UPSC Mains 2021 GS Paper 3 with Solutions - 1 | UPSC Previous Year Question Papers and Video Analysis PDF Download

Q.1. Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (Answer in 150 words) 10 Marks

GDP is an abbreviation for Gross Domestic Product. GDP is defined as a measure of the value of economic activity within a country. In layman’s terms, GDP is the sum of the final prices of goods and services produced in an economy during a given period.

What changes were made in GDP calculation in the year 2015?

• In 2015, a new series was announced to calculate GDP by upgrading the methodology with new data sources to meet UN standards, and since then, there have been concerns about the measure’s suitability and accuracy.
• With the change to the new base year, the economy’s growth rate for 2013-14 was estimated to be 6.9 percent, up from 4.7 percent in 2004-05. Similarly, the 2012-13 growth rate was revised up to 5.1 percent from 4.5 percent.
• The base year in the most recent series was changed from 2004-05 to 2011-12, and a new data series, MCA-21, was used for the organized private sector.
• It contained information on all companies registered with the Ministry of Corporate Affairs, and each was assigned a unique 21-digit code, thus MCA-21. Furthermore, the new database is far more comprehensive, covering financial institutions as well as regulatory bodies such as SEBI, PFRDA, and IRDA.
• This series includes a number of local organizations and institutions.
• Informal Sector: The lack of annual surveys, particularly to cover changes in the informal sector, was a problem shared by both the old and new series. The previous method employed a Labor Input (LI) method, which employs a benchmark-indicator process and then computes output as the estimated labor input multiplied by the value added per worker. The new method employed the Effective Labor Input (ELI) method, which differentiates workers based on productivity by assigning weights to various worker categories.

Old Method Vs New Method

• IIP was used to measure manufacturing and trading activity in the previous system. This accounted for changes in volume but not in value. We use the concept of GVA – Gross Value Added – in the newer methodology to measure the value addition done to the economy.
• In the previous system, GDP was estimated using IIP data and then updated using ASI data (Annual Survey of Industries). ASI accounted only for those firms which were registered under the Factories Act. Data from MCA 21 is used in the newer system (MCA 21 is an e-governance initiative of the Ministry of Corporate Affairs that was launched in 2006 and allows firms/companies to electronically file their financial results).
• Previously, farm produce was used as a proxy for calculating agricultural income. The new methodology has broadened the scope for calculating value addition in agriculture.
• In the previous system, very few mutual funds and NBFCs were considered when evaluating financial activity. The new methodology broadens the coverage by including stockbrokers, asset management funds, pension funds, stock exchanges, and so on.
• The previous system used trading income data from the NSSO’s 1999 establishment survey, whereas the new series uses data from the 2011-12 survey.

The new method is statistically more robust because it estimates more indicators such as consumption, employment, and enterprise performance, as well as factors that are more responsive to current changes.

Q. 2. Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (Answer in 150 words) 10 Marks

The Union Budget of a year is referred to as the Annual Financial Statement in Article 112 of the Indian Constitution (AFS).

It is a statement of the government’s expected receipts and expenditures for a fiscal year. Both Capital and revenue budget are part of the overall Annual Budget.

The revenue budget consists of items that do not result in a change in the government’s assets or liabilities. The capital budget includes items that cause a change in the government’s assets or liabilities.

The capital budget includes both capital receipts and capital expenditures. Borrowings, loans from a public or foreign government, or borrowings from the central bank made by a country’s government are referred to as capital receipts. Capital expenditure, on the other hand, refers to expenditure on the development of machinery, health facilities, and so on.

The Revenue Budget, on the other hand, refers to the government’s tax and other revenue receipts and the expenditures met from those same revenues.

Components of Revenue and Capital Budget

1. Revenue Budget

• The Revenue Budget is made up of Revenue Expenditure and Revenue Receipts.
• Revenue receipts are receipts that do not have a direct impact on the government’s assets and liabilities. It is made up of money earned by the government through taxation (such as excise duty and income tax) and non-taxation sources (such as dividend income, profits, interest receipts).
• Revenue expenditure is government spending that has no effect on the government’s assets or liabilities. This includes, for example, salaries, interest payments, pensions, and administrative costs.

2. Capital Budget

• The capital budget includes both capital receipts and capital expenditures.
• Capital receipts are receipts that result in a decrease in the government’s assets or an increase in its liabilities. It is made up of two parts: I the money earned by selling assets (or disinvesting) such as shares of public enterprises, and (ii) the money received by states in the form of borrowings or loan repayments.
• Capital expenditure is used to either create or reduce liabilities. It consists of I the government’s long-term investments in assets such as roads and hospitals, and (ii) the money given to states in the form of loans or repayment of its borrowings.

