UPSC Mains 2019 GS Paper 3 with Solutions - 1 | UPSC Previous Year Question Papers and Video Analysis PDF Download

Q.1. Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.

Goods and Services Tax (GST) is an indirect, comprehensive, multi-stage, destination-based tax that is levied on every value addition.
The Goods and Service Tax Act was passed in the Parliament in March 2017. The Act came into effect on 1st July 2017.

At the Central level, the following taxes have been subsumed in the GST:

• Central Excise Duty
• Additional Excise Duty
• Service Tax
• Countervailing Duty
• Special Additional Duty of Customs

At the State level, the following taxes have been subsumed in the GST:

• State Value Added Tax/Sales Tax,
• Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States)
• Octroi and Entry tax
• Purchase Tax
• Luxury tax
• Taxes on lottery, betting and gambling

Revenue implications of GST since July 2017:

• GST was introduced in July 2017. After the initial transitional issues following the roll-out of GST, revenue collection picked up from an annual average of 89.8 thousand crores in 2017-18 to 98.1 thousand crores in 2018-19.
• However in 2018-19, indirect taxes have fallen short of budget estimates by about 16 per cent, following a shortfall in GST revenues (including CGST, IGST and compensation cess) as compared to the budget estimates. Indirect taxes have fallen by 0.4 percentage points of GDP primarily due to shortfall in GST collections.
• According to the Economic Survey, though there has been an improvement in tax to GDP ratio over the last six years, gross tax revenues as a proportion of GDP has declined by 0.3 percentage points in 2018-19 over 2017-18.

Q.2. Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.

The Economic Survey 2018-19 states that the economy witnessed a gradual transition from a period of high and variable inflation to a more stable and low level of inflation in period 2014-18. However, in the current fiscal quarter, the headline inflation has fallen to the lowest value and also there is a reduction in Gross Value Added (GVA). This has raised various debates around the use of inflation targeted monetary policy and its impact on the overall economy.

Points to agree

• Provided policy stability: Steady growth rate and low inflation has provided better market conditions for investment and production planning.
• More equitable: Inflation impacts the poor more as it decreases their purchasing power. Low inflation increases disposable income and therefore increases investment in the economy.
• Maintaining the fiscal deficit to the appropriate level: Controlled price level has helped in reducing subsidies and unnecessary tax cuts.
• Helping urban economy: Low inflation rate has kept the living cost in urban areas to a manageable level. This has provided relief to the middle class.

Points to disagree

• Fall in consumption demand: Decreasing Consumer Price Index (CPI) clearly shows the receding disposable income in rural areas which can be clearly seen in the Q2 GDP growth rate falling to 5%.
• Reduction in investment: The contraction of the economy due to falling consumption has reduced the scope of further investment.
• Double Balance Sheet Problem: Due to the slowdown, various corporates are facing the revenue shortage to pay back the interest, leading to NPA problem faced by the banks.
• Revenue Shortfall of the Government: Due to less income generation in the economy, direct tax revenue has receded. This reduces government legroom for more public expenditure.

Way forward

• Increasing liquidity: The recent step to slash the corporate tax and providing loans to MSMEs is the desired initiative to infuse more liquidity in the economy and increase investment.
• Increasing public expenditure: Schemes like MGNREGS, rural housing etc. should be implemented more effectively so as to give a boost to rural income generation and thus demand creation.
• Promoting labour-intensive industries such as Food Processing Industries, Leather Industries, etc. in order to create demand in the economy and provide employment to youths.

Current monetary policy easing should be continued to give a renewed push to the investment cycle of Indian economy. Inflation is a double edged sword therefore a sustainable range of the inflation rate of 4-6% should be maintained so that maximum income generation could happen in the economy

Q.3. How far is Integrated Farming System (IFS) helpful in sustaining agricultural production.

The Integrated Farming System (IFS) is a combined approach aimed at efficient sustainable resource management for increased productivity in the cropping system. The IFS approach has multiple objectives of sustainability, food security, farmer’s security and poverty reduction by involving livestock, vermicomposting, organic farming etc.

