GENERAL STUDIES-3

Table of Contents
Indian Economy and issues relating to Planning, Mobilization of Resources,
Growth, Development and Employment. ...................................................................... 5
Q. “The Goods and Services Tax (GST) system has faced periodic challenges in revenue
generation since its implementation." Examine the factors affecting GST revenue growth in
India and suggest measures to ensure more robust collections. (15 M) ....................................... 5
Q. “Internship schemes are crucial for bridging the gap between academic learning and
practical skills needed by employers”. Discuss the potential of the PM Internship Scheme in
addressing youth unemployment in India. (10 M) ......................................................................... 6
Q. Analyze the key factors leading to the decline in private sector investment in India and
propose measures to revive and stimulate investment. (15 M) ..................................................... 8
Q. “The Indian textile industry is at a crossroads, facing both global and domestic
challenges”. Critically analyze the reasons for the slowdown in the Indian textile sector and
suggest comprehensive measures to revive its growth trajectory. (15 M) .................................. 10
Q. Examine the role of Non-Banking Financial Companies (NBFCs) in fostering financial
inclusion in India. Highlight the key challenges faced by NBFCs in ensuring sustainable
growth and suggest comprehensive solutions to overcome these challenges. (15 M) ................ 12
Q. What is the middle-income trap, and to what extent is India at risk of falling into it?
Discuss the measures that can be adopted to help India overcome the middle-income trap
while maintaining sustainable growth. (15 M) ............................................................................. 14
Q. "The depreciation of the Indian Rupee has multiple implications for the Indian economy".
Analyze the key factors contributing to the rupee’s fall and its impact on the economy. (15 M)
.......................................................................................................................................................... 16
Q. “The insurance sector in India plays a crucial role in financial inclusion and economic
security”. Analyze the growth and key challenges of the insurance industry in India. Also,
suggest measures to overcome these challenges. (15 M) .............................................................. 18
Q. Examine the rising importance of supply chain security amid global technological
advancements. How are national security concerns influencing these strategies, and what
steps can India take to balance resilience and security? (15 M) ................................................. 21
Q. “Innovation is key to making microfinance both affordable and sustainable”. Discuss the
challenges faced by MFIs and how they can leverage financial innovations to improve their
services. (10 M) ................................................................................................................................ 23
Q. Analyze the recent trends in capital expenditure in India and their implications for
economic growth. How do public and private sector investments complement each other in
this regard? (15 M) ......................................................................................................................... 25
Q. “The widening economic divide among Indian states poses challenges for balanced
regional development”. Examine how economic disparities between states impact India's
growth trajectory. Suggest ways to promote more equitable development. (15 M) .................. 27
Q. What are the potential economic consequences of slowing core sector growth on India’s
GDP? Suggest strategies to mitigate these effects and ensure balanced industrial
development. (10 M) ....................................................................................................................... 29
Inclusive Growth and issues arising from it. .............................................................. 31
Q. “Inclusive institutions foster long-term economic growth, whereas extractive institutions
impede it”. Examine this statement with relevant examples from India and other developing
countries. (15 M) ............................................................................................................................. 31
Q. “The concept of Universal Basic Income (UBI) has gained renewed interest globally in
light of rising unemployment and inequality”. Discuss its potential advantages and challenges
in the context of financial constraints and existing welfare schemes. (15 M) ............................ 33
Government Budgeting. ............................................................................................... 36
Major Crops - Cropping Patterns in various parts of the country, - Different Types
of Irrigation and Irrigation Systems; Storage, Transport and Marketing of
Agricultural Produce and Issues and Related Constraints; E-technology in the aid
of farmers. .................................................................................................................... 36
Q. Low farmer income in India undermines the goal of inclusive agricultural growth”.
Examine the factors contributing to this problem and propose comprehensive solutions to
address it. (10 M)............................................................................................................................. 36
Q. How has the focus on high-yield crops affected India’s agricultural biodiversity and
sustainability? Suggest measures to promote a more holistic approach to agriculture. (10 M)
.......................................................................................................................................................... 38
Q. "India's agricultural sustainability is closely tied to its fertilizer production and import
policies”. Analyze the key factors affecting India's fertilizer sector and suggest strategies for
reducing dependence on imports. (15 M) ...................................................................................... 39
Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices;
Public Distribution System - Objectives, Functioning, Limitations, Revamping;
Issues of Buffer Stocks and Food Security; Technology Missions; Economics of
Animal-Rearing. .......................................................................................................... 42
Food Processing and Related Industries in India- Scope’ and Significance,
Location, Upstream and Downstream Requirements, Supply Chain Management. 42
Land Reforms in India. ............................................................................................... 42
Effects of Liberalization on the Economy, Changes in Industrial Policy and their
Effects on Industrial Growth....................................................................................... 42
Infrastructure: Energy, Ports, Roads, Airports, Railways etc. .................................. 42
Q. Evaluate the role of public-private partnerships in India’s nuclear energy sector. How can
the government balance private investment with public safety and regulatory control? (15 M)
.......................................................................................................................................................... 42
Q. “Railway safety in India has seen improvements, yet the occurrence of major accidents
remains a concern”. Discuss the key challenges to railway safety and suggest measures that
can be adopted to enhance safety standards in the future. (15 M) ............................................. 44
Q. “The UDAN scheme is a significant step towards democratizing air travel in India”.
Critically examine the achievements of the UDAN scheme and assess the challenges it faces in
expanding regional connectivity across India. (15 M) ................................................................. 47
Investment Models. ...................................................................................................... 50
Science and Technology- Developments and their Applications and Effects in
Everyday Life. .............................................................................................................. 50
Q. “While geoengineering solutions present ambitious possibilities, they raise environmental
concerns”. Analyze the benefits and risks of geoengineering as a tool for climate change
mitigation. (10 M)............................................................................................................................ 50
Achievements of Indians in Science & Technology; Indigenization of Technology
and Developing New Technology. ............................................................................... 52
Q. Analyze the advantages and challenges of electric propulsion systems in satellite missions.
In light of ISRO’s upcoming electric-propelled satellite launch, evaluate how this shift can
impact India's space exploration and global competitiveness. (15 M) ....................................... 52
Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-
technology and issues relating to Intellectual Property Rights. ................................ 55
Q. What are Cyber-Physical Systems (CPS). Evaluate the significance of the National Mission
on Interdisciplinary Cyber-Physical Systems (NM-ICPS) in positioning India as a global
leader in emerging technologies. (10 M) ....................................................................................... 55
Q. “AI can accelerate India's progress towards the Sustainable Development Goals (SDGs) by
2030”. Discuss the potential and challenges of AI in this context. (15 M) .................................. 58
Q. “Genome-editing technologies have revolutionized the field of genetic research." Discuss
the potential of genome-editing in addressing diseases and improving public health outcomes
in India. Also, examine the regulatory frameworks governing these technologies. (15 M) ...... 60
Q. “The Global Digital Compact seeks to harness digital technologies for the common good."
In light of this statement, analyze the role of GDC in addressing the digital divide and
promoting global digital cooperation. (10 M) ............................................................................... 61
Q. Discuss the key objectives of NASA's Europa Clipper mission and its significance for space
exploration. (10 M).......................................................................................................................... 63
Q. Analyze the importance of India's Venus Orbiter Mission in the context of global space
exploration. How could studying Venus help us understand Earth's climate dynamics and
planetary evolution? (10 M) ........................................................................................................... 65
Q. Discuss how the growing use of AI and Big Data is reshaping India's banking sector. What
are the associated risks to financial stability? (10 M) .................................................................. 66
Conservation, Environmental Pollution and Degradation, Environmental Impact
Assessment. .................................................................................................................. 68
Q. “Erratic weather patterns and extreme hydrological events are increasing stress on global
water resources”. Analyze how climate change is altering the hydrological cycle and discuss
the implications for global water security. (10 M)........................................................................ 68
Q. Examine the key drivers behind the sharp decline in wildlife populations globally. How do
these factors interplay with the dual crises of climate change and biodiversity loss? (10 M) .. 70
Q. “Climate change amplifies existing vulnerabilities in India's agricultural sector". Analyze
the major climate-related challenges in Indian agriculture. What measures can be taken to
minimize the risks and support sustainable agricultural development? (15 M) ....................... 71
Q. “The water crisis requires a fundamental rethinking of water governance”. Evaluate the
importance of a circular water economy and innovative solutions for addressing global water
scarcity. (10 M) ................................................................................................................................ 74
 Q. “The mobilization of climate finance is crucial for sustainable development in vulnerable
nations”. Assess the role of climate finance in meeting the developmental and environmental
goals of developing countries. (10 M) ............................................................................................ 76
Q. “Nature-based solutions are increasingly seen as a key strategy to combat biodiversity loss
and climate change”. Critically analyze the potential and limitations of nature-based solutions
in achieving global conservation goals. (15 M) ............................................................................. 78
Q. “Cloud chambers could revolutionize weather management by providing deeper insights
into cloud behaviour”. Analyze the potential scientific and practical outcomes of India's cloud
chamber initiative. (10 M) .............................................................................................................. 80
Disaster and Disaster Management. ........................................................................... 81
Q. What are heat waves? Analyze the measures that can be taken to enhance preparedness for
extreme heat events in India. (10 M) ............................................................................................. 81
Q. Critically evaluate India’s approach to disaster risk reduction (DRR) in the context of
increasing frequency of climate-related disasters. Suggest measures to improve disaster
preparedness and resilience at both national and local levels.(15 M) ........................................ 83
Q. “Stampedes during religious and public events have led to significant loss of life in India”.
Identify the key challenges in managing large crowds and suggest disaster management
protocols to minimize the risk of stampedes. (10 M) ................................................................... 85
Q. “Greenwashing undermines genuine environmental efforts”. Discuss the concept of
greenwashing and its impact on sustainable business practices in India. How do the new
guidelines by Central Consumer Protection Authority aim to address this issue? (15 M) ....... 87
Linkages between Development and Spread of Extremism. ...................................... 89
Role of External State and Non-state Actors in creating challenges to Internal
Security. ........................................................................................................................ 89
Challenges to Internal Security through Communication Networks, Role of Media
and Social Networking Sites in Internal Security Challenges, Basics of Cyber
Security; Money-Laundering and its prevention. ...................................................... 89
Q. “While Armed Forces Special Powers Act(AFSPA) is necessary for maintaining internal
security, it raises concerns about human rights violations”. Critically analyze this statement
in the context of its implementation in conflict-prone areas. (10 M) .......................................... 89
Q. “The integration of drones in military operations has revolutionized combat strategies”.
Examine the advantages and risks posed by such technologies in modern warfare. (10 M) ... 91
Q. “As AI systems advance, the risk of their misuse for military purposes is increasing”.
Evaluate the risk posed by AI in creating security challenges for the nation. Also propose
ways to neutralise this threat. (10 M) ............................................................................................ 93
Q. “The rapid growth of the Indian online gaming sector presents challenges in financial
integrity and cybersecurity”. Analyze the risks posed by money laundering and terror
financing in this sector and propose interventions to address these threats. (15 M) ................ 95
Q. “Digital scams, such as the ‘digital arrest’ fraud, highlight the need for enhanced digital
security measure". Examine the major vulnerabilities in India’s digital ecosystem and suggest
measures to strengthen India’s response to cybercrime. (10 M)................................................. 97
Security Challenges and their Management in Border Areas - Linkages of
Organized Crime with Terrorism. ............................................................................... 98
Various Security Forces and Agencies and their Mandate. ....................................... 98
Q. Examine the role of National investigation agency (NIA) in combating terrorism and
discuss its contribution to strengthening internal security. (10 M) ............................................ 98
Q. “The Border Security Force (BSF) has a vital mandate in securing India’s borders, yet
faces significant challenges in fulfilling this role”. Examine. (10 M) ........................................ 100