Q.3. How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal and small farmers ? (Answer in 150 words) 10 Marks

For rural India, agricultural land is the most significant producing resource. Land is another essential type of asset. In post-independent India, equity in agriculture called for land reforms which primarily refer to change in the ownership of landholdings. Land reform refers to institutional initiatives aimed at changing the present pattern of land ownership, tenancy, and management of land. It comprises policies and initiatives relating to land redistribution, rent regulation, and upgrading the conditions of tenancy, agricultural education, cooperative organisation, and so on.

Body

Measures of Land Reforms

• The elimination of middlemen between the government and tenants.
• Tenancy reforms that offers 
• security to tenants,
• rationalization and regulation of rent, and
• Conferment of ownership rights on tenants
• Fixing a limit on the number of landholdings
• Holdings consolidation

Objectives

• Agrarian relations must be restructured in order to attain an egalitarian framework.
• exploitation in land relations is no longer tolerated
• Realization of the “land to the tiller” goal
• Widening the land base of the rural poor to improve their socioeconomic conditions
• Increasing the output and productivity of agriculture
• Facilitating the rural poor’s land-based development; and
• Infusing a significant amount of egalitarianism into local institutions

Impact of Land reforms 

• The elimination of rural poverty is closely tied to increase agricultural development and production, and hence increased farmer income, as a result of land reforms.
• Increased access to land for the poor landless masses as a result of land redistribution provides them with a guaranteed source of income.
• Increased rural agricultural wages result from land reform, which helps to ensure more income for rural landless labourers and is thus critical to rural poverty reduction.
• Rent regulation provides tenants with some assurance.
• The removal of intermediaries strengthens the status of true landowners and cultivators, allowing them to better their social and economic standing.

Conclusion

The pace at which land reform initiatives have been implemented has been gradual. The goal of social justice, on the other hand, has been achieved to a large extent. The rural agrarian economy, which is dominated by land and agriculture, benefits greatly from land reform. To reduce rural poverty, fresh and innovative land reform initiatives should be implemented with renewed vigour. Land record digitalization, for example, is a modern land reform policy that must be implemented as soon as possible.

Q.4. How and to what extent would micro-irrigation help in solving India’s water crisis ? (Answer in 150 words) 10 Marks

Water is a limited natural resource and a critical requirement in agriculture. A major difficulty is making optimum use of available water for irrigation. Micro-irrigation, for example, is an important technological advancement in water resource management. Despite various advantages and universal recognition of micro-irrigation’s vital role in the long-term viability of Indian agriculture, the industry that provides the necessary resources is currently fighting to stay afloat. Despite its importance, price limits and bureaucratic delays in scheme enrolment, lack of field evaluations, and delays in subsidy reimbursement, among other things, have brought this industry to the edge of collapse.

Water Availability & Micro-Irrigation in India

• Declining Water Availability: In 2011, India became the first country in the world to be declared water-scarce. Water availability per capita in India is projected to be 1,430 kilolitres per year. Water deficiency is defined as a country with yearly water availability of less than 1,700 kilolitres per person. Among the G-20 economies, it has one of the fastest diminishing water pools.
• Micro-irrigation: It is a modern irrigation technology in which water is watered on the surface or subsurface of the land using drippers, sprinklers, foggers, and other emitters. The most prevalent micro-irrigation methods are sprinkler irrigation and drip irrigation.

Importance of Micro-irrigation

• Micro-irrigation can increase water efficiency by 50-90 percent.
• In compared to flood irrigation, water savings range from 30 to 50 percent, with an average of 32.3 percent.
• The amount of electricity consumed decreases significantly.
• The use of micro-irrigation saves money on fertilisers.
• Fruit and vegetable productivity has increased on average.
• It leads to an increase in the income of farmers as a whole.

Way Forward

• Setting a timeframe for each stage, from a farmer’s application to execution and cash disbursement, as well as bolstering the government’s monitoring mechanism by requiring a quarterly assessment of applications, approvals, work orders, and actual installations.
• Direct benefit transfers for micro-irrigation subsidy amounts that go directly into farmers’ bank accounts.
• Farmers should also be able to take advantage of such support schemes based on their crop cycles or planting patterns.

