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Civil Services (Mains)
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Examination 2017
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Solutions
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GS PAPER 3
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By Orient IAS
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 1. Among several factors for Indias potential growth, savings rate is the most effective one.
Do you agree? What are the other factors available for growth potential? (Answer in 150
words)
Approach:

Write about the importance of savings rate in Indias potential growth

What are the other factors for growth potential
Answer: The saving rate shows the proportion of national income which is saved, and therefore available
in the form of loanable funds for firms to use for investment, which is what adds new capital stock to the
economy and increases its productive capacity. Thus, savings rate is one of the most effective factors for
Indias potential growth.

However, the road to growth still rests on achieving certain important milestones, viz. boosting private
savings and private investment. This is where the disconnect arises. Both private savings and private

investment seem to have dipped in the last year in particular. While the rate of gross domestic savings (at
current prices) has fallen from 34.6% of gross domestic product (GDP) in 2011-12 to 32.2% in 2015-16, it is
investment which poses a greater problem.

Other factors available for growth potential are following :

Foreign investment: it will increase the growth potential of the country. FDI and FII are the routes
for foreign investment. FDI not just provides capital but also the technology for carrying out
operations in India.
Foreign aid: it also helps in boosting investment in the country. It adds to the capital stock of the
country.
Investment rate: it has also significant impact on the growth of the country. More is the
investment, better would be the chances of growth of the economy.
ICOR: Incremental Capital Output Ratio (ICOR) is the additional capital required to increase one unit
of output. This ratio is used to measure the efficiency of an industrial unit or country as an
economic unit. The lesser the ICOR, more efficient the organization.
Thus, these factors along with savings rate play important role in boosting the growth potential of the
country.

2. Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports
rather than capital-intensive exports. Suggest measures for more labour-intensive rather than
capital-intensive exports.
Approach:
 Failure of manufacturing sector in achieving labour intensive exports
Measures to boost labour intensive exports
Answer: There are several factors responsible for failure of manufacturing sector in achieving the goal of
labour intensive exports in India. Data from the Annual Survey of Industries (ASI) indicates it is the capital-
and skill-intensive industries that have grown fast in the last decade (2000-11) while the growth of labour-
intensive industries has been relatively sluggish.

These factors are as follows:

Technology: With unstoppable changes in technology, the increasing capital intensity of production
is inevitable and firms cannot resist from adopting new technology only to preserve jobs.
Labour laws: they prohibit smaller firms to grow larger since labour laws restrict bigger firms in
terms of flexibility in handling employees. Bigger firms also need to go through documentation a
process which is quite burdensome.
Investment: Indias investment has been mostly in capital intensive sectors instead of labour
intensive sectors.
Competition: demand of Indias products from labour intensive sectors has decreased as compared
to those of Vietnam and Bangladesh.
Underutilisation: underutilisation of the abundantly available natural resources. Indias share of
global cattle population is huge but exports of cattle hides are low and declining.
Absence of skilled labour
Measures needed to boost labour intensive exports are following:

Labour reforms: labour reforms must be done with the aim of boosting the labour intensive
exports.
FTAs: FTAs with countries like UK and EU will help in boosting labour intensive exports as well as
would increase competitiveness of Indian products.
Investment: there is need to invest in labour intensive sectors particularly in apparel and leather
industries.
Logistics: investment in logistic may improve competitiveness of labour intensive sectors as
pointed out by economic survey.
Declining labour intensity of production and increasing automation of production processes, in both
labour- and capital-intensive industries, has raised doubts about the ability of the manufacturing sector to
create jobs. However, above measures will certainly help in boosting labour intensive exports

3. Examine the developments of Airports in India through Joint Ventures under Public-Private
Partnership (PPP) model. What are the challenges faced by the authorities in this regard.
Approach:

Developments of airports in India through PPP.

Challenges faced by authorities in this.
Answer: In the early 90s the government and Airport Authority of India (AAI) had invested substantial
resources in the development of airport and navigation services infrastructure. However, this was a

significant strain on Government finances, more so as the aviation sector had not taken off. This gap in
supply-demand necessitated the influx of private capital to build capacity and drive traffic.

Airports Authority of India Act, 1994 (AAI Act) was then amended, allowing inter alia carrying out airport
related activities through Public-Private Partnership (PPP) model, except for certain reserved activities such
as air traffic control, security, customs etc.

Impact:

Social impact: it led to job multiplier effect resulting creation of jobs in the aviation sector.
Concept of Aerotropolis and associated industrial development With the Hyderabad Airport PPP
project, the concept of Aerotropolis, or Airport City, was brought to India. This concept, which
espouses the development of a self-sustaining city around an airport.
Impact on Regional Economy With the Airport-centric approach of urban development, gainful
employment has been generated to the tune of 1.57 million in the case of Delhi Airport
(representing 25.9% of Delhis total employment) and 840,000 jobs in the case of Hyderabad
Airport.
Knock-on effects on government run airports and international rankings of Indianairports PPP
airport projects have consistently been ranked at the top of the Airports CouncilInternational (ACI)
Airport Service Quality (ASQ) ratings for Best Service Delivery in their respectivecategories.
Fulfilling the state responsibility of Connectivity and Access to air travel Freeing up of public
funds, has enabled the Government to focus on regional connectivity and the development of
smaller airports which were earlier underserved or un-served, across the nation.
Challenges faced by authorities in development of airports through PPP are following:

Revenue: revenue loss is the most common problem being faced by aviation sector on the whole.
This inhibits the private sector to participate.
 Land acquisition: there are several hurdles in acquisition of land for airport development.
Bureaucratic delays are also reasons behind slow execution of airport projects.
Risk sharing: private sector cant sustain huge revenue losses. Thus, risk sharing arrangement
remains the key issue behind the development of airports.
These challenges need to be addressed on priority basis for increasing the ambit of airports development
in India.

4. Explain various types of revolutions, took place in Agriculture after Independence in India. How
these revolutions have helped in poverty alleviation and food security in India?
Approach:

Explain the types of revolution- green, white, blue etc.

Role of these revolutions in poverty alleviation and food security
Answer: After independence, India witnessed green , blue and white revolutions in farm, fishery and dairy
sector respectively.

