IASbaba TLP Paper 3

IASbaba’s PAPER 3: DAY 1 TO DAY 50 TLP COMPILATION

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Q.1) What is Special 301 report? Why is India kept in the Priority Watch List, in

this report? Discuss the various IPR issues and their role in promoting foreign

investment in India.

Background: IPR issue is one of the most trending segments of World news in contemporary

times especially between India and USA. Apart from Pharma issues, there are other areas to

look upon

Theme of the Question:

First two parts are very easy and direct. You shouldn’t waste more than 80 words there. Second

part is the most important one. When we talk about IPR issues, here in Indian context, most of

you have written only about ongoing issues.

This is a simple question to answer, as the structure of the answer can be found in the question

itself. Just answering one paragraph on each sub-question will bring out a very logical, coherent

structure to the answer.

Start off with what the Special 301 report is and who makes it. And then explain what the

Priority Watch List is all about, after which explaining why India is a part of it.

Then the report gives a list of IPR issues regarding India. Discussing about those issues and then

commenting if that would be a problem for the foreign investment should suffice for this

question.

For India, there is no National IPR Policy or Law for addressing IPR other than Patent Law. And

hence many other domains falling under TRIPS gets unaddressed due to lack of clarity on

technical issues. One line conclusion regarding a robust national law to deal with IPR issues

would be very good.

The Top Answer for this question is written by – Somesh

Ans) Special Report 301 is prepared annually by the Office of US Trade Representative

reviewing IPR laws in various economies. India is in the Priority List because US observes that

Indian Patent Law is inadequate, hindering entry of US companies relying on innovation.

Various IPR issues highlighted by the Report:

Inadequate legislative and administrative framework to protect IP

Trade secrets unprotected in case of non-contractual violations


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Audio-Visual content piracy over wireless, cable, media devices and CDs

Biomedical and Chemical industry affected because:

Section 3(d) of Patent Law says, mere innovation of new drugs not patent-worthy unless

there is ‘significant enhancement of efficacy’ (Glivec/Novartis)

Compulsory Licensing criteria are not objective and predictable

Rampant trademark violations and counterfeiting

Foreign investment in areas of green technology, defence technology, R&D and

pharmaceuticals will certainly be encouraged if the IPR laws protect commercialization of

innovation, since they involve massive investment in R&D. As pointed out in the report, there is

scope for improving IPR laws to make them predictable, objective, non-discriminatory and for

better administrative framework for enforcement.

However, India’s stance against ‘evergreening’ of patents and compulsory licensing of certain

drugs comply with TRIPS and reflects our commitment to public interest which cannot be

compromised. There is a need to balance public welfare with protection of IPR which can

protect commercial interests without curtailing developing world’s access to life-saving drugs.

Q.2) Why is the ‘Poverty Line’ methodology so controversial in India? Is the

criticism justified? Narrate the evolution of various methodolgies and critically

comment on each of them.

Background: An all time favorite topic of UPSC. Prepare it specifically for Rangarajan Committe

report or Tendulkar Povery Line or overall Poverty Estimation and related criticism and way

ahead related to it. Every now and then, you will encounter news paper articles citing poverty

numbers, socio-economic data’s etc. Prepare some facts from Standard reports, Eco-Survey etc

and be ready with some ready made pointers. Any question on Poverty will not be out of your

reach once you prepare it holistically.

Theme of the Question: In the first part, two aspects are to be dealt.

First, Why PL Methodology is controversial? Write about Methodology of present time and

explain the negatives of it. If you cite 4 negatives then you have to use them for addressing the

next part of the question which is “Is the criticism justified”?


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Now most of you have right away said, yes it is justified, rather some of you have written,

“Completely Justified” Buddy, never do it. Even if question asked for Critical Comment, you

need to present both sides and be optimistic. Our Socio- Economic Framers are not stupid to

run the system. There are flaws but the flaws are not the limitations of formulation or

methodology only. There are many other reasons that should become your postives saying,

criticsims are valid but not justified al together.

When you follow exactly the format of the question asked, you don’t need to break your heads

for good structuring and all. It will come automatically.

The Top Answer for this question is written by – Ashwini

Ans) Poverty estimation in India has been a sensitive issue. It is used as a benchmark for

identifying beneficiaries for various schemes of government.

Controversy over the estimation of poverty line:

Does not take into account various vulnerable groups such as women and senior citizen

and low castes.

Does not address the concerns of population marginally above the poverty line.

Seemed to have come under political influence.

Not revised at regular intervals to take care of changing trends in consumption basket.

Very low compared to international standard of $1.25 per day at PPP.

Does not cover the indicators to reflect standard of living.

Eg: As per UNDP’s Multi Dimensional Poverty Index, approximately 52% of the Indians would be

poor.

Is the controversy justified? – Not entirely

Estimation is for a family of 5 on a monthly basis. It works on the principle of economies

of scale.

Subsidies are not taken into account.

Under reporting of consumption expenditure.

Evolution of various methodologies:

DadabhaiNaoroji was a pioneer figure in nutrition based poverty line.


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Dandekar and Rath Committee – 1971: First calorie based poverty line. Uniform for rural

and urban areas.

Alagh Committee – 1979 : calorie based. Separate for rural and urban areas.

Lakdawala Committee – 1993 : poverty estimation at national level and at statelevel.

But still had an outdated consumption basket.

Tendulkar committee- 2009 : uniform poverty line. Reduced the weightage given to

calories. Updated the consumption basket. Which increased the number of poor falling below

poverty line.

Rangarajan Committee – 2012: yet to accept its recommendations. Improved

consumption basket. Considers non calorie components such as rent, education etc.

Q.3) Discuss the major weaknesses in agricultural price policy of India. Suggest

suitable remedial measures.

This is a direct question. Two parts. But then again, if you point of 5 weaknesses then remedial

measures should address them for sure. You shouldn’t mention A as weakness and the then

give remedy for Z which was not at all your point of discussion. Take care of these small writing

tricks.

The Top Answer for this question is written by – BS

Ans) India’s agricultural pricing policy have two-fold objective: supporting farmers through MSP

and ensuring affordable price for consumers by providing food grains through PDS.

Major weaknesses and their consequence:

MSP:

High MSP: distort market as well cropping pattern.

It does not take into consideration the fact that cultivation cost vary from region to

region: For example they are higher in Punjab, Haryana due to high wage, land value & end up

creating dissatisfaction among farmers.

PDS:

High procurement of grains leading to accumulation in store house and subject to

rotting, attack from rodents.


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Fuels inflation.

High storage is a problem for India Under WTO AoA.

Price subsidies can distort markets in ways that ultimately hurt the poor as pointed out

by Economic survey.

Remedial measures:

Support vs procurement price: Swaminathan committee suggested differentiating

between Support & procurement price. MSP should be a tool to only avert distress sales, while

government procurement should be at market-determined prices.

Shanta Kumar committee recommendations to reform FCI should be implemented

Moving from agro-subsidy regime to agro-investment.

Reforms in agricultural policy that is making it more market oriented based on supply-demand

logic will not only avert market distortion but also provide us with more capital to reinvest in

ensuring food security, high yield and framer prosperity.

Q.4) Discuss the reasons as to why outsourcing has become an economically

beneficial mechanism for both rich and poor countries?

Outsourcing is a very common phenomenon which you see almost everywhere these days.

Inter-country outsourcing is what made India’s economy have a boom in the 90s, so this is an

important concept to understand.

In this question, it has not asked whether the countries have been benefitted, but has instead

asked the “reasons” why it has been beneficial to both the countries. The question already

assumes that outsourcing is beneficial, so no need to delve on the pros and cons of outsourcing.

Some of you have done that.

The Top Answer for this question is written by – Santhosh Venkatesh

Ans) Outsourcing refers to entrusting or contracting certain processes of business functions to

another party. Outsourcing to foreign countries is a byproduct of Globalisation and has created

immense benefits for both rich and poor countries.

Benefits for Rich countries


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i) Poor and developing countries have cheap labour outsourcing which help in cutting

production and overhead costs for rich countries.

ii) With certain non core business processes outsourced, companies can concentrate on their

core functions thereby increasing efficiency

iii) With outsourcing more work gets completed in a day due to timezone differences giving rise

to round the clock businesses

Benefits for poor countries

i)With Good working age population , countries benefit in getting employment opportunities .

ii) Since the advent of outsourcing, In relatively poor countries GDP and Personal disposable

income have risen. This has boosted domestic demand and provided impetus to growth.

iii) There is a possibility of creating a knowledge based economy as a result of IT process

outsourcing.

iv) Increase in Foreign investments ,thereby reducing deficit in Balance of payment.

v)The benefits of outsourcing for one sector create spillover benefits for other sectors and

industries

With competition from SE Asian economies and other South American and African countries,

India needs skilled labour and a conducive environment for Investment to have a competitive

edge over other countries.

Q.5) Critically evaluate the utility of the JAM initiative in facilitating financial

inclusion.

Direct Question- Evaluation is the key here. What is Evaluation?

It means to estimate or determine the nature, value, quality, ability, extent, or significance of

anything.

Now here the crux is JAM Trinity and that too critically– Break the theme of evaluation into

Nature, Value, Quality, Ability, Extent and significance associated with JAM trinity. When you

talk about JAM’s Value (positive), at the same time talk about its negative value. This is critical

evaluation. Same for others like ability, extent and significance and there is your answer


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The Top Answer for this question is written by – Nishant

Ans) Financial Inclusion is the delivery of financial services at affordable cost to disadvantaged

and low income segments of the society. The JAM trinity as announced in Budget 2015 can play

the perfect role in India’s quest for financial inclusion.

With telecom operators obtaining payment bank licensing, people can keep deposits and carry

out e-transactions via their mobile phones. This removes the necessity of having bank branches

in remote areas, a traditional caveat in this regard.

Aadhar Card facilitates seamless and near foolproof identification of beneficiaries. People can

now receive subsidy cash transfers, MGNREGA salaries directly into their accounts. The success

of PAHAL scheme of LPG cylinder subsidy is a positive sign.

The Jan Dhan program has empowered over 12 crore people with bank accounts and more are

being added. This combined with the potential of 1.5 lac post offices acting as bank

correspondents completes the JAM trinity.

The JAM trinity is not without legitimate concerns. Lack of financial literacy, non-use and

duplicity of accounts remain a possible impediment. There are fears of JAM becoming a

potential target of money laundering activities. Also, the legal issues regarding Aadhar Card

need to be sorted out. Bottomline is if JAM works at it should, India would have achieved more

than just financial inclusion. Removal of subsidy leakages is one such added benefit.

Q.6) Urijit Patel’s Committee had recommended for the removal of

administered prices and subsidies in agriculture. What are the different forms of

farm subsidies in India and what is their justification?

The Top Answer for this question is written by – Indushree

Ans) Farm subsidies in India have twin objectives of achieving socio economic equality and

modernising agriculture. They can be categorised as follows.

Input subsidy:

Agricultural yield in India is low when compared to global standards. The bridging of yield gap

needs quality seeds, improved soil quality, and timely availability of water and irrigation

facilities. Hence, Government subsidises seeds, fertilizers, water and power.

Administered Prices:


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The seasonal nature of agriculture makes it vulnerable to demand-supply variations.

Government uses minimum support prices to assure income to producers and to provide food

security to poor.

Credit subsidy:

Technologies like farm mechanisation, micro irrigation are crucial for efficient utilisation of

inputs and timely completion of activities. Being capital intensive, they are assisted by state

through interest subvention schemes.

