Act (PL480 to FSA)

Under PL480, India imported food grains from USA as a result of draught in the 1960s and now, we are
moving towards the Food Security Act.
Quick facts:

About 22% of the population is suffering from undernourishment.

India has the largest number of stunted, wasted and underweight children in the world.
The poor are dying of starvation while food grains are rotting. FCI has admitted to wastage of over 1.3 million
tonnes of foodgrains in various warehouses over the past decade. The Supreme Court had asked the central
government to distribute free foodgrains to families below the poverty line. In response, the government has
asked the Supreme Court not to focus on policy decisions which are in the domain of the executive.
The National Food Security Act, 2013 (also Right to Food Act), was signed into law September 12, 2013.
This law aims to provide subsidized food grains to approximately two thirds of India's 1.2 billion people. The
provisions of the act are as follows:1.
2.
3.
4.
5.

75% of rural population and 50% of the urban population are entitled to 5 kilograms food grains per
month at Rs.3, Rs.2, Rs.1 per kg for rice, wheat and coarse grains (millet), respectively.
Pregnant women, lactating mothers, and certain categories of children are eligible for daily free meals.
Children 6 months to 14 years of age are to receive free hot meals or "take home rations"
State Food Commissions will be formed for implementation and monitoring of the provisions of the
Act.
The poorest who are covered under the Antodaya yojna will remain entitled to the 35 kilograms of
grains allotted to them under the mentioned scheme.

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The cost of the implementation is estimated to be $22 billion(1.25 lac crore), approximately 1.5% of
GDP.

Financial Inclusion
Financial inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged
and low income group. Unrestrained access to public goods and services is the sine qua non of an open and
efficient society.
The efforts of the government towards financial inclusion are as follows
1.
Jan Dhan Yojana- there will be provision of a no-frills account for atleast one member of the family
(preferably the female member), overdraft facility to credit worthy depositors of upto Rs.5000,
provision of life insurance and accidental insurance and a Rupay debit card for the account holder.
2.
Moving from Jan Dhan towards Jan Suraksha, the government has launched pension schemes such as
PM Jeevan Jyoti bima yojana, PM Suraksha bima yojana and the Atal Pension Scheme.
3.
JAM trinity for DBT- use of technology with interation of Jan Dhan, Aadhar and Mobile for
transferring direct benefits to the beneficiaries.
4.
MUDRA(Micro units development and regulatory agency) bank for providing micro-finance to new
entrepreneurs and to Micro, Medium and Small industries.

Education
Key Highlights

Indias literacy rate is just 74% as compared to the Worlds Average of 84%. The male literacy and the
female literacy are 82% and 65% respectively.
Achieving the goal of universal and quality literacy is of utmost importance in the context of Indias
potential demographic dividend.
It is a rise in the rate of economic growth due to a rising share of working age people in a population.
In 2020, average Indian will be only 29 years old as compared to China/USA 37 yrs; West Europe 45
yrs and Japan 48 yrs.

The Sorry State of Affairs

Fewer than 40 % of adolescents in India attend secondary schools - World Bank

Only 15% of Indian students reach high school, and just 7% graduate.
Of the total workforce, 40% are illiterate and 40% are drop-outs - Boston Consulting Group
Of the total 500000 technical graduates in India, nearly 75% are unemployable McKinsey Report
Infosys had to spend $175 million on training and education in 2008-09.
The quality of education is also questionable. About half of the students enrolled in standard 5 could not
read the text meant for standard 2 students, according to ASER report.

Positives about education sector:1.

2.
I.
II.
III.
IV.
V.

With the efforts of the government and civil society, the enrollment rates have gone upto 96%.
The government is making serious efforts by investing more in the education sector by floating
schemes and programmes such as:Sarva Shiksha Abhiyaan
Rashtriya Madhyamik Shiksha Abhiyaan
Pandit Madan Mohan Malviya Teachers Training scheme
Rashtriya Unchantar Shiksha Abhiyaan
Innovation Universities.

3.

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The Right of Children to Free and Compulsory Education Act came into force from April 1, 2010. It
makes provisions for the implementation of this constitutional right. It will be the responsibility of the
State to ensure the availability of a neighborhood school for free and compulsory education for every
child within a period of three years.

Sarva Shiksha Abhiyaan

1.
2.
3.
4.

Aims at universalisation of elementary education.

Partnership between the central, state and the local government.
All children complete five years of primary schooling by 2007.
To realize the importance of Early Childhood Care and education and looks at the 0-14 age as a
continuum.

Rashtriya Madhyamik Shiksha Abhiyan is aimed at providing secondary education and to improve the
enrolment rate of 75% the other objectives include improving quality of education imparted at secondary level
through making all secondary schools conform to prescribed norms, removing gender, socio-economic and
disability barriers, providing universal access to secondary level education by 2017 and achieve full retention
levels.

Challenges
a)

Lack of Expenditure
According to the UNESCO, India has the lowest public expenditure on higher education per student in
the world. The public expenditure on education has actually declined from around 3.23 % of GDP in
2000-2001 to 2.88 % in recent times. As a proportion of total government expenditure, it has declined
from around 11.1 % in 2000-2001 to around 9.98 %.

b)

Lack of schools/colleges
Only 12 out of every 100 kids who graduate from high school make it to college. There is, therefore, a
need for 1000 new universities and nearly 40,000 colleges within easy reach of all areas of urban and
rural India.
Demand for graduates over the next five years is 1.38 crore. But with only 1.32 crore students
graduating over the same period, India will face a shortfall of 6 lakh graduates.

c)

Teachers Absence
25% of public sector teachers were absent during one survey. Only about half were teaching, during
unannounced visits to a nationally representative sample of government primary schools in another
study Kremer etc.

d)

Teachers Qualification
Percentage of untrained teachers is 54.91% in private, compared to 44.88% in government schools
25% of teaching positions nationwide are vacant
57% of college professors lack either a master's or PhD degree

e)

Lack of Infrastructural Facilities

Condition of most government schools is abysmal with roofs leaking, classrooms filthy and no proper
kitchen sheds for preparing mid-day meals.
A study of 188 government-run primary schools found that 59% of the schools had no drinking water
and 89% had no toilets.
Only 3.5% of primary schools in Bihar and Chhattisgarh had toilets for girls. - National Institute of
Educational Planning and Administration (2003-04 data)

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E-Learning in India
It is the use of technological tools in learning. E-learning includes numerous types of media that deliver text,
audio, images, animation, and streaming video, and includes technology applications and processes such as
audio or video tape, satellite TV, CD-ROM, and computer-based learning, as well as local intranet/extranet
and web-based learning.

Benefits of E-Learning
1.
2.
3.
4.

Can happen in and out of the classroom. The learning is not limited to the four walls of the
school/classroom.
Allows for higher penetration of educational services to areas where physical infrastructure of
education is not available.
Such type of education can be self-paced depending upon the capacity and capabilities of the student.
Such education can provide higher skills to people who are already working in a particular field.

Limitations of E-Learning
1.
2.
3.

Such learning would depend upon the penetration of internet in the hinterland, which at present is low
in the country.
The costs involved is high.
Language barrier is a major hindrance since most of the e-learning is in a English and not in
vernacular languages.

Suggestions to improve E-Learning:

1.
2.
3.

There should be more educational material in vernacular/local languages.

The costs should be decreased, either by governmental intervention or otherwise.
More players should be involved such as telecom sector, internet service providers, universities, civil
society etc.

Corruption
According to Transparency International, Corruption is operationally defined as the abuse of entrusted power
for private gain.

Corruption in India

In India more than 50% of the people had firsthand experience of paying bribe or peddling influence to
get a job done in a public office Transparency International
In 2015, India was ranked 85th out of 175 countries in Transparency International's Corruption
Perceptions Index, compared to its neighbors Bhutan (30th), Bangladesh (145th), Myanmar (156th),
China (100th), Nepal (126th)
Nearly a fourth of the 540 Indian Parliament members faced criminal charges, including human
trafficking, immigration rackets, embezzlement, rape and even murder Washington Post
$462 billion (over Rs 20 lakh crore) illicit flight of money has occurred from India between 1948 and
2008, nearly 40% of India's gross domestic product - Global Financial Integrity
In 2013, India was ranked 94th among 177 countries on the Corruption Perceptions Index Transparency International

Causes of Corruption in India

1.
2.
3.
4.
5.

Historical Reasons- the British raj had sown the seeds of corruption in the country by indulging into
activities such as nepotism and favouritism.
Economic Factors- low salaries to Government officials and the high costs of living
Social Factors- corruption has become to be widely accepted norm and is no longer considered a
social ill in the system.
Judicial/Administrative Factors- lack of deterrence from the Judiciary as well as from the
administration have embolden the corrupt. Lack of transparency in working has also been a big factor.
Moral/Ethical Crisis in the society.

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Anti-Corruption Agencies in India:1.

2.
3.
4.
5.
6.
7.

Central Vigilance Commission

State Vigilance Bureaus/ Anti-Corruption Bureau
Lokpal and Lokayuktas
Central Bureau of Investigation
Public Accounts Committee and Comptroller Auditor General
Central/State Right to information commissions
Central/State Right to Service Commissions.