Green revolution: it was initiated to

achieve food security in the
country. It included three
components : continued expansion
of farming areas, double-cropping
existing farmland, using seeds with
improved genetics. The Green
Revolution resulted in a record
grain output of 131 million tons in
1978-79. This established India as
one of the world's biggest
agricultural producers. It addressed the concern of frequent famine occurring in the country and also the
need of import of food was eliminated. However, green revolution strategy mainly benefitted the large
farmers. Moreover, several ecological issues were also involved with excessive use of chemical fertilizers
and pesticides.

White revolution: Operation Flood is considered to be the worlds largest dairy development programme.
Under this programme professionals were employed at every level, particularly in marketing and
application, and science and technology. The central plank of the programme was to link the rural
producers with urban consumers. The milk production in India increased from a level of 17 MT in 1950- 51
to about 100.9 MT at the end of 2006-07, i.e. at the end of the Tenth Plan. The per capita availability of
milk increased to about 246 gm per day in 2006-07 from a level of 124 gm per day in 1950-51. Thus, this
led to the poverty alleviation and food security in india.

Blue revolution : The Indian fisheries sector, which 50 years ago produced only 600 000 tonnes of fish,
today produces 5 million tonnes, including 1.6 million tonnes from freshwater aquaculture. The Blue
Revolution is being implemented to achieve economic prosperity of fishermen and fish farmers and to
contribute towards food and nutritional security through optimum utilization of water resources for
fisheries development in a sustainable manner, keeping in view the bio-security and environmental
concerns.

Silver revolution: It was centred around practice of raising poultry, such as chickens, turkeys, ducks, geese,
as a subcategory of animal husbandry, for the purpose of farming meat or eggs for food.

Grey revolution was launched in India to increase the manufacturing of fertilizer. Other agriculture
revolutions like golden revolution meant for better fruit production, pink revolution meant for better
prawn production, red revolution aimed for better meat production, yellow revolution aimed for better oil
seed production etc.

Thus, these revolutions have significant role in poverty alleviation and food security.

5. What are the reasons for poor acceptance of cost effective small processing unit? How the food
processing unit will be helpful to uplift the socio-economic status of poor farmers?
Approach:

Reasons for poor acceptance of cost effective small processing unit

Role of food processing units in uplifting socio-economic status of poor farmers
Answer: the food processing sector has emerged as an important segment of the Indian economy in terms
of its contribution to GDP, employment and investment. During 2014-15, the sector constituted as much as
9.0 per cent and 10.1 per cent of GDP in Manufacturing and Agriculture sector, respectively. However,
there several reasons for poor acceptance of cost effective small processing units.

These are:

Supply chain issues: high cost of transport and distribution is the reason behind low
competitiveness of these small processing units.
Economy: poor economies of scale because of being small size. Small companies brand building is
low, low technology, low investment in R&D, marketing etc.
Finance: it becomes hard for these units to get loan from banks.
Taxation: Taxes on processed food in India are among the highest in the world. Multiple and
complicated tax regimes have rendered the food industry uncompetitive.
Manpower: lack of trained people eg. Production managers, food microbiologists, research
specialists etc. Very few universities offer courses in food processing.
Lack of organized retail: cold storage is not available which leads to high wastage, distress sale and
low hygiene.
Role of food processing units in uplifting socio-economic status of poor farmers are following:

Reduced inflation: inflation in perishables is reduced due to reduction in food pilferage.

Value addition: it increases the value of the product. Thus, the nutritional content is enriched.
Employment: it reduces disguised employment prevailing in agriculture sector. It also reduces
distress migration due to availability of alternative employment.
Export: this sector has vast export potential which can increase the farmer income.
Income: it supplements the farmer income by providing them employment in the lean season.
India has huge potential for the growth in food processing industries. Mega food park scheme is good
potential in this regard to tap this potential.

6. Stem cell therapy is gaining popularity in India to treat a wide variety of medical conditions
including leukaemia, Thallessemia, damaged cornea and several burns. Describe briefly what
stem cell therapy is and what advantages it has over other treatments?
Approach:

Define stem cell therapy and its applications

Advantages of stem cell therapy
Answer: Stem Cell Therapy (SCT) is the treatment of various disorders, non-serious to life threatening, by
using stem cells. These stem cells can be procured from a lot of different sources and used to potentially
treat more than 80 disorders, including neuromuscular and degenerative disorders. Bone marrow
transplant is the most widely used stem-cell therapy, but some therapies derived from umbilical cord
blood are also in use. Research is underway to develop various sources for stem cells, and to apply stem-
cell treatments for neurodegenerative diseases and conditions such as diabetes, heart disease, and other
conditions.

As per the Indian Council of Medical

Research, the procedures like stem cell
therapy in India fall under experimental
with exception of bone marrow
transplants. The Umbilical cord and
adult stem cell therapy have now
become permissible, however, the
embryonic stem cell therapy & research
is seen getting restricted. In terms of
having high quality stem cell therapy in
India, the global patients often consider
this place for having the high quality and affordable healthcare services. Stem cell therapy is gaining
popularity in India to treat a wide variety of medical conditions including leukaemia, Thallessemia,
damaged cornea and several burns.

Advantages of stem cell therapy over other treatments:

The traditional methods of organ or tissue replacements include xenografts, allografts or autograft
based therapies. However, they are associated with certain limitations.
Despite promising developments in the therapeutic strategies for the treatment of patients with
various degenerative diseases, the regeneration of injured and diseased tissues has always
remained a significant challenge.
Stem cell therapy is one such approach where patients own cells are transformed into model for
studying disease and developing potential treatment to negate the chances of rejection.
 Reprogramming of adult cells has been employed to obtain induced pluripotent stem cells [iPSCs].
The iPSCs are derived directly from adult tissues, which eliminate the need for embryos and can be
made in a patient specific manner, paving the way for advanced personalized medicine.
The fact of the matter is this treatment option promises loads of unique features, which is speed,
safe and often completed within a day or two.
The results are far better than the long and uncompetitive for the conventional therapies.

It is astonishing to see know that stem cell therapy employing the stem cells from different sources,
including the ones from the bone marrow & umbilical cord, has been successfully employed to treat a
wide number of life threatening ailments with good outcome, since the year 1988. Over the past a
number of years, with the increased research and development activities, a growing amount of
successful stem cell treatments have emerged.