Kisan credit cards and credits against Negotiable warehouse receipts are aimed at avoiding

distress sale by producers.

Insurance subsidy:

Indian agriculture is gamble with monsoons. Hence government promotes crop insurance

through schemes like MNAIS.

Infrastructure subsidy:

development of irrigation projects, roads and storage facility are necessary for timely delivery

of services and better utilisation of land and labour.

Instead of doing away with administered prices and subsidies as recommended by Urijit Patel

Committee, Government has to focus on rationalising the subsidy regime and allocating the

resources to research institutes like ICAR and Agricultural Universities for development of

technology which suits the local needs.

Q.7) How is the multi-brand FDI relevant from food-processing point of view?

Critically comment.

The Top Answer for this question is written by – Sepoy No. 1446

Ans) Introduction of Multi-brand FDI in retail has been a topic of debate in India. The term

“retail” is closely related to food processing. Majority of Indians buy agro-processed products

like packaged milk, pickles, vegetables, fruits, jam, breads etc from local vendors and kirana

shops. Loss of employment to such people remains central to the given debate.

Other concerns of multi-brand FDI are: monopolistic market tendencies, higher prices in future,

unfavorable competition for small and medium enterprises etc.


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However, FDI is needed in this sector for following reasons:

1. The 42 mega-food park (MFPs) are based on PPP financing. FDI will be an essential

component of it.

2. FDI will bring technology and investment in front and back end infrastructure like cold

storage,reefer vans and processing centers which will significantly reduce the post harvest

losses

3. Multiple actors will provide more options to the customers. This in a way will actually

decrease the prices.

4. All these activities will also provide jobs to many. Moreover it will also bring skilled

employment in food-processing industry.This can be utilized under Skill India programme.

Food processing is a priority sector industry under National manufacturing policy. Given its

importance government is following a public-partnership approach to develop the sector. There

are some concerns with this model as discussed above. Few of them have already been

resolved. Further a stringent regulatory framework will ensure compliance to safety norms and

control of monopolistic tendencies. This should be the way forward for this sector.

Q.8)What are the roles of skill development, training and entrepreneurship for

both post-harvest management and food processing industry? Examine.

The Top Answer for this question is written by – Rahul Agarwal

Ans) Post harvest management are the set of activities from the harvest of crops to their

placement for marketing to final consumers eg sorting and grading, cold storages, cold chain

etc. On the other hand food processing means any activity to boost the value of food product.

This may be to increase shelf life like pickles, enhancing taste like pulpy juices or ease of

cooking like ready made batters

In face of wastage of almost 25% of food products in transit to markets and lowering incomes

from farm produce, it is imperative to boost the post harvest management and food processing

activities .For this, skill development, training and entrepreneurship plays a key role.

Role of skill Development:

Most of the workers in these two sectors have shifted from the agricultural sector. Thus, they

lack the basic skiils for effective harvest management and food processing. There are institutes

like NIFTEM to augment the skills of such people


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Role of Training:

Training is necessary for capability building of people involved in these indusrites. Since both

harvest management and food processing industries use technologies like controlled

enthronement management, irradiation technologies etc, these skills can only be inculcated by

effective training

Role of developing entrepreneurship:

Due to heavy pressure on land in agriculture, harvest management and food processing present

themselves as ideal sectors for shifting surplus labour from agriculture. Government should

ensure proper policy framework, access to credit, incubation support for enabling the

entrepreneurial ventures in these sectors.

Q.9) Although India is the second largest producer of food in the world, but its

share in world’s expots is very low despite its inherent strength in tea, spices

and rice. Why?

The Top Answer for this question is written by – Harshit Ladva

Ans) India has made significant progress in achieving food security after green revolution but

Indian Food exports are far from being significant due to following reasons –

1) Domestic Demand : India’s first priority is meeting domestic demands and hence exports are

given second priority.

2) Packaging and Processing – India’s sub-standard packaging industry and few – scattered

processing industries restricts “Value-added” food exports. Ex – Banana and other fruits are

exported to Bangladesh and Myanmar from Assam & Arunachal Pradesh but re-enter in India as

canned foods.

3) Less Productivity of Farm-lands – Indian farms are less productive comparatively due to

fragmented holding , rain-fed irrigation , low mechanisation and pest infestation. This limits

farm produces.

4) Policy measures – Gov’s policy to increase export duties to combat domestic food inflation.

eg :- hike in export duties for Onion and Pulses.


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5) Prejudicial Lobbying by EU and Western Countries – To support their local peasants ,

developed countries sometimes violates WTO trade norms and FTAs and restricts Indian

imports under false pretences. Eg:- Mango ban by EU.

6) Inherent quality and Branding – India has failed to achieve high nutrient content and

branding of it products. Eg – Japanese green tea v/s Indian tea.

7) Untapped potential of Horticulture and Pisciculture : India’s share of horticulture exports is

minimal and pisciculture caters to local demand only.

This can be remedied by structural and Infrastructural reforms.

Q.10) Is agriculture the backbone of the Indian economy? Critically examine.

The Top Answer for this question is written by – Annapurna Garg

Ans) Agriculture, as an economic activity holds an immense value for the Indian economy. This

is because of followng reasons:

1. It supports about 55 to 60 percent of population. It even absorbs unskilled labour.

2. Village economy revolves about Agriculture. For example, the year in which agriculture

productivity is low, the sales of motorbikes in rural areas gets badly hit.

3. Food security comes from robust agriculture. For example, cereal production in India is

sufficient and milk production is also quite good.

4. Food processing is a related industry which can revolutionise the Indian economy.

5. Agriculture, being a primary industry supports many secondary industries, such as cotton,

jute, sugar mills etc.

However, there are certain limitations of agriculture in India:

1. It contributes only 14 pecent to GDP

2. It is highly prone to seasonal risks and hence contribute to temporal instability

3. It alone doesn’t guarantee food security.

4. Poverty of farmers


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Thus, to take Indian economy on a higher path of growth trajectory, followng steps need to be

taken:

1. It should be made climate resilient by using technologies such as drip irrigation, drought

resistnant crops and diversification of crops

2. Flaws in MSP Poilcy need correction.

3. All agricultural land need to be brought under irrigation.

4. APMC laws need to be implemented in amended form, and national market should be

established as laid down in the budget.

5. Moreover, farmer education, and agriculture research needs to be given a boost.

Thus, right kind of support to agriculture can work wonders to Indian economy and would lift

many above the poor indicators of financial, social and human conditions.

Q.11) ”In every progressive economy, there has been a steady shift of

employment and investment from the essential primary activities to secondary

activities of all kinds and to a still greater extent into tertiary production”. In the

light of the current initiatives taken for the revival of MSME’s, comment on the

statement with your opinion on the burgeoning signs of distress and the

disequilibrium of employment present amongst the three sectors.

We need to understand that manufacturing sector is crucial for employment generation and

development of an economy. However, when we look at the present state of employment

opportunities in India, we find India still maintaining the imbalance, resulting into diminishing

returns that can only be cured by diverting the extra workforce to remaining sectors i.e.

secondary and tertiary.

Mention the GDP and employment data of all the three sectors quickly enumerating the signs

of distress that’s working towards this imbalance. The third part should be focussed on the

recent initiatives taken for the revival of the MSMS’s to tackle the employment disequilibrium.


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Today’s Top Answer is written by – Ramdas

Ans) The statement raises the question if the Indian economy can really be called progressive

especially in the light of employment related challenges and role of MSMEs in providing

solutions.

– The Indian economy is in the phase of transition and hence investment is rising in secondary

and tertiary sectors and there is gradual shift of employment away from agriculture.

– However, employment generation away from agriculture was below the potential due to

jobless growth of last 2 decades in spite of LPG reforms after 1991 aiming at structural

adjustment.

– Though contribution of agriculture to GDP has come down to 18% of GDP, its contribution to

the employment is still 47%(Economic survey 2015). This creates distressful employment in

agriculture.

– Additionally disequilibrium is created as India has moved from agriculture dominant to service

sector dominant stage while skipping the stage of manufacturing dominance which could have

generated massive additional employment.

– Service sector contributes 51% of GDP but only 27% to the employment. This means despite

higher investments, it is not able to absorb excess labour force.

– Industry sector, on the other hand is at equilibrium with contribution of 31% to GDP and 24%

to employment.

Faced with the challenges of gainful employment creation to reap demographic dividend, Govt

has identified MSME sector as catalyst due to its advantages like

– Low initial capital.

– Higher employment per unit of investment.

– Low gestation period.

– Easier compliance with labour laws.

– Potential for balanced regional development and inclusive growth.

– Govt has launched schemes like MUDRA yojana, Start up India- Stand up India, venture capital

fund for entrepreneurs, technology upgradation and marketing support schemes.


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Successful implementation of these programs along with Skill India and Make in India can help

India become a progressive economy with high quality of employment.

Today’s Top Answer is written by – Strenuous

Ans) No country can dream of becoming an advanced economy without treading the path of

industrial boom. The Indian story is perplexing in a way that it missed industrial path to make a

huge leap to service sector from agriculture sector. Composition of these three sectors in

employment and GDP share itself speaks of Indian economic structure lacunae.

– Agricultural sector employs 50% of country’s population with just 14% share in GDP. The

magnitude of disguised unemployment is evident from the figures.

-Industries contribute 26% in GDP with just 20% employment. It shows the potential of this

sector to give a huge push to our GDP if resources are employed.

-Service sector too is indispensable for economy for its huge share in GDP i.w 57% with just 31%

employment.

In order to give impetus to industrial sector in general and MSME in particular, various schemes

have been launched:

– National Skill Development Mission to reap demographic potential.

– MSME cluster development for holistic cooperation in value added and supply chain.

– MUDRA bank for easy financing.

– Marketing assistance.

– Dedicated schemes to encourage khadi, handloom etc.

In order to fix disequilibirium in employment, surplus labour from agriculture should be off

loaded to be employed in manufacturing sector complemented by enabling environment for

industries to flourish.


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Q.12) Couched in the terms of ‘protecting women’, the factory laws have

essentially protected men. Critically examine the statement and make a case for

elimination of women being an ‘afterthought’ for the future policymakers.

The process of amending the laws has been underway since 2011 and the trend shows that the

most vulnerable of the workers (big or small factories) have been lawfully deprived of even

their basic rights as workers. Try going back a bit in time and observe that post Second World

War, laws disallowed women form working in certain occupations and sectors, to ensure that

men returning from the war would be able to get jobs in factories. Women used to do the same

work when men were out their fighting. Therefore, these age-old restrictions having their

genesis in that historical time, have found a place in most of the factory laws of the world.

This question leads you to even question what holds true for “dangerous operations” due to

which women aren’t allowed – Shouldn’t all the workers be protected from these life-

threatening operations?

Mention some of the steps taken for the betterment and the third part should address the

policy issues to be taken care of for the future betterment of women working conditions and

treating them at par with their male counterparts.

Today’s Top Answer is written by – Sepoy No 1446

Ans) Women make half of population.But their participation in Indian labour market remains

highly skewed. Some of the labor laws actually contribute to this situation.

Indian labour laws have made specific provisions with respect to working condition for

women.For example,Factory laws 1948 has provisions like restriction on doing night shifts.This

acts as a discouragement to wider women participation.This in a way helps men to gain more

employment opportunity.Further women are not allowed to operate certain machinery and

their parts.This creates “legally sanctioned disability”,and hence gives more opportunity to

male workers.