Indian Economy and issues relating to Planning, Mobilization of

Resources, Growth, Development and Employment.

Q. “The Goods and Services Tax (GST) system has faced periodic challenges in
revenue generation since its implementation." Examine the factors affecting GST
revenue growth in India and suggest measures to ensure more robust collections.
(15 M)

Introduction

Since its introduction in 2017, the Goods and Services Tax (GST) has revolutionized India's
indirect taxation system. However, periodic challenges in revenue generation due to
structural and compliance issues necessitate further improvements to ensure robust
collections.

Body

Factors affecting GST revenue growth in India

1. Tax Evasion and Compliance Issues: Tax evasion through underreporting, fake
invoicing, and avoidance of the GST net has been a persistent issue.
 E.g.: A 2024 report from the GST Council noted a significant uptick in cases of
fake invoicing leading to revenue leakages.
2. Slowdown in Consumption Growth: Consumption, a key driver of GST, has been
affected by fluctuating economic conditions, especially post-COVID-19 and amid
global inflation.
 E.g.: Despite a recovery in 2023-24, monthly GST collections in some months
showed only marginal growth (6.5% in September 2024)
3. Inverted Duty Structure: The inverted duty structure, where input taxes are higher
than output taxes, discourages production and exports.
 E.g.: In sectors like textiles and fertilizers, the input cost exceeds the output
tax, leading to constrained growth (NITI Aayog, 2023).
4. Complexity in Compliance for SMEs: The compliance burden for small and
medium enterprises (SMEs) remains a challenge due to the complicated filing
procedures and multiple returns.
 E.g.: SMEs have repeatedly raised concerns about the GST filing system, even
after reforms like the QRMP scheme.
5. Rate Rationalization Issues: Frequent changes in tax rates, exemptions, and multiple
tax slabs complicate GST implementation and reduce tax compliance efficiency.
 E.g.: The GST Council’s recent discussions on merging tax slabs are aimed at
simplifying the tax regime.
 6. Refund Delays: Delays in processing refunds, particularly for exports, reduce
business liquidity, affecting production and compliance.
 E.g.: According to the Ministry of Finance, export refunds under GST have
seen processing delays, impacting manufacturing sectors like pharma and
textiles.