Indian farm sector needs to address the twin challenges of productivity and sustainability along with augmentation of farmer’s income. For this, IFS emerges as one of the most viable options, as it ensures:

• Productivity: IFS provides an opportunity to increase economic yield per unit area by virtue of intensification of crop and allied enterprises especially for small and marginal farmers.
• Profitability: It has the capability to make the sector profitable by reducing the use of chemical fertilizer and recycling nutrients.
• Sustainability: In IFS, subsystem of one byproduct works as an input for the other subsystem, making it environmentally sustainable. Moreover, IFS components are known to control the weed and regarded as an important element of integrated pest management and thus minimize the use of weed killers as well as pesticides and thereby protect the environment.
• Recycling: Effective recycling of products, by-products and waste material in IFS is the cornerstone behind the sustainability of farming system under resource poor condition in rural areas.
• Income round the year: Due to interaction of enterprises with crops, eggs, meat and milk, IFS provides flow of money round the year amongst the farming community.
• Best utilization of small landholdings: Indian farmers in many regions such as in north-eastern part, practice subsistence agriculture. They also have a rich traditional base in water harvesting, soil management etc. which could be efficiently utilized under IFS.
• Meeting fodder crisis: Byproduct and waste material of crop are effectively utilized as fodder for livestock (Ruminants) and products like grain, maize are used as feed for monogastric animals (pigs and poultry).
• Employment generation: Combining crop with livestock enterprises would increase the labour requirement significantly and would help in reducing the problems of underemployment and unemployment to a great extent. IFS provides enough scope to employ family labour round the year.

IFS provides multiple benefits that are sustainable and can pave the way for climate-smart agriculture. India needs to adopt a “well designed” Integrated Farming System (IFS) to realise the vision of doubling farmers’ income by 2022 and having sustainable agricultural practices.

Q.4. Elaborate the impact of National Watershed Project in increasing agricultural production from water stressed areas.

Watershed project involves conservation, regeneration and judicious use of all the resources like land, water, plants, animals and humans within the watershed area.

The National Watershed Project also known as Neeranchal National Watershed Project is a World Bank assisted watershed management project. The objective of this project is to support Integrated Watershed Management Program (IWMP) through technical assistance to improve incremental conservation outcomes for the natural resources including water, soil and forests while enhancing agricultural yields in a sustainable manner for farming communities.

Water-stressed regions of India such as Northwest India, Vidarbha region of Maharashtra etc. are prone to drought and water scarcity thus affecting the agricultural production in the regions. The National Watershed Project has the potential in increasing agricultural production in these regions:

• The project has led in reduction of surface runoff thus increasing groundwater recharge, soil moisture and better availability of water in water-stressed areas. It also helps farmers to better manage surface and groundwater resources.
• This has resulted in incremental agriculture productivity and increased cropping intensity through optimum utilization of natural resources like land, water, vegetation etc.
• For example, a watershed project in Bangaru, Telangana has increased crop yields and cropping intensity significantly. This is also accompanied by a shift towards higher-value crops especially horticultural crops.
• It will also help to mitigate the adverse effects of drought and prevent further ecological degradation and support farmers in water-stressed areas to adapt to climatic change and ensuring improved livelihoods for people.
• It helps in the restoration of ecological balance in the degraded and fragile water-stressed areas by increasing vegetative cover and decrease soil erosion through afforestation and crop plantation.
• People’s involvement including the farmers and tribal is the key to the success of any watershed management program, particularly the soil and water conservation. Successful watershed management has been done at Sukhomajri, Panchkula and Haryana through active participation of the local people.

However, watershed project faces certain challenges such as very little community participation, lack of coordination between implementing departments and ministries, etc. Properly educating the people about the project and its benefits or sometimes paying certain incentives to them can help in effective people’s participation. Watershed Development on a large scale is the best solution to overcome water-stressed problems.