However few acts are more effective.For example,Maternity benefit act 1961 has provision of

paid leave during pregnancy. This helps in adjustment of work-life balance and prevents many

women from quitting jobs.

Today,women are as capable as men and the laws of 60s and 70’s that were made keeping in

view the protectionist and patriarchal views of society won’t work.Any delay in this front will

delay India’s progress, both in terms of women empowerment and in terms of India


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empowerment,as such their contribution to GDP growth has been well accepted by recent IMF

research.In the view of social transformation and globalization and to further strengthen

women empowerment, women should be made a “first-thought” in all future labour

laws,instead of doing later addendum and amendments.

Today’s Top Answer is written by – Vidhu

Ans) Women, the fairer sex, has always been considered as fragile and fit for mainly non-

hazardous works. No matter how much effort women put in order to break this misconception,

the traditions, customs, laws of the world make the situation which cannot be considered as

equal for men and women.

Factory / Labour laws have in the same sense been a bit a inclined towards the men. There are

provisions like men getting more wages than women, women not allowed to operate certain

machines in factories are a few. The government’s instruction that women should not work

beyond 8 pm in IT industry although for their safety

can also be seen as form of discrimination which deprives them of some extra money. Women

have also been struggling to get permanent commission in armed forces which deprived them

of better work opportunities.

But there are certain provisions like extended maternity leave and bonus, Vishakha guidelines

for anti sexual harassment , crèche facilities for mothers which help create a holistic

environment for women to work.

History proves that be it in fields, household or in times of war, women have helped in the

cause. The government needs to ensure that they are treated and paid equally as men are. The

permanent commission for women in navy can be the 1st step. We have major world and

corporate leaders as women which should be an eye opener and foundation for more gender

neutral labour laws.


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Q.13) Has the ‘Drugs and Cosmetics Act’ been stretched far beyond its breaking

point? Suggest a way forward for its much-needed overhaul.

It is a direct question dealing with the issues still present as a patch on the bill and the various

lacunae that it still hosts.

You should mention about the ‘efficacy’ and ‘effectiveness’, Clinical trials, Challenges of the

‘Fixed Dose Combination Drugs (number of approvals + WHO guidelines).

The much needed overhaul requires one to provide inputs to strengthen the country’s drug

regulatory system.

Today’s Top Answer is written by – RKM

Ans) Drugs and Cosmetics Act, 1940 regulates the import, manufacture, distribution and sale of

drugs and cosmetics.

Reasons for it reaching to brittle point –

1.India is on the threshold of becoming the hub of clinical trials because of abundant availability

of vulnerable people at low cost. There is no penalty of violating clinical trail provision in 1940

Act rules.

2.Lack of proper standards for testing of Drugs.

3.Lack of regulator for licensing of Drugs.

4.Narrow definition of “Drug” and Clinical trail.

Way forward is to implement Mashelkar Committee recommendations such as-

1. Enhanced penalties for clinical trial and other offences and provision of special courts to

try offences related to spurious and adulterated drugs.

2. Replace the Drugs Technical Advisory Boards with the Central Drugs Authority (CDA)

which shall be the licensing authority for the manufacturing, distribution, sale, import and

export of drugs and cosmetics.


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3. Expand the definition of “drugs” to include medical devices. Also Define “clinical trial”,

and all clinical trials shall require the approval of the CDA. “Clinical trial” means systematic

study of any drug or cosmetic *not just ‘new’ drugs as per 1940 Act+.

4. Government shall set up a CDA of India Fund. It shall be used for salaries of the

members and employees of the CDA and for the implementation of the Bill.

Today’s Top Answer is written by – Somestuff

Ans) A burgeoning pharmaceutical sector in India and the emergence of online market-place

models have posed challenges to the Drugs and Cosmetics Act, which seem to render it

obsolete in attending today’s challenges.

Some of the issues with this Act are:

1. It does not address the concerns of online sale of drugs – this was highlights in the

recent issue of Flipkart selling prescription drugs

2. The regime of pharmaceutical pricing for essential drugs has led to many companies

levying charges of regulatory over-reach against NPPA

3. Drug testing seems to be a grey zone due to little protection for the vulnerable sections.

The HPV trials in Chhattisgarh and Telangana, where consent was not properly obtained

highlights this issue

4. The failure of popularizing generics in the public is another instance where the act has

failed

Steps required tending to these issues

1. Strictly enforce prescriptions for select drugs at stores and online. The culture of

impunity with which people purchase any drugs off-the-shelf should be removed

2. NPPA should consult pharmaceutical companies before bringing any drugs under the

NLEM. Otherwise it would lead to shut down in production of drugs that are not remunerative

3. Awareness programmes should be carried out to ensure that people don’t fall for false

claims of dug testing companies and that they are fully cognizant of possible consequences

4. Doctors should be asked to prescribe generics, at least in rural areas. Further Jan

Aushadi stores need to be revamped to allow people to purchase generic equivalents of drugs

they know.


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Given the increasing size and scope of the Pharma sector, there is a need to revamp it in tune

with changing times.

Q.14) Is green the colour of growth? Comment in the light of the US-India

energy relationship.

One should write about “Green being the present colour of growth” as the central THEME, in

the first part of the question as it will help one stick to the question asked and will help provide

a proper framework to the question.

In the conclusion, a short analysis of how does the world see this cooperation or how important

it holds for the other States to follow the same should be written to give it a complete picture.

While commenting, you need to bring the other side of this as well. Whether Green is the color

of growth? Hint- India’s major energy dependency is still on the non-green side.

Top Answer by Samudragupta

Reports and surveys have repeatedly made a case for mass extinction if problems like climate

change,global warming pollution etc are not tackled.This awareness of the problem has meant

that green definitely should be the colour of growth.

India and countries world over are engaging themselvs in several initiatives like kyot

protocol,montreal protocol,anti desertification to rein in climate change.In this context indo-US

energy relationship can be summarised as follows:

The relationship grew from a normal energy dialogue in 2005 to promotion of clean

energy

Recent breakthrough in nuclear liability would further clean energy development

through US supply of nuclear reactors.

A joint R&D center has been established to research on clean energy and connect policy

makers and industrialists in both countries.

A clean energy promoting fund called PACE setter fund has been established.


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US vowed to reing its emmission and we are trying to come up with workable figures of

INDC to be adhered to

The above ind0-US energy relationship definitely makes a case for clean and greene nergy.But

on the downside our growth cannot be all the green because

We are still a developing country and green growth I costly.This would deter out process

of development.

Most of the systems in place be it in enery,manufacturing or otherwise are pollutin.It

will be sometime before growth becomes green enough.

US is developed and it can afford green growth whereas india cannot.SO US-India

relationship in energy and their emphasis on less pollution should be taken with a pinch of salt.

Overall though green definitely is the colour of growth,it should occur gradually for India.

Today’s Top Answer is written by – Peeku

Ans) Recently, the US ambassador to India Richard Verma called Green the colour of growth.

Green is not only the colour of growth but also symbolizes harmony, nature and most

importantly sustainability-the most important dimension of development. In the light of US-

India energy relationship, GREEN has become the dominant theme:

1. In 2009, President Obama and then-Prime Minister Singh launched the U.S.-India

Partnership to Advance Clean Energy. Now, Prime Minister Modi and President Obama have

committed to strengthen and expand the initiative.

2. The US Embassy and the Ministry of New and Renewable Energy launched the India

Clean Energy Finance Forum ( high level policy discussion) and the U.S.-India Task Force on

Clean Energy Finance.

3. Joint Clean Energy Research and Development Center supports cutting-edge research in

solar energy, advanced biofuels, and energy efficient buildings.

4. Promoting Energy Access through Clean Energy (PEACE) program to greatly accelerate

the deployment of off-grid clean energy.

5. Recent breakthrough understandings in the civil nuclear sector will allow building of

low-carbon base-load nuclear power plants.


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With issues like dependence on coal for energy and energy poverty and inequality, the US India

energy relationship holds immense potential. The challenge for India however will be to pick

the right technologies and to define the level of support that the government should provide

and what incentives might be put in for the private sector to augment the government’s

involvement.

Q.15) India has been attempting to promote high technology industries. What

do you mean by ‘high technology industries’? Examine with the help of recent

examples if India is capable of walking down this path.

Features should be written about “High-tech industries” as it forms the base of this question.

This question has to be answered with the examination of the recent strides taken by India and

so one needs to restrict oneself with the deficiencies which can just be lightly put in the

conclusion, as issues to be worked upon to achieve the same.

Today’s Top Answer is written by – Peeku

Ans) High technology industries are those which employ cutting edge or the most advanced

technology available. Such industries need highly skilled personnel and high investments in

R&D. Qualcomm in wireless chips, Intel in computing, and Airbus are some examples.

India has many assets to build such an industry. It has strong core engineering skills. In sectors

like automobiles and pharmaceuticals, India is beginning to have global presence.This has

deepened India’s management skills. Knowledge of English has been a big advantage too.The

IITs and NITs graduate a sizable number of students in science and engineering. Recent

examples proving this stand are:

1.ISRO successfully launched GSLV-D6 carrying GSAT-6 satellite. Also, more satellites are

planned to be launched during 2015-16. These include GSAT-15; IRNSS-1E, IRNSS-1F & IRNSS-

1G; and Space science satellite ASTROSAT.

2.Biotechnology is developing at a fast pace with India being 3rd biggest biotech industry in the

Asia-Pacific region. Recently, Indian biotech firm Stempeutics Research gets China Patent for its

novel stem cell drug. It is the only company in the world to get a patent from the Chinese

patent office.


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3. India-based Neutrino Observatory Project has been recently approved for non-accelerator

based high energy and nuclear physics research in India.

4. Microelectronics is also developing with projects as Digital Programmable Hearing Aids going

on.

Although there are issues like brain drain and many projects are done with foreign help, India

seems to have the potential of walking down this path. Building a world class and globally

competitive high technology industry is a huge task, but India has most of the ingredients for

success.

Today’s Top Answer is written by – Nishant

Ans) High Tech Industries have three broad features:

1. Need highly skilled labor

2. Large investment in R & D

3. Access to and demand in global markets

India’s traditional PSU model to promote high tech industries has largely failed to deliver good

results. But recent examples have given a more optimistic view in this regard:

1. ISRO – With the emphatic success of its Mars Mission and rapidly improving satellite

launch technology has become the cynosure of all eyes. It is now launching satellites for other

advanced countries

2. Pharmaceutical Industry – Indian generic drug makers showcase our skills in frugal

reverse engineering. They have huge demands in African countries where drug delivery is scare.

Additionally, India has strong core engineering skills that have huge scope in semiconductor

chip design, computing etc. To illustrate, 1/4th of all engineers at Intel are Indian. But the

positive signs aren’t without certain caveats:

1. Capital investment is hard to come by domestically. Advanced countries attach

conditionalities to their funding with an aim to derail India’s attempts at high tech industries. A

clear policy and tough stand at WTO is needed on India’s part to prevent cases like dumping of

cheap mobiles by China into India markets.

2. Retention of local talent and promoting to original R&D work to prepare a strong

domestic base.


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Q.16) Discuss the modernization initiatives that will help the Indian Navy to

become a Blue Water Navy.