Conclusion

Precision farming will usher in the next agricultural revolution. Micro-irrigation can, in fact, serve as a stepping stone toward making farming more sustainable, profitable, and productive. However, achieving “per drop more crop” requires the deployment of innovative and efficient irrigation technologies, which can only be created in a healthy economic climate free of delays, secrecy, and red tape.

Q.5. How is S- 400 air defence system technically superior to any other system presently available in the world? (Answer in 150 words) 10 Marks

The S-400 missile is Russian for Triumph Missile System. This missile system is an anti-aircraft missile defense system. It is developed by Russia’s Almaz Central Design Bureau and it has been in to function by the Russian armed forces.

• Characteristic features of S-400 Air Defense System
  Named SA-21 Growler by NATO and developed by Russia’s Almaz Central Design Bureau,S-400 Triumf is one of the world’s most advanced air defense systems.
• It is a surface-to-air missile system that can simultaneously track and neutralise a range of incoming objects spanning aircraft, missiles and Unmanned Aerial Vehicles (UAV) over very long ranges.
• It can provide air interception against early warning aircraft, airborne missile strategic carriers, tactical and theatre ballistic missiles, medium-range ballistic missiles, etc.
• The S-400 is fully mobile and each system has a 3D phased array acquisition radar that can track around 300 targets up to 600 km.
• It has a command and control centre, automatic tracking and targeting systems, launchers and support vehicles.
• The missile system is tackle any aerial target within a range of 400km and can simultaneously engage 36 targets.
• Each system has four different types to missiles for up to 40 km, 120 km, 250 km and 400 km and up to 30 km altitude.
• It can be activated within five minutes and has the flexibility to be integrated into the existing and future air defence units of the air force, army and navy.
• The S-400 also comes with improved electronic counter-countermeasures to tackle the attempts at jamming.
• Another capability of S-400 is its “fire-and-forget capability” which does not require further guidance after the launch and can hit the target without the launcher being in line-of-sight of the target.

 Comprising of all the above mentioned features in a single missile defense system makes S-400 air defense system technically superior to any other system presently available in the world.

Q.6. Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Initiative launched at World Leaders November, 2021. When was this idea first floated in the International Solar Alliance (ISA)? (Answer in 150 words) 10 Marks

Prime Minister Narendra Modi on November 2, 2021, launched the Green Grids Initiative – One Sun One World One Grid (GGI-OSOWOG) initiative jointly with his UK counterpart Boris Johnson at the event ‘Accelerating Clean Technology Innovation and Deployment’ at COP26 Climate Summit at Glasgow. In May 2021, India and the UK had agreed to combine the Green Grids Initiative and the One Sun One World One Grid and jointly launch GGI-OSOWOG at the COP26 Climate Summit in Glasgow in November 2021.

In first assembly of the International Solar Alliance (ISA), in October 2018, Prime Minister Narendra Modi floated the idea of the OSOWOG initiative. The UK and India decided to merge the UK’s Green Grids Initiative (GGI) and ISA’s OSOWOG into GGI-OSOWOG as part of the UK-India Virtual Summit earlier this year.

Green Grids Initiative – One Sun One World One Grid (GGI-OSOWOG) initiative:

• The new Global Green Grids Initiative One Sun One World One Grid (GGI-OSOWOG) is an evolution of the International Solar Alliance’s OSOWOG multilateral drive to foster interconnected solar energy infrastructure at a global scale.
• This initiative aims to tap solar energy and have it travel seamlessly across borders. The initiative will work towards accelerating the making of large solar power stations and wind farms in the best locations, linked together by continental-scale grids crossing national borders.
• The sun offers a huge source of energy for mankind. All the energy humanity uses in a year is equal to the energy that reaches the earth from the sun in a single hour. Given that the sun never sets and that half the planet is always receiving sunlight, there is the potential to harness solar energy continuously across the globe and trade this energy across borders to ensure adequate energy supply to meet the needs of everyone on earth.
• Over 80 countries have endorsed the One Sun Declaration.
• This initiative will bring together an international coalition of national governments, financial organizations, and power system operators.

Realizing One Sun One World One Grid through interconnected green grids can be transformational, enabling all the nations of the world to meet the targets of the Paris Agreement to prevent dangerous climate change, to accelerate the clean energy transition, and to achieve the Sustainable Development Goals. These efforts can stimulate green investments and create millions of good jobs. By sharing the sun’s energy, the nations can help build a more peaceful and prosperous world.