7. India has achieved remarkable successes in unmanned space missions including the Chandrayaan
and Mars Orbitter Mission, but has not ventured into manned space mission, both in terms of
technology and logistics? Explain critically
Approach:

Successful unmanned space missions in India.

Feasibility of manned space mission
Answer: Chandrayaan-1 was India's first lunar probe. It was launched by the Indian Space Research
Organisation in October 2008. The mission included a lunar orbiter and an impactor. The mission was a
major boost to India's space program, as India researched and developed its own technology in order to
explore the Moon.

Mars Mission (MOM), also called Mangalyaan is a spacecraft orbiting Mars since 24 September 2014. It is
India's first interplanetary mission and ISRO has become the fourth space agency and first Asian nation to
reach Mars. India is also the first nation in the world to do so in its first attempt.
Thus, India has achieved remarkable successes in unmanned space missions but has not ventured into
manned space mission.

Issues with Manned space mission in India:

Technology: preparation of a Crew Module, building of space suits, an environmental control and
life support system on board the spacecraft, and the crew escape system - needed when the craft
is back on earth are the technologies required for the feasibility of manned mission. These are all
complex technologies as probability of failure has to be minimised. ISRO is in the process of
developing manned missions in India.
Capital: ISRO has plans for a mission carrying a crew of two to three members, but the mission is
pending approval from the Government. The expected cost of the mission is expected to be
between 3 and 4 billion US dollars. Critiques have already questioned the wisdom of a country to
invest in such endeavours when it houses largest number of poor and under-nourished in the
world.
However, certain steps have been taken in this regard. The technologies necessary for human space flight
are being developed as part of pre-project activities of a Manned Space Programme. On 18 December,
2014, ISRO successfully tested a crew module with a GSLV Mk III flight. Other major initiatives identified as
part of the pre-project includes an Environmental Control & Life Support System (ECLSS), a Crew Escape
System (CES), and a flight suit for the Brahmanauts. The ECLSS and CES are expected to be completed by
2017. Thus, India is going to launch manned space missions soon.

8. Not many years ago, river linking was a concept but it is becoming reality in the country. Discuss
the advantages of river linking and its possible impact on the environment.
Approach:

River linking concept and its application today

Advantages of river linking
Impact of river linking on environment
Answer: The idea of connecting rivers of Indian Subcontinent has its roots in the thoughts of Visveswarya,
the legendary engineer of early 1900. Based on that idea, the Indian National Perspective for Water
Development framed in August 1980 outlined this river interlinking project. It envisioned linking 14 rivers
from the Himalayas and 16 across the India peninsula to bring waters from one area with surplus supplies
to others with not enough.

The National River Linking Project (NRLP) formally known as the National Perspective Plan, envisages the
transfer of water from water surplus basins where there is flooding to water deficit basins where there is
drought/scarcity, through inter-basin water transfer projects.

The National River Interlinking Project will comprise of 30 links to connect 37 rivers across the nation
through a network of nearly 3000 storage dams to form a gigantic South Asian Water Grid.

It includes two components: Himalayan Rivers Development Component under which 14 links have been
identified. Peninsular Rivers Development Component or the Southern Water Grid, which includes 16
links that proposes to connect the rivers of South India. It envisages linking the Mahanadi and Godavari to
feed the Krishna, Pennar, Cauvery, and Vaigai rivers.

Advantages:

Power generation: The river interlinking project claims to generate total power of 34,000 MW (34
GW). Out of this, 4,000 MW will come from the peninsular component while 30,000 MW from the
Himalayan component.
Irrigation: The project claims to provide additional irrigation to 35 million hectares (mha) in the
water-scarce western and peninsular regions, which includes 25 mha through surface irrigation and
10 mha through groundwater.
Navigation: it will be a great boost for inland waterway development in India leading to better
navigation.
Reduced flood and drought: the diversion of water from surplus to deficit areas will lead to
reduced flood and drought conditions.
Out of all the interlinking projects, the Ken-Betwa river link has been approved and the Government is
working actively on the Daman Ganga-Pinjal Link (Gujarat and Maharashtra) and Par-Tapi-Narmada Link
(Gujarat).

Impact on environment:

Submergence of forest land: interlinking of rivers will lead to submergence huge tracts of forest
land. For examples, ken- betwa interlinking will inundate 10% of the Panna Tiger reserve in Madhya
Pradesh.
Fragmentation of wildlife habitat: due to the submergence of forest land, fragmentation of wild
life habitat will occur. There will also be threat on the biodiversity of the region.
Impact on aquatic life: river interlinking may disturb the aquatic ecosystem of the rivers. This may
be fatal for the lives under water in these regions.
Impact on floodplains: Flooding is a natural process for river systems and serves the purpose of
depositing nutrient-rich sediments on the floodplains.
 Impact of dams: Since the Ganga basins topography is flat, building dams would not substantially
add to river flows and these dams could threaten the forests of the Himalayas and impact the
functioning of the monsoon system.
Any changes to natural course of rivers will have an impact on all the flora and fauna, the wetlands and the
floodplains that are intricately linked to the river system. Thus, there is need to account for the adverse
impacts of river interlinking on environment before approving such projects.

9. Discuss the potential threats of Cyber attack and the security framework to prevent it.
Approach:

Potential threats of cyber attack

Security framework to prevent cyber attack
Answer: The joint study by Assocham and PwC said that an ATM card hack hit the Indian banks in October
last year, affecting around 3.2 million debit cards. In India, there has been a surge of about 350 percent in
cybercrime cases registered from the year of 2011 to 2014, according to a study by ASSOCHAM. India is
vulnerable to a myriad of threats, ranging from cyber intrusion to attacks on information assets. Reports
reveal that cyber-attacks on government sector doubled to 14% in 2016 from 7% in 2015.

Critical information infrastructures are ICT systems essential to the operations of national and international
crucial Infrastructures eg. telecommunication networks, online payment gateways, electronic stock
trading etc. Since CIIs are complex, interconnected and interdependent, any disruption in their functioning
has the potential to quickly cascade across other CIIs causing national instability. They are prone to attacks
from state and non- state actors.

International threat of a cyber-war from countries like China and Pakistan. Most of the cyber-attacks in
India are done from Pakistan which are very carefully crafted. Those attacks that might affect the
functionality of defence services are worrying for India like data acquisition systems.