The Top Answer is written by – Ashish Tiwari

Ans) Blue water navy has the capability to conduct military operations in deep sea which

conventional green water navy is unable to perform due to lower capacity of warships and

submarines. It implies force protection from sub-surface, surface and airborne threats and a

sustainable logistic reach. An Array of modernization initiatives is required to realize the true

potential of blue water navy.

1. Aircraft Carrier: Currently India operates INS Vikramaditya and INS Viraat, while INS

Vikrant is expected to be commissioned in 2018. However, it is imperative for a blue water navy

to manufacture its own aircraft carrier. This ensures the quick availability of components in war

times.

2. Submarines: Indigenously built Nuclear powered submarines INS Arihant is a major

achievement however indigenization efforts should be strengthened to minimise dependence

on key imported equipments.

3. Amphibious transport dock: Necessary for carrying troops to distant warzones. India

currently has INS Jalashwa (Imported).

4. Battleships: Can perform short term operations in Deep Ocean and can support aircraft

carrier by supplying logistics.

5. Expediting procurement process: Long procurement cycle results in delivery of obsolete

equipment.

FDI in defense, Make in India, Skill India program, New Defense procurement plan,

Improvement in bilateral relation with US, Israel, France are other areas through which India

can become an effective global Blue Water Navy.

Q.17) “Gene Therapy offers a wide range of prospects for humans.” Comment.

The Top Answer for this question is written by – Maari

Ans) Gene therapy is a form of therapy that involves inserting one or more corrective genes

that have been designed in the laboratory, into the genetic material of a patient’s cells to cure a


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genetic disease. Current gene therapies are primarily experimental, with most human clinical

trials still in the research stages. The gene therapy has wide range of prospectus for humans

which include:

1) Treatment of Genetic Disorders: The idea of gene therapy rests on changing the internal

structure of the DNA to prevent or cure illnesses. About 4,000 diseases have been traced to

gene disorders.

2) Immune deficiencies: Several inherited immune deficiencies have been treated successfully

with gene therapy. Deadly diseases like leukaemia (blood cancer ) can also be treated .It offers

potential for treating AIDS for which still now there is no cure available.

3) Restricting the passage of hereditary diseases: With somatic gene therapy, hereditary

diseases could be restricted for which there is no alternative Eg(hereditary blindness).

4) Immunization: can be used for immunization against persistent infections

5) Clinical trials in hemophilia, where there is excessive bleeding due to lack of proteins has met

with large success.

6) Blood related diseases like Beta Thalassemia and sickle cell diseases can also be treated.

With its great success at clincial stage, gene therapy could be the future in the way in which we

treat diseases.

Q.18) What is the significance of Helium 3? How is it related to space

explorations?

The Top Answer for this question is written by – Meera Kelkar

Ans) Helium 3 is a non-radioactive isotope of Helium, and is a rare isotope in occurrence, on

earth. Its significance is seen in many applications like:

1. Fusion reactors: can be used as a fuel in fusion reactors to generate a proton as by

product, whose momentum can be used to generate electricity.

2. Neutron detection: used as a converter gas in neutron detectors due to its high

absorption cross section

3. Cryogenics: He-3 refrigerator uses He-3 to achieve extreme low temperature.


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4. Medical Lung imaging: gas mixture containing polarized He-3 can be used to produce

anatomical images of lungs through MRI scanner.

He-3 has been in the news over its significance in Galactic Economy. He-3 has a great potential

of being used in Fusion reactors with an added advantage of being non radioactive. Unlike the

earth, moon and other gaseous bodies have abundant He-3 minerals due to bombardment by

Solar wind.

Many of the scientific payloads of ISRO’S Chandrayaan I had noted applications for mapping the

Lunar surface for He 3.

Arguments have also been made for mining Helium-3 from Jupiter, where it is much more

abundant – it would need to be given the distances involved.

Not everyone is in agreement that Helium 3 will produce a safe fusion solution. Still research is

going on to substantiate this claim.

Q.19) “The Government of India, through the Science, Technology and

Innovation (STI) Policy-2013, among other things, also aspires to position India

among the top five scientific powers in the world”. Throwing light on the

statement, discuss the critical factors that will make India among top five

scientific powers in the world.

The Top Answer for this question is written by – Nishant

Ans) In line with STI policy 2013, critical factors to bring India among top five scientific powers

in the world are:

Investment – Provide an environment for greater private investment especially in high-tech

industries. This will require a liberal FDI policy with plug and play PPP models. Simultaneously,

public investment in R&D should increase from 1% to 2% of GDP.

IPR reforms – India needs to do more to secure IP assets of foreign firms. Other critical areas

are cyber security, data piracy etc. A robust IPR regime is required to reduce the trust deficit of

advanced countries as seen in Special Report 301 on IPR by USA. It’ll help international firms

see beyond “outsourcing” wrt India.

Skill Development – Making research careers like PhD more rewarding. This will boost domestic

R&D base. Also, a skilled labor force is required to deliver end-to-end solutions in high-tech

manufacturing. It is critical to gain global advantage as done by China.


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Promote Innovation – Through technology based incubations. India has the potential to create

its own Silicon Valley by tapping into the domestic engineering and management talent taking

offshore flights. A strong policy support such the recently announced Atal Innovation Mission

(AIM) via NITI Aayog can do wonders.

Gender Equality – Oft-neglected is the value women hold in science. They make just as good

researchers, engineers if not better. India can take a leaf out of Israel’s book in this regard.

Q.20) “India is widely recognized as a knowledge hub powering the global

economy”. Critically Evaluate.

The Top Answer for this question is written by – Deepansh

Ans) India has always been at the centre of the world when it comes to knowledge and

learning. Ancient Universities of Nalanda and Taxila are testimony to it.

But by simply inheriting such a rich legacy, whether one can view India as a “Knowledge Hub” in

the current era needs to be evaluated:

Achievements:

1. Primacy in IT: With global leadership in the field of IT, India continues to be the favored

destination for IT services leaving the competition far behind.

2. Growing Space Technology: Successful programs like Mars Orbiter Mission,

Chandrayaan Programme and recent launch of GSLV Mk-III have helped achieve self-reliance in

launching satellites.

3. Center for Innovation: India has made significant contributions to research in Medicine,

Biotechnology, etc and is a budding ground for research in Electronics, Power, etc with

companies like GE, Philips et al setting up R&D centres.

4. Huge Talent Pool: Visible from the number of Indians working in NASA, Microsoft, etc

Challenges:

1. Although some institutes are among top 200 universities, higher educational system is

not very conducive.


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2. Mainly due to the issue of “Brain Drain”, Indian R&D is not globally competitive and

number of patents to Indian companies has been very low. Additionally, Indian IPR regime is

weak.

3. Women researchers are low which a huge drawback is.

4. Initiatives like Make in India, Skill India are good but the cuts in education budget and

lack of resources in R&D needs attention.

With more research centric initiatives and policy reforms, India can surely become the

“knowledge capital” of the world.

Q.21) Saumitra Committee recommendations propose for the shift towards

alternate fuels to reduce India’s dependence upon petrol and diesel. Critically

examine the recommendation and suggest a way forward.

The Top Answer for this question is written by – Ashish Sancheti

Ans) Despite introduction of vehicle emission norms since 1991, automobile pollution remains

a leading cause of environmental pollution in India. Saumitra committee has, thus,

recommended a shift towards alternative fuels.

Major findings and recommendations:

The committee examined merits and demerits of possible alternative fuels vis-a-vis diesel and

petrol like Methanol, Ethanol, Hydrogen, CNG, LPG and Hybrid Electric Vehicles.

The implementation of these can have following impacts:

Long term:

1. It will reduce import dependence, contain fiscal deficit and provide the fiscal space.

2. Reduce emissions, stem environmental degradation

3. Help achieve India’s international commitments and strengthen its global image

4. Cleaner air helps in various other fronts : reduce health vulnerability, social security

strengthened, a healthy demography will certainly contribute more to GDP.


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Short term:

1. Increase fiscal burden. There are various limitations to use these alternative fuels which

requires huge infrastructural investment, R&D, promotion and public awareness programs.

2. This might take toll in other social goals India has set itself for due to limited financial

capacity.

3. Increase public awareness and environmentalism in the country

The way forward should be a gradual shift to these alternates by infrastructure development

and R&D.

Some suggestions are augmentation of implementing BS5 norms, taxing the diesel guzzling

SUVs and reducing taxes on hybrid fuel efficient cars, linking insurance with vehicular pollution,

charging cess to upgrade technical capabilities of refineries, increase ethanol blending

(committee recommends 20% blending by 2017), replicate CNG success story across the

country. Energy security and environment degradation for India are alarming issues and

immediate effective steps has to be taken to tackle them.

Q.22) “Conservation is best achieved by those who know the forest”. In the light

of the statement, critically discuss the present status and issues related with

Forest Right Act.

The Top Answer for this question is written by – Sepoy No 1446

Ans) Forest rights Act 2006 was an attempt to compensate for the “historical injustices” done

to to tribal people by recognizing their rights over forest land and conserve forests at the same

time.The act recognizes two type of land rights:

1. Individual rights over cultivable land

2. Community rights over community forest resources (CFR)

Once the rights are granted, no unauthorized development can take place. This way it provides

livelihood security to indigenous people which in turn ensure conservation of forests.

However the implementation of acts has been less than satisfactory. Major reasons can be

attributed to lack of awareness about FRA rights, bureaucratic resistance, political and

corporate lobbying and procedural complexities. Under the act CFR claims first go to Gram

Panchayat which has been given authority to examine and approve such claims. After GP


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approval it goes to state’s sub-divisional and district level committees (SDLCs and DLCs). Many a

times approval got stuck here, thus rendering the whole exercise futile. Vested interests play an

influencing role. Mahan forest clearance in MP and Vedanta and POSCO cases in Odisha can be

referred to in this context.

In this situation,judicial intervention and NGT role becomes crucial. However these are

piecemeal approaches and only comes into picture when substantial dilution of FRA has taken

place. Hence way forward should look into easing the bureaucratic resistance and procedural

complexities. An awareness drive to educate tribal communities about their legal rights and

periodical evaluation by expert agencies should be made more of a norm than exception.

Q.23) Trace the differences in Kasturirangan and Gadgil’s report on the

demarcation of ESA in the Western Ghats region. Is Kasturirangan’s report a

diluted version of Gadgil report? Critically examine.

The Top Answer for this question is written by – Heidi

Ans) Two Environmental Research Committees, Western Ghats Ecology Expert Panel headed by

Madhav Gadgil and High Level Expert Group headed by Kasturi Rangan, were appointed to

suggest protective measures for Western Ghats. The latter was appointed to look into the

recommendations of the former.

Environment vs Development

The committees differ fundamentally on their recommendations. As the recommendations

were debated as an ‘environment’ vs ‘development’ issue; Gadgil report is viewed as pro

environment and anti development; on the other hand Kasthurirangan report is viewed as pro

development and anti environment.

Gadgil committe demarcate The entire Western Ghat as Ecologically Sensitive Area (ESA) by

severely restricting developmental and other livelihood activities. where as Kasthurirangan

committee demarcates only 37% as ESA and restricting only highly damaging activities. This is

the fundamental difference. Which makes the latter a diluted version of the former.

Environment vs People

Environment protection is undoubtedly of prime importance but the ground reality should also

be considered. Abandoning power projects will be counter productive if alternatives are not in


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place. If agriculture banned without proper rehabilitation plans, people will loose their

livelihoods. the revenue loss issue to the states should be considered.