Q.7. Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update? In What changes in India’s National Clean Air Programme are required to achieve these revised standards ? (Answer in 150 words) 10 Marks

The WHO`s new updated Global Air Quality Guidelines (AQGs): 

• Provide recommendations on air quality guideline levels as well as interim targets for six key air pollutants. 
• They also offer qualitative statements on good practices for the management of certain types of particulate matter (PM), for example, black carbon/elemental carbon, ultrafine particles, and particles originating from sand and dust storms, for which there is insufficient quantitative evidence to derive AQG levels.
• The guidelines identify the levels of air quality necessary to protect public health worldwide.
• The AQGs also serve as a reference for assessing if, and by how much, the exposure of a population exceeds levels at which it might cause health concerns. They cover some of the most monitored pollutants critical for health, for which evidence on health effects from exposure has advanced the most in the past 15 years.
• The guidelines focus on classical pollutants, particulate matter (PM₂.₅ and PM₁₀), ozone (O₃), nitrogen dioxide (NO₂), sulfur dioxide (SO₂) and carbon monoxide (CO). 

Difference between 2005 and 2021 AQG levels:

• Since the last 2005 global update, there has been a marked increase in the quality and quantity of evidence that shows how air pollution affects different aspects of health. For this reason, and after a systematic review of the accumulated evidence, several of the updated AQG values are now lower than 15 years ago. 

Recommended 2021 AQG levels compared to 2005 air quality guidelines.

Compared to previous WHO guidelines, the new AQGs:

• use new methods for evidence synthesis and guideline development;
• reinforce evidence on health effects;
• provide higher certainty in the evidence of health effects occurring at lower levels than previously understood;
• offer additional AQG levels, such as for peak season O₃ and 24-hour NO₂ and CO, as well as some new interim targets;
• offer new good practice statements on the management of certain types of PM (i.e. black carbon/elemental carbon, ultrafine particles, and particles originating from sand and dust storms).

However, as the WHO’s guidelines are not binding, the move doesn’t immediately impact India as the National Ambient Air Quality Standards (NAAQS) don’t meet the WHO’s existing standards. The government has a dedicated National Clean Air Programme that aims for a 20% to 30% reduction in particulate matter concentrations by 2024 in 122 cities, keeping 2017 as the base year for the comparison of concentration.

Q.8. Discuss about the vulnerability of India to earthquake related hazards. Give examples including the salient features of major disasters caused by earthquakes in different parts of India during the last three decades.(Answer in 150 words) 10 Marks

Earthquakes are the most unpredictable and highly destructive of all the natural disasters. Earthquakes of tectonic origin have proved to be the most devastating and their area of influence is also quite large which results from a series of earth movements brought about by a sudden release of energy during the tectonic activities in the earth’s crust.

Causes of earthquake in India

Indian plate is moving at a speed of one centimetre per year towards the north and northeastern direction and this movement of plates is being constantly obstructed by the Eurasian plate from the north. As a result of this, both the plates are said to be locked with each other resulting in accumulation of energy at different points of time. Excessive accumulation of energy results in building up of stress, which ultimately leads to the breaking up of the lock and the sudden release of energy causes earthquakes along the Himalayan arch. 

Vulnerable zones

• The most vulnerable union territories/states include Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Sikkim, and the Darjeeling subdivision of West Bengal, and all the seven states of the northeast. 
• The central-western parts of India, particularly Gujarat (in 1819, 1956 and 2001) and Maharashtra (in 1967 and 1993) have also experienced some severe earthquakes. Some earth scientists have come up with a theory of emergence of a fault line and energy build-up along the fault line represented by the river Bhima (Krishna) near Latur and Osmanabad (Maharashtra) and the possible breaking down of the Indian plate . 
• According to National Geophysical Laboratory, Geological Survey of India, Department of Meteorology, Government of India, along with National Institute of Disaster Management, divided India into the following five earthquake zones:
  (i) Very high damage risk zone
  (ii) High damage risk zone
  (iii) Moderate damage risk zone
  (iv) Low damage risk zone
  (v) Very low damage risk zone.

Out of these, the first two zones had experienced some of the most devastating earthquakes in India. 

• Very High Damage Risk Zone: North-east states, areas to the north of Darbhanga and Araria along the Indo-Nepal border in Bihar, Uttarakhand, Western Himachal Pradesh (around Dharamshala) and Kashmir Valley in the Himalayan region and the Kuchchh (Gujarat). 
• High Damage Risk Zone: the remaining parts of Jammu and Kashmir, Ladakh, Himachal Pradesh, Northern parts of Punjab, Eastern parts of Haryana, Delhi, Western Uttar Pradesh, and Northern Bihar .
• Remaining parts of the country fall under moderate to very Low Damage Risk Zone. Most of the areas that can be considered safe are from the stable landmass covered under the Deccan plateau. 