Right to Information
As per the Right to Information Act, 2005 (RTI) any citizen may request information from a "public
authority which is required to reply expeditiously within thirty days. However, if life or liberty of any person
is involved, the Public Information Officer is expected to reply within 48 hours.

E-Governance
It is the means of Governance by which the provisioning of services is done electronically over the internet. EGovernance is the most promising initiative to curb corruption. Its basic purpose is to reduce the bureaucratcivilian contact so that the opportunity of money changing hands does not arise and to reduce the discretion
powers at the hands of the bureaucrat so that the opportunity of bribing the bureaucrat or the bureaucrat asking
for a bribe is decreased.

Benefits of e-governance:
1.
2.

3.

4.

Speed Technology makes communication speedier. Internet, Phones, Cell Phones have reduced the
time taken in normal communication.
Cost Reduction Most of the Government expenditure is appropriated towards the cost of stationary.
Paper-based communication needs lots of stationary, printers, computers, etc. which calls for continuous
heavy expenditure. Internet and Phones makes communication cheaper saving valuable money for the
Government.
Transparency Use of ICT makes governing profess transparent. All the information of the
Government would be made available on the internet. The citizens can see the information whenever
they want to see. But this is only possible when every piece of information of the Government is
uploaded on the internet and is available for the public to peruse. Current governing process leaves
many ways to conceal the information from all the people. ICT helps make the information available
online eliminating all the possibilities of concealing of information.
Accountability Once the governing process is made transparent the Government is automatically made
accountable. Accountability is answerability of the Government to the people. It is the answerability for
the deeds of the Government. An accountable Government is a responsible Government.

Limitations of e-governance
1.

Lack of IT Literacy and awareness regarding benefits of e-governance: There is lack of awareness
regarding benefits of e-governance projects. The administrative structure is not geared for maintaining,
storing and retrieving the governance information electronically. The general tendency is to obtain the
data from the files as and when required instead of using Document Management and workflow
technologies.

2.

Underutilization of existing ICT infrastructure: Second reason is that the computers in the department
are used for word processing only, resulting in the underutilization of the computers in terms of their
use in data mining for supporting management decisions. The time gap between the procurement of the
hardware and development of the custom applications is so large that by the time application is ready
for use, the hardware becomes out-dated.

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3.

Attitude of Government Departments: Government officials have different attitude as compared to

private sectors. Conventionally the government executives have derived their sustenance from the fact
that they are important repositories of government data. Thus any effort to implement DMS and
workflow technologies or bringing out the change in the system is met with resistance from the
government servants.

4.

Lack of coordination between Government Department and Solution developers: Designing of any
application requires a very close interaction between the government department and the agency
developing the solutions. Currently, the users in govt. departments do not make efforts to design the
solution architecture. Subsequently, the solution developed and implemented does not address the
requirements of an e-governance project and hence does not get implemented.

5.

Resistance to re-engineering of departmental processes: Many experts have stated that in order to
implement e-governance projects successfully, executives must make efforts in restructuring in
administrative processes, redefining of administrative procedures and formats which finds the resistance
in almost all the departments at all the levels.

Political Corruption in India

Political corruption is the use of powers by government officials for illegitimate private gain. Forms
of corruption vary, but include extortion, cronyism, nepotism, patronage, influence peddling, embezzlement.
Worldwide, bribery alone is estimated to involve over 1 trillion US dollars annually. A state of unrestrained
political corruption is known as kleptocracy, literally meaning "rule by thieves".
The main belief that fighting corruption is a costly affair is the main reason of political corruption. To manage
and arrange for such funds, politicians ask for favors from civilians and bureaucrats. The most effective means
to curb the political corruption is to bring in electoral reforms such as State funding of elections, decriminalisation of elected candidates, bringing political party funding under a regulatory authority, bringing
political parties under the domain of Right to Information act etc.

Black Money
In India, Black money refers to funds earned on the black market, on which income and other taxes have not
been paid.
In February 2012, the director of the Central Bureau of Investigation said that Indians have $500 billion of
illegal funds in foreign tax havens, more than any other country. India is ranked 3rd on the Black Money
International list.
As Schneider estimates, using the dynamic multiple-indicators multiple-causes method and by currency
demand method, that the size of India's black money economy is between 23 to 26%, compared to an Asiawide average of 28 to 30%, to an Africa-wide average to 41 to 44%, and to a Latin America-wide average of
41 to 44% of respective gross domestic products.

Sources of Black Money:1.

2.
3.
4.
5.
6.

proceeds of corruption by bureaucrats and politicians

kickbacks from deals, especially big military contracts
Under invoicing of exports and over invoicing of imports
Notorious activities such as drug trade, organ trade, cultural property trade etc.
Acts by foreign countries like ingress of currency notes into the country.
High regulatory compliances and high taxes.

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Curbing Black money

1.
2.
3.
4.
5.

Formation of Political will to curb the generation of black money and also to bring back the black
money deposited abroad in foreign banks
Strict implementation of laws
Legislative enactments like voluntary disclosure schemes
Simplification of taxation system which would lead to higher compliance and detection of frauds.
Strengthening of agencies which would help in detection of black money, like:
I.
II.
III.
IV.

Central Board Of Direct Taxes

Directorate of Revenue Intelligence
Enforcement Directorate
Serious Frauds Investigation office

Indian Political System

Politics in India take place within the framework of its constitution, as India is a federal parliamentary
democratic republic in which the President of India is the head of state and the Prime Minister of India is the
head of government. India follows the dual polity system, i.e. a double government which consists of the
central authority at the centre and states at the periphery. The constitution defines the organization, powers
and limitations of both central and state governments, and it is well-recognized, rigid and considered supreme;
i.e. laws of the nation must conform to it. There is a provision for a bicameral legislature consisting of an
Upper House, i.e. Rajya Sabha, which represents the states of the Indian federation and a lower house i.e. Lok
Sabha, which represents the people of India as a whole. The Indian constitution provides for an independent
Judiciary which is headed by the Supreme Court. The court's mandate is to protect the constitution, to settle
disputes between the central government and the states, inter-state disputes, and nullify any central or state
laws that go against the constitution.

Issues in Indian Political System:1.

2.
3.
4.
5.

Political Corruption
Inefficiencies in Electoral System such as use of cash to buy votes, booth capturing etc.
Caste and Communal politics
Regional Politicism
Centre-State relations

Solutions to Political issues in India:

1.
2.
3.
4.
5.

Electoral Reforms
Bringing Political parties under the fold of the RTI act and making them more accountable to people.
Right to recall
Barring people who have been charge-sheeted for crimes such as stoking communal tensions from
contesting elections.
Fast tracking of cases in the Judiciary against Public figures so that quick conviction/justice can be
done.

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FUNDAMENTALISM AND RELATED ISSUES
Religion in India
India is the land of many religions like Hinduism, Islam, Christianity, Buddhism, Jainism and
Sikhism. The Constitution of India declares the nation to be a secular republic that must uphold the right of
citizens to freely worship and propagate any religion or faith.It also declares the right to freedom of religion as
a fundamental right.
Fundamentalism refers to a belief in a strict adherence to specific set of theological doctrines typically in
reaction against what are perceived as modern heresies of secularism.is the type of religious behavior that
embraces a central religious text and places it in such a holy, sacred place that it becomes
considered infallible. Fundamentalism is often seen as violent, intolerant, stubbornly backwards, sometimes
inhuman, godly and sectarian.Fundamentalism is found in all religions from Christian to Islam to Hinduism.
This strict ideology has its origins in the Christianity when the Protestant school in Christianity came up.
Till the 1970s, the term fundamentalism was associated with political behavior. But later, it has more been
associated with hard liner religious beliefs. It should also be noted that Fundamentalism is different form
Terrorism. There are many fundamentalist groups that are completely free from any hints of terrorism; for
example Amish Christians. And there are many acts of terrorism that are more likely sourced from insanity
than personal religiosity. Often, a group's religious identity is not truly the main impetus behind acts of illegal
violence.
The basic reason for rise of Fundamentalism would be difficult to specify but it is a combination of various
causes such as Intolerance to other beliefs or view points, inadequate knowledge about the persons own belief,
unnecessary attacks on a set of beliefs related to a particular religion and also certain vested interests. It is
generally believed that there a two kinds of followers
The first base their beliefs on "Faith", a personal relationship one has with their Deity. As it is internal, such a
belief tends to be resistant to outside influences and corruption, and scripture tend to be a collection of
parables, guidelines, rather than strict laws to live by. These people tend to be those who enjoy debating
scripture, and who tend to be tolerant towards other beliefs.
The second base their beliefs totally on "Religion", which is the expected set of behaviors of an adherent.
These people tend to be very weak in "Faith", or such a personal relationship may be completely absent from
their lives. For these people, as their beliefs are based purely on scripture, take scripture as THE word of some
god, THE law, to be followed without question.
The main question is, why has there been a rise of Fundamentalism in our country. These reasons can be
enumerated as follows:
1.
2.
3.
4.

Rise of Islamic State (Daesh) in the neighborhood.

Rise of fringe elements in the country who are vulnerable to a small amount of indoctrination.
Vitiated political rhetoric in the recent times
Vested interest of foreign agencies in disturbing the peaceful environment in the country.