Sustainable Development

Environmental conservation cannot be achieved solely at the cost of certain section’s lives and

livelihoods. The likely impacts, the implementation of the report is going to make on these

people should also be considered genuinely. All these require a practical approach with

alternatives and rehabilitation in place, rather than an idealistic non implementable suggestion.

Q.24) Write a note on structure, functioning and performance of Coastal Zone

Management Authorities (CZMAs)

The Top Answer for this question is written by – Maari

Ans) The Coastal Zone Management Authority(CZMA’s) are the only institutional bodies at

present through which all objectives of the Coastal Regulation Zone (CRZ) Notification(1991)

are to be realized.

Structure of the CZMA was established due to Supreme Court order in 1996 :

1. The National Coastal Zone Management Authority (NCZMA): Responsible for the

coordination of actions of SCZMAs and for providing technical support and assistance to them

when necessary.

2. State/Union Territory Coastal Zone Management Authorities (SCZMAs/UTCZMAs): In

every coastal state (9) and Union Territory(4)

3. District Level Coastal Committees (DLCCs): In every district that has coastal stretch and

where CRZ Notification is applicable

Functions:

1) For protecting and improving the quality of coastal environment.

2) Examination of proposals for change in CRZ areas & making recommendations.

3) CZMP preparation, zoning & classification.

4) Identification of ESAs, areas prone to erosion and economically important stretches.


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5) Address concerns of coastal communities.

6) Post-clearance monitoring.

Though CZMA’s have been performing well in taking actions against violations but its

performance is affected by factors like

1) Members have been mostly working part-time, with their role in the CZMA being an

additional responsibility.

2) Low inter-departmental coordination.

3) Lack of public interface for redressing grievances of coastal communities.

4) Low allocation of funds.

5) Irregular conduct of meetings.

CZMA can play an important role in balancing India’s quest for development and environmental

concerns.

Q.25) Is National Compensatory Afforestation Fund (CAF) synonymous to the

concept of ‘Green India’? Comment.

The Top Answer for this question is written by – BS

Ans) Compensatory afforestation is defined as afforestation done in lieu of the diversion of

forest land for non forest use under the Forests (Conservation) Act; 1980.

The National Mission for Green India is one of the eight Missions outlined under the National

Action Plan on Climate Change (NAPCC). It aims at protecting; restoring and enhancing India’s

diminishing forest cover.

Green India is a more holistic and broader approach to greening than CAF:

1. It is not limited to trees and plantations, but also focus on restoring diverse ecosystems:

mangroves, wetlands, fallow agricultural land, wildlife corridor

2. It aims to restore, protect and enhance relatively dense forests


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3. It envisages a key role for local communities and seeks to provide a higher forest-based

livelihood income to three million households

The recent CAF Bill if cleared will create an appropriate institutional mechanism, to utilize these

funds for afforestation. Earlier the artificial plantation under CAF has created many problems

like fragmentation of ecosystem, introduction of non-native species and threat to wildlife.

There is a need for convergence between Green India and CAF to ensure an integrated

approach to address the challenges of degradation of forest, deforestation, threat to wildlife

etc

So the concept of Green India also includes in its ambit the aims of CAF that is conserving

“remaining forests of India”.

Q.26) ‘Liberty requires both security and privacy’. Critically evaluate the scope

of Internet governance in ensuring the same.

The Top Answer for this question is written by – Sepoy No 1446

Ans) Absolute liberty creates chaos and hence no state can allow it. In the era of internet and

digital revolution, the concept of liberty has become more fragile, complicated and challenging.

Two important aspects of this liberty needs to be analyzed:

Digital privacy: Impersonal nature of interactions in digital world acts as an incentive for third

party to hack the data and look into private, sensitive information. Individual privacy can be in

form of blackmail with compromising data exchanged over chats and email

exchanges.Corporate privacy can be related to leakage of patented technology and crucial

company data which can put companies at a loss

Digital security: It includes cyber hacking, virus attack, controlling government websites,

breakdown of the national defence servers etc. These have wider security implications.

Hence, internet governance needs to ensure both. Internet governance includes these aspects.

For examples:

– Companies like Google, Facebook, twitter and their privacy policy will come under the

purview.


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– IT act 2000 regulates IT and internet in India. Specific section like 66A has been criticized for

violating liberty and freedom of expression rights. Hence amendment needed

– Multi-stakeholders model like ICANN aims to democratize internet thus breaking monopoly of

US and western countries. This is important to preserve the dual aspect of liberty,especially

after incidents like NSA snooping, wikileaks and Edward Snowden case.

With increase in E-governance, more services, institutions and individuals are coming into

vulnerable zones. Hence a robust governance system will be the first criteria to ensure digital

privacy and digital security.

Q.27) Keeping in view the Pathribal incidence, comment on the increase of

‘rogue elements’ in the security forces encouraging miscarriage of justice.

The Top Answer for this question is written by – SK

Ans) Ever since the Armed Forces Special Powers Act (AFSPA) was enacted, there has been an

increase in the number of “Rogue Elements” in the security forces. Besides, cash incentives and

rewards to the army personnel for killing militants encouraged the rogue elements to

undertake various dubious means to earn those rewards. It is on these lines, the Pathribal

incident happened in 2000, where few civilians were killed and showed to the world as “foreign

militants” by the Army. Several such fake encounters and human rights abuses were reported in

other areas of Kashmir and in North East states where AFSPA is under operation.

The victims of these incidents were denied justice by not convicting even a single person who is

guilty. Only recently in the Macchil case, for the first time, the Court Martial convicted rogue

elements and awarded sentences. Immunity provided to the security forces under AFSPA and

prior sanction requirement for civilian investigation is the cause for rise of rogue elements.

Jeevan Reddy committee recommended amending AFSPA to punish the guilty personnel and to

bring them under UAPA for civilian control. Also, after the Pathribal case, the Supreme Court

held that there is no need for prior sanction, unlike CBI, for Court Martial. These measures

would revive the hope of accountability of rogue elements in armed forces.


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Q.28) What is asymmetric warfare? Explore the possible tactics and challenges

involved.

The Top Answer for this question is written by – Heidi

Ans) Asymmetric warfare can be attributed to the ancient ‘Chanakyan Tactics’ of fighting the

powerless. In modern times it has numerous manifestations like ‘Guerrilla warfare, counter

terrorism, insurgency, proxy war etc. It is the war between two unequals in terms of power,

Tactics and strategy. The world has witnessed many of them including Vietnam war, Afghan

war, Philippine American war etc.

TACTICS INVOLVED

– Destruction of strategic infrastructures like roads, power stations, water storage, military

bases etc (World Wars)

– Using technological advantage to make losses on the weaker side and Guerrilla warfare

(Vietnam war)

– Provoking protests among representatives and public in the rival country (Recent Russian

Crimean conflict)

– Propaganda and false allegations to gain international support (Iraq war and propaganda of

WMD)

– Terrorists tactics and suicide bombings (World Trade Center attack)

CHALLENGES

– ‘Might is right’ will likely become the rule in international disputes. (Palestine Israel conflict)

– There is an increasing chance of terrorist outfits acquiring sophisticated modern technologies

and weapons challenging international peace. (ISIS)

– International community can be fooled by false propaganda (Iraq war)

– Economic sanctions can destabilize weaker states (Cuba, Venezuela, Iran)

Strict enforcement of UN Arms Trade Treaty and UNSC reforms can address the issue to a great

extent.


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Q.29) Write a short note on the recommendations by Naresh Chandra to

strengthen the security task force of India.

The Top Answer for this question is written by – Deepansh

Ans) Naresh Chandra Committee was created with the objective of reforming the ailing higher

defense management and strengthening the National Security System of the country.

Recommendations:

1. Amend Prevention of Corruption Act: To protect officers from harassment over ‘error in

judgment’ while making defense purchases. This will help officers escape any scrutiny which

seems unfair and also raises the issue of accountability.

2. Induct Foreign Language Experts: In intelligence and Security agencies which lack

trained linguists.

3. Accept Officers on Deputation in MEA: Officials from armed forces with requisite

technical and technological background will help in diplomatic missions.

4. Create New Posts: Chairman Chief of Staff Committee (CoSC), to assess the strengths

and weaknesses of India’s adversaries, and Intelligence Advisor, to assist NSA.

5. Establish New Institutions:

1. Advanced Projects Agency – for research into advanced weapons

2. National Defense University and Think Tank – for knowledge and training in

defense and for policy formulations on internal security.

3. National Counter-Terrorism Centre – to fight terrorism.

6. Increase FDI in Defense: To manufacture products in India with latest technologies.

7. Setup Special Forces: Under the command of CoSC to enhance special warfare

capabilities, on the lines of US Navy Seals.

In the wake of recent attacks, like the one in Manipur, it is of paramount importance to revisit

our defense capabilities and strengthen it to tackle future strategic threats.


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Q.30) “Refugee crisis is more of a global security concern than humanitarian

crisis”. Comment. Do you agree with the view that Refugee Crisis of East and

West are different faces of the same coin?


Ans) Refugees are those people who flee their own-country due to threat to life. In the recent

past this has turned into a crisis due to massive increase in their numbers.

East

In the East, refugee crisis was seen in Myanmar, Afghanistan, Sri Lanka, Tibet, and Bangladesh.

Here the reasons for fleeing the country are ethnic conflict (Sri Lanka), communal threats

(Bangladesh, Myanmar), Terror threat (Taliban in Afghanistan) etc. The Rohingya crisis in

Myanmar is the recent one. According to UN, “Rohingyas are the most persecuted minorities in

the world.”

West and Middle East

In these regions, including parts of Africa, major causes for refugee crisis are:

Rise of terror groups – ISIS in Syria-Iraq; Boko Haram in Nigeria; Al Shabab in Somalia etc. Civil

Wars – Syria and North Africa (Arab Spring).

This refugee crisis has posed a global security concern, more than humanitarian concern. These

security concerns are: fear of radicalisation of citizens; religious propaganda; law and order

problems; changes in demographic factors etc.

Thus, refugee crisis in East and West are based on two different grounds, which can be viewed

as two sides of a coin. It is necessary to control the crisis by having International cooperation.

United Nations High Commissioner for Refugees should be sufficiently funded to tackle the

crisis.

Q.31) What are the components and functions of NDMA? Discuss the structural

and functional bottlenecks of NDMA’s work in the past few years.

The Top Answer for this question is written by – Ranjeeth


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Ans) As per the Disaster Management(DM) Act 2005, National Disaster Management

Authority(NDMA) was formed is the apex body for Disaster Management in the country under

the chairmanship of PM.

COMPONENTS:

->Policy&Planning,Mitigation,Administration,Operation&Communication,Capacity Building are

the components for day to day work of the Authority.

->SDMA&SDRF,DDMA,NIDM supplement the NDMA with NDRF under direct control of agency.

FUNCTIONS of NDMA:

->Approve a National Plan for Disaster Management

->Lay down policies and guidelines for State plans,Government agencies and NIDM

->Coordinate implementation of policy and plans for Disaster Management

->Provide support to other countries as determined by Indian Government.

After 9 years of working still the functioning of NDMA has not been to its potential and

criticized to a level of scrapping the organisation.Bottlenecks for effective functioning of NDMA

are –

STRUCTURAL

1)No direct control over SDMA and NDMA with NDRF reporting to Home Ministry.

2)Lack of effective integrated coordination mechanism with IMD,CWC.