Measures to ensure more robust collections

1. Enhance Compliance through Technology: Strengthening the use of artificial

intelligence (AI) and big data analytics to track evasion and enhance compliance.
 E.g.: The GSTN system has increasingly used AI to flag discrepancies in
invoice matching .
2. Rationalization of Tax Rates: Simplifying the GST tax rate structure to reduce the
number of tax slabs and resolve the inverted duty structure would streamline
collections.
 E.g.: The GST Council's proposal to merge the 12% and 18% slabs is
expected to simplify compliance and improve revenue (Business Standard,
2024).
3. Boosting Consumption and Production through Fiscal Stimulus: Stimulating
consumption through fiscal measures, like subsidies and tax breaks, will enhance
demand and lead to higher GST revenue.
 E.g.: Increased demand from the festive season in 2024 significantly boosted
GST collections to over ₹1.7 lakh crore in August 2024.
4. Expanding the Tax Base: Bringing untaxed sectors like gig economy services and
online content under GST will significantly expand the tax base.
 E.g.: The GST Council’s decision to tax online gaming and casinos from
2023 is expected to boost revenue by ₹15,000 crores annually.
5. Simplified Compliance for SMEs: Reduce the compliance burden on small and
medium-sized enterprises (SMEs) by simplifying the GST return filing processes.
 E.g.: The QRMP scheme for quarterly return filing has simplified the process
for businesses with turnovers of up to ₹5 crore.
6. Digitization and Automation of Refund Processes: Automating refund systems,
especially for exporters, will reduce refund delays, thus encouraging higher
compliance and export growth.
 E.g.: The Ministry of Finance has introduced fast-track refund processing for
IGST claims, especially for exporters

Conclusion

To ensure robust GST revenue collection, India needs to focus on simplifying the tax
structure, expanding the tax base, and leveraging technology to improve compliance.
Strengthening these aspects will not only boost revenue but also promote ease of doing
business, fostering long-term economic growth.

Q. “Internship schemes are crucial for bridging the gap between academic
learning and practical skills needed by employers”. Discuss the potential of the
PM Internship Scheme in addressing youth unemployment in India. (10 M)

Introduction:
Internship schemes play a critical role in bridging the gap between academic knowledge and
the practical skills demanded by employers. The recently launched PM Internship Scheme
is poised to significantly address the challenge of youth unemployment by offering hands-
on industry experience and boosting employability.

Body

Key factors necessitating the PM internship scheme

1. High Youth Unemployment: Youth unemployment still stands at 10%, indicating a

gap between graduates and job opportunities
2. Skill Mismatch: Many young graduates lack industry-relevant skills, highlighting the
need for internships that offer practical training
3. Urban Joblessness: Urban youth, especially women, face higher unemployment at
20.1%, stressing the need for targeted job training programs
4. Informal Workforce: A large share of youth is in the informal sector, where job
security and skills are lacking, making structured internships essentia

Potential of the PM Internship Scheme

I. Addressing Skill Gaps:

1. Real-World Exposure: The PM Internship Scheme provides youth with 12 months of

on-the-job training in top companies, helping them acquire skills that go beyond
classroom learning.
o E.g.: Over 500 leading companies have signed up, including Mahindra and
Max Life
2. Targeted at Skill Development: The scheme aims to provide skill training to over 1
crore youth over five years, focusing on vocational skills needed in the modern job
market.
o E.g.: Interns receive training in sectors such as IT, manufacturing, and services

II. Financial Support and Incentives:

1. Stipend and Assistance: The government provides a monthly stipend of ₹4,500,

with an additional ₹500 paid by the companies. A one-time grant of ₹6,000 is also
offered for joining.
o E.g.: This financial assistance helps support the youth during their internships
2. Incentivizing Companies: Companies are encouraged to participate in the scheme
through their Corporate Social Responsibility (CSR) contributions, ensuring wide
industry participation.
o E.g.: Companies with significant CSR funds, like Alembic Pharma, are
offering internship positions

III. Inclusive and Targeted Approach:

1. Targeting Youth from Vulnerable Groups: The scheme is designed to be inclusive,

with the government’s reservation policy applying to ensure opportunities for
SC/ST/OBC and differently-abled youth.
o E.g.: This helps provide a level playing field for marginalized communities
 2. Addressing Regional Disparities: By making internships available across sectors
and regions, the scheme aims to reduce regional employment disparities, offering
opportunities even in non-metro areas.

IV. Enhancing Employability:

1. Industry Collaboration: The scheme connects youth with top-tier companies,

ensuring they gain relevant experience that boosts their employability in a competitive
job market.
o E.g.: Interns will be working with companies identified based on CSR
spending, ensuring quality industry exposure
2. Focus on Employability Post-Internship: The internships are structured to enhance
participants' chances of full-time employment after the internship, potentially
reducing long-term youth unemployment

Conclusion

The PM Internship Scheme holds significant potential to address the issue of youth
unemployment by equipping young graduates with the practical skills and industry
exposure needed for a successful career. This initiative is a timely intervention, aligning with
India’s goals of employment generation and skill development. By connecting academia
with industry, the scheme ensures that the next generation of workers is prepared for the
evolving job market.

Q. Analyze the key factors leading to the decline in private sector investment in
India and propose measures to revive and stimulate investment. (15 M)

Introduction

India’s private sector investment has been on a declining trend, despite government efforts
such as capital expenditure hikes and schemes like Make in India. This downturn in private
investment, along with stagnating manufacturing and real wage decline, is threatening the
nation’s economic growth.

Body

I. Key Factors Leading to Decline in Private Sector Investment

1. Decline in Project Announcements: New private project announcements dropped by

21% between FY23 and FY24, highlighting weak investor confidence and policy
inconsistency
2. Stagnation in Manufacturing: Manufacturing’s share in GDP has remained
stagnant, despite Make in India, limiting capital infusion into the sector
o E.g.: Labor-intensive sectors like garment exports dropped from $15 billion
(2013-14) to $14.5 billion (2023-24
3. Focus on Financialisation: Corporates are prioritizing stock market valuation over
expansion, reducing debt instead of reinvesting profits
4. Declining Real Wages: Labour productivity slowed from 6.6% in 2014-15 to 0.6%
in 2018-19, contributing to stagnant real wages, dampening consumption and, thus,
investment
 5. Global and Geopolitical Factors: Geopolitical tensions (e.g., Russia-Ukraine
conflict) and the COVID-19 pandemic have disrupted supply chains, increasing
inflationary pressures, and affecting private investment.
6. High Corporate Debt: Many firms are focused on deleveraging due to high debt
burdens, limiting their ability to invest in new projects
o E.g.: Non-performing assets (NPAs) in sectors like steel and infrastructure
have slowed lending to private firms.
7. Weak Domestic Demand: Low domestic demand, particularly in rural areas, has led
to reduced capacity utilization, affecting investment decision