The Government has initiated various measures to curb Fundamentalism in the country, such as:
1.
Curbing access to fundamentalist literature/material over the internet and otherwise.
2.
Setting up de-indoctrination facilities for certain youth returning from Middle East countries.
3.
International cooperation
4.
Beefing up security at important locations.
5.
Providing a system of good governance can be the biggest tool for curbing fundamentalism.

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Communalism denotes attempts to promote primarily religious stereotypes between groups of people
identified as different communities and to stimulate violence between those groups.
Communalism may be said to be rooted in power relations between communities, histories of togetherness
and a disposition to dominate others. Communalisms political, economic, social and other associations are
linked to assertions for com-munity identity that trigger communities to seek or to resist domination.
Communalism may be seen as a process of the competitive aspirations of communities to dominate and/or
resist domination of others over perceived as well as real threats, grievances, insecurities and distrust.
The rise of Communalism is mainly related to the above stated issues related to rise of fundamentalism, but
has a more historical connotation attached. The British were the ones who had introduced communalism into
the Indian landscape but favoring one community over the other in their quest for executing their policy of
divide and rule. The present day communalism revolves around political fuel given to it for various vested
interests such as creating a vote bank. Various incidents have happened because of lighting of communal fires
in the recent past such as the Muzaffarnagar riots, Ranchi incidents, Haryana Incidents etc.
Naxalism
The lack of development in regions of central and east India that is a major tribal belt has given rise to
Naxalism. Naxalites, Naxals or Naksalvadis are a group of far-left radical communists, supportive of Maoist
political sentiment and ideology. The term Naxalites comes from Naxalbari, a small village in West Bengal,
where a section of the CPM initiated a violent uprising in 1967. As of 2010, Naxalites are active across
approximately 220 districts in twenty states of India accounting for about 40 percent of India's geographical
area. Naxalism is not just a law and order problem. Often, the problem relates to genuine grievances of the
rural poor which include land alienation and land distribution, poor remuneration for forest produce,
exploitation by government officials as well as contractors and mindless prosecution for petty forest offences
and unemployment.
Tackling the Naxal Menace requires a multi-pronged strategy; use of power to neutralize militant Naxalites.
Rather than mulling over military option, coordination between state special forces should be enhanced, and
over-all development of the areas to win the hearts of people so that the movement cannot get its cadres.
Caste System
The Indian caste system describes the system of social stratification and social restrictions in which social
classes are defined by thousands of endogamous hereditary groups, often termed jtis or castes. There are four
main stratas Brahmins, Kshatriyas, Vaishyas and Shudras. Dalits comprise the fifth strata.This can led to
segregation of the Indian Society in terms of many castes but less Indians.
Caste Politics
Caste is one among the major factors in politics of India. In Tamil Nadu, DMK party rose to power under the
canard of "Brahmin oppression". In 1990s, many parties BSP, SP and Janata Dal started claiming that they are
representing the backward castes. In 2006, Arjun Singh, the then HRD Minister was accused of playing caste
politics when he introduced reservations for OBCs in educational institutions all around.
GharVapsi- was a campaign run by certain fringe elements in the society which endeavored to convert the
erstwhile Hindus who had converted to other religion back to the fold of Hinduism. The fringe elements
alleged that Hindus or to be specific, certain backwards sections among Hinduism were being targeted by
other religious leaders to convert them to their own religion by giving the certain incentives or benefits. The
fringe elements had alleged that these conversions were forceful and were against the Constitution of India as
well as against the religious ethos. They bestowed upon them the religious duty to reconvert those converts
back into the fold of Hinduism. The whole process had vitiated the communal environment in the country and
its untimely or late curbing had been detrimental to the process of nation building.

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Beef Ban- it was the ban on consumption of beef meat by the individuals in the country. Various state
governments such as Haryana and Maharashtra had imposed a ban on the consumption, transportation and
slaughter of cattle in their territories. The ban had led to a debate in the media, the synopsis of which can be
done as follows:Points for supporting the beef ban:
1.
It is against the religious ethos of Hinduism, the main religion of the country.
2.
It will reduce the atrocities against animals
3.
It will lead to increase the dairy production in the country.
Points against beef ban:
1.
The government holds no right to enter the kitchen and determine the food/dietary habits of people.
2.
Beef is the cheapest source of protein in the country and we being a malnourished country need such
cheaper sources of protein
3.
Beef was a big source of foreign exchange for the country, India being the biggest exporter of beef in
the world. This source of foreign income would dry up as transportation of beef itself had become a
punishable offence.
4.
Ban has not been restricted to only cows, but also to buffalos and water buffalos, which hold no
religious connotation. There seems to be no logic in such a law.
5.
The act of the various state governments has been ill thought out and without any consultations with
the civil society.
INTOLERANCE DEBATE
Freedom of speech and expression
In the recent times, we have been encountered questions over our freedom of speech and expression. It is of
common knowledge that freedom of speech and expression are a part of the Fundamental Rights guaranteed to
us under Article 19 Part IV of the constitution. Freedom of speech and expression is the basic right under the
Right to life and live in a dignified manner. The right cannot be curbed at normal times unless the speech has
been made with a malafide intention or situations when a speech is made which would affect the relations of
the country with another country.
There have been various instances where this right to life has been put into question, not only by certain
actions of the government but also by various vigilante groups.
Actions of the government like section 66A of the IT act, curbs the freedom of speech over the internet and
prevents users from expressing their opinion online. Moreover the power to judge if the opinion would be
detrimental to the order has been bestowed in the police authorities and not the civil or judicial authorities. On
the other hand, vigilante groups have taken upon themselves the responsibility of protecting their beliefs or
viewpoints when they are attacked upon. These vigilantes would retaliate to anything said or done against
their set of beliefs in a more harsher manner, intending to curb the freedom of speech of an individual. Such
instances lead to the shadowing of the right to free speech. If this continues, the day will not be far when
institutions such as print media, social media, electronic media etc. will be shadowed and will lose their true
purpose of independent reporting of incidents or news. By not acting in a swift manner against the vigilante
groups or fringe elements, the government is setting up a bad precedent which will be very detrimental to the
democratic principles in the country.
How can freedom of speech and expression be ensured?
The freedom of speech and expression can only be ensured by making the individuals and the society more
tolerant. The education system has to be fine tuned so that it inculcates principles of flexibility into the mind
of the youth of the country. The social fabric also has to be wound so tightly so that it ignores and identifies
the attempts to vitiate the peaceful environment in the society. The policing also to be improved so that swift

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action is taken to curb any such attempts before it escalates and becomes a fire which would become difficult
to curb in the future.
The Ban culturetoo has been a tool to disrupt the freedom of speech and expression in the country. In the
recent past, there have been talks about banning things which do not fall in line with a particular or orthodox
school of thought. Banning certain filmseg.Indias Daughter and Fifty shades of grey which would contains
some objectionable shot, banning books which would depict Indian culture in a bad light, ban beef meat for
human consumptionetc. This culture of banning everything shows our parochial mindset and our inability to
absorb or internalize new concepts or thoughts. This also shows the decreased tolerance in the society with
thoughts which diverge a bit from established order.
The remedy for such a thought process is the same as that which have been discussed above for increasing the
tolerance levels in the society.
VULNERABLE SECTIONS
Vulnerable section is that part of the population which is at a greater risk of falling into poverty than others. In
India, there are various socio economically disadvantaged groups that are called as vulnerable sections. These
are Women, SC/ST, orphans and deserted children,old aged persons, differently able people, poor migrants,
sexual minorities etc.
Of the vulnerable sections in India, Women and SC/STs are the most exploited.
Women in India have been facing the brunt. Women are firstly discriminated against at the home and
secondly at workplace. They dont get the respect at home and are paid less than the male counterparts doing
the same job. Women have little control over the resources and decision-making. They are victims of early
marriage and later bearing children.
Steps taken by the Government:

Protection of Women against Sexual Harassment at Workplace Act

Vigorously enforce the existing legislation relating to Crime against Women and Children,
i.e., Dowry Prohibition Act, 1961, Child Marriage Restraint Act, 1929, Immoral Traffic (Prevention)
Act, 1956, Indecent Representation of Women (Prohibition) Act, 1986, Commission of Sati
(Prevention) Act, 1987 and Violence against Women (Prevention) Act, 2005, Section 67 of the IT Act,
2000, the display of lascivious photographs/films on computer through internet, etc.
Increasing the overall representation of women in police forces. The representation of women in
police at all levels should be increased through affirmative action so that they constitute about 33% of
the police.
Proper supervisions, at appropriate level, of cases of crime against women from the recording of FIR to
the disposal of the case by the competent court.
Set up exclusive Crime Against Women and Children desk in each police station and the Special
Women police cells in police stations and all women police stations, as needed.

SC/STs remain economically dependent, politically powerless and culturally subjugated to the upper sections
in the society. This impacts their overall lifestyle and access to food, education and health. Even after 68 years
of independence, this chunk of population consisting 24% of the total population enjoys control of just about
3-5% of the resources whose human rights are still being violated.
Persons with disabilities are also among the vulnerable sections of the society. India has about 2.2% of its
population as disabled. They have a decreased access to services such as education, employment and health.
With problems of access to the services, it becomes difficult for the person to come out of poverty or similar
situations.