3)Non availability of a Robust Decision Approval System.

FUNCTIONAL

1)Guidelines formulated by NDMA not implemented by other agencies

2)Poor planning and implementation with more dropped projects adds.

3)No proper directions to work dus to long time vacancies from top posts to expert members.

4)Non functioning of sub agencies and expert level committies.Even the apex body-National

Executive Committee has not met since 2008.


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The CAG in its 2013 report pointed out the poor performance and management of NDMA and

termed the NDMA as ‘ineffective’.But still the role of NDMA at the time of a disaster is not

explained crystal clear and that subjects the agency to more critizations.

Recent appointments with PM’s direction to make the agency effective might help to solve

issues but needs more support to make the agency effective in DIsaster Mitigation and

Management.

Q.32) Write a short note on Sendai Framework for Disaster Risk Reduction.

The Top Answer for this question is written by – Ravi

Ans) Sendai Framework for Disaster Risk Reduction is the first major agreement of the post

2015 development agenda adopted by the Third UN World Conference which consists of four

priorities for actions to achieve seven broad global targets.

It not only reemphasizes the principles of Good Governance that State has a primary role in

reducing the disaster risk and gearing up all sections of society in disaster management but also

emphasizes that other stakeholders like private sectors to be involved in response

preparedness.

Four priorities for Action :

1)Understanding the risk

2)Strengthening governance to manage Disaster risk

3) Investing for resilience from disaster risk

4) Enhancing Disaster preparedness for rehabilitation and reconstruction

Global Targets include reducing mortality, economic and infrastructural loss,damage due to

disaster and international cooperation to developing countries.

India has declared to implement the framework where it includes integrated and inclusive

institutional measures to work towards

1) Preventing vulnerability to disasters


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2) Increased preparedness for response and recovery

3) Strengthen resilience

India has also proposed to Private sector to involve as a part of Corporate Social Responsibility

to play a big role in disaster preparedness and mitigation planning. The framework will benefit

India in acquiring resilient technology and emergency response plans for its nuclear energy

facilities from developed nations like US and earthquake and Tsunami resistant designs from

Japan.

Q.33) What is a disaster? Examine the aspect of ‘National Calamity’ and the

reason for it being in news.


Ans) Disaster – A disaster is a natural hazard that causes great loss to human life and economy.

It could be man-made or natural. It may include mishap, catastrophe, calamity or any grave

occurrence.

National Calamity – The Disaster Management act do not define anything as “National

Calamity.” But the idea was developed when Tenth Finance Commission recommended setting

up of a national fund for “calamity of rare severity.” Central govt is supposed to fund the state

for rehabilitation purposes, when such calamities of rare severity occurred. This has been

modified as “national calamity” over time.

The National Calamity was recently in news because of Hudhud cyclone that hit the eastern

coastal states in 2014. There was a demand to declare the calamity as national calamity.

If it were declared, then the central govt has to fully fund the state for rehabilitation. This can

be done by imposing surcharges on corporate tax and income tax to fill the gaps in National

Disaster Response Fund. Citizens are expected to oblige the measures of govt to raise funds,

since it is their Fundamental Duty to render service to the nation when called upon to do so.

Hence, there is a need to insert “national calamity” provision into Disaster Management act, so

that there can be a guaranteed assistance to states in times of severe natural calamities.


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Q.34) Catastrophe during disasters increases manifold due to constraints of

insurance in developing countries. Critically examine the statement and suggest

a way forward.

The Top Answer for this question is written by –

Ans) It is often said, true catastrophe of a disaster is not immediate. It lies painfully in months of

rebuilding one’s broken house, a ravaged farm or paying huge medical bills that ensue. A lack of

insurance, especially in developing countries is found to be the common denominator in most

disaster related losses.

To illustrate, the J and K floods in 2014 caused a cumulative loss of over 40,000 crore. With little

insurance support, it pushed thousands of people into years of poverty. In a way for them,

catastrophe spiraled many times.

But, without overstating the case for insurance, lack of right policy and planning, rapid response

in operations and communications and overall poor mitigation strategies are still the main

culprit in magnifying disaster related losses. The golden rule of “prevention is better than cure”

truly applies in this case. Insurance can at best transfer the incidence of losses from people to

the government or private firms,

Way Forward:

Diversification into specialized cells for the NDMA and SDMA to improve response times

Stringent steps for approvals of new constructions and strengthening of existing building

codes

Promoting disaster insurance through current financial inclusion programs. Eg

subsidizing premium in PM Suraksha Bima Yojana

Special focus on covering agri-losses due to disasters via NABARD


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Q.35) Write short notes on –

1. a) Ham Radio

The Top Answer for this question is written by – Manpreet Kaur Mankoo

Ans) Ham radio is a reliable, effective two way communicating mode that can be used across

the globe (even in space) wirelessly and inexpensively.

It can be of great benefit during emergencies and communication blackouts. It played a

significant role during the Quit India Movement. It has also been used voluntarily for

downloading, decoding and issuing weather satellite signals on internet.

It was recently used by Indian hams to connect with hams in Nepal during the Nepal

earthquake.

However, involved policies and lengthy procedures hinder the growth of ham radio that needs

to be made online for hastening the license process.

1. b) Social Media during disasters

The Top Answer for this question is written by – Santhosh Venkatesh

Ans) – Social media during disasters can serve as a complete communication tool where users

send information, receive feedback and respond to it.

– During Kashmir floods Army and Twitter used an Automated Sensor Observation Service (SOS)

by channelizing SOS information received in twitter feeds.

– Hence they can improve relief and rescue operations and be used by Disaster response

personnel and government.

– But certain challenges such as Classifying huge data, misinformation and self regulating

Nature of Social media need to be addressed.

1. c) Role of Discretion and Judgement during disasters


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The Top Answer for this question is written by – Abhishek V

Ans) Since disaster strike with little or no time for preparing, swift judgement and decisions

taken on discretion of local authority are a very important factor in mitigating the damage done

by disaster. Given the difference evacuation and no-evacuation; availability of transport;

decision to call aid can made within small time, district collector is given authority to mobilize

the response machinery, financial power to draw money and call for military aid in case of

disaster.

Much life toll was prevented during Hudhud cyclone due to swift judgement of local

authorities. Efforts should be made for capacity building and power delegation for panchayats

as well.

Q.36) Is it necessary to re-introduce the clauses of social impact assessment and

reinstate the land acquisition consent?

The Top Answer for this Question is written by – Indushree

Ans) The emphasis on improving the ease of doing business has triggered a debate on necessity

of Social Impact assessment and Land acquisition consent.

– SIA can introduce delay in project approval which discourages investors

– Consent of people can be affected by ill-formed opinions. People may fail to see the criticality

of the project

However, SIA and consent clause ensure a fair, transparent and objective process of land

acquisition.

Need for SIA

– ascertains whether the stated project actually conforms to the public purpose it intends to

address – a check on greed of business houses

– assures a formal approval process and checks discretionary powers of bureaucracy


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– Cost-benefit analysis anticipates unintended social implications of the project like impact on

livelihood and agricultural production, pollution etc.

Need for consent

– Right to property is a constitutional right under Art 300A. Arbitrary curbing of such rights is

unacceptable

– Ensures that the interests of landless labourers whose livelihoods will be affected are also

addressed

– Encourages participative politics and democratic decision making

It is the unsystematic nature of process that is a matter of concern and not the process itself. It

is hence important to reintroduce a systematic, time-bound SIA in Land acquisition. Also,

making SIA reports public can help the citizens make a rational decision on project relevance.

Q.37) What explains the lacklustre participation of India in the global

production network for “Make in India”?

The Top Answer for this Question is written by – SK

Ans) Global Production Networks (GPNs) refer to a production process where parts and

components are manufactured and assembled in different countries, and the final product is

integrated at one place. GPNs have a huge potential for taking forward the Make in India

initiative. However, we have structural and policy challenges that hinders our participation in

the GPNs. They are:

1. Indian policies discourage labour intensive industries, which is essential for low-cost

assembling of parts and components.

2. Import substitution policy of post-Independent India showed bias towards capital and

skill intensive industries.

3. Lack of integration of domestic industries with global vertical production chains.

4. Inward FDI in India focuses more on horizontal expansion (market seeking), rather than

vertical expansion (export seeking)

5. 1991 LPG reforms could liberalize product market policies, but factory market policies

related to land and labour are still rigid and restrictive


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6. Eternal problems like: strict regulatory architecture, tedious land acquisition process,

poor trade facilitation, power shortages etc. all together discourage foreign players from

entering India.

In this scenario, it is essential to leverage the comparative advantage that India has i.e. promote

unskilled labour intensive industries, like China. Bringing in labour reforms as taken in Rajasthan

and efforts to improve ease of doing business would be helpful.

Q.38) In the present scenario, what are the challenges faced by India in the area

of Skill Development? How can we overcome these challenges?

The Top Answer for this Question is written by – Maari

Ans) In India,Skill Development plays a crucial role in tapping the demographic dividend.The

challenges faced in the present scenario in this area are:

1)Quantitative dimension :Population entering in to the labour force(12.8 million per annum) is

much greater than availability of training institutes(4.3 million per annum) and also lack of

certified trainers.

2)Qualitative dimension:Demand-supply mismatch, the shortage of skilled workforce results in

loss of productivity.

3)Lack of Vocational Training:Just over 1 in 10 adults received training.89.2% of the target

population did not receive any training(NSSO data)

4)Lack of Private Investment: In spite of private sector showing interest ,its investment is not in

proportionate to its potential.

5)Social Status:Social status applied to white collar jobs (eg: like IT,Banking) is making young

population averse to blue collar jobs eg(Plumber, carpenter) leaving huge gaps in this sector.

The measures need to be taken to overcome this challenges are

1)Modification in the education curriculum and certifications to make it inline with industry

demands.

2)Emphasis on vocational training,MSME,entrepreneurship

3)WIth more Infrastructural support and optimum use of technology to access the left out

areas.


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With Govt Initiatives like National Skill Development Corporation with private sector

participation, Pradhanmantri Kaushal Vikas Yojana, Skill India, USTAAD which aims to train 40 cr

people by 2022 can be seen as steps in right direction .

Q.39) How will the National Agriculture Market contribute to the minimum

export prices?

The Top Answer for this Question is written by – DPT

Ans) National Agricultural Market which would integrate all the existing Agricultural Produce

Market Committees (APMCs) across the country through an online platform.

Minimum export price is the minimum price fixed by the government for exporting a good, this

tool protects national interests and checks domestic inflation.

Advantages:

1) The online platform would allow the bulk buyers, processor and exporters to participate

directly in trading at the local mandi- which would reduce cost of transaction.

2) IT would ensure timely delivery and settlements of payment.

3) It would increase transparency and break the nexus between Mandi and APMC which was

long restricting any reforms.

4) Improve supply chain and reduced wastages will further contribute to less minimum export

prices.

5) Private markets will also be allowed access thereby enhancing its outreach.

6) The producer will have improved access to market related information and competitive

marketing platform.

7) It would also increase his access to markets through warehouse based sales.

8) It will check fragmentation of State into multiple market areas and multiple levy of mandi

fees resulting in acceleration of prices.

9) The real time change in price of produce through an online National market will help

government check food based inflation by fixing the minimum export price at higher level


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Integration of agri-markets across the country through the e-platform is seen as an important

measure for overcoming challenges posed by the present agri-marketing system by checking

inflation and boosting exports.