II. Measures to Revive and Stimulate Investment

1. Stable Policy Environment: Establish consistent and predictable economic policies

to reduce uncertainty and restore investor confidence.
o E.g.: Reduce the “raid raj” and streamline tax reforms to create a better
investment climate
2. Boost Domestic Demand: Stimulate consumption through targeted cash transfers and
rural employment schemes.
o E.g.: Expand initiatives like PM-KISAN to increase rural demand and drive
industrial growth
3. Corporate Debt Restructuring: Support mechanisms for restructuring corporate
debt to enable businesses to focus on growth investments.
o E.g.: The Insolvency and Bankruptcy Code (IBC) has played a crucial role
in reducing bad debts
4. Public-Private Partnerships (PPP): Expand PPP models for infrastructure
development to attract private capital into sectors like transport, logistics, and
housing.
o E.g.: The National Infrastructure Pipeline (NIP) encourages private
participation in large-scale projects
5. Labour Reforms and Skill Development: Implement policies aimed at improving
productivity through skill development initiatives.
o E.g.: Boost programs like Skill India Mission to enhance labor productivity
and competitiveness
6. Reducing Bureaucratic Hurdles: Streamline approval processes, especially for
infrastructure and large-scale projects, to cut down on delays caused by regulatory red
tape.
o E.g.: Implement a single-window clearance mechanism for faster project
approvals
7. Lowering Input Costs: Address the rise in input costs, particularly in raw materials
like steel and energy, through subsidies or price stabilization measures.
o E.g.: Offer tax rebates or incentives for companies investing in green and
renewable energy to reduce dependence on costly imports.

Conclusion

Reviving private sector investment in India requires a multi-pronged approach—ensuring

policy stability, boosting domestic demand, addressing corporate debt, and improving
labour productivity. By targeting these areas, India can create a conducive environment for
long-term private investment and sustainable economic growth.
Q. “The Indian textile industry is at a crossroads, facing both global and
domestic challenges”. Critically analyze the reasons for the slowdown in the
Indian textile sector and suggest comprehensive measures to revive its growth
trajectory. (15 M)

Introduction

The Indian textile industry, contributing 2.3% to GDP and employing over 105 million
people, is crucial for economic growth. However, the sector has faced significant headwinds
in recent years, with both global and domestic factors contributing to a slowdown in
production and exports.

Body

Reasons for slowdown in the Indian textile sector

1. Decline in Global Demand: Geopolitical tensions, rising inflation, and slowing

economic growth in key markets such as the US and EU have hurt demand for Indian
textiles.
o E.g.: Exports from Tamil Nadu dropped by 40% in FY23 due to reduced
orders from Europe and North America.
2. High Raw Material Prices: The prices of raw materials like cotton and man-made
fibers (MMF) have surged, leading to reduced margins for textile producers.
o E.g.: The 10% import duty on cotton has made Indian cotton products
costlier, reducing their competitiveness in international markets.
3. Import of Cheaper Fabrics: Increasing imports of cheaper fabrics and finished
garments, particularly from Bangladesh and China, have displaced domestic
production, hitting MSMEs hard.
o E.g.: The import of low-cost fabrics has increased by 15% in the last two
years.
4. Supply Chain Disruptions: Ongoing disruptions in global supply chains, triggered
by the COVID-19 pandemic and exacerbated by the Russia-Ukraine conflict, have
led to delays in sourcing raw materials and machinery, as well as increased freight
costs.
o E.g.: Textile manufacturing clusters in Coimbatore saw reduced production
due to raw material shortages in 2023.
5. Policy and Regulatory Challenges: Inconsistent policies, such as quality control
orders (QCO) for MMF and import duties on raw materials, have created uncertainty
and volatility in production costs.
o E.g.: Stakeholders have been urging for the removal of cotton import
duties during the off-season to stabilize costs.
6. Labor Costs and Workforce Issues: Increasing labor costs, combined with a
shortage of skilled workers, have made Indian textile production less competitive
compared to countries like Vietnam and Bangladesh.
 o E.g.: Labor wages in India increased to ₹550 per day for skilled workers,
adding pressure on production costs.

Comprehensive measures to revive growth trajectory

1. Reduction in Import Duties on Raw Materials: The government should temporarily

reduce or eliminate import duties on cotton and other essential inputs, particularly
during off-season months, to lower production costs.
o E.g.: Eliminating the 10% import duty on cotton between April and October
could help domestic manufacturers compete internationally.
2. Investment in Technology and Skill Development: The adoption of automation,
advanced manufacturing technologies, and the upskilling of workers will be critical to
improving productivity and efficiency.
o E.g.: The National Technical Textiles Mission, launched in 2020, aims to
promote R&D and technological upgrades in the sector.
3. Enhanced Market Diversification: Expanding market access by negotiating Free
Trade Agreements (FTAs) with new markets such as Africa, Latin America, and
Southeast Asia can reduce dependency on traditional markets.
o E.g.: FTAs with the UK and the European Union are currently being
negotiated to open up more opportunities for textile exports.
4. Strengthening Sustainability Practices: With rising global demand for sustainable
and eco-friendly products, Indian producers must integrate Environmental, Social,
and Governance (ESG) standards into their supply chains to appeal to international
buyers.
o E.g.: Textile companies that adopt sustainable manufacturing processes,
such as water recycling and reduced carbon emissions, are more likely to
secure international contracts.
5. Supporting MSMEs through Financial Incentives: MSMEs need long-term
support through low-interest credit lines, production-linked incentives (PLI), and
subsidies for adopting green technologies to stay competitive.
o E.g.: Expanding the PLI scheme for textiles and extending it to cover
MSME segments like knitwear and home textiles could drive recovery.
6. Boosting Domestic Demand through Policy Initiatives: The government can
stimulate domestic consumption of textiles by promoting "Make in India" campaigns,
reducing GST rates for essential textile products, and supporting domestic retail
infrastructure.
o E.g.: Reducing GST on textiles from 12% to 5% would make domestic
products more affordable and drive consumption.
7. Supply Chain Infrastructure and Logistics: Improving infrastructure in textile
clusters and reducing transportation costs through better logistics will enhance the
competitiveness of Indian textiles in both domestic and global markets.
o E.g.: Investments in smart textile clusters with integrated supply chain
management can reduce costs and improve production timelines.
Conclusion

The revival of the Indian textile industry requires a multi-faceted approach, combining
policy reforms, technological upgrades, sustainability initiatives, and market
diversification. By addressing structural challenges and fostering innovation, India can
restore its position as a leading textile exporter and achieve its ambitious $350 billion target
by 2030.

Q. Examine the role of Non-Banking Financial Companies (NBFCs) in fostering

financial inclusion in India. Highlight the key challenges faced by NBFCs in
ensuring sustainable growth and suggest comprehensive solutions to overcome
these challenges. (15 M)

Introduction
Non-Banking Financial Companies (NBFCs) play a pivotal role in fostering financial
inclusion by bridging the gap between formal banking institutions and underserved segments
of society. With their flexibility and innovative lending models, NBFCs are crucial in
extending credit to rural areas, small businesses, and informal sectors, contributing
significantly to India’s financial inclusion agenda.