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Farmers have also been in the recent times been included in the term vulnerable sections, especially in the
recent times. The misfortune of the farmers has led some farmers to take the ultimate step and hence there has
been an increase in the number of farer suicides in the country. The main reasons of farmer suicides are:
1. The worsening situation because of draught. The situation has been worse at places where there have
been successive droughts.
2. Non availability if irrigational facilities.
3. Farmers growing cash crops are more vulnerable to situations where water availability is less.
4. Geographical situations such as untimely rainfalls or hailstorms.
5. The increasing debt on the farmers combined with failure of crops leaves him with no other option but
to commit suicide.
Steps that should be taken:
1. Crops should be grown according to the agro-climatic conditions of the region.
2. Facilities such as irrigational facilities should be provided.
3. Infrastructure such as Poly houses and Net houses should be promoted.
4. Efforts should be made to include farmers into the financial sector of the country so that they can
avail easy and cheap loans. The local moneylenders should also enforce Law to check malpractices.
5. Drought resistant varieties should be developed by use of biotechnology and research and
development of new seed varieties.
Constitutional provisions/laws for safeguarding rights of vulnerable sections:
1. Article 15
2. Article 16
3. Article 17
4. Article 19
5. Article 40
6. Article 46
7. Article 338/338A
8. Protection of Civil Rights act, 1955
9. Scheduled Castes and Tribes(Prevention of atrocities) act1989
10. Person with disabilities (equal opportunities, protection of rights and full participation) act.
Various bodies/agencies/efforts of the government for safeguarding vulnerable sections:
1. National Commission for SC
2. National Commission for ST
3. National Commission for SafaiKaramcharis
4. National fund for development SC/STs
5. Tribal Sub-plans
6. Rajiv Gandhi National fellowship for Scheduled class students
7. BabuJagjivan Ram ChatrawasYojana
It is very important for the Government to bring about development of these sections of the society as they
need special care for social and economic upliftment. It will only be the development of these sections that the
governments intention of an inclusive development will be achieved.
JUVENILE JUSTICE
In the recent times, the issue of juvenile delinquency has affected the society in a big manner. This has come
up especially at times when the juvenile perpetrators of the gruesome incident of Delhi gang rape are to be
freed. The question that everybody is asking is should these criminal beings be treated as juveniles or as
adults. The basis contention is that should the mind, which can think of such horrible crimes, be treated as a
juvenile at all?

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The law at the moment protects minors from being treated as adults in the court of law and from being
prosecuted as adult in case of a crime. This is based on a basic belief of jurisprudence that to commit a crime,
there should be involvement of a criminal intent, but in case of an adult, that criminal intent cannot be formed
because of the innocence of the mind. The laws that protect a minor from being treated as adults are:
1. Juvenile justice Act (Care and protection of children) act,2000
2. Indian Penal Code (Section 82,83)
Figures on juvenile crimes by the National Crime Records Bureau (NCRB) reveal that from 2002 to 2012,
there has been a 143 per cent increase in the number of rapes by juveniles. In the same period, figures of
murders committed by minors went up by 87 per cent while there has been a whopping 500 per cent increase
in the number of kidnappings of women and girls by minors. However, as shocking as these statistics may be,
it is important to remember that over the last five years (2007-2012) heinous crimes like rape and murder add
up to just about eight per cent of total spectrum of crimes by minors. 72 per cent of the cases against minors
between 2007 and 2012 were for theft, burglary and causing hurt.
There is no doubt in mind that a minor should be provided protection from law. But the point of contention is
if the juvenile should be given a special treatment in cases of heinous crimes such as rape, murder etc.
Points supporting protection of Juveniles are:
1) Juvenile have an immature mind, a mind that cannot form a criminal intent. Acts done by them are by
mistake.
2) India is a party to various international convention seg. Convention on Rights of child, supporting
protection of minorities, which India has to honor.
3. The juvenile crimes make a very small part of the total crimes and are committed by a very small
portion of the children. We need not make a law taking away the rights of all the children for acts
committed by a small portion of the population.
Points opposing protection of Juveniles are:
1. The juvenile who can commit such heinous crimes with full planning can be said to form a criminal
intent and hence should be treated as an adult.
2. The age of maturity of children has decreased. The designation of 18 as the age at which individuals
transition from childhood to adult can be considered somewhat arbitrary. The law present is much
older. The law has been inconsistent with the present times.
3. Various developed countries such as USA and UK have legal provisions, which treat ajuvenile
committing heinous crimes as adults.
4. The presence of provisions which would treat a juvenile as an adult in cases if heinous crimes would
act as a deterrent in the minds of wayward criminals.
It is expected that the government will listen to the public demand of either decreasing the age of protection to
a juvenile or treating the juvenile as an adult in cases of heinous crimes.

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India - China Relations
Timeline of Relations

1950 - India became the first country from the non-socialist bloc to recognize Peoples Republic of China
1954 - Panchsheel agreement signed
1962 Sino-India Border conflict
1993 Signing of the agreement on Maintenance of Peace and Tranquility along the Line of Actual
Control (LAC)

Modis China visit

PM Modis visit was rich in both symbolism as well as substance. For the first time, Chinese Premier Xi
Jinping travelled received a guest outside of Beijing in Xian.
India and China came up with a total of 50 outcome documents including:
o 24 bilateral agreements
o 26 Business to Business Agreements
o 2 joint statement, including one on climate change
These agreements varied across various fields like, space cooperation, earthquake engineering, ocean
sciences, mining, railways, skill development, education, culture, yoga, etc.
Prime Minister interacted with 21 CEOs of leading Chinese companies and over 40 Indian Business
delegates interacted with their Chinese counterparts. 26 business undertakings worth over $22bn were
signed covering varied areas such as, industrial parks, renewable energy, thermal energy,
telecommunications, steel, capital goods, IT and media.
Both sides expanded their diplomatic relations by establishing new consulates in each others countries, in
Chengdu and Chennai. Also, India extended the e-visa facility to Chinese nationals.
Also, a number of sister city and sister- state relations agreements were signed between: Karnataka and
Sichuan, Chennai and Chonqing, Hyderabad and Qingdao, Aurangabad and Dunhuang.

Areas of Conflict
1. Tibet and Asylum to Dalai Lama
India gave asylum to the religious head of Tibetan Budhhism, The Dalai Lama in 1959, after he fled
China. China considers Tibet to be a part China, whereas the Dharamshala based Tibetan government in
exile is seeking autonomy.
2. Two Border Disputes
a. Aksai Chin: This area forms the NE part of Jammu and Kashmir State and is currently under Chinese
control.
b. Arunachal Pradesh: China claims the entire state as a part of China
3. Domination of Indian Ocean:
The Chinese have followed the policy of strategic encirclement of the Indian Peninsula by establishing
ports in Indias littoral nations like Bangladesh, Sri Lanka and Pakistan. This is aimed at the sea routes
through the Indian Ocean, which are critical for a majority of Chinas hydrocarbon import from the
Middle East nations.
4. Water Sharing Issue
This involves the Brahmaputra River, which originates in Tibet and flows through India. Chinese plans of
diversion of Brahmaputra waters though a series of dams is a constant worry for India. However, of

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greater worry is Chinas secrecy of river flow data and reluctance to sign any water sharing treaty with
India.
5. Pakistan Factor:
Mutual mistrust of India has been the biggest catalyst for deepening Sino-Pak relations. China continues
to provide economic assistance and political backing to Pakistan, while Pakistan offers China a gateway to
South Asia, Iran and the Arabian Sea.
6. South China Sea Issue and India
China opposes Indias oil exploration in the South China Sea while China continues to assert its
sovereignty over the strategically important water body.
Areas of Cooperation:
1. Buddhism: India and China share a common cultural past w.r.t. Buddhism. As the place of its origin, India
has been attracting monks and scholars for the past 1,500 years.
2. BRICS and NDB: Both china and India rare founder members of these organizations
3. AIIB: India and China were also the founder members of the Asian Infrastructure and Investment Bank,
which seeks to emulate institutions such as the World Bank and IMF
4. Trade Cooperation: China and India are the major trading partners in the region. During the last decade,
bilateral trade has increased tremendously and stood at $65bn in 2014. Nevertheless, the balance of trade
still remains unfavorable towards India. India and China decided to expand bilateral trade to $100 bn by
the end of 2015-16
Areas of Competition:
Africa
India and China are the rising economic powers and have seen rapid economic growth recently. This has
resulted in increasing competition for global resources and investment opportunities, with both countries
focusing in the resource rich African continent.
China continues to leverage its vast Forex reserves by following an aggressive economic approach involving
extending grants and soft loans to develop infrastructure. India, on the other hand is following a mixed
approach towards Africa. It has employed soft power strategy in countries like Sudan, which has paid rich
dividends. Also, Indian private and state owned enterprises are taking on the Chinese challenge in countries
like Zimbabwe, where Indias Essar Group acquired Zicosteel.
Foreign Policy
The 21st century is widely being touted as an Asian Century. However, Asia is also host to rivalries between
the two emerging economies, i.e. India and China. Their strategic rivalry is being played out at various
international forums:
1. China continues to oppose Indias inclusion as a permanent member of the UNSC
2. South China Sea Issue
3. India continues to impose anti-dumping duties and has taken China to various international arbitration
platforms like WTO over dumping issues
4. South Asia is slowly becoming a jousting grounds for the two rivals. Both are looking to increase
their influence in countries like Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Iran etc.
5. China sees India as a strategic partner in USAs Asia Pivot Policy