Q.5. How was India benefited from the contributions of Sir M.Visvesvaraya and Dr. M. S. Swaminathan in the fields of water engineering and agricultural science respectively?

The British rule in India neglected modernisation of Indian agriculture and little was done to improve irrigation system. After independence, India did not have enough to feed its burgeoning population and it was forced to subsist on "ship to mouth" existence.

At these junctures,two personalities-Sir M Visvesvaraya and MS Swaminathan- emerged who revolutionised their respective fields of knowledge, contributing enormously to India’s development.

Sir M. Visvesvaraya’s contribution in the field of water engineering

• He is remembered as India’s most prolific civil engineer, dam builder, economist, statesman, and can be counted among the last century’s foremost nation-builders.
• He played an instrumental role in the construction of the Krishna Raja Sagara Lake and dam in 1924. This dam not only became the main source of water for irrigation for the nearby areas, but is also the main source of drinking water for several cities.
• Visvesvaraya was, among other things, responsible for the building and consolidation of dams across the country. He invented the Block System -automated doors that close in the conditions of overflow, and also designed Hyderabad’s flood management system.
• He is recognised for his brilliance and creativity in harnessing water resources, designing and constructing dams and bridges, and revolutionising the irrigation system in India.
• Due to his outstanding contribution to the society, Government of India conferred ‘Bharat Ratna’ on this legend in the year 1955.

Dr. M.S. Swaminathan’s contribution to agriculture science

• A plant geneticist by training, Professor Swaminathan’s contributions to the agricultural renaissance of India have led to his being widely referred to as the scientific leader of the green revolution movement.
• Recognized worldwide for his basic and applied research in genetics, cytogenetics, radiation and chemical mutagenesis, food and biodiversity conservation, he conceptualized ever-green revolution movement in agriculture.
• Swaminathan is the visionary who took India from the bondage of ‘Ship to Mouth’ existence to the freedom of ‘Right to Food’ through home grown food.
• Apart from serving as head of various national and international institutions, he headed the National Commission on Farmers (NCF) constituted in 2004 to address the nationwide calamity of farmer suicides in India.

India needs to adhere to the visions of these two men, especially when our agrarian challenges are mounting due to erratic rainfall, cycles of floods and droughts, unsustainable practices and other endemic issues.

Q.6. What is India’s plan to have its own space station and how will it benefit our space programme?

A space station is a large artificial satellite designed to be occupied for long periods and to serve as a base for scientific observation. Recently, India has announced its plan to build its own space station, as a carry forward of the Gaganyaan mission, which will be the first Indian manned mission to space.

India’s Plan toward own Space Station

• The proposed space station is envisaged to weigh 20 tonnes and serve as a facility where astronauts can stay for 15-20 days.
• It would be placed in lower Earth’s orbit at around 400 km above the earth.
• The time frame for launch is 5-7 years after the Gaganyaan mission which is expected to take place in 2022.
• The Gaganyaan mission would equip the ISRO with the necessary technology required for creating space platforms.

Space station’s benefit toward the space programme

• It would help to sustain Human Space Mission in the future for a longer period of time.
• Space platforms can be used to perform Microgravity experiments. It would help in scientific and technological developments such as innovations related to water purification and biotechs.
• It will help in Deep space exploration like the study of other galaxies.
• The indigenous Space station would enhance India’s image in the international sphere. It would increase
• India’s position as a space power.
• India can earn revenue from the commercial engagements with other countries from its space prowess.

India should increase its engagement with the private sector and research institutions in order to create human resources and innovative products for its growing space economy.

Q.7. Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyse the impact of sand mining along the Indian coasts, citing specific examples.

Sand consumption globally has been increasing and according to a report by the United Nations Environment Programme (UNEP), India is in the list of critical hotspots for coastal sand mining.