Q.40) Should India use both the indices, CPI and WPI, for inflation measurement

and inflation targeting? Give your arguments and substantiate.

The Top Answer for this Question is written by – Jeandreze

Ans) Inflation remains a major parameter to determine the economic wellness of the nation. Of

various indices, CPI and WPI have been widely used for the following advantages:-

WPI

——

The index does not fluctuate often therefore is a stable parameter for policy making.Moreover,

the index has Pan India approach.The index helps to understand the issues faced by industry as

the sales tax etc are exluded from it

CPI

—–

The daily economic fluctuations vary from region to region . Moreover, they hit the different

sections of the society in different manner.Therefore, CPI is calculated as per rural, urban ,

industrial workers and labour. Food, fuel prices may vary continuously therefore they are more

of concern to the consumers.

But these indices suffer from some shortfalls. The services sector is not included in WPI index

and is partially represented in CPI. When this sector is a major contributor of the GDP then

excuding it will not give us the real picture. The imported goods are also not included in CPI

India can use both the indices depending on the purpose it serves.Urjit Patel Committee has

however suggested to target CPi to 4% as they are directly hitting the consumers.But other

indices eg GDP deflator, PPI are also useful to reflect other inflation components.

Q.41) Inclusive growth without rural development would be a misnomer.

Comment.


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The Top Answer for this Question is written by – The Credible Hulk

Ans) Inclusive growth refers to one which results in an overall rise in the standard of life of an

average citizen and fills the chasm of developmental disparity across regions.

A growth that leaves behind the rural areas and only makes urban areas more urbanised would

be a pseudo-success.

– More than 3/4th of the country’s population still live in rural and semi-rural areas.

– A huge part of the unorganized sector that accounts for more than 4/5th of the country’s

total GDP resides in these areas.

– Agriculture is still the dominant occupation here which has kept us self-sustained.

– Backward rural areas cause increased migration that leads to over-burdening of urban civic

amenities.

Hence, following steps need to bridge the difference in the pace of development between rural

and urban regions –

– Integrated agriculture encouragement measures like advanced farming technologies, credit

and crop-loss insurance facilities and ICT support.

– Encouragement to rural industries and entrepreneurs for employment generation and

rurbansation, through schemes like PMKVY, Udaan, MUDRA Bank, etc.

– Investment in education and health availability through proper implementation of SSA and

NRHM.

– Upgradation of public infrastructure like roads, railways, communication, etc to provide

linkage to adjoining urban areas.

Q.42) The global crude oil prices are on downturn due to shale exploration and

other geo-political factors. How will it affect rural economy of India?

The Top Answer for this Question is written by – Annapurna Garg

Ans) Crude oil prices have seen an unprecedented fall in prices in recent time driven by various

factors such as shale exploration, economic slowness in Europe and China, increase in crude

production by Saudi Arabia and recently concluded pact with Iran. It is a major event in global

platform which has important ramifications for India rural economy.


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Positive impacts:

1. It has led to easing of inflation. This will lead to increase in purchasing capacity of

households and improved household savings.

2. It has and would further reduce government’s subsidy burden, thus reducing fiscal

deficit. This would facilitate greater public investment in rural economy.

3. Reduced transport cost and fertiliser prices would reduce the input costs for agriculture,

thus benefitting farmers.

4. Booming rural economy would reduce banks’ reluctance to lend to rural people. This

might shed and lead to greater financial inclusion furthering rural growth.

Negative impacts:

1. Crude oil price fall is due to economic slowness which has led to reduced commodity

prices. This has brought doom for Indian farmers. For example rubber farmers of Kerala have

suffered massive losses.

2. Demand for agro exports is lacklustre.

Thus, international events have affected many lives in varied ways. National policy should aim

at leveraging the opportunity and minimising the adverse affects.

Q.43) The condition of farm sector and farmers is stubbornly stagnated despite

several support measures. What could be the possible reasons for it? Analyze

each reason and suggest alternative, if any.

The Top Answer for this Question is written by – Monk Who Sold His Nano

Ans) Despite employing highest share of workforce, agriculture is the slowest growing sector.

The following reasons may be cited for stagnation-

Historical –

1. a) British exploitation of farmers due to cash crops and famines of 60s made

government averse to commercial farming and only cereals were targeted under green

revolution. Having resolved the hunger problem cereals still remain the priority of our

agricultural production


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2. b) Poor implementation of land reforms have led to scattered land holdings, and

increasing proportion of small and marginal farmers.

3. c) The continuing legacy of GR of cheap electricity, diesel and fertilizers have caused

ecological problems of land degradation in Punjab, Haryana and Western UP

Financial –

1. a) little or no financial literacy + financial exclusion (unavailability of institutional credit)–

> easy exploitation by moneylenders

2. b) no insurance coverage –> the capricious monsoon destroys crops –> no financial

coverage for next crop cycle

3. c) irrational subsidies, MSP and random debt waiver due to vote bank politics –>

cripples financial institutions –> grow averse to lending and investing in agricultural sector

Infrastructural

1. a) poor transportation and storage infrastructure –> leakages and corruption

2. b) electricity, internet and in some cases even telecom networks don’t reach villages.

3. c) canal irrigation projects are stalled

Institutional

1. a) poor investment in research(only limited to HYV seeds)

2. b) lower yields of farms due to promotion of unscientific practices and poor

infrastructure

3. c) the disparity based approach (growth pole approach) adopted during Green

revolution is being persisted

4. d) reduced market access due to monopoly of APMCs

Alternate solutions-

1. a) financial inclusion (JAM trinity + post offices as small banks + kisan credit cards +

insurance cover)

2. b) digital + analog penetration (NOFN + kisan TV)


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3. c) rationalization of subsidies and agroclimatic cropping (using extension services& soil

health cards)

4. d) land reforms (chakbandi); promoting cooperative farming

5. e) initiating contract farming for commercial crops + NAM (reduce hegemony of APMCs)

Q.44) Few economists have argued that the frequent policy cut by RBI will

further draw chasm between rich and poor. Do you agree?

The Top Answer for this Question is written by – The Rock

Ans) Policy cuts by RBI promote private investments and consumer spending , which may cause

inflation. Thus, arguments that frequent policy cuts by RBI will further draw chasm between

rich and poor needs consideration

Arguments for policy cuts

1. Promote investments , thus increasing employment opportunities and infrastructure

2. Increases government revenues via taxation , thus reducing fiscal deficit and increases

spending on welfare schemes and subsidies

3. Cheaper credit to farmers and MSMEs , where most of the poor are employed

4. Higher growth has led to reduction in poverty from 37 to 22% since 1991

Arguments against

1. Inflation impacts the poor most adversely because of limited consumer spending

choices

2. Excessive borrowing increases Non performing assets of banks, thus reducing credit flow

towards poor

3. Decreases savings rate in banks, which is the only source of investment for poor

4. High Gini coefficient reflects increasing inequality against poor

In this regard , FSLRC recommendations of setting an independent monetary policy committee

to determine such rates can be considered . Thus , rate cuts must be driven by balancing the

needs of growth , stability and inclusiveness and RBI should act as facilitator for promoting

private investments and welfare of poor.


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Q.45) Payments banks are the new buzzword in the banking sector. Comment

on it’s need, objective and potential.

The Top Answer for this Question is written by – SK

Ans) A major shift in the Indian banking system will be witnessed from large-scale public sector

banks to small- scale “Payment Banks” with the RBI granting “in principle” licenses.

Need for Payment Banks – It is becoming economically unviable to provide financial services to

the marginalized sections who are scattered in the hinterlands. Physical branches can’t be set

up everywhere due to operational costs. Hence Payment Banks are needed.

Objective – To provide low-cost financial services like small savings, payments, and remittances

to low income households, migrant labourers and others.

Potential

1. Payment Banks provide transition from cash-based transaction to cash-less transactions.

This can help curb black money.

2. They operate mainly using mobile phones. This will pave the way for penetration of

mobile internet in the future, contributing to Digital India.

3. They can be useful for direct benefit transfers by integrating with JAM trinity. This would

help arrest leakages and thereby achieve fiscal consolidation.

4. Payment banks are allowed foreign shareholding. Huge proliferation in future may

attract foreign investment in them, thereby contributing to appreciation of Rupee.

5. Payment banks can lend only to govt or other banks. Thus, sources of finance for govt

can be diversified at cheap rates.

However, one concern with Payment Banks is that they eat into the market share of public

sector banks which are sitting on huge piles of NPAs. Their future is at stake now.


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Q.46) What is commodities exchange? What are the mechanisms in India to

regulate commodities exchange? Discuss its importance with regard to

agriculture sector.

The Top Answer for this Question is written by – FatMan

Ans) Commodities exchange is exchange where various commodities like wheat, rice etc and

their derivatives are traded. e.g Multi Commodity Exchange (MCX), National Commodity and

Derivatives Exchange (NCDEX), National Multi Commodity Exchange (NMCE), Indian Commodity

Exchange (ICEX), Ace Derivative Exchange (ACE) and Universal Derivative Exchange (UCX).

* Mechanisms to regulate commodities exchange

1. Commodities exchange in India are regulated by Forward Market Commission (FMC),

now merged with SEBI, under (i) Forwards Contract (Regulation) Act 1952 and (iI) Forwards

Contract (Regulation) Rules 1954.

2. Through government notifications commodities which can be traded and which are not

allowed are intimated time to time.

*Importance with respect to agriculture

1. Provides transparent price discovery mechanism. Farmers can plan their cropping

pattern for profit maximization.

2. Security of income. Farmers can enter into futures contract for assured price for their

produce.

3. Farmers can store their produce in exchange designated warehouse till they fetch

adequate amount for their produce.

4. Improves bargaing power of farmers. As transparent exchange price of commodities are

available.


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Q.47) According to National Sample Survey Organization, 33 % of all farm

households have less than 0.4 hectares of land. Also majority of farmers in India

are small and marginal farmers. Critically analyze the initiatives taken by

government to address concerns of farmers. Also suggest some measures in this

regard.


Ans) Land fragmentation is one of the major problems of Indian agriculture. It underlies several

other ailments of this sector, like low productivity, and low mechanisation etc.

Government since independence has taken several measures to benefit farmers:

1. Just after independence, cooperativization was attempted to address the issue of small

landholdings. But it failed badly.

2. Various subsidies are provided to the farmers-

o fertiliser subsidy has helped farmer to reduce input costs. But after the decontrol

except urea, it has led to skewed nutrient levels in soil.

o electricity subsidy has led to power wastage and lowered water levels.

o MSP has worked well mostly for rice and wheat farmers at the expense of

others.

o interest subvention on loans and loan waivers provides much relief to farmers.

But it causes the banks reluctant to lend to farmers.

3. Infrastructural improvements like irrigation through schemes like Accelerated irrigation

benefits program have increased the area under irrigation but only partly.

4. APMC was intended to benefit farmer, but it has proved opposite. Recent national agri

market is the hope.

5. Kisan call centre has helped improve farmer knowledge but it needs more manpower to

facilitate more farmers. Similarly Kisan tv is a recent announcement.

Followng steps can be further taken:

1. Insurance needs revamping.

2. Priority sector lending needs course correction by better monitoring.


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3. Dedicated people in the agriculture ministry who can provide a holistic picture of

various issues.

4. Contract farming laws need better regulation.

5. Mechanisation on a collective scale can be initiated on a pilot basis.

Agruculture holds the key to national economic growth and thus should not be left ignored.