Lot of equipments in India are imported. It is unknown whether these devices are tampered with or
programmed for control processes. Thus, they remain vulnerable to cyber attacks.

Security framework:

India should accede to Budapest convention, a multilateral treaty on cyber security that addresses
Internet and computer crime by harmonizing national laws, improving legal authorities for
investigative techniques, and increasing cooperation among nations.
Cyber Security mock drills should be regularly conducted to prepare the organizations to detect,
mitigate and prevent cyber incidence.
Much more rigorous testing of the equipment that are being imported for telecommunication,
power grid management or air traffic control should be done.
There is need to sensitize the people and institutions of cyber security measures, to make them
report such attacks promptly, so that quick action can be taken.
Concept of air gapping which isolate the critical infrastructures from the internet should be used.
 The idea of a National Cyber Registry as a repository of IT professionals should be implemented.
International guidelines on cyber warfare is the Tallinn Manual need to be followed to avoid such
situations.
These security measures along with strengthening the existing cyber security infrastructure may help in
tackling the cyber security threats.

10. The north-eastern region of India has been infested with insurgency for a very long time. Analyze
the major reasons for the survival of armed insurgency in this region.
Approach:

History of insurgency in north eastern region

Reasons for armed insurgency in north east
Answer: Indias North east region has been land of thousand mutinies. These mutinies have been taking
place since pre-independence times. The insurgencies in north east are a reflection of its social, cultural,
ethnic and linguistic diversity, terrain, socio-economic development, politico-economic conditions,
historical evolution and changes in the environment of the area.

The region is divided into multiple factions. Some factions favour a separate state while others seek
regional autonomy. Some groups even demand complete independence.

Reasons for armed insurgency in north east:

Unique tribal and ethnic divisions: these communities have not always lived in peace, and ethno-
communal conflicts have sometimes bled over into full-blown insurgencies. For instance, the
National Democratic Front of Bodoland (NDFB) is a separatist group that demands a sovereign state
for the Bodo people of North Assam.
Lack of economic opportunity: The long conflict between the government and the separatist ULFA
(United Liberation Front of Assam), which has a socialist ideology, has its roots in this very problem.
They blame the government for the economic exploitation of Assamese natural resources which
results in wealth being drained from the region in return for very little investment in development
projects.
Migration issues : The major ethnic conflict in the Assam is the grievance against the perceived
influx of foreigners i.e. people with a language and culture substantially different from the
Assamese from across the border (i.e. Bangladesh).
History of discrimination and neglect by central government: political parties have paid less heed
to the needs of the state because there are only 14 Lok Sabha seats on offer here. This has also
resulted in the muting of the voices that represent this region in New Delhi
AFSPA and its misuse: AFSPA has created a hostile environment where the Central government is
seen as the enemy and military abuses of power help swell the ranks of the insurgents.
Long and insecure international border: For instance, Assamese insurgents sought refuge in
Bhutan during the 1990s. Treaty of Naga insurgents with Myanmar also helps insurgents to take
refuse in Myanmar after creating violence in India.
Support of neighbouring countries: Pakistan and china are alleged to support these insurgents
financially as well as by providing the weapons.
 The Naga Peace Accord has implications for north east and it is important that these are understood
and necessary policy interventions are considered.

11. One of the intended objectives of Union Budget 2017-18 is to transform, energize and clean
India. Analyse the measures proposed in the Budget 2017-18 to achieve the objective.

Approach:
objective of union budget 2017-18
Measures to transform, energize and clean India.

Answer: Agenda for 2017-18 is: Transform, Energise and Clean India TEC.

TEC India seeks to-

Transform the quality of governance and quality of life of people;
Energise various sections of society, especially the youth and the vulnerable, and enable them to
unleash their true potential; and
Clean the country from the evils of corruption, black money and non-transparent political funding

Ten distinct themes to foster this broad agenda:

Farmers : committed to double the income in 5 years;

Target for agricultural credit in 2017-18 has been fixed at a record level of 10 lakh crores. To ensure
flow of credit to small farmers, Government to support NABARD for computerisation and
integration of all 63,000 functional Primary Agriculture Credit Societies with the Core Banking
System of District Central Cooperative Banks.

Rural Population : providing employment & basic infrastructure;

Aim is to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty
free by 2019. Against target of 5 lakh farm ponds under MGNREGA, 10 lakh farm ponds would be
completed by March 2017. G

Youth : energising them through education, skills and jobs;

To introduce a system of measuring annual learning outcomes in our schools. Innovation Fund for
Secondary Education proposed to encourage local innovation.

The Poor and the Underprivileged : strengthening the systems of social security, health care and
affordable housing; Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in 14 lakh
ICDS Anganwadi Centres. Affordable housing to be given infrastructure status.

Infrastructure: for efficiency, productivity and quality of life;

For transportation sector as a whole, including rail, roads, shipping, provision of ` 2,41,387 crores
has been made in 2017-18.
Financial Sector : growth & stability by stronger institutions;
 Foreign Investment Promotion Board to be abolished in 2017-18 and further liberalisation of FDI
policy is under consideration
Digital Economy : for speed, accountability and transparency;
The Government will launch two new schemes to promote the usage of BHIM; these are,
Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
Public Service : effective governance and efficient service delivery through peoples participation;
To utilise the Head Post Offices as front offices for rendering passport services
Prudent Fiscal Management: to ensure optimal deployment of resources and preserve fiscal
stability;
For the first time, a consolidated Outcome Budget, covering all Ministries and Departments, is
being laid along with the other Budget documents
Tax Administration: honouring the honest.
These measures are aimed to Transform, Energise and Clean India.

12. Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-
Product (GDP) in the post-reform period Give reasons. How far the recent changes in
Industrial Policy are capable of increasing the industrial growth rate?

Approach:

Reasons for low industrial growth rate post reform period

Recent changes in industrial policies for boosting industrial growth rate
Answer: Industrial growth in India after the post LPG era has been around 6 to 7 percent. In pre 1991
period the industrial planning had failed to deliver high growth. To increase industrial growth rate reforms
were initiated. However, industry has failed to show high growth after reforms, while Service sector has
shown high growth rate.