Coastal sand mining poses one of the biggest threats to our environment:

• It is very damaging to the beach fauna and flora and is ruinous to beach aesthetics.
• Resulting in coastal erosion, it frequently causes environmental damage to other coastal ecosystems associated with the beach such as wetlands.
• Another major impact of beach sand mining is the loss of protection from storm surges associated with tropical cyclones and tsunamis.

Indian coasts are greatly affected by coastal sand mining:

• For instance, in Periyasamypuram in Tuticorin district of Tamil Nadu, fish catch has come down, the palm trees have dried up, ground water has turned brackish and the sea has entered the village due to coastal sand mining.
• Seawater intrusion, inundation of coastal land and salinisation of groundwater have been observed along the coast of Kollam, Alappuzha, Pathanamthitta, Kottayam and Ernakulam due to sand mining.
• Coastal sand mining also has many negative impacts on the society. It affects the livelihood of the people, health, science beauty, climate and damage infrastructure.

Better spatial planning and reducing unnecessary construction, using green infrastructure, adopting recycled and alternative substitute materials such as oil palm shell, bottom ash, strictly adhering to Coastal Regulation Zone (CRZ), etc. can help in reducing coastal sand mining. Also strengthening standards and best practices to curb irresponsible extraction; investing in sand production and consumption measurement should be adopted at policy level.

Q.8. Vulnerability is an essential element for defining disaster impacts and its threat to people. How and in what ways can vulnerability to disasters be characterized? Discuss different types of vulnerability with reference to disasters.

According to United Nation Office of Disaster Risk Reduction (UNDRR), Vulnerability can be defined as the conditions determined by physical, social, economic and environmental factors or processes, which increase the susceptibility of an individual, a community, assets or systems to the impacts of hazards.

Vulnerability assessment needs to be based on a systematization and conceptualization of vulnerability describing the main linkages between the different components of risk. Only if the population and decision makers know where and how vulnerable the system is and which social–economic, physical, and environmental factors play a major role in it, adequate measures can be implemented to reduce vulnerabilities to disasters. It involves two approaches:

• Scientific Approach: It includes the research line of practical measurement approaches of vulnerability and disaster risk reduction.
• Policy Approach: It provides information about the spatial distributions of vulnerability to different natural hazards upon which the authorities need to take actions.

Different Types of Vulnerability

Physical Vulnerability: The potential for physical impact on the physical environment – which can be expressed as elements-at-risk (EaR). The degree of loss to a given EaR or set of EaR resulting from the occurrence of a natural phenomenon of a given magnitude and expressed on a scale from 0 (no damage) to 1 (total damage)”.

• For Example: A wooden house is sometimes less likely to collapse in an earthquake, but it may be more vulnerable in the event of a fire or a hurricane.

Economic Vulnerability: The potential impacts of hazards on economic assets and processes (i.e. business interruption, secondary effects such as increased poverty and job loss) vulnerability of different economic sectors.

• For Example: Families with low incomes often live in high-risk areas around cities, because they can’t afford to live in safer (and more expensive) places.

Social Vulnerability: The potential impacts of events on groups such as the poor, single parent households, pregnant or lactating women, the handicapped, children, and elderly; consider public awareness of risk, ability of groups to self-cope with catastrophes, and status of institutional structures designed to help them cope.

• For Example: Women and children are more vulnerable to disasters as compared to men.

Environmental Vulnerability: The potential impacts of events on the environment (flora, fauna, ecosystems, biodiversity).

• For Example: People living in the tropical areas are more vulnerable to tropical cyclones as compared to people living in temperate region.

Q.9. The banning of ‘Jamaat-e-islaami’ in Jammu and Kashmir brought into focus the role of over-ground workers (OGWs) in assisting terrorist organizations. Examine the role played by OGWs in assisting terrorist organizations in insurgency affected areas. Discuss measures to neutralize the influence of OGWs.

Terrorism instils an innate sense of fear in the citizen and dilutes the perceived control of the state over law and order. This state of lawlessness creates conditions which help the terrorist group achieve its political aims. Overground workers(OGWs) provide a support system to terrorist groups and networks in carrying out their activities in insurgency affected areas.