Q.48) India is largest producer of pulses in theworld. Still India imports large

quantities of pulses. Critically examine the reasons for low productivity of

pulses in India.

The Top Answer for this Question is written by – Monk Who Sold His Nano

Ans) India’s socio-cultural ( and now political) aversion to meat eating makes pulses the primary

source of protein in the normal diet. With ever increasing middle class population, the demand

for pulses has soared but supply hasn’t been able to keep up. That’s the reason why despite

being the largest producer of pulses, and pulses being the natural fertilizers, India needs to

import them to feed it’s people. The probable reasons for mismatch.

1) Due to hunger and famines of the 60s, green revolution targeted cereals productivity for

sorting out the crisis. The hunger problem though resolved, practice still continues as seen

through the MSP pricing mechanism.

2) Apart from distinctiveness of MSP and profits(not as productive as cereals, but more energy

intensive) pulses are a dicey crops which attract pests and weed making farmers more averse to

growing pulses

3) There’s not much research done on pulses to evolve HYV or GM pulses with higher

productivity. Though now ICAR has taken up initiatives in t his field.

With increasing cases of protein energy malnutrition (and increasing militancy of beef ban

activists), the government has undertaken initiatives to increase pulse production by increasing

the MSPs, extending irrigation into pulse producing areas, and even encouraging pulse

processing units. But, simultaneously alternative protein sources like eggs, milk, soybean, and

meat should also be encouraged.


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Q.49) Do you think river-linking projects could be one stop solution for

irrigation woes of agriculture sector, especially when majority of Indian

agriculture is rain fed? Substantiate.


Ans) Indian agriculture is monsoon dependent to a significant extent as around 65% of area is

rain fed. This reliance on rain is a very major factor which explains the plight of farmers. Hence,

some steps need to be taken in this direction.

Inter linking of rivers could be a step in this regard. It would help to make water available in the

water deficient areas and could thus avert the threat of droughts. However, it cannot be said to

be one stop solution for irrigation woes. This is so because:

1. Water availability would be of no use till proper infrastructure for irrigation is in place,

like canals, wells, tanks, etc.

2. Watershed development is a pre requisite. Integrated watershed development program

should be further encouraged.

3. Coordination between state and local governmnet is must to ensure proper planning

and adequate finances.

4. Small and marginal farmers should have surplus finance to invest in irrigation

infrastructure at their farm levels.

5. Education of farmers is crucial to ensure that crops are watered as per their need. This is

especially true for HYV seeds.

Thus, inter river linking is definitely a positive step in this direction which needs proper

harnessing to yield results.

Q.50) What are the different types of irrigation methods practiced in India?

Evaluate each method on its merits and demerits.

The Top Answer for this Question is written by – Vidhu

Ans) Irrigation methods used in India are just as multi-dimensional as the country itself. The

geographical, cultural diversity of the country brings about diversity in irrigation methods. The

different types of irrigation methods are:


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1. Surface/Flood irrigation: In this type the field is flooded with water from canals, rivers,

tanks, bore

wells. Practised in uneven topographic regions with low infiltration of water making it suitable

for paddy cultivation.

Merits: it has low cost, low maintenance does not require levelling of land

Demerits: low water use efficiency due to wastage in seepages and evaporation , soil erosion

and runoffs increase

2.Subsurface : involves direct application of water to the subsurface root level.

Merits: low water usage and wastage, soil nutrient levels preserved

Demerits: cost of installation and maintenance is high

3.Sprinkler irrigation: in this method water is sprayed on the crops by means of sprinklers at a

controlled rate.

Merits: low wastage, high efficiency, can be used in water deficient regions, high output

Demerits: installation cost is high, require electricity for running sprinklers

4. drip irrigation: in this the water is provided directly to the roots drop by drop by pipes and

drips.

Merits: high efficiency, can be used for variety of crops and fruits and vegetables, prevents

water wastage and controls water usage, low labour needed, high output

Demerits: high installation cost, not much awareness among farmers

Land and soil mapping should be done in order to provide the most effective irrigation method

to the farmers so as to increase the productivity and reduce wastage of nutrients and water.

Q.51) Public investment in railways would generate largest spillovers, would

boost aggregate growth and competitiveness of Indian manufacturing. Analyze.

The Top Asnwer for this Question is written by – Mumtaz Ahmad

Ans) Railways have been the ‘engine of growth’ since its incorporation during the industrial

revolution phase. All the major developed economies of the world have significant dependence

on Railways for freights, whether China or USA. In Indian context the story has not been so


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promising as the majority of freight movement occurs through road route and railways have

abysmally low contribution (25-30%).

There is greater need for public investment in Railways along with institutional and structural

reforms (viz. Bibek Debroy Committee). Following points strengthens the above viewpoint:

1. Railways are one of the efficient freight movement system which is essentially cheaper

and productive.

2. Transit time as compared to roadways, which face octrois, blockades etc., is on the

lower side.

3. Railways provide efficient forward and backward market integration, thereby enhancing

the economic activity.

4. A large number of manufacturing hubs could be commissioned in the railway corridors

(such as proposed DMIC) thereby boosting manufacturing output.

5. These combined with less intensity of environmental pollution could actively support

the concept of sustainable economic growth.

The feasibility of railway freight movements in India has remain stunted since independence

due to various socio-political reasons such as low fare of passenger railways are compensated

from the freight charges rather being compensated by government. These affect the business

sentiments and needs to be adequately looked into. The Dedicated Freight Corridors (DFC) and

DMIC appears promising step in order to revive railways and accelerate growth.

Q.52) Critically analyze the recommendations of Bibek Deboroy committee on

restructuring of Indian railways.

The Top Answer for this Question is written by – Indushree

Ans) Bibek Debroi committee recommendations aim to overhaul the ailing railways sector.

However, feasibility of implementation is being questioned on various grounds.

1. Commercial accounting is expected improve estimation of project returns and risk

assessment. However, complete redesign of railway accounting system is a complex process.


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2. Creation of independent regulatory agency is a welcome move. Regulation of private

entry, rationalising tariffs, enforcing safety regulations and creation of level-playing field for

operators are better performed by a specialised agency. But, complete separation between

Ministry of railways as policy formulator and agency as implementor is not feasible

3. Encouraging private entry into railways can attract investments and improve

accessibility. But it could result in higher fares and price volatility severely impacting the poor.

4. Although establishment of Indian Railway Manufacturing Company to manufacture

railway coaches and locomotives can help commercialisation and specialisation, separation of

core manufacturing units may result in co-ordination issues and procurement delays.

5. Focusing on core business of railway transportation reduces the load on railway

administration. But, outsourcing of non-core activities like catering, railway hospitals, schools

can result in employee dissatisfaction.

6. Gradual phasing out of railway budget has dangers of prioritising commerce over public

welfare.

7. Devolution of powers can improve accountability at local station level.

Considering these challenges, five year transition period provided by the committee must be

used to address challenges effectively and bring in necessary changes to transform railways.

Q.53) Dedicated Freights Corridors are aimed at bringing speed with efficiency

in transport sector. Discuss the challenges in laying out planned DFCs in India.

The Top Answer for this Question is written by – Cosviny

Ans) Challenges are huge when we talk about infrastructure building in Developing country like

India. In context of DFC’c are following:-

1. Interstate model- land is a state subject and LARR can provide only the guidelines for

acquisiton but final mandate will come from State assembly.


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2. The government was taking a number of steps to use new energy as a major source of

power. The major challenge before it was to produce more power and bring down the cost of

the new energy.

3. Getting environmental clearance and go for 100 percent green will be very tough.

4. Dependence on International funding of the project . Negotiation takes time due to

which cost of the project is rising.

5. plan to promote Special Purpose Vehicles to take up individual projects along the

corridor on a Public Private Partnership (PPP) basis, could surely emerge as a model.But its

experience with railway and Industries is incipient and evolutionary stage in India.

6. Gestation period is longer and return in terms of inclusion of common people is

doubtful. It seems it will a booster to business lobby. Such a huge investment but on proposal

of fast train passenger corridor for common man is exlclusionary.

7. Railway manufacturing is not at advanced stage in India as compared to Japan and

China. The whole import without indigenisation it will very costly affair and dependable on

foreign entity. Both are cause of concern.

Q.54) Critically analyze the role of University Grant Commission in light of higher

education in India.

The Top Answer for this Question is written by – Alok Sharma

Ans) UGC is the authoritative body- statutory organization -set up in our country by the Central

Government

in 1956 to control, coordinate, determine and maintain the standards of Higher education.

Universities can start functioning only after getting the prior sanction and recognition of the

UGC.

But, off-late, UGC is not able to maintain high standard of teaching, research and education in

higher education in India.

(a) UGC is the only one which is functioning without the support of full-time executive members

(b No Indian university figures even in top 200 universities.


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(c) Various allegation of bribery in awarding the recognition to private universities. Few years

back, SC cancelled the recognition of around 50 universities.

(d) UGC dictating dual degree rule for autonomous institute such as IIT

(e) Hari Gautam panel recommended to scrap UGC and replace it with National Higher

Education Authority. According to the panel report, UGC has failed to fulfill its mandate and

unable to deal with emerging diverse complexities

(f) UGC has reduced itself to only funding body

As India to reap the benefit of demographic dividend, higher education is critical for imparting

skill to its 400 million youths. Program such as Make in India, Skill India, and Digital India

requires skill based talent which can be provided if there is a well-oiled institute to regulate the

higher education.

Q.55) At the time of Independence education was seen as a method to prevent

violent revolutions and chaos, so that Indian could embark on the path to

economic development. Discuss.

The Top Answer for this Question is written by – Monk Who Sold his Nano

Ans) “Vidya dadati Vinayam”. The Sanskrit sloka exemplifies the importance of education in

traditional Indian society. For the country to wake into the heaven of freedom (where

knowledge was free, where world was not broken up into fragments by narrow domestic walls,

Where the clear stream of reason had not lost its way Into the dreary desert sand of dead habit,

Where the mind was led forward by thee Into ever-widening thought and action) education was

all the more imperative.

At the time of independence, India had a literacy rate of 16%, it had 26 universities and only

400,00 students in higher education. The problems of caste discrimination, untouchability,

superstitions, gender discrimination, religious orthodoxy, conservative mindset was

omnipresent. Even minor attempts to reform(Hindu code bill) were vehemently opposed. To

eradicate this logjam, education was focused and expanded. IITs, IIMs, AIIMS, IISc, were set up.

New universities were encouraged. To even out the caste disparities reservation was inculcated

in academic institutions.

The education did bring in harmony for a while but the state couldn’t provide for education for

all (unlike Mao’s great leap forward), nor was the education attained fully utilized due to

license, quota, gunda raj which caused brain drain (unlike Deng Xioping’ leap).


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The mammoth pit of ignorance created by two centuries of misrule couldn’t be filled up in 2

decades. The problems of discrimination still persists. Despite literacy rate improving by 5 folds,

the excellence of education has diminished. The institutions set up by Nehru stand as islands of

excellence in the oceans of mediocrity. Measures like MDM may have increased enrollment

ratio, but lack of opportunities have also increased the drop out ratio. The elements of religious

orthodoxy still prop up here and there. We have still to awake into the heaven of freedom

dreamt of by Guru Dev.

IASbaba TLP Paper 3

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Transcript of IASbaba TLP Paper 3