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Indo-Pak Relations: Problems of Ceasefire Violations

To curb the cycle of violence along the 725 km long Line of Control (LoC), a landmark ceasefire agreement
was signed between India and Pakistan in 2003. It included:
Military confidence building measures (CBMs) that kept the artillery pieces at least 30 km away from
the LoC.
Non-military CBMs such as, cross-LoC bus services and trade.
However, peace has been disrupted a number of time alsong the LoC with the loss of lives of military
personnel and civilians. Manohar Parrikar, Indias Defence Minister, in his written reply in the Rajya Sabha
said there were a total of 100 ceasefire violations by Pakistan along the border with India between January and
June of 2015. In 2014, the number of violations was 583.
Reasons behind the Violations:
The drastic increase in ceasefire violations can be termed as a show of power.
Pakistans argument:

India is taking up border works, which are in violations of ceasefire agreement of 2003.
It simply retaliates to open firing from Indian Territory.

Indias argument:

Pakistans military is not in sync with the political leadership

It wants to display its ability to start a proxy war
Ceasefire violations are done to aid in infiltration
Pakistan armys identity and its ideology will get defeated if ever peace is achieved between the two
nations
Pakistans internal peace highly depends on proving India to be its external enemy

Impact on border Villages:

The borderlands of J&K represent a case of alienated borderlands. Continuous volatility along the LoC
resulted into:
Militarization of border villages
Loss of Life
Loss of livelihoods
Rising communal tensions in villages
Impact on Bilateral Relations:

Indo-Pak relation has been the most frustrating and challenging aspect of Indias Foreign Policy.
Every Prime Minister has tried to resolve the issue but with little success.
PM Modi also began on an optimistic note by inviting SAARC leaders for his swearing in ceremony,
including Nawaz Sharif.
However, recent violations have destroyed the bonhomie created.

How should the Government respond?

In a recent interview, Indias Foreign Secretary said that any unprovoked firing from the Pakistani
side would be met with and effective and forceful response.

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The Pakistani Defense Minister has lightly warned India that it does not want to convert border
tension between the two nuclear nations into cooperation.
While military response by India would satisfy the immediate demand, India needs to give a more
considered response to Pakistan. Its response has to be on different fronts military, political and
diplomatic. It is imperative for both sides to realize, that there is no alternative to a dialogue to resolve
the issues.

Nepal Constitutional Imbroglio

Introduction
The Constituent Assembly of Nepal promulgated the new constitution on 20th Sept 2015 after 7 years of
debates and discussions. Previous Constitutions of Nepal were enacted in 1948, 1951, 1959, 1962, 1990 and
2007. Thus, the current version is the 7th one.
While the whole country celebrated, a few sections of the society, like Janajatis, Terai Populations, Dalits and
Women Rights Groups opposed the new constitution.
Post-Constitution Problems

Differences exist between different political parties regarding system of governance, judicial system, and
federal issues like the number, name and areas of new states to be formed.
The people of Madhes Region, also known as Terai are protesting as they have been discriminated
against. This regions forms the economic backbone of the country, contributing more than 60% of
agricultural land and accounting for over 2/3rd of Nepals GDP.
However, development of this region has been ignored for decades and issues remain regarding Madhesis
citizenship rights. The Citizenship Act of 1964 and the 1990 constitution imposed stringent citizenship
criteria based on descent, which sought to disregard Madhesi citizenship claims through naturalization.
To control the growing intensity of protests by Madhesis, Janajatis, Tharus, Dalits and Women, the
government of Nepal has mibilised the Army as well as the Armed Police Forces and declared curfew in
several parts of the Southern Plains as the conflict has escalated.

India-Nepal Relations

As neighbors, India and Nepal share a unique historical, cultural and political relationship, characterized
by open borders, and deep-rooted people to people contacts.
The India-Nepal Treaty of Friendship of 1950 forms the bedrock of bilateral relations. Under it, Nepalese
citizens have enjoyed unparalleled advantages in India, availing facilities and opportunities at par with
Indian citizens.

Indias Response to the new Constitution

Ever since the process of drafting of the new constitution started in 2010, India has followed a hands off
policy, keeping away from interfering in the domestic affairs of Nepal.
However, in the light of growing unrest and violence, especially in the areas closer to India and the
growing number of political asylum seekers, India has found itself to be embroiled in the issue.
Since India shares an open border with Nepal, violence and instability in the Terai would have
consequences for Indias internal security and threatens Indian businessmen and traders doing business in
Nepal.
Moreover, cross border ethnic linkages and family ties make India an interested party.
While Nepali political leaders blame India and Indian interference and try to arouse anti-Indianism, the
same political leaders use New Delhi to further their political ambitions and do not hesitate to take help to
entrench themselves in power.

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Future Perspective:

While finalization of the constitution was a reason to celebrate, the subsequent protests have threatened to
disrupt the process.
The recent earthquake worsened the economic conditions and there is a sense of fatigue appearing with
the Constitutional crisis.
It would be prudent for the major political parties of Nepal to build consensus on major issues and not
depend only on securing majority support.

Global Trade and Issues

World Trade Organization
The WTO is an intergovernmental organization that regulates international trade. The WTO officially
commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994,
replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948.
WTO has annual ministerial meetings in which member nations discuss and resolve major trade related issues.
The 4th Ministerial Conference was held in Doha, Qatar in 2001. It is the current trade-negotiation round of
the World Trade Organization (WTO) which commenced in November 2001 Its objective is to lower trade
barriers around the world, and thus facilitate increased global trade.
The major issues discussed at the Doha Round were:
1. Reforming Agricultural Trade, including Market Access, Domestic Support and Export subsidies and
competition.
2. Greater Market Access for Industrial Goods:
Even though eight rounds of multilateral trade negotiations and regional trade agreements have combined
to drop tariffs throughout the world significantly, sizeable tariff barriers to trade in non-agricultural goods
remain in place. Peak tariffs (those exceeding 15%) levied on certain products as well as tariff escalation
continue to protect domestic industries.
3. Liberalizing Trade in Services
Many developing countries continue to resist the urge for liberalization in favor of the maintenance of
protectionist barriers, or are holding off on offering up their services sectors until satisfactory progress has
been achieved in the negotiations over agriculture.
4. Strengthening the Special and Differential Treatment Accorded to Developing Countries
Under this, poor and developing countries are seeking S&D treatment in terms of relaxation in the
implementation of WTO agreements.
Major WTO Issues
1. Agreement on Agriculture (AoA)
This is a major bone of contention between developed and developing countries. Developed countries, led
by EU and USA want the developing countries like India to open their markets to allow for imports of
agricultural products. However, the developing countries practice protectionist measure to save their
farmers from subsidized cheap imports from the developed world.
2. Trade Facilitation Agreement (TFA)
Trade Facilitation Agreement (TFA) is a trade protocol aiming to boost and do away with the stumbling
blocks in doing international trade between various countries. WTO member countries signed the TFA in
November 2014. It will come into force once 2/3rd members ratify the agreement. It is being believed,

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especially by the proponents of the agreement that deal could add $1 trillion to global GDP and also can
generate 21 million jobs by slashing red tape and streamlining customs.
3. WTO 10th Ministerial Meeting in Nairobi
To ensure the continuation of the Doha Round till all outstanding issues are solved, developing countries
including India demanded that the Nairobi Ministerial Conference re-affirm the Doha Development
Agenda, to improve the trade prospects of developing and poor countries, and remove the distortions in
world trade, as well as all Ministerial Declarations and Decisions taken since 2001, when the Doha Round
started first.
However, the developed world, led by the U.S., wanted to free themselves from the strictures of the Doha
framework and bring in new issues, what they call the emerging trade issues, to revitalise the WTO and
the multilateral trading system.
These new issues include global value chains, e-commerce, labour, environment, competition policies,
investment pacts and state-owned enterprises, on all of which the rich nations have much superior
standards or rules than the developing and poor countries. Developing and poor countries feel these
standards or rules might become non-tariff barriers, hurting their exports.
Trans-Pacific Partnership (TPP)
The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries concerning a
variety of matters of economic policy, which was reached on 5 October 2015 after 7 years of negotiations.
Provisions of the Agreement

1. Tariffs & other barriers: aim is to reduce tariffs on over 18,000 products being traded amongst the
member countries

2. Stricter IPR provisions

3. Dispute settlement provisions
TPP opens a new generation of integration efforts beyond trade in goods, covering services, investment,
intellectual property, labour, environmental standards, and nontariff barriers. The ambitious 21st century trade
agreement treaty, which is also an economic arm of the US Rebalance to Asia
Implication on India

Indias export to these 12 countries is likely to fall. It is estimated that around $2.8bn worth of trade will
be diverted from India
Indias leadership position and potential in textiles, services, outsourcing, and digital trade could come
under pressure, as also potentially reduce the attractiveness of the country for foreign investment in some
sectors.
IPR standards are much more demanding than those of WTO.
Most of the standards in the TPP negotiations are to converge to US standards or to the standards of
developed markets.
Environmental regulations, is a significant component to the TPP Negotiations. India will also suffer at
this front also.