Industrial growth rate has been low post reforms due to following reasons:

Infrastructure: Industry and especially manufacturing depends on large scale movement of goods
and processing of goods. This requires robust transport infrastructure, power supply for driving
machines. Over time as technology improves processing cost falls and share of transport cost and
cost of raw material increases in overall cost.
Labour: Product market has been reformed during LPG reforms, however, factor markets, which
were mostly the prerogative of state governments, have become new sources of rigidities. Rigidity
in labour market makes manufacturing investment unfavourable.
Capital and loan: Industrial units depend on capital goods. They require large investment. This
requires access to easy loan. However, interest rate in India is higher than developed countries.
Regulation: Regulations like forest clearance, environmental clearance, land availability have been
difficult. They remain largely in domain of states.
Taxation: Until GST came different states had different tax system and there were local level taxes.
For MNCs there were multiple jurisdiction for tax compliance this made tax compliance difficult and
input tax credit cumbersome.
Apart from hindrances in industry the reasons for slow growth of industry include diversion of resources to
services. Services have attracted investment due to low dependence on infrastructure, easy availability of
skilled labour, easy exports of services than exports of goods.

To raise the growth rate in industry various policy initiatives have been taken after reforms. These include
national manufacturing policy 2011, Make in India initiative, Foreign Trade policy 2015 etc.

An assessment of initiatives brought in to raise industrial growth rate are following:

National manufacturing policy aimed to raise share of Manufacturing in GDP to 25% by 2025, but
manufacturing policy has not been supported by suitable legislative and fiscal support to
manufacturing.
Make in India has shown some signs of improving business environment. Recent surveys have
shown that new entrepreneurs have been able to utilize the initiatives like eBiz portal, single
window clearance. There are dedicated setups for attracting FDI from specific countries like Japan,
Korea.
GST has reformed the taxation system to eliminate tax cascading, ease compliance with tax system,
end long queues at state borders. Multiple tax jurisdictions have been done away with and this has
improved tax compliance.
Efficacy of Make in India initiative will be limited by reforms by states in various segments like
environmental clearance, land availability and labour reforms.
Foreign trade policy 2015-2020 aims at doubling exports to 900 billion dollars but exports have fallen since
then. Domestic export infrastructure is weak, we are not utilizing out competitive advantage in labour
intensive manufacturing in exports market. MSMEs which contribute to 45% of exports have been
provided tax relief by reducing tax rate from 30% to 25%. However, MSMEs would need more than tax
incentive for revival of growth. MSME would need, credit support, technology augmentation, marketing
channels, raw materials supply etc.

13. What are the salient features of inclusive growth? Has India been experiencing such a
growth process? Analyze and suggest measures for inclusive growth.
Approach:

Inclusive growth and its features.

Status of inclusive growth in India
Measures for inclusive growth
Answer: As per UNDP, Growth is inclusive when it takes place in the sectors in which the poor work (e.g.
agriculture); occurs in places where the poor live (e.g. undeveloped areas with few resources); uses the
factors of production that the poor possess (e.g. unskilled labour); and reduces the prices of consumption
items that the poor consume (e.g. food, fuel and clothing).

The five characteristics of an inclusive economy:

Participation People are able to participate fully in economic life and have greater say over their
future. People are able to access and participate in markets as workers, consumers and business
owners.
 Equity-More opportunities are available to enable upward mobility for more people. All segments
of society, especially poor or socially disadvantaged groups, are able to take advantage of these
opportunities. Inequality is declining rather than increasing.
Growth An economy is increasingly producing enough goods and services to enable broad gains in
well-being and greater opportunity. Good job and work opportunities are growing and incomes are
increasing, especially for the poor.
Stability- Individuals, communities, businesses and governments have a sufficient degree of
confidence in their future and an increased ability to predict the outcome of their economic
decisions.
Sustainability Economic and social wealth is sustained over time, thus maintaining inter-
generational well-being. Economic and social wealth is the social worth of the entire set of assets
that contribute to human well-being, including human produced (manufactured, financial, human,
social) and natural capital.
Inclusive growth in India:

India has been ranked 60th among 79 developing economies, below neighbouring China and Pakistan, in
the inclusive development index, according to a WEF report.

Ginni coefficient which measures inequality has increased from 0.36 to 0.48 in India. Moreover, Fifty-seven
billionaires in India possess as much wealth as the poorest 70% of the country, according to a report on
global inequality released by Oxfam. The richest 10% in India own 80% of its wealth, while the richest 1%
possesses 58% of all wealth.

Oxfam lists several reasons for this inequality, including crony capitalism and corporations that squeeze
employees at lower rungs to maximise salaries and dividends for high-level executives and shareholders.

The main reasons for Indias failure to achieve inclusive growth and distributive justice are the failure of
land reform, the wrecking of the well-designed community development programme that aimed at the all-
round development of the village, the lack of success in providing adequate employment opportunities at
living wages to a rising population, the neglect of school education and the absence of special measures
designed to help children of the poor to get a good school education.

Measures to promote inclusive growth in India:

Government should strive to end the extreme concentration of wealth to tackle poverty, introduce
inheritance tax and increase the wealth tax, as the proportion of this tax in the total tax revenue is
among the lowest in India.
The Indian Government must eliminate tax exemptions and not further reduce corporate tax rates.
The Government must support companies that benefit their workers and society rather than just
their shareholders.
The Government must crack down on tax-dodging by corporates and rich individuals to end the era
of tax havens.
It should generate funds needed to invest in healthcare and education. The government must
increase its public expenditure on health from 1 per cent GDP to three per cent of GDP and on
education from three per cent of GDP to six per cent.
 Reducing the size of the informal economy is pivotal to inclusive growth. It allows India to reach its
growth potential and deliver broadly shared prosperity for the vast majority.

14. What are the major reasons for declining rice and wheat yield in the cropping system? How crop
diversification is helpful to stabilize the yield of the crop in the system? (Answer in 250 words)
Approach:

Reasons for declining rice and wheat yield in the cropping system
Role of crop diversification to stabilize the yield of crop in the system
Answer: Indias average yield of cereal per hectare is far less than that of many countries (including several
low income countries), but the difference is huge when compared to China. For instance, our average yield
per hectare is 39% below than that of China and for rice this figure is 46%. Even Bangladesh, Vietnam and
Indonesia fare better than India in case of rice yield. India's rice yield was 2191 kg/hectare, while the global
average stood at 3026 kg/hectare, while wheat is 2750 kg/hectare as against the world average yield of
3289 kg/hectare.