Major disasters caused by earthquakes in different parts of India during the last three decades.

The earthquake is often associated with fear and horror due to the scale, magnitude and suddenness at which it spreads disasters on the surface of the earth without discrimination. It becomes a calamity when it strikes the areas of high density of population. It not only damages and destroys the settlements, infrastructure, transport and communication network, industries and other developmental activities but also robs the population of their material and socio-cultural gains that they have preserved over generations. It renders them homeless, which puts an extra-pressure and stress, particularly on the weak economy of the developing countries. 

Gujarat earthquakes 2001

• An earthquake measuring 7.7 on the Richter scale hit Gujarat in 2001 killed more than 13,000 people lost their lives in the first 82 seconds itself.

The tsunami of 2004

• On December 26, 2004, one of the world’s deadliest tsunamis killed over 2,30,000 people in 14 different countries, mostly in Indonesia. It originated in the Indian Ocean and wreaked havoc on multiple countries including India. Minutes after the earthquake, the waves hit Andaman and Nicobar islands. In mainland India, Tamil Nadu and Andhra Pradesh were worst affected and the death toll in India itself crossed 18,000.

Landslides: Many landslides occurred in the hilly regions of Northeast India due to earthquakes.

Q.9. Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (Answer in 150 words) 10 Marks

The goal of many criminal acts is to gather profits. Money laundering is the process in which the criminal proceeds are disguised of their illegal origin. It often relates to more stringent crimes like  

Illegal arms sales, smuggling, drug trafficking and prostitution rings, can generate huge amounts of proceeds. 

It “legitimises” the ill-gotten gains through money laundering.

According to the IMF, Global Money Laundering lies between 2 to 5% of the World GDP.

Processes involved in Money Laundering are placement, layering and integration. That successfully places the “dirty money” into the legitimate financial system. Layering conceals the source of the money. The money further integrates and is withdrawn from the legitimate account to be used for criminal activities.

How emerging technologies and globalisation contribute to money laundering

The idea lies in faster transmission and the concealing of the source of the money that is drawn from the illegitimate source. And thus technology and the idea of the global world that integrates all the good and bad points together.

• Shell companies: lie in the sovereign border without active business operations in the guise of  legitimate transactions through fake invoices and balance sheets wherein they do nothing but appease the laundered money into illegitimate businesses. 
• Structuring Deposits: cash is broken into smaller deposits of money and a lot of channels are involved in exchange popularly called as the smurfs to hide from the anti-money laundering reporting. 
• Third-Party Cheques: Counter cheques or banker’s drafts are utilized and cleared via various third-party accounts. The nexus with the source money is difficult to establish although it is legitimised in a lot of countries. 
• Smuggling cash in bulk: physically done using the jurisdiction of other countries requiring bank secrecy or less rigorous money laundering enforcement. This too finds an escapist mode using several technological tools. 
• Credit Cards having a number of uses and often used across international borders. 
• Changing forms of laundered money through Hawala transactions as it is illegal in India and since it is not routed through banks, the government agencies and the RBI cannot regulate them.
• The new pain in head is the growing nuisance globally of the Cryptocurrency with absolute anonymity and facilitating terror financing. The Financial Action Task Force in Paris reported in 2015 that some terrorist websites encouraged sympathisers to donate in bitcoins.

The use of technology and going beyond borders becomes an easy way to provide funds for terrorists and other illegal activities. Therefore things need proper regulation in order to ensure that the interest of the economy and the security of the country is protected.

Thus steps and coordination both at the National and the International level must be taken. 

Steps Taken by Government of India to Prevent Money Laundering

• Criminal Law Amendment Ordinance (XXXVIII of 1944): that covers the proceeds of only certain crimes such corruption, breach of trust and cheating and not all under the Indian Penal Code.
• Narcotic Drugs and Psychotropic Substances Act, 1985 imposed by the government seems to take action against the property derived from, or used in illegal traffic in narcotic drugs.
• The Prevention of Money-Laundering Act, 2002 (PMLA) is the backbone and reveals the aim of the government to provide a legal framework and take efforts to combat Money Laundering. The act applies to all financial institutions, banks (Including RBI), mutual funds, insurance companies, and their financial intermediaries. It provides for provisional attachment and confiscation of property of the person involved in such illegitimate activities.
• The government has also established bodies and authority to deal with this situation like the Financial Intelligence Unit, Economic Intelligence Council (EIC) headed by the Finance Minister and Enforcement Directorate (ED) ensues the enforcement of the economic laws and fighting economic crime in India.