Body

Role of NBFCs in fostering financial inclusion

1. Targeting Underserved Segments: NBFCs cater to individuals and MSMEs that lack
access to traditional banking due to limited credit history or collateral.
o E.g.: NBFC-MFIs provide micro-loans to rural households, benefiting over
10 crore borrowers in 2023.
2. Customised Financial Products: NBFCs offer products tailored to the needs of small
borrowers, such as low-ticket loans, vehicle financing, and micro-insurance.
o E.g.: Gold loan NBFCs like Muthoot Finance target rural and semi-urban
areas for small loans against collateral.
3. Flexible Lending Practices: Unlike banks, NBFCs have flexible lending norms,
enabling them to extend credit to informal sector workers and small businesses.
o E.g.: NBFCs often use cash-flow based assessment for MSME loans, rather
than relying on formal income proof.
4. Innovative Technology and Digital Platforms: Many NBFCs adopt digital platforms
for faster loan disbursement and financial services delivery in remote areas.
o E.g.: Fintech NBFCs like Lendingkart use AI-based credit assessment for
rapid loan approvals to small businesses.
5. Complementing Banking Institutions: NBFCs supplement the banking system by
providing credit where banks cannot, thus improving credit penetration across sectors.
o E.g.: As of 2022, NBFCs account for over 20% of the total credit to
MSMEs in India.

Challenges faced by NBFCs in ensuring sustainable growth

 1. Liquidity Crisis: NBFCs often face liquidity challenges due to dependence on short-
term borrowings, making them vulnerable to market shocks.
o E.g.: The IL&FS crisis triggered liquidity constraints across the NBFC
sector.
2. Regulatory Arbitrage: While NBFCs are less regulated than banks, they still face
tightening of norms which can impact their operations and profitability.
o E.g.: RBI’s recent guidelines on stricter asset quality recognition for
NBFCs have increased compliance costs.
3. High Cost of Funds: NBFCs face higher borrowing costs compared to banks, as they
do not have access to low-cost public deposits.
o E.g.: NBFCs often borrow at 9-12% from banks or markets, making their
lending rates higher for customers.
4. Asset Quality Issues: High levels of non-performing assets (NPAs), especially in
sectors like infrastructure, affect the solvency of NBFCs.
o E.g.: In 2021, the gross NPA ratio for NBFCs was around 6%, a significant
challenge in maintaining healthy balance sheets.
5. Overdependence on Wholesale Lending: Some NBFCs over-rely on large corporate
loans, exposing them to high concentration risk and sectoral downturns.
o E.g.: Exposure to sectors like real estate and infrastructure has led to
increased default risks.

Comprehensive solutions for sustainable growth

1. Strengthening Liquidity Framework: Establishing dedicated liquidity windows and

ensuring access to emergency funding facilities can address liquidity risks.
o E.g.: RBI's liquidity support measures like the Targeted Long-Term Repo
Operations (TLTRO) helped NBFCs during the pandemic.
2. Diversifying Sources of Funds: Encouraging NBFCs to tap into newer funding
sources like masala bonds or development finance can reduce their cost of
borrowing.
o E.g.: Encouraging securitization of NBFC assets can provide access to long-
term capital.
3. Improving Governance and Risk Management: Strengthening internal governance
frameworks and better risk management practices can reduce asset quality stress.
o E.g.: Enhanced credit appraisal systems and real-time monitoring of loan
portfolios are essential for improving asset quality.
4. Financial Inclusion through Partnerships: Collaborating with banks and fintechs
can help NBFCs expand their reach and improve product innovation.
o E.g.: NBFCs partnering with Payment Banks and Small Finance Banks to
provide last-mile connectivity to underserved areas.
5. Regulatory Support for Tiered Structure: Establishing a differentiated regulatory
framework for systemically important NBFCs and smaller ones can promote sector-
specific growth.
o E.g.: RBI’s move to introduce a scale-based regulation for NBFCs is a step
in this direction.

Conclusion

NBFCs remain pivotal in advancing India’s financial inclusion by serving segments often
neglected by traditional banks. However, for NBFCs to achieve sustainable growth,
addressing liquidity concerns, improving governance, and leveraging technology are
essential. A balanced regulatory approach along with innovative solutions will enable
NBFCs to contribute more effectively to India’s financial ecosystem.

Q. What is the middle-income trap, and to what extent is India at risk of falling
into it? Discuss the measures that can be adopted to help India overcome the
middle-income trap while maintaining sustainable growth. (15 M)

Introduction
The middle-income trap refers to the stagnation that middle-income countries experience
when they are unable to transition to high-income status. India, as a fast-growing
economy, faces the risk of slowing down before reaching its full potential. Strategic policy
interventions are necessary to ensure sustainable and inclusive growth.

Body

Understanding the middle-income trap

The middle-income trap occurs when a country's per capita income growth stagnates as it
reaches middle-income levels, preventing it from progressing to high-income status.

1. Structural Transition Blockages: Economies face difficulties in shifting from low-

cost manufacturing to higher-value industries.
o E.g.: Many Latin American countries remain stuck in this trap despite
industrialization efforts.
2. Stagnation of Innovation and Investment: Inadequate R&D investment and low
technology absorption hinder growth.
o E.g.: Countries like Malaysia struggle with innovation beyond low-value
manufacturing.
3. Premature Deindustrialization: Modern economies face a decline in manufacturing
before achieving high-income levels, leading to service sector dependence.
o E.g.: India’s premature deindustrialization risks its growth trajectory.

Is India at Risk of Falling into the Middle-Income Trap?

Challenges Suggesting India is at Risk

1. Stagnation in Manufacturing: India’s manufacturing sector contributes only about

17% to GDP, which is insufficient for large-scale job creation and economic
transformation.
o E.g.: Despite initiatives like Make in India, manufacturing output has
lagged behind targets, limiting industrial growth.
2. Rising Inequality: Economic inequality is growing, with the top 1% controlling
nearly 40% of the nation’s wealth, leading to a disconnect between growth and
equitable development.
o E.g.: Oxfam’s 2023 report highlighted that wealth inequality is hindering
broad-based economic progress.
3. Premature Deindustrialization: India is witnessing a decline in manufacturing
employment, with a reversion to low-productivity sectors like agriculture.
 o E.g.: The 2023 EPFO report noted a rise in agricultural employment post-
pandemic, reversing earlier structural shifts.
4. Low Innovation and R&D Investment: India’s R&D expenditure remains below
1% of GDP, constraining its ability to innovate and remain competitive in a
knowledge-driven global economy.
o E.g.: Countries like South Korea, which escaped the middle-income trap,
invest over 4% of GDP in R&D.

Opportunities suggesting India can avoid the trap

1. Strong Services Sector: India’s services sector, contributing around 55% of GDP,
continues to thrive, particularly in IT, software, and outsourcing services, which are
globally competitive.
o E.g.: India’s IT sector, with firms like Infosys and TCS, has made India a
global leader in software exports.
2. Demographic Dividend: India’s young and growing workforce offers a significant
growth potential if adequately skilled and absorbed into productive employment.
o E.g.: By 2040, India is projected to have the world’s largest working-age
population, creating an opportunity for long-term growth.
3. Reforms to Boost Manufacturing: Government initiatives like the Production
Linked Incentive (PLI) Scheme have begun to stimulate domestic manufacturing in
key sectors such as electronics and pharmaceuticals.
o E.g.: The PLI Scheme for electronics has made India the second-largest
mobile phone producer in the world.