Further, there is a huge inter-regional variation; the wheat and rice yield from Haryana and Punjab is much
higher than from the other states. Low crop yields cannot be attributed to "non-availability" of improved
technologies but several factors including short growing season, varied agro-climatic conditions and
weather extremities.

Reasons for declining rice and wheat yield in the cropping system:

Uncertain Monsoons: With more than half of the gross cropped area being rain fed, failure or
inadequacy of rains causes fluctuation in yields.
Decline in soil fertility: Soil erosion is the main form of degradation which occurs because of
deforestation and unscientific agricultural practices like shifting cultivation.
Uneconomic holdings: The State of the Indian Agricultural Report for 2012-2013 points out that:
As per Agriculture Census 2010-11, small and marginal holdings of less than 2 hectare account for
85 percent of the total operational holdings and 44 percent of the total operated area.
Inefficient water usage: The inefficient use of water for agriculture is affecting the productivity.
Although water is one of India's most scarce natural resources, India uses 2 to 4 times more water
to produce a unit of major food crop than does China and Brazil.
Crop diversification is helpful to stabilize the yield of the crop in the system through following ways:

Soil fertility: it helps in regaining the soil fertility levels. For example, cultivation of leguminous
crops with cereal crop helps in enriching the nutrients of the soil.
Intercropping: it allows the cultivation of two or more crops at a single time. This will help in
stabilising the declining yield of the crops in the system.
Water requirements: crop diversification based on agro climatic choices will help in using the
water resources efficiently. For example, water intensive crops must be sown only during kharif
season. While, less water intensive crops should be sown in other seasons.
 Ground water issue: due to monoculture of paddy in the cropping in the system, the water
levels declined particularly in Punjab and Haryana. However, diversification of crop will help
recharge the ground water levels since the water requirements for other crops may be low.
Thus, there in need for crop diversification like cultivation of pulses for stabilising the yield of wheat and
paddy in the system.

15. How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is
the significance of crop insurance, minimum support price and food processing for small and
marginal farmers?
Approach:

Role of subsidies in cropping pattern, crop diversity and economy of the farmers.
Significance of crop insurance, minimum support price and food processing for small and
marginal farmers
Answer: Agriculture subsidies are pervasive in agriculture, even though they are often applied in ways that
benefit mostly richer farmers, cause inefficiencies, lead to a heavy fiscal burden, distort trade, and have
negative environmental effects. However, Agricultural subsidies can play an important role in early phases
of agricultural development by addressing market failures and promoting new technologies.

Role of subsidies:

Cropping pattern: government subsidies on agriculture inputs have significant impact on the
cropping pattern. For example, due to excessive power subsidy in Punjab, farmers favour paddy
cultivation by extracting excess ground water.
Crop diversity: agricultural subsidies ruins crop diversity by favouring monoculture of those crops
being favoured by the subsidies. For example, higher MSP on cereal crops has been the reason
behind the lesser cultivation of other necessary crops like pulses.
Economy of the farmers: subsidies help in minimising the cost of production. Thus, it helps in
getting good returns in short term. However, it is due to excess subsidies on urea, soil health is
declining because of its excess application.
For small and marginal farmers:

Crop insurance: it helps farmers by acting as a check against crop failure. It provides relief to these
farmers in such cases and prevents them from getting into debt. Pradhan Mantri Fasal Bima Yojna is
a good initiative in this regard where premium is also quite low and is affordable for small and
marginal farmers.
Minimum support price: it helps small farmers in getting them adequate return for their produce.
It also protects farmers from distress selling as well as market distortions. However, as per Shanta
Kumar committee, only 6% of the farmers take the benefit of MSP facilities.
Food processing: it helps provide alternative employment to small and marginal farmers during the
lean season. It also helps prevent disguised unemployment. It increases the income of these
farmers. It helps as a check against the crop failure cases.
Thus, crop insurance, minimum support price and food processing play a significant role in the lives of
small and marginal farmers. They help in raising the standard of living of these farmers by raising their
income sources and thus make growth more inclusive.

16. Give an account of the growth and development of nuclear science and technology in India. What
is the advantage of fast breeder reactor programme in India?
Approach:

Growth and development of nuclear science and technology in India

Advantage of fast breeder reactor programme
Answer: India has a flourishing and largely indigenous nuclear power programme and expects to have 14.6
GWe nuclear capacity on line by 2024 and 63 GWe by 2032. It aims to supply 25% of electricity from
nuclear power by 2050. Nuclear power offers the most potent means for long-term energy security.
Currently, the nuclear energy share in electricity generation is about 3%. The nuclear share in total primary
energy mix is expected to grow, as the installed nuclear power capacity grows.

India's nuclear power program has proceeded largely without fuel or technological assistance from other
countries. The pressurised heavy-water reactor (PHWR) design was adopted in 1964, since it required less
natural uranium than the BWRs, needed no enrichment, and could be built with the countrys engineering
capacity at that time pressure tubes rather than a heavy pressure vessel being involved. Its power
reactors to the mid-1990s had some of the world's lowest capacity factors, reflecting the technical
difficulties of the country's isolation, but rose impressively from 60% in 1995 to 85% in 2001-02.

Indias Fast Breeder Reactor plans are hinged on the success of its prototype fast breeder reactor (PFBR) of
500 MW being constructed at Kalpakkam in Tamil Nadu. The PFBR has been under construction since 2004
and will use Mixed Oxide (MOX) fuel, a mixture of both plutonium and uranium.

Advantages of fast breeder technology:

It creates 30% more fuel than it consumes. After an initial introduction of enriched uranium, the
reactor only needs infrequent addition of stable uranium, which is then converted into the fuel.
The more fuel produced can be used for new reactors constructed in the future as well as produce
fissile U-233 using a thorium blanket in the FBR, which will be used to fuel the third-stage of Indias
nuclear programme, i.e., the indigenously designed thorium reactors.
India will achieve self sufficiency in terms of nuclear power as we will be able to use thorium
reserves through FBR which can sustain our energy requirements.
It can generate much more energy than traditional coal power plants.
It can even use the uranium waste from uranium processing plants and spent fuel from traditional
fission reactors, along with depleted uranium from nuclear weapons.
The lengthy time required to construct the current PFBR, along with the safety requirements, mean that
plans to construct two 470-MW units will progress slowly. Current plans for future FBRs are still at the
design stage.

