Q1: Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development. (Economic Development)
Ans:
Inter-generational Equity and Issues: As Mahatma Gandhi once remarked, "Earth provides enough to satisfy every man’s needs, but not every man’s greed." The core aim of inter-generational equity is the responsible use of resources by one generation to ensure economic sustainability for future generations.
This principle has gained significant importance today due to the increasing imbalance in resource distribution, ongoing environmental degradation, and resource overexploitation. This imbalance is particularly evident between developed and developing nations, often manifested as the disparity between the Global North and the Global South. Additionally, developed countries are hesitant to support developing nations in adapting to and mitigating the impacts of climate change.
Intra-generational Equity and Issues: Mahatma Gandhi's perspective that the progress of a society should be gauged by the well-being of the most vulnerable and weakest individuals emphasizes the importance of intra-generational equity.
This concept grants rights and responsibilities to every person within a generation to use and manage resources fairly, ensuring that all segments of society benefit. To foster intra-generational equity, the promotion of social justice is advocated. However, government initiatives such as welfare schemes, subsidies, and reservations, designed to assist vulnerable sections of society, often face challenges like corruption and inefficient implementation.
Despite the free-market doctrine calling for a reduction of state intervention and reliance on market solutions, the market-oriented reforms of 1991 have not effectively trickled down.
The key pillars of the global welfare narrative lie in the concepts of inclusive growth and sustainable development, both achievable by ensuring both intra-generational and inter-generational equity.
Q2. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (Economic Development)
Ans:
Potential GDP and its Determinants: Potential GDP is a theoretical concept in national income accounting, assuming full employment and a balance between aggregate demand and aggregate supply. Unlike other methods, it estimates the highest sustainable output level an economy can maintain over time, representing the market value of all goods and services.
Determinants of Potential GDP:
Factors Limiting India's Potential GDP:
Way Forward
Q3: Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public entity and private entity.(Economic Development)
Ans:
Investment in the Economy: In the economic context, investment pertains to the spending made to create capital assets or goods for generating future income and wealth. It involves adding to the physical capital stock, including machinery, buildings, equipment, and roads. Investment plays a vital role in capital formation, leading to increased national economic output.
Economic Impact of Investment:
Concession Agreement in Infrastructure Development: A concession agreement is a negotiated contract granting rights to a company by a government, local authority, or other legal entity. Essentially a Public-Private Partnership (PPP), it enables joint development and maintenance of government projects.
Factors in Designing Concession Agreements:
Importance of Concession Agreements: Concession agreements are crucial for infrastructure development, reducing time lags and associated costs. A well-designed concession agreement not only enhances performance but also minimizes contract disputes.
Q4: Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?(Economic Development)
Ans:
Goods and Services Tax (GST) and Compensation to States: The Goods and Services Tax is a comprehensive, multi-stage, destination-based tax, serving as a single domestic indirect tax law that subsumed various indirect taxes in India. The Goods and Service Tax (Compensation to States) Act, 2017, outlines a mechanism to compensate states for potential revenue loss resulting from the implementation of GST.
Rationale behind the Act:
Impact of COVID-19 on GST Compensation Fund and Federal Tensions:
Q5: Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our government for this purpose?(Economic Development)
Ans:
Harnessing Solar Energy in India: India, located in the tropical belt, enjoys a significant advantage with nearly 300 days of peak solar radiation, providing 2,300-3,000 hours of sunshine equivalent to over 5,000 trillion kWh. As of February 2019, the installed solar power capacity in India, according to the Central Electricity Authority, stands at 26,025.97 MW, constituting 34% of the total renewable energy capacity of 75,055.92 MW.
Advantages of Solar Energy Over Conventional Sources:
Government Initiatives:
Conclusion:
With its pollution-free, virtually inexhaustible, and globally distributed nature, solar energy stands as an immensely attractive resource. India, committed to achieving 100 GW of solar power out of 175 GW renewable energy by 2022, can significantly benefit from this abundant and sustainable energy source.
Q6: What are the main constraints in transport and marketing of agricultural produce in India?(Agriculture)
Ans:
Agriculture's Contribution and Challenges in India: Agriculture constitutes approximately 17% of India's GDP and serves as the primary livelihood for over 55% of the country's population. While Indian farmers can sell their produce locally, at APMC (Agricultural Produce Market Committee) mandis, or to the government at the minimum support price (MSP), these traditional mechanisms have not significantly improved farmers' income. To achieve the goal of doubling farmers' income and ensuring sustainable livelihoods, effective transportation and marketing of agricultural produce are crucial.
Constraints in Transport:
Constraints in Marketing:
The challenges in transporting and marketing agricultural produce not only lead to product wastage and efficiency losses but also significantly impact equitable distribution and inclusive growth by diminishing returns for smaller farmers.
Q7: What are the challenges and opportunities of the food processing sector in the country? How can the income of the farmers be substantially increased by encouraging food processing?(Agriculture)
Ans:
Overview of Food Processing: Food processing generally involves the fundamental preparation of foods, transforming a food product into a different form, and employing preservation and packaging techniques. An example is the extraction of mango juice from the pulp.
Challenges Faced by Food Processing Industry in India:
Opportunities Associated with Food Processing Industries:
Employment Generation: Food Processing Industry (FPI) serves as a vital link between agriculture and industry, providing direct and indirect employment opportunities.
Nutritional Security: Fortified processed foods can address nutritional gaps in the population.
Trade and Foreign Exchange: Food exports can be a significant source of foreign exchange due to the growing demand for nutritious, convenient, and time-saving food.
Food Processing Industry & Farmers’ Income:
Food processing has become integral to the global food supply chain. India, being agriculturally dominant, should harness its potential in the Food Processing Industry to double farmers’ income by 2022-23.
Q8: What are the major factors responsible for making the rice-wheat system a success? In spite of this success how has this system become bane in India? (Agriculture)
Ans:
The Rice-Wheat Cropping System in India: The rice-wheat cropping system has been a dominant pattern in the Indo-Gangetic region for years, satisfying a significant portion of the country's annual wheat and rice demand. Key states practicing this system include Punjab, Haryana, Bihar, Uttar Pradesh, and Madhya Pradesh.
Factors Contributing to the Success of the Rice-Wheat System:
Challenges and Issues with the Rice-Wheat System:
Conclusion:
In conclusion, the rice-wheat system's drawbacks call for a reassessment of this traditional agricultural practice. Urgent steps are needed to implement new and sustainable agricultural policies to address environmental concerns, water management, soil health, and market dynamics.
Q9: Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario.(Agriculture)
Ans:
Addressing Water Scarcity Through Traditional and Modern Techniques: The continuous mismanagement and excessive use of potable groundwater in industries, agriculture, and households have led to a significant portion of the country facing high water stress. This, combined with a growing population, raises concerns about an impending shortage of potable water in the country.
Traditional Water Conservation Methods:
Modern Water Storage Methods:
Efficient Irrigation Practices:
Conclusion:
By integrating traditional methods with modern scientific approaches, a holistic approach to water conservation can be achieved. These methods should be implemented comprehensively to minimize water wastage and ensure the sustained availability of potable water for an extended period.
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1. What are the main topics covered in the Indian Economy section of UPSC Mains GS3? |
2. What is the significance of the Indian Economy section in UPSC Mains GS3? |
3. What are the key challenges faced by the Indian economy as discussed in the article? |
4. How can the Indian economy achieve sustainable development as mentioned in the article? |
5. What are some government initiatives and policies mentioned in the article to promote economic development in India? |
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