Trans Atlantic Trade and Investment Partnership (TTIP)

On 17 July 2015, the European Union and the U.S. concluded the 10th round of the Transatlantic Trade and
Investment Partnership (TTIP) negotiations. It will alter the dynamics of the commercial decision-making of
millions of American and European producers.

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Implications of India
U.S. and the EU account for 29.6% of Indias exports the discriminatory trade diversion effect of the TTIP
is evident
India will suffer from a decrease in both exports and imports, and therefore a dip in GDP growth
Non tariff barriers will also hamper entry of Indian goods into European and the U.S. markets
Regional Comprehensive Economic Partnership (RCEP)

RCEP is a regional trading partnership which seeks to bind the 10 ASEAN members with Australia,
China, India, Japan, Korea, and New Zealand. RCEP will be able to eliminate confusing and a large
number of trade rules under various bilateral agreements among states, fusing them into one large region
wide agreement.
The agreement will bring three of Asias largest economies Japan, China and India within one agreement
RCEP agreement will also be beneficial by encouraging more trade amongst Asian countries as there is
large inequality between different states in the region in terms of development
Together, the RCEP group of countries accounts for a third of the worlds gross domestic product, and
27.4 per cent and 23.0 per cent of the worlds goods and services trade, respectively.

Benefits for India

It would complement Indias existing free trade agreements (FTA) with the Association of South East
Asian Nations and some of its member countries
RCEP would help India streamline the rules and regulations of doing trade, which will reduce trade costs
It will also help achieve its goal of greater economic integration with countries East and South East of
India through better access to a vast regional market ranging from Japan to Australia
This is particularly important because India is not a party to two important regional economic blocs: the
Asia Pacific Economic Cooperation (APEC) and the Trans Pacific Partnership (TPP)
There would be a boost to inward and outward foreign direct investment, particularly export oriented FDI
Changes in International Financial Order
Since their inception in 1945, the Bretton Woods Twins, i.e. IMF and WB have dominated the international
financial order. World Bank has been instrumental in providing grants and soft loans for development projects
in developing countries. On the other hand, the International Monetary Fund has provided short-term loans for
nations facing Balance of Payments crisis. IMF has also acted as the global watchdog for the international
financial system since the global financial crisis of 2007-08.
However, the working of these two institutions has been questioned by group of developing countries, led by
the emerging economies represented by the BRICS groups. Following are their grievances:
1.
2.
3.
4.

Dominance of Western (US and western Europe) countries. It is an unsaid understanding that the IMF
Chief will be from Europe and the President of the World Bank will be a US citizen.
The BRICS member nations constitute for almost half of the world population and about 20% of global
economic output. However, they only have 11% of votes at international financial institutions like IMF.
Both WB and IMF work on the basis of weighted voting system, which provide the rich countries a big
say in management.
Loans from WB come with a number of conditions, at the behest of the Western powers.

Creation of New Financial Organizations

Besides the above grievances, the demand for investments in the emerging markets and developing countries
is likely to increase to $1.8-$2.3 trillion per year by 2020. While WB financing is heavily conditioned, ADB
has at its disposal only $10bn to lend for investments in infrastructure sector. India alone needs $1 trillion
investment in the infrastructure sector in the next 5 years.
In this context, the emerging nations have created 2 new organizations:

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New Development Bank (NDB)

Founded at the 6th BRICS summit at Fortaleza, Brazil in July, 2014. Operations may start by 2016.
HQ - Shanghai, China.
First President is K V Kamath
All five members have equal voting power.
Initial subscribed capital = USD 50 billion (each member gave 10 billion)
Contingency reserve arrangement (CRA) = USD 100 billion
CRA to be used exclusively for BoP crisis
Unlike the World Bank, which assigns votes based on capital share, in the NDB, each participant country
will be assigned one vote and none of the countries will have veto power.
Functions
1. Loans for infrastructure and sustainable development projects
2. Helping member countries in balance of payment (BoP) crisis
Asian Infrastructure and Investment Bank (AIIB)

Idea given by China, it purpose is to provide finance to infrastructure projects in the Asia-Pacific region.
50 member countries, with headquarters located in Beijing.
Authorized capital is USD 100 billion
China, India and Russia are the three largest stakeholders. Voting Rights and Shareholding pattern:
China 26.06% and 30.34%
India 7.50% and 8.52%

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ISIS
Ideology
Islamic State of Iraq and Syria or Islamic State of Iraq and al-Sham (ISIS, / a s s/),is a Salafi
jihadist militant group that adheres to an Islamic fundamentalist, Wahhabi doctrine of Sunni Islam.
Derived from its Arabic name ad-Dawlah al-Islmiyah f 'l- Irq wa-sh-Shm.

Intention
The group has referred to itself as the Islamic State ( ad-Dawlah al-Islmiyah) or IS since it
proclaimed a worldwide caliphate in June 2014 and named Abu Bakr al-Baghdadi as its caliph.As a
caliphate, it claims religious, political and military authority over all Muslims worldwide. The group's
adoption of the name "Islamic State" and idea of a caliphate have been widely criticised, with the United
Nations, various governments, and mainstream Muslim groups rejecting both.

i.
ii.
iii.
iv.

Strategy and Tactics

"terrorize, mobilize, polarize" : Beheadings, Mass executions.
Military: Recruitment from Syria, Iran, UK etc.
Propoganda : Use of social media
Finance, Resources : Oil, Donations.

Iraq & Syria based Sunni fundamentalists, even more extremist than Al-Qaida & Taliban
Both Syria & Iraq ruled by Shias; ISIS supporting Sunni forces to oust them
Forced conversions, Mass executions & Beheadings of shia Muslims and non Muslims
Want to form an Islamic Caliphate across vast areas in Asia, Africa and Europe
Abu Bakr al Baghdadi is the leader of the organization

Counter-ISIL Coalition
Major Countries at war with ISIS: USA(Operation Inherent resolve), Russia, France, Iraq, Iran, Syria,
Lebanon and other multinational orgs: EU,NATO
Recent Major Incidents
Paris Attacks,13 November,2015: 129 dead
Beirut Suicide attack, November: 43 dead
Russian Passenger Plane Explosion, October:224 dead
Suicide attack at Zaydi Shiite Mosque , Yemen: 120 Dead
Breeding Ground for Terrorism
Historical animosity between the Christians and the Muslims
Disintegration of Ottoman Empire into several independent countries prompted by western countries after
Ottomans lost during the 2nd World War was seen as an attempt to decrease the power of the Muslim
Nation against the Christian Nation
Increased interference by the western countries in the aftermath of disintegration of the Ottoman Empire
by installing puppet governments for their vested interests
Open support by the US and other western countries for the creation of Israel on the land under the
possession of Muslims in West Asia created thousands of refugees in their own homeland.
Capitalist-Communist rivalry literally converted West Asia into a chess board by the USA and USSR,
increased the sufferings of common people
The Shia- Sunni Conflict, taken advantage of by the western countries to promote infighting amongst the
Muslims which lead to the Iran- Iraq war that lasted 10 years, devastated the economies of these nations
Invasion of Afghanistan by USSR in 1979 that lasted 10 years further aggravated the already volatile
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India Pakistan rivalry on Kashmir and the rise of Hindu fundamentalism in India added fuel to fire
A propaganda to free Muslim lands from the infidels: Kashmir, Chechnya, Xingjian, Palestine etc
Misinterpretations of the Quranic verses, instigate common Muslims against the so called infidels:
Christians, Jews and Hindus
And finally a dream to revive the lost glories of Islam by creating an Islamic Caliphate that extends from
Spain in the west, the already Islamic west Asia, Indian subcontinent and Indonesia and Malaysia in the
far East.

Shia-Sunni Conflict
Sunni and Shia Islam are the two major denominations of Islam. The demographic breakdown between the
two denominations is difficult to assess and varies by source, but a good approximation is that 85-90% of the
world's Muslims are Sunni and 10-15% are Shia. Sunnis are a majority in most Muslim communities: in
Southeast Asia, China, South Asia, Africa, and most of the Arab world. Shia make up the majority of the
citizen population in Iraq, Iran, Azerbaijan, Yemen, Lebanon and Bahrain, as well as being a politically
significant minority in Lebanon. Azerbaijan is predominantly Shia; however, practicing adherents are much
fewer. Indonesia has the largest number of Sunni Muslims, while Iran has the largest number of Shia Muslims.
1.
2.
3.
4.
5.

Historical Struggle Shia-Sunni Forces.

Divisions in Middle-East: Countries are divided on the lines of Sunni- Shia divide.
International-Politics over Religion: Oil Politics.
Threat of a Regional War.
Rise of ISIS.