17. Climate Change is a global problem. How India will be affected by climate change?
How Himalayan and coastal states of India will be affected by climate change?
Approach:

How climate change is a global problem

How India will be affected by climate change
How Himalayan and coastal states of India will be affected by climate change.
Answer: Climate change is one of the major challenges of our time and adds considerable stress to our
societies and to the environment. From shifting weather patterns that threaten food production, to rising
sea levels that increase the risk of catastrophic flooding, the impacts of climate change are global in scope
and unprecedented in scale. Without drastic action today, adapting to these impacts in the future will be
more difficult and costly.

India will be affected by climate change in following ways:

Extreme heat: Unusual and unprecedented spells of hot weather are expected to occur far more
frequently and cover much larger areas. Under 4C warming, the west coast and southern India are
projected to shift to new, high-temperature climatic regimes with significant impacts on agriculture.
Changing rainfall patterns: A 2C rise in the worlds average temperatures will make Indias
summer monsoon highly unpredictable. An abrupt change in the monsoon could precipitate a
major crisis, triggering more frequent droughts as well as greater flooding in large parts of India.
Dry years are expected to be drier and wet years wetter.
Drought: Droughts are expected to be more frequent in some areas, especially in north-western
India, Jharkhand, Orissa and Chhattisgarh. Crop yields are expected to fall significantly because of
extreme heat by the 2040s.
Glacier melt: At 2.5C warming, melting glaciers and the loss of snow cover over the Himalayas are
expected to threaten the stability and reliability of northern Indias primarily glacier-fed rivers,
particularly the Indus and the Brahmaputra. The Ganges will be less dependent on melt water due
to high annual rainfall downstream during the monsoon season.
Sea level rise: Sea-level rise and storm surges would lead to saltwater intrusion in the coastal areas,
impacting agriculture, degrading groundwater quality, contaminating drinking water, and possibly
causing a rise in diarrhoea cases and cholera outbreaks, as the cholera bacterium survives longer in
saline water.
Agriculture: Seasonal water scarcity, rising temperatures, and intrusion of sea water would
threaten crop yields, jeopardizing the countrys food security. Under 2C warming by the 2050s, the
country may need to import more than twice the amount of food-grain than would be required
without climate change.
Energy security: The increasing variability and long-term decreases in river flows can pose a major
challenge to hydropower plants and increase the risk of physical damage from landslides, flash
floods, glacial lake outbursts, and other climate-related natural disasters.
Impact of climate change on Himalayan states:

Melting of Himalayan glaciers: due to climate change led global warming; melting of glaciers is
continuously rising. There will be more flood events in short term.
 Glacier lake outburst flow: Glacial Lake Outburst Flood (GLOF) refers to the glacier floods caused by
the drainage of naturally dammed lakes in the glacier, on or at the margin of glaciers. It led to flood
in Uttarakhand.
Seasonal rivers in long term: Himalayan Rivers may become seasonal since they get water supply
from these glaciers in winter seasons.
Agriculture: agriculture will be affected due to lack of irrigation facilities due to less water available
in the rivers in the long term.
Impact of climate change on coastal states:

Threat of submergence: coastal cities will face the threat of submergence due to rise in sea level
due to the global warming.
Uneven rainfall pattern: since climate change has impact on south west monsoon, there will be
uneven rainfall pattern. This will have further impact on agriculture in the region.
Migration: due to threat of submergence, there will be more migration cases from coastal cities
towards the interior locations.
Salinization: seal level rise would result in saltwater intrusion in the coastal areas, which would
adversely impact agriculture, degrade groundwater quality, contaminate drinking water.
Thus, there is need for adhering to INDCs targets set by the government in accordance with Paris
agreement to tackle the climate change.

18. On December 2004, tsunami brought havoc on 14 countries including India. Discuss the factors
responsible for occurrence of Tsunami and its effects on life and economy. In the light of
guidelines of NDMA (2010) describe the mechanisms for preparedness to reduce the risk during
such events.
Approach:

impact of tsunami in 2004

factors of occurrence of tsunami and its effects on life and economy
Mechanism for preparedness to reduce the risk of tsunami on the basis of NDMA guidelines.
Answer: On December 26, 2004, an undersea earthquake with a magnitude of 9.1 struck off the coast of
the Indonesian island of Sumatra. Over the next seven hours, a tsunamia series of immense ocean
wavestriggered by the quake reached out across the Indian Ocean, devastating coastal areas as far away
as East Africa.

The tsunami killed at least 225,000 people across a dozen countries, with Indonesia, Sri Lanka, India,
Maldives, and Thailand sustaining massive damage. Indonesian officials estimated that the death toll there
alone ultimately exceeded 200,000, particularly in northern Sumatras Aceh province. Tens of thousands
were reported dead or missing in Sri Lanka and India, a large number of them from the Indian Andaman
and Nicobar Islands territory.

Factors responsible for occurrence of tsunami:

Earthquake: The majority of recorded tsunamis caused by powerful earthquakes on the ocean floor
are results of tectonic plate movements. The vast amounts of seismic energy released in the form
 of an earthquake under the sea suddenly push up the ocean floor. This abruptly displaces a vast
amount of ocean water, dispersing outward in all directions from the epicentre of the earthquake.
Volcanic activity: Volcanic activity can significantly cause tsunamis, but it is less common. As
magma rises to the crust during a volcanic eruption, it causes disturbance which can displace water
bodies when the volcanic activity is adjacent to ocean waters or if it occurs from the bottom of the
ocean.
Landslides: Landslides can also contribute to sinking or slumps of heavy land masses into the ocean
thereby causing a sudden movement of the ocean water. This phenomenon is merely because
landslides displace the water masses and cause underground disturbances that, in turn, pushes the
water outwards towards the shores.
Large meteorite strikes: Seismic waves (wave shocks), underwater disturbances and ocean water
displacement that lead to tsunamis can be generated by nuclear explosions or large meteorite
strikes. Nonetheless, tsunami events associated with large meteor strikes or nuclear explosions are
very rare.
Mechanism for preparedness to reduce the risk of tsunami on the basis of NDMA guidelines include the
following:

Warning system and components: As part of the Early Warning Systemfor Tsunamis and Storm
Surges in Indian Oceanset up by GoI, a 17-station Real Time SeismicMonitoring Network (RTSMN) is
envisaged to be established by IMD.
Warning on inundation of coastal areas: it is imperative to prepare Coastal Vulnerability maps
indicating the areas likely to be affected due to sea water inundation and damage thereof.
Decision support system and standard operating procedures: The criteria for generation of
different types of alerts for a particular region of the coast are to be based on the earthquake
parameters, available warning time(i.e. time taken by the tsunami wave to reachthe particular
coast) and expected run-up from pre-run model scenarios.
Role of media in warning dissemination : The media is a powerful ally for disseminating the alert
and early warning to the general public and other stakeholder groups.
Public awareness: Comprehensive public awareness campaigns will be developed and launched at
the national, state and district levels, especially in high risk areas for familiarisation with the
tsunami warning dissemination mechanism and responsibilities of various stakeholder groups.
However, there is need for following Sendai framework for better disaster risk reduction.

19. Mob violence is emerging as a serious law and order problem in India. By giving suitable
examples, analyze the causes and consequences of such violence.
Approach:

Mob violence as a law and order problem in india with examples

Causes and consequences of mob violence
Answer: A recent report by IndiaSpend, basing itself on the content analysis of news reports, concludes
that In the first six months of 2017, 20 cow-terror attacks were reportedmore than 75 per cent of the
2016 figure, which was the worst year for such violence since 2010. There has already been a spate of
opinion pieces in mainstream media over the murder of people by mob lynching in India. Its presence
shows an inept law and order situation and prevents society from facing and handling other serious issues
of development.

A 52-year-old Muslim Mohammad Akhlaq and his son Danish, were attacked by a village mob with sticks
and bricks, accusing them of stealing and slaughtering a cow calf and storing and consuming beef.
Similarly, A 55-year-old Muslim dairy farmer, Pehlu Khan and at least 14 others were accused of smuggling
cattle and were beaten black and blue on a national highway in Rajasthan's Alwar.

Causes of mob violence:

Rumours: Firstly, the rumours and stories that are circulated prior to violent events are invariably
about cruelty, abduction and rape committed by "the other" community - almost always Muslim.
These rumours and stories help spread hatred and violence rapidly.
Organised hate campaigns: these cases would not have been so frequent if it weren't for the
atmosphere of hate and suspicion against Muslims, created through a sustained political campaign.
Engaging in "meat politics" and calling for cow protection has been a favourite tool for many Hindu
nationalist politicians.
Lack of political will: there is complicity of the people at the helm of power in the violence. These
incidents are on the rise due to the lack of the political will to curb this.
Communalism: conversion of religiosity into communalism has increased after independence.
Communal feelings cause hatred against the other community which lead to mob violence.
Consequences of mob violence:

Law and order problem: more number of mob violence cases has caused worsening law and order
problem. The trend has been raising due to replication of such mob violence events at other places.
Rise of communalism: mob violence cases have been the cause behind push to communal feelings
and hatred against the other communities.
Communal politics: such incidents also give air to the communal politics where political parties get
opportunity to score points on the name of religion.
Fear among the minorities: mob violence cases are mostly against the minority communities eg.
Muslims in India. This creates a sense of fear among such communities.
There is urgent need to curb such cases soon in order to maintain public order. Strict punishment to the
communal elements fomenting such violence should be provided. Legislations must be enacted to
empower police to act against mob violence.

20. The scourge of terrorism is a grave challenge to national security. What solutions do you suggest
to curb this growing menace? What are the major sources of terrorist funding?
Approach:

How terrorism is threat to national security

Suggestions to curb terrorism
Major sources of terrorist funding
Answer: Prolonged terrorist campaigns in Iraq and Afghanistan as well as India and Pakistan seem to
undermine national security and could pose a serious threat to international security as well, as some of
the above-mentioned countries are well-known for their possession of nuclear weapons. The presence of
terrorist groups within the borders of a country could also result in passivity of the security services, due to
fear of reprisals and campaigns of violence.

Solutions to curb terrorism:

Terror financing: cutting the sources of terror finances can be big blow to the terror organisations.
This can be done through mutual collaboration among the different governments.
Comprehensive convention on international terrorism: CCIT, drafted by India in 1996, is a
proposed treaty which provides a comprehensive legal framework against terrorism. It aims to have
a universal definition of terrorism.
Cross border terrorism: it can be curbed though better border management. For example,
comprehensive integrated border management system involves five layers- CCTV cameras, Thermal
image and night-vision devices, Battle field surveillance radar, Underground monitoring sensors and
Laser barriers.
Cyber terrorism: it can be tackled through boosting the cyber security features. Budapest
convention and Tallinn manual can help in preventing such crimes.
Isolating state sponsors: sanctions must be put in place on those states sponsoring terrorism.
There has been call from India to isolate Pakistan for fomenting terrorism in India.
National security doctrine: there is need for national security doctrine for the quick response to
such attacks and prevents such attacks.
Value education and inclusive development
Major sources of terror finances are following:

Terrorist organisations raise funding from legitimate sources, including the abuse of charitable
entities or legitimate businesses or self-financing by the terrorists themselves.
Terrorists also derive funding from a variety of criminal activities ranging in scale and sophistication
from low-level crime to organised fraud or narcotics smuggling, or from state sponsors and
activities in failed states and other safe havens.
Terrorists use a wide variety of methods to move money within and between organisations,
including the financial sector, the physical movement of cash by couriers, and the movement of
goods through the trade system. Charities and alternative remittance systems have also been used
to disguise terrorist movement of funds.
Few countries like Pakistan also fund terrorists for fomenting violence and destabilising
government of India. This is the reason behind rising cases of cross- border terrorism in India.
Black money also funds terrorist organisations because of their opaque nature.
Disrupting funding flows creates a hostile environment for terrorism, constraining overall capabilities of
terrorists and helping frustrate their ability to execute attacks. Thus, cutting the financial sources to these
terrorist organisations is the need of the hour