Measures to Overcome the Middle-Income Trap

To ensure that India avoids the middle-income trap, a multi-pronged approach focusing on
investment, innovation, and inclusive growth is needed.

a) Strengthening Manufacturing

1. Boost Manufacturing Competitiveness: Enhance manufacturing productivity by

improving infrastructure, reducing regulatory bottlenecks, and promoting advanced
manufacturing technologies like AI and robotics.
o E.g.: The PLI scheme has begun attracting significant investments, but further
efforts in emerging tech sectors are essential.
2. Export-Oriented Industrial Growth: Revitalize manufacturing exports by
improving global competitiveness and fostering public-private partnerships in key
sectors.
o E.g.: India’s electronics export growth under the PLI scheme demonstrates
the potential for export-led industrialization.

b) Fostering Innovation and R&D

1. Increase R&D Spending: Elevate R&D expenditure to 2% of GDP and foster

collaborations between industries, universities, and research institutions.
o E.g.: South Korea’s chaebol system linked private firms with state-backed
R&D, driving innovation.
 2. Encourage Start-ups and Innovation Ecosystems: Create a supportive environment
for start-ups by providing easier access to capital and incentivizing innovation in
sectors like green tech, pharma, and AI.
o E.g.: Initiatives like Startup India have helped India emerge as a global start-
up hub with over 100 unicorns.

c) Ensuring Inclusive Growth

1. Improve Social Infrastructure: Prioritize investments in education and healthcare

to develop a skilled workforce that can adapt to technological advances and sustain
productivity growth.
o E.g.: The National Education Policy (NEP) 2020 aims to make India’s
education system globally competitive.
2. Formalizing the Economy: Promote labor market reforms that increase formal
employment and improve wage security, ensuring that the benefits of growth are
widely shared.
o E.g.: The Code on Wages 2019 aims to formalize wage structures across
sectors.

d) Promoting Green and Digital Transformation

1. Lead in Renewable Energy: Invest heavily in green energy sectors like solar and
wind to create jobs, ensure sustainable growth, and reduce dependency on fossil fuels.
o E.g.: India’s ambitious 500 GW renewable energy target will make it a
leader in green energy production.
2. Expand Digital Economy: Leverage digital infrastructure and technologies like AI
and 5G to drive productivity in agriculture, healthcare, and governance.
o E.g.: India’s Digital India Mission has transformed governance and access to
services.

Conclusion
India faces real risks of falling into the middle-income trap due to manufacturing
stagnation and inequality, but its strengths in the services sector, demographic dividend,
and reform initiatives offer promising pathways forward. With targeted policies focusing on
innovation, inclusive growth, and sustainability, India can not only avoid the middle-
income trap but also achieve sustainable high-income status in the future.

Q. "The depreciation of the Indian Rupee has multiple implications for the
Indian economy". Analyze the key factors contributing to the rupee’s fall and its
impact on the economy. (15 M)

Introduction

The depreciation of the Indian Rupee has far-reaching consequences for India's economy,
both in terms of domestic inflation and external trade dynamics. Recent global and
domestic developments have intensified the rupee’s fall, posing challenges and opportunities
for various sectors.

Body
Key factors contributing to the Rupee’s fall

1. Global economic conditions: The ongoing geopolitical tensions, rising inflation,

and aggressive monetary tightening by major central banks have strengthened the US
Dollar, leading to rupee depreciation.
o E.g.: The US Dollar Index touched a 20-year high in 2022, creating pressure
on the rupee.
2. Rising crude oil prices: India's heavy reliance on oil imports, coupled with volatile
global oil prices, creates a continuous demand for dollars, weakening the rupee.
o E.g.: In August 2023, crude oil prices surged to over $90 per barrel, further
increasing the import bill.
3. Widening current account deficit (cad): A persistent current account deficit due to
increased imports and slow export growth leads to pressure on the rupee.
o E.g.: India’s CAD widened to 2.2% of GDP in FY 2023 due to higher
imports of commodities like crude oil and gold.
4. Foreign portfolio investments (fpi) outflows: Global investors pulling out money
from Indian markets, seeking higher returns elsewhere, puts downward pressure on
the rupee.
o E.g.: In 2022-23, FPI outflows amounted to over $18 billion, driven by global
uncertainties and the US Federal Reserve's interest rate hikes.
5. Global interest rates: The US Federal Reserve and other central banks increasing
interest rates make India less attractive for foreign investors, reducing capital inflows
and affecting the rupee.
o E.g.: The US Fed raised interest rates to 5.25% by July 2023, which led to a
capital flight from emerging markets like India.

Impact of Rupee depreciation on the Indian economy

1. Imported inflation: A depreciating rupee increases the cost of imports, especially

essential items like fuel, electronics, and machinery, exacerbating inflationary
pressures.
o E.g.: Retail inflation in India hit 7.4% in September 2023 due to rising import
costs, including fuel.
2. Pressure on trade deficit: While the depreciation may make Indian exports
competitive, it also increases the import bill, particularly for oil and essential
commodities.
o E.g.: India’s trade deficit touched $60 billion in Q1 2023-24 due to high oil
imports, despite growth in textile and pharmaceutical exports.
3. Impact on external debt: India's large external debt in foreign currencies becomes
costlier to service as the rupee weakens.
o E.g.: As of June 2023, India’s external debt stood at $624 billion, with a
significant portion denominated in US dollars.
4. Worsening of fiscal deficit: Higher costs of importing goods such as energy and raw
materials increase the government's subsidy burden, impacting the fiscal deficit.
 o E.g.: The government's fuel subsidy for FY 2023-24 saw an increase due to
rising global oil prices and a weaker rupee.
5. Effect on foreign education and tourism: The depreciation makes foreign education
and travel more expensive for Indian citizens, impacting households and foreign
exchange outflows.
o E.g.: The cost of foreign education rose by 20-25% in 2023 due to rupee
depreciation against major currencies like the US Dollar and Euro.
6. Boost to exports: While depreciation generally benefits export sectors by making
Indian goods cheaper for foreign buyers, the global slowdown has dampened demand
in key markets.
o E.g.: Indian IT and pharma exports saw modest growth in 2023, but rising
global inflation limited further gains.
7. Fdi attraction: A weak rupee may discourage foreign direct investment (FDI) in non-
export sectors but encourages investment in export-oriented sectors like textiles and
IT.
o E.g.: In 2023, FDI in India’s manufacturing sector witnessed slow growth
due to currency volatility, while IT exports saw an uptick.

Solutions to address Rupee depreciation:

1. Strengthen Forex Reserves: Boost FDI and exports to increase foreign exchange
reserves.
2. Boost Exports: Enhance export incentives and diversify markets.
3. Reduce Import Dependence: Promote domestic production in key sectors.
4. Control Inflation: Maintain balanced monetary policy and fiscal discipline.
5. Hedge External Debt: Encourage hedging of foreign loans to minimize risks.
6. Encourage NRI Inflows: Attract remittances and investments with better incentives.

Conclusion

The depreciation of the rupee presents both challenges and opportunities for India's economy.
While it exerts pressure on inflation and the trade deficit, it also opens doors for export
growth. To ensure sustainable economic progress, India must focus on strengthening
domestic manufacturing, managing its external debt prudently, and bolstering foreign
reserves through stable FDI inflows.