The role played by OGWs

• Food and Logistics support: OGWs assist terror networks to meet their basic needs.
• Propaganda and radical narrative: This provide the ideological background to the terror outfits.
• Finding new recruits: Pool of Disgruntled youth provide a fertile ground for OGWs to propagate radicalisation and hire new recruits.
• Coordination with other stakeholders: OGWs coordinate with secessionist leaders, and Organised crime Networks to meet their political objectives.
• Conduit for Illegal Money: This is done through illegal trade, counterfeit currency, Tax evasion and Hawala transactions. These funds are also used to instigate anti-state protest like stone-pelting.
• Assist in the planning and execution of terror plans: They provide operational planning, intelligence information, safety routes, maps and other inputs that are needed for terror operations.

Measures to neutralize the influence of OGWs

• Address the root cause of alienation among affected communities: This is done by addressing genuine concerns and through awareness campaigns that dispel false propaganda.
• Rehabilitating orphans and women: This would fulfil the state’s duty to ensure Social welfare. Also, It would counter the influence of OGWs to find new recruits.
• Intelligence Infrastructure: To keep track of radicalisation attempts by OGWs and recruitment agents in order to stop this process at its inception.
• Human and Electronic Surveillance: This is used to tap into existing networks to pre-empt terror attempts.
• International cooperation: To facilitates follow up on suspects and terror networks.
• Fast track courts: Laws like Public Safety acts for the speedy conviction of terrorists and OGWs through fast track special courts.

However, Misuse of the legal provision in the random booking of youth on mere suspicion should be avoided. The best defence against terrorism is to ensure that the people do not have the incentive to pick up arms against the country by providing them equitable political, social and economic opportunities.

Q.10. What is CyberDome Project? Explain how it can be useful in controlling internet crimes in India.

CyberDome project is a technological research and development centre of Kerala Police Department, conceived as a cyber centre of excellence in cyber security, as well as technology augmentation for effective policing.

It envisages as a high tech public-private partnership centre of collaboration for different stakeholders in the domain of cyber security and handling of cyber crimes in a proactive manner.

India has witnessed a 457% rise in cybercrime incidents under the Information Technology (IT) Act, 2000 from the year 2011 to 2016.

CyberDome project can be useful in controlling these internet crimes in India

• The project can help in preventing cyber crimes through development of a cyber threat resilient ecosystem in the country to defend against the growing threat of cyber attacks. To effectively tackle cybercrime, the Government has collaborated with private sector and academia to conform rapidly changing technology world.
• The Cyberdome will act as an online police patrol. Through its Anti-Cyber Terror Cell and a cybersecurity training unit, its officers will generate intelligence on various cyber threats in near real time and track fugitives online by monitoring their online activities, including social networking sites.
• It will create a digital repository of stolen and lost vehicles and travel documents, track online payments to prevent money laundering and channelling of funds to dubious organisations and issue cyber security advisories.
• Cyberdome would have centres for social media awareness, protection of children on the Internet, Internet monitoring and ICT (Information and Communication Technology) in service delivery.
• Cyberdome in collaboration with the RBI, Banks, payment gateways and other wallet groups can tackle financial fraud.
• Through its ransomware school, CyberDome can understand, analyse and mitigate ransomware infections, create standard operating procedures to deal with ransomware, creating awareness among the public as well as government departments about ransomware and its precautionary steps.
• The Cyberdome is expected to enable sleuths to obtain vital leads in cases of cyber-related offences using advancements in the field of information technology.
• Of late, Cyberdome has used social engineering as the lynchpin of its policing strategy to snoop on radical groups that use the net for extremist activities.
• Cyberdome has made successful propaganda war against online games such as Blue Whale.
• Of late, Cyberdome has launched a covert cyber-surveillance and infiltration programme to crack down on child pornography. Thus, Cyberdome project has great potential to control internet crimes and must be replicated at the national level.