South China Sea dispute

Territorial disputes in the South China Sea involve both island and maritime claims among several sovereign
states within the region, namely Brunei, the People's Republic of China, Taiwan, Malaysia, the
Philippines, and Vietnam.

9-dash line

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Nine-Dash line refers to the demarcation line used initially by the government of the Republic of China (ROC
/ Taiwan), and subsequently also by the government of the People's Republic of China (PRC), for their claims
of the major part of the South China Sea. The contested area in the South China Sea includes the Paracel
Islands, the Spratly Islands, and various other areas including the Pratas Islands, the Macclesfield Bank
and the Scarborough Shoal. The claim encompasses the area of Chinese land reclamation known as the
"great wall of sand".

South China Sea oil and gas resource:

The South China Sea oil and gas resource issue is one of the key factors triggering disputes in the South
China Sea. If one acknowledges that the sovereignty and demarcation of islands, shoals and atolls in the
Nansha Islands and elsewhere represent the heart of the current disputes in the South China Sea, then one
can clearly recognize that the South China Sea oil and gas resource issue is the strategic center of the
conflict for relevant parties.
According to some expert estimates from Hainan province, oil and gas reserves of the main basins in the
South China Sea amount to 70.78 billion tons, of which petroleum deposits comprise 29.19 billion tons (with
proven extractable deposits reaching up to 2 billion tons), natural gas deposits comprise 58 trillion cubic
meters (with proven extractable deposits totaling 4 trillion cubic meters). Some oil company reports suggest
that petroleum reserves from the central and austral part also within Chinas dotted line amount to 25.53
billion tons, natural gas reserves total 2.085 billion cubic meters, and proven petroleum reserves are 4.2 billion
tons and natural gas 580 million cubic meters.

UNCLOS

The United Nations Convention on the Law of the Sea (UNCLOS), also called the Law of the Sea Convention
or the Law of the Sea treaty, is the international agreement that resulted from the third United Nations
Conference on the Law of the Sea (UNCLOS III), which took place between 1973 and 1982. The Law of the
Sea Convention defines the rights and responsibilities of nations with respect to their use of the world's
oceans, establishing guidelines for businesses, the environment, and the management of marine natural
resources. The Convention, concluded in 1982, replaced four 1958 treaties.

EEZ

An exclusive economic zone (EEZ) is a sea zone prescribed by the United Nations Convention on the Law of
the Sea over which a state has special rights regarding the exploration and use of marine resources, including
energy production from water and wind. It stretches from the baseline out to 200 nautical miles (nmi) from its
coast. In colloquial usage, the term may include the continental shelf. The term does not include either the
territorial sea or the continental shelf beyond the 200 nmi limit. The difference between the territorial sea
and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second
is merely a "sovereign right" which refers to the coastal state's rights below the surface of the sea.
European Refugee Crisis
The European migrant crisis or European refugee crisis arose through the rising number of refugees and
migrants coming to the European Union, across the Mediterranean Sea or Southeast Europe, and applying for
asylum. They come from areas such as the Middle East (Syria, Iraq), Africa (Eritrea, Nigeria, Somalia, Sudan,
Gambia), South Asia and Central Asia (Afghanistan, Pakistan, Bangladesh), and the Western Balkans
(Kosovo, Albania).
How It began
Between the years 2007 and 2011, there was a flow of large number of undocumented migrants from the
Middle East and Africa crossed between Turkey and Greece, leading Greece and the European Border
Protection agency Frontex to upgrade border controls.

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The phrase "European migrant crisis" became widely used in April 2015, when five boats carrying almost
two thousand migrants to Europe sank in the Mediterranean Sea, with a combined death toll estimated at more
than 1,200 people. Earlier also, In the year, 2013 Lampedusa migrant shipwreck which involved "more than
360" deaths, which lead the Italian government to establish Operation Mare Nostrum
Operation Mare Nostrum
Operation Mare Nostrum was a year-long naval and air operation commenced by the Italian government on
October 18, 2013 to tackle the increased immigration to Europe during the second half of 2013 and migratory
ship wreckages off Lampedusa. During the operation at least 150,000 migrants, mainly from Africa and the
Middle East, arrived safely to Europe
The operation was named after Mare Nostrum, the ancient Roman name for the Mediterranean Sea. The
European Commission provided financial support for the operation with 1.8 million from the External
Borders Fund. Mare Nostrum was operated by the Italian Navy and saw ships operating near the coast of
Libya.
The operation's search and rescue component is claimed by advocacy groups like the European Council on
Refugees and Exiles to have saved thousands of lives, but the operation was politically unpopular and
extremely costly for just one EU state. The operation ended on 31 October 2014 and was superseded by
Frontex's Operation Triton, which operates a smaller search and rescue capability. Unlike Mare Nostrum,
Operation Triton focused on border protection rather than search and rescue, and operates closer to the Italian
coast. The termination of Mare Nostrum has been criticized as a cause of the increased death rate among
migrants to Europe in the Mediterranean, which increased tenfold between 2014 and 2015. Two major
migrant shipwreck disasters which together killed more than 1000 people within the span of a week in April
2015 led to calls to renew the operation.
The Role of United Nations: UNHCR
The Office of the United Nations High Commissioner for Refugees (UNHCR), also known as the UN
Refugee Agency, is a United Nations agency mandated to protect and support refugees at the request of a
government or the UN itself and assists in their voluntary repatriation, local integration or resettlement to a
third country. Its headquarters are in Geneva, Switzerland and is a member of the United Nations
Development Group
The Office of the United Nations High Commissioner for Refugees was established on December 14, 1950 by
the United Nations General Assembly. The agency is mandated to lead and co-ordinate international action to
protect refugees and resolve refugee problems worldwide. Its primary purpose is to safeguard the rights and
well-being of refugees. It strives to ensure that everyone can exercise the right to seek asylum and find safe
refuge in another State, with the option to return home voluntarily, integrate locally or to resettle in a third
country. It also has a mandate to help stateless people.
Since 1950, the agency has helped tens of millions of people restart their lives. Today, a staff of more than
9,300 people in 123 countries continues to help and protect millions of refugees, returnees, internally
displaced and stateless people. (Source: UNHCR.org)
Triggers of the 2015 crisis
Factors cited as immediate triggers or causes of the sudden and massive increase in migrant numbers in the
summer of 2015 along the Eastern Mediterranean and Western Balkan route (Turkey-Greece-MacedoniaSerbia-Hungary) include:
In mid-June 2015 the government of Macedonia announced that it was changing its policy on migrants
entering the country illegally. Previously, migrants were forbidden from transiting Macedonia, causing those
who chose to do so to take perilous, clandestine modes of transit, such as walking along railroad tracks at
night. Beginning in June, migrants were given three-day, temporary asylum permits, enabling them to travel
by train and road.

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The opening of the Macedonia route enabled migrants from the Middle East to take very short, inexpensive
voyages from the coast of Turkey to the Greek Islands, instead of the far longer, more perilous, and far more
expensive voyage from Libya to Italy. According to the Washington Post, in addition to reducing the danger,
this also lowered the cost significantly.
According to the Washington Post, German Chancellor Angela Merkel's public assurance that Germany
offered temporary residency to refugees combined with television footage of Germans welcoming refugees
persuaded large numbers of people to migrate.
The Syrian government under Bashar al-Assad announced increased military conscription, and
simultaneously made it easier for Syrians to obtain passports, leading Middle East policy experts to speculate
that he was implementing a policy to encourage opponents of his regime to leave the country.
Some Solutions to the Refugee crisis
As per Mr. Frank-Walter Steinmeier, Germany's foreign minister and Sigmar Gabriel, its minister for
economic affairs and energy, certain points need to be kept in mind before a solutions to the crisis can be
envisaged. Most of all, Humane conditions must prevail throughout the EU wherever refugees are received.
For this, we need EU-wide standards that are complied with in every member state.
A collaborated sustainable effort needed: EU must guarantee a common European code of asylum, so that
asylum status is valid throughout the EU and the conditions for receiving it are stable across member states. It
needs a fair distribution of refugees in Europe. German citizens are helping to receive and integrate refugees
into our society as never before. But this solidarity will only be maintained in the long term if people see that
the refugee crisis is being approached fairly throughout Europe. A state of affairs in which only a handful of
member states shoulder the entire burden - as happens today - is just as unsustainable as a system which forces
the countries on the EU's outer border to take the strain alone. We must therefore reform the Dublin
Convention immediately, and find a way of creating binding and objective refugee quotas which take into
account the ability of all member states to bear them.
Europe also needs a common approach to managing its borders, which cannot be merely restricted to securing
its frontiers. Above all, Europe needs to take up more responsibility for registering and looking after newly
arrived refugees. It must provide immediate assistance to the EU countries that are currently under particular
strain. Germany is the only EU country to have made available emergency funds to improve the situation of
refugees on the Greek islands. The EU and its member states must become more efficient in this area and
quickly offer the countries which first receive refugees practical and financial support.
Europe cannot stand idly by and watch people risk their lives trying to get in. The Mediterranean Sea cannot
be a mass grave for desperate refugees. Europes humanitarian legacy, indeed our European view of
humanity, are hanging in the balance. With this in mind, Germany launched enormous concerted efforts to
organise marine rescue operations in the Mediterranean Sea in the spring. But we must consolidate these
efforts across Europe, and equip the EU with the required capacities.
Finally, a comprehensive European asylum, refugee and migration policy also requires new political
initiatives to fight the causes of flight in the countries of the Middle East and Africa. Stabilising failing states
and curbing violence and civil war must go hand in hand with concentrated efforts to achieve economic
development and create genuine economic and social prospects especially for young people in the countries
of origin. All of the international communitys efforts, above all those of the European Union and the United
Nations, must be focused with the utmost intensity on this aim.