Q. “The insurance sector in India plays a crucial role in financial inclusion and
economic security”. Analyze the growth and key challenges of the insurance
industry in India. Also, suggest measures to overcome these challenges. (15 M)

Introduction
The insurance sector in India is vital for promoting financial inclusion and ensuring
economic security, offering protection against life uncertainties and financial shocks. It
serves as a safety net for individuals and businesses alike, while also aiding in mobilizing
savings for national development.

Body

Role of the insurance sector in financial inclusion and economic security:

1. Financial inclusion: Insurance provides protection for the vulnerable sections of

society, offering products that cover health, life, and property risks. It acts as a social
safety net.
o E.g: Schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
and Pradhan Mantri Suraksha Bima Yojana (PMSBY) have brought
millions of low-income individuals under insurance coverage.
2. Economic security: Insurance mitigates financial risks, ensuring continuity in income
and savings in the face of life uncertainties. It stabilizes consumption patterns and
facilitates long-term investments.
o E.g: Crop insurance under the Pradhan Mantri Fasal Bima Yojana
(PMFBY) provides security to farmers against natural calamities, supporting
agricultural productivity and economic stability.

Growth of the insurance industry in India:

1. Rapid expansion in market size: India's insurance market has grown significantly,
driven by increased awareness and rising incomes.
o E.g: The Insurance Regulatory and Development Authority of India
(IRDAI) reported that the insurance penetration rate rose from 2.7% (2001) to
4.2% (2021).
2. Entry of private players: Liberalization in 2000 opened the sector to private players,
boosting competition, innovation, and outreach.
o E.g: The entry of companies like HDFC Life and ICICI Lombard has
expanded the product portfolio.
3. Technology integration: Digital platforms, fintech, and insurtech have transformed
the insurance landscape, improving accessibility and operational efficiency.
o E.g: Acko and Digit are notable insurtech firms that leverage digital platforms
for seamless policy issuance and claims management.
4. Microinsurance growth: With the focus on financial inclusion, microinsurance
products targeting low-income groups have seen growth.
o E.g: Initiatives under Pradhan Mantri Jan Dhan Yojana (PMJDY) and Atal
Pension Yojana (APY) offer affordable insurance to the underserved
population.

Key challenges facing the insurance sector:

 1. Low insurance penetration: Despite growth, India’s insurance penetration remains
low compared to global standards, especially in rural areas.
o E.g: In 2021, India's insurance penetration stood at 4.2%, compared to the
global average of 7.4% (Swiss Re report).
2. Lack of awareness: Many individuals, particularly in rural areas, lack awareness
about insurance products and their benefits.
o E.g: According to a 2022 IRDAI study, nearly 60% of rural households are
unaware of life insurance policies.
3. High premium costs: High premium rates for certain policies, such as health and
property insurance, deter individuals from purchasing coverage.
o E.g: A study by PwC India (2021) found that only 37% of urban households
have health insurance due to high costs.
4. Complex product design: Insurance products are often perceived as complex, with
difficult-to-understand terms and conditions, discouraging consumers.
o E.g: Many complaints arise regarding hidden clauses and lengthy claims
processes, leading to mistrust among policyholders.
5. Fraud and mismanagement: Fraudulent claims and policy mismanagement reduce
the efficiency of the sector and increase costs.
o E.g: IRDAI's 2022 report noted a 12% rise in fraudulent claims, especially in
health insurance.

Measures to Overcome Challenges:

1. Improving Awareness and Literacy: Initiatives should be launched to spread

insurance awareness, particularly in rural areas, focusing on the benefits and
processes of different products.
o E.g: Insurance Literacy Campaigns by IRDAI can be scaled up in
collaboration with state governments and NGOs.
2. Affordable and Simple Products: Developing low-cost, simplified insurance
products tailored for low-income and rural populations can increase penetration.
o E.g: Schemes like PMJJBY and PMSBY could be further expanded with
enhanced coverage and streamlined enrollment.
3. Use of Technology: Leveraging technology and digital platforms to simplify policy
purchases and claim processes can improve customer experience and reduce fraud.
o E.g: Blockchain technology and AI can enhance transparency and efficiency
in managing claims and policies.
4. Strengthening Regulatory Oversight: Enhanced monitoring and regulation by
IRDAI to prevent fraudulent claims and ensure fair practices in the insurance sector.
o E.g: Establishing an Insurance Ombudsman system in rural and semi-urban
areas to address grievances efficiently.
5. Expanding Microinsurance: Focus on microinsurance products that cater
specifically to the economically weaker sections, providing affordable coverage with
minimal premium.
 o E.g: Models like Grameen Bank’s microinsurance program in Bangladesh
could serve as inspiration for India’s rural insurance initiatives.

Conclusion
The insurance sector in India has seen significant growth, contributing to financial inclusion
and economic security. However, challenges such as low penetration, high costs, and limited
awareness persist. By leveraging technology, improving literacy, and expanding
microinsurance, the sector can be further strengthened to ensure greater coverage and
security for all.

Q. Examine the rising importance of supply chain security amid global

technological advancements. How are national security concerns influencing
these strategies, and what steps can India take to balance resilience and security?
(15 M)

Introduction

The rising importance of supply chain security has become crucial in a technologically
interconnected world. Global disruptions, such as the COVID-19 pandemic and geopolitical
tensions, have exposed vulnerabilities, making national security concerns a central factor in
shaping supply chain strategies.

Body

Rising importance of supply chain security

1. Global technological integration: As supply chains become more reliant on

advanced technologies like AI and IoT, securing these technologies is vital to avoid
cyberattacks and data breaches.
o Eg: The SolarWinds cyberattack (2020) compromised software supply
chains across global corporations and governments.
2. Geopolitical instability: Political tensions, especially US-China trade conflicts,
have underscored the risks of over-dependence on single-source supply chains.
o Eg: The semiconductor shortage (2021) disrupted industries worldwide due
to dependence on a few countries like Taiwan.
3. Economic disruptions: Events such as the COVID-19 pandemic highlighted the
fragility of global supply chains, especially in essential sectors like healthcare and
electronics.
o Eg: Disruptions in the supply of PPE kits and vaccines affected global
healthcare responses.
4. Natural disasters: Environmental risks like climate change and natural disasters are
increasing, leading to frequent supply chain disruptions.
o Eg: The 2021 Suez Canal blockage disrupted global trade, costing billions of
dollars in delayed shipments.
 5. Shift toward reshoring and nearshoring: Countries are increasingly focusing on
reshoring (bringing manufacturing back home) or nearshoring (moving
manufacturing to closer, friendly nations) to reduce risks.
o Eg: The United States is encouraging companies to bring back manufacturing
from China, especially in sensitive sectors like semiconductors.

National security concerns influencing supply chain strategies

1. Cybersecurity threats: As digitalization accelerates, cyberattacks targeting supply

chains have become a serious national security issue.
o Eg: The Colonial Pipeline ransomware attack (2021) in the USA severely
disrupted energy supply, raising security alarms globally.
2. Dependence on strategic materials: Critical industries, such as defense and
electronics, rely on rare materials sourced from limited regions, making countries
vulnerable to supply disruptions.
o Eg: China's dominance in rare earth materials is a strategic concern for
many nations, including India.
3. Weaponization of trade: Global powers are increasingly using economic sanctions
and trade barriers as tools to influence international supply chains, affecting national
security.
o Eg: The US sanctions on Huawei (2019) restricted the company's access to
key technologies, impacting global telecom supply chains.
4. Nationalization of key technologies: Countries are focusing on nationalizing
critical technologies like semiconductors, pharmaceuticals, and defense equipment to
avoid dependency on foreign entities.
o Eg: The CHIPS for America Act (2021) aims to boost domestic production of
semiconductors in the USA.
5. Strategic stockpiling: Nations are beginning to stockpile essential materials and
components to prepare for potential disruptions in global supply chains.
o Eg: Japan is building reserves of critical rare earth minerals to safeguard
its high-tech industries.

Steps India can take to balance resilience and security

1. Diversification of supply chains: India should reduce over-reliance on a few

countries by diversifying its sources for critical materials and manufacturing.
o Eg: The PLI Scheme (2021) aims to promote domestic manufacturing in key
sectors such as electronics and pharmaceuticals.
2. Strengthening domestic capabilities: Building robust domestic industries in
strategic sectors like semiconductors, pharmaceuticals, and defense will reduce
dependence on foreign imports.
o Eg: India’s recent partnership with TSMC to develop a semiconductor
manufacturing ecosystem is a step in this direction.
 3. Cybersecurity frameworks: Implementing comprehensive cybersecurity guidelines
for key industries will secure India’s supply chains from cyber threats.
o Eg: The National Cyber Security Strategy (2021) outlines measures to
secure critical infrastructure, including supply chains.
4. Strategic partnerships: India must build alliances with like-minded countries to
ensure resilient supply chains, especially in critical technologies and materials.
o Eg: The QUAD Supply Chain Resilience Initiative (2021) between India,
Japan, and Australia is aimed at reducing dependence on Chinese
manufacturing.
5. Boosting r&d in emerging technologies: Enhancing research and development in
fields like AI, quantum computing, and 5G will secure India’s position in future
supply chains.
o Eg: The Atal Innovation Mission (AIM) is fostering innovation and R&D in
cutting-edge technologies.
6. Encouraging local innovation ecosystems: India can strengthen its supply chain
resilience by creating local innovation ecosystems and promoting startups that work
in deep-tech sectors.
o Eg: Startup India and Digital India are fostering growth in technology-
driven sectors.
7. Building strategic reserves: India should consider strategic stockpiling of essential
goods, materials, and resources like rare earth metals to avoid future disruptions.
o Eg: The Ministry of Mines (2023) has identified key materials for strategic
reserves to support India's Make in India initiatives.

Conclusion

For India to balance resilience and security in supply chains, it must invest in domestic
capacity, diversify supply sources, and secure robust cybersecurity measures. By enhancing
strategic partnerships and promoting local innovation, India can safeguard its supply
chains while maintaining national security in a rapidly changing global landscape.

Q. “Innovation is key to making microfinance both affordable and sustainable”.

Discuss the challenges faced by MFIs and how they can leverage financial
innovations to improve their services. (10 M)

Introduction
Innovation in microfinance enables affordable credit access for vulnerable populations while
supporting sustainability in microfinance institutions (MFIs) through cost-efficient, client-
focused practices.

Body
Challenges Faced by MFIs

1. High interest rates: Due to operational costs and limited capital, MFIs often charge
high interest rates, impacting affordability.
o Eg: RBI data from 2024 indicates that MFIs charge an average of 24%
annual interest despite regulatory encouragement for affordability
2. Over-indebtedness and multiple borrowings: Borrowers frequently take multiple
loans, risking default and escalating debt.
o Eg: Over 12% of MFI borrowers had four or more active loans as of March
2024, reflecting high over-indebtedness
3. Predatory lending practices: Some MFIs exploit low financial literacy, leading to
aggressive debt recovery practices.
o Eg: The Sa-Dhan 2024 report highlights complaints of coercive lending
tactics in rural areas.
4. Operational costs and limited technology: High administrative costs and limited
tech access in rural areas increase loan costs.
o Eg: RBI has called for leaner management to curb costs, emphasizing digital
transformation for rural markets.
5. Limited financial literacy among borrowers: Borrowers often misunderstand loan
terms, leading to defaults and debt mismanagement.
o Eg: The Financial Services Secretary urged MFIs in 2024 to enhance
borrower education to mitigate this risk

Leveraging Financial Innovations to Improve MFI Services

1. Digital financial platforms: Mobile banking and digital loan processing reduce
operational costs and expand access.
o Eg: Janalakshmi Financial Services uses a digital-first approach, cutting
costs by over 20% through tech innovation.
2. Risk sharing through blended finance: Combining government and private funds
allows MFIs to offer lower-interest products.
o Eg: The RBI highlighted blended finance as a means to reduce risk at the Sa-
Dhan conference in 2024.
3. Data analytics for credit risk management: AI and machine learning help assess
creditworthiness, reducing default risk.
o Eg: CreditMantri, an MFI partner, uses AI screening, reducing defaults by
nearly 15% in 2023.
4. Product diversification with microinsurance: Bundling microinsurance with loans
helps secure borrowers and lower interest costs.
o Eg: Ujjivan Small Finance Bank offers bundled life and health insurance
with loans, adding repayment security.
5. Financial literacy programs: Educating borrowers on loan management and
budgeting reduces debt risk.
o Eg: Sa-Dhan’s financial literacy drive, launched in 2023, focuses on training
rural borrowers in budgeting and loan terms.

Conclusion
To remain viable and client-centric, MFIs must adopt innovations in digital finance,
blended funding, and financial literacy. These steps will create a more inclusive,
affordable, and sustainable microfinance sector, balancing business interests with social
responsibility.

Q. Analyze the recent trends in capital expenditure in India and their

implications for economic growth. How do public and private sector investments
complement each other in this regard? (15 M)

Introduction
Capital Expenditure (Capex), crucial for long-term economic growth, has surged in recent
years, driven by public infrastructure projects and private sector investments. This trend is
reshaping India’s growth trajectory.

Body

Recent trends in capital expenditure

1. Government capex surge: Increased public spending, especially in infrastructure,

rose sharply in FY 2023-24, accounting for ₹10 lakh crore budget allocation.
o Eg: Central government’s focus on PM Gati Shakti and NIP (National
Infrastructure Pipeline).
2. Private sector investment revival: Private investment grew at 22% in Q2 of FY
2024-25, with sectors like manufacturing and infrastructure receiving the bulk of the
capital.
o Eg: Vedanta’s $19 billion semiconductor project in Gujarat.
3. Foreign direct investment (fdi): FDI doubled to ₹54,519 crore in Q2 FY 2024-25,
reflecting increased foreign investor confidence.
 o Eg: Apple expanding its supply chain in India.
4. State-led capex: State governments ramped up capex by 67%, with Maharashtra,
Gujarat, and Karnataka leading the way.