 Global efforts to combat Money Laundering

• The Vienna Convention: It creates an obligation to criminalize the money laundering from drug trafficking.
• G-10’s Basel Committee statement of principles. 
• The International Organization of Securities Commissions (IOSCO): take necessary steps to  combat Money Laundering in securities and futures markets.
• Financial Action Task Force has been set up by the governments of the G-7 countries at their 1989.
• International bodies like the IMF, United Nations office on Drugs and Crime takes proactive steps to comply with international standards and thwart terrorist financing.

Way Forward

The evolving threats through the evils of money laundering can be effectively supported by emerging technologies, big data and artificial intelligence. Both international and national stakeholders need to come together by strengthening data sharing mechanisms and adopting a multilateral approach to effectively eliminate the problem of money laundering. Money laundering plays a role in multiplying the   criminal activities as it gives economic power to criminals. There needs to be Continuous up-gradation and dissemination of information is necessary. 

Q.10. Keeping in view India’s internal security, analyse the impact of cross-border cyber attacks. Also discuss defensive measures against these sophisticated attacks. (Answer in 150 words) 10 Marks

Chinese Group named as “Red Echo”  was possibly behind a malware attack “Shadow pad”  that aimed to attack on the India’s critical information infrastructure such as Ports, power systems etc.

ICT has seen a lot of dependence in the recent times. Sectors such as Banking & Finance, Transportation, Nuclear power facilities, Space sector, Power transmission etc. are dependent on ICT contributing to the rapid advancements in the field of ICT and economic growth to make our lives much more easier.  Cyber space has become highly vulnerable to cyber attacks and Crimes. Unlike the geographical boundaries such ( Land, water), Cyberspace is without geographical limitation. It is completely borderless and hence protection of Cyberspace becomes even more challenging.

The impact of the Cyber Attacks 

• Financial loss: According to the Data Security Council of India, India has been the second most cyber attacks affected country where Cyber crimes in India have caused Rs 1.25 lakh crore loss in 2019.
• Affects the Confidentiality, Integrity and Availability of information. 
• Cyber attacks on these critical information infrastructure can bring the entire country to a grinding halt. 
• Effect the National Security and peace and stability of a country.
• As in case of the Individuals personal information and privacy faces the most dangerous situation. 
• Companies possessing crucial data and information on their systems in times of an cyber attack may lead to loss of competitive information, loss of employees/customers private data resulting into complete loss of public trust on the integrity of the organization.
• A local, state or central government maintains huge amount of confidential data related to country (geographical, military strategic assets etc.) and citizens. Unauthorized access to the data can lead to serious threats on a country.
• There are certain inherent vulnerabilities that cannot be removed.
• The effect of the attack too can outpace the defence technology, security of the country.

Defensive measures against the sophisticated attacks

1. The International Telecommunication Union (ITU) released Global Cyber Security Index in 2017 where India was placed at 23rd rank among 165 countries. The relatively higher ranking of India shows that India has taken adequate measures for the protection of cyber space.
2. Section 66F of ITA:
3. National Cyber Security Policy 2013 Established National Critical Information Infrastructure Protection Centre (NCIIPC) to improve the protection and resilience of the country’s critical infrastructure.

• CERT-IN: has an objective of securing Indian cyberspace. The purpose of CERT-In is to respond to computer security incidents, report on vulnerabilities and promote effective IT security practices throughout the country. 
• Cyber Surakshit Bharat Initiative: spreads awareness about cybercrime and building capacity for safety measures for Chief Information Security Officers (CISOs) and frontline IT staff across all government departments.
• The National Cyber Coordination Centre (NCCC): It seeks to generate necessary situational awareness of existing and potential cyber security threats and enable timely information sharing for proactive, preventive and protective actions by individual entities.
• The Information Security Education and Awareness Project (ISEA) where there is Training of personnel to raise awareness and to provide research, education and training in the field of Information Security.
• The  Budapest Convention is the first international treaty seeking to address Internet and computer crime by harmonizing national laws, improving investigative techniques, and increasing cooperation among nations. India has not joined this convention. This is because the convention allows for cross border access to data to carry out investigation and India believes that such cross border access to data can infringe on National Sovereignty. Therefore the government is putting excessive attention to Provide tax incentives to companies to upgrade information infrastructure and go for more and more Investment in R&D to improve Cyber Security- Big data, AI.