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Global Warming

Effects of Climate Change

Rising sea levels and gradual submergence of coastal areas
Erratic rainfall-floods and droughts
Unstable ecosystems
Sea water turning acidic affecting marine life
Rapid melting of glaciers threatens the flow rate of important rivers and availability of fresh water

Kyoto Protocol
The Kyoto Protocol came into force in 2005. It has been negotiated on the basis of CBDR principle- Common
but Differentiated Responsibility i.e. the developed world has been primarily held responsible for sharing the
burden of reducing carbon emissions as they polluted the world in the very first place. The developing world
has been exempted from any legal binding on their emissions as they need to industrialize themselves to
reduce poverty.
Emission/Carbon Trading
Carbon Trading is an administrative approach used to control pollution by providing economic incentives for
achieving reductions in the emissions of pollutants.
Emission quotas were agreed by each participating country, with the intention of reducing their overall
emissions by 5.2% of their 1990 levels by the end of 2012.
Nations that emit less than their quota will be able to sell emissions credits to nations that exceed their
quota.
Kyoto Protocol Issues
The principle of CBDR has not gone down well with the developed world especially the USA.
U.S has not ratified the Kyoto Protocol but said it would reduce its emissions by upto 7 percent below
1990 levels however, U.S. emissions have risen by 16 percent between 1990 and 2005
Developed nation want equal emission levels for developing nations.
The first expiry deadline of Kyoto Protocol was in 2012.
Because of the deadlock Kyoto Protocol has been extended till 2020 at the Warsaw Summit in 2013.
LIMA conference
Major issues:
Developed world wanted CBDR principle to be replaced
Developing wanted to retain it
Final draft contains CBDR, respective capacities and capabilities of countries, and finally, national
circumstances
Developed world agreed to provide financial and technical support to the developing countries
Paris Summit COP 21
Long-term goal-global warming stays "well below" 2 degrees Celsius
Emissions targets-INDC: set national targets for reducing greenhouse gas emissions every five years.
Reviewing targets-review their targets in the next four years and see if they can "update" them.
Transparency-no penalty for countries that miss their emissions targets, transparency rules to help
encourage countries to actually do what they say they will do
Money-financial support to help poor countries
Loss and damage-the agreement includes a section recognising "loss and damage" associated with
climate-related disasters

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India and Climate change:

The National Action Plan on Climate Change: National Missions
The core of the implementation of the Action plan are constituted by the following eight missions, that will be
responsible for achieving the broad goals of adaptation and mitigation, as applicable.

National Solar Mission: The NAPCC aims to promote the development and use of solar energy for
power generation and other uses with the ultimate objective of making solar competitive with fossilbased energy options.; a goal of increasing production of photo-voltaic to 1000 MW/year; and a goal
of deploying at least 1000 MW of solar thermal power generation.
National Mission for Enhanced Energy Efficiency: Current initiatives are expected to yield savings of
10,000 MW by 2012. Building on the Energy Conservation Act 2001, the plan recommends:
Mandating specific energy consumption decreases in large energy-consuming industries, with a
system for companies to trade energy-savings certificates.
National Mission on Sustainable Habitat: To promote energy efficiency as a core component of urban
planning, the plan calls for: Extending the existing Energy Conservation Building Code.
National Water Mission: With water scarcity projected to worsen as a result of climate change, the
plan sets a goal of a 20% improvement in water use efficiency through pricing and other measures.
National Mission for Sustaining the Himalayan Ecosystem: The plan aims to conserve biodiversity,
forest cover, and other ecological values in the Himalayan region, where glaciers that are a major
source of Indias water supply are projected to recede as a result of global warming.
National Mission for a Green India: Goals include the afforestation of 6 million hectares of
degraded forest lands and expanding forest cover from 23% to 33% of Indias territory.
National Mission for Sustainable Agriculture: The plan aims to support climate adaptation in
agriculture through the development of climate-resilient crops, expansion of weather insurance
mechanisms, and agricultural practices.
National Mission on Strategic Knowledge for Climate Change: To gain a better understanding of
climate science, impacts and challenges, the plan envisions a new Climate Science Research Fund,
improved climate modeling, and increased international collaboration.

National Green Tribunal:

National Green Tribunal was formed by an act of parliament viz National Green Tribunal Act 2010, for the
effective and expeditious disposal of cases relating to environmental protection and conservation of forests
and other natural resources.
Significant Orders:
Ban on decade old Diesel vehicles in NCR delhi.
Ban of all commercial activities in Rohtang Pass.
Inspection of Petrol pumps over fuel adultration

International Organizations
a) United Nations
Members

HQs

UN
1945
Prequel
League
Of
Nations

192

New
York

Functions
International Law
International Security
Economic Development
Social Progress
Human Rights
World Peace

Controversies/ Criticisms
The number of people died after the
inception of UN till now is slightly less
than those that died during the world
wars.
More conflicts started than stopped in
this period.
Besides, unprecedented genocides and
droughts could not be controlled.

Bulls Eye

India and the World

Current Affairs II

www.hitbullseye.com

United Nations and India

India has always been an active member and a strong proponent of a more powerful UN. India has sent forces
for many peace keeping operations throughout the world. But the most important issue with the UN today is
Securing a seat in the Security Council. In mid-October this year when India, after 19 years, got elected as
one of the temporary members of UN Security Council many in the diplomatic corners of Delhi started
busying themselves up projecting it as a major triumph of their dedicated finesse. But the trivial fact is that
this membership will be valid for mere 365 days, w.e.f January 1st 2011 and hence a worm-eaten reason to
rejoice for a year. But the real reason to enjoy would be when India secures a permanent seat in the Security
Council. USA, France and UK on the visits of their heads to India declared their open support for this cause,
but still Indias hopes is in murky waters.
The G4 nations comprising Brazil, Germany, India, and Japan are four countries which support each others
bids for permanent seats on the United Nations Security Council. Unlike the G7, where the common
denominator is the economy and long-term political motives, the G4's primary aim is the permanent member
seats on the Security Council.
b) International Organization for Economic Cooperation

WTO
1995
153
Prequel
GATT

IMFBretton woods
185
Institute

Is an International Org
designed to
Supervise,
Geneva,
Liberalize International
Switzerland
Trade
Lower trade barriers
Provide a platform for
negotiation of trade
Stabilize international
Exchange rates
Facilitating development
Leveraged Loans to
poorer countries
Washington
DC

World BankBretton woods

185
Institute

Washington
DC

Its IBRD + IDA= World

Bank
IBRD- provides loans to
developing countries
IDA- provides grants to
poorest of the nations

Doha Development talks are mired

with controversies on agricultural
subsidies and tariff and non tariff
barriers and is a perfect instance of
the
differences
between
the
Developed and Developing World

Some experts claim that the Bank

and IMF are agents of western
imperialism by imposing conditions
to the borrowers
Westerners accuse these agencies
of promoting communism by
financially supporting such nations.
These agencies are accused of
financing
dictatorships,
faulty
socialist
policies
and
thus
promoting misery
The environmentalist claim that the
agencies
are
financiers
of
ecological destruction
Both these agencies are accused of
not being very flexible of the
present international realities.
Developing countries want to raise
their participation in the decision
making process of these institutes.

Reforms In Word Bank and IMFThe President of the World Bank is always a US citizen and that of
the IMF is always a European. However, this standard is increasingly being questioned and competition
for these two posts may soon open up to include other qualified candidates from any part of the world.
Many developing countries want restructuring of both the bodies according to the changing power
equations of the world. Infact Indias quota in IMF was increased recently.

Bulls Eye
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India and the World

Current Affairs II

Changes in International Financial Order

Since their inception in 1945, the Bretton Woods Twins, i.e. IMF and WB have dominated the international
financial order. World Bank has been instrumental in providing grants and soft loans for development projects
in developing countries. On the other hand, the International Monetary Fund has provided short-term loans for
nations facing Balance of Payments crisis. IMF has also acted as the global watchdog for the international
financial system since the global financial crisis of 2007-08.
However, the working of these two institutions has been questioned by group of developing countries, led by
the emerging economies represented by the BRICS groups. Following are their grievances:
1.

Dominance of Western (US and western Europe) countries. It is an unsaid understanding that the IMF
Chief will be from Europe and the President of the World Bank will be a US citizen.

2.

The BRICS member nations constitute for almost half of the world population and about 20% of
global economic output. However, they only have 11% of votes at international financial institutions
like IMF.

3.

Both WB and IMF work on the basis of weighted voting system, which provide the rich countries a
big say in management.

4.

Loans from WB come with a number of conditions, at the behest of the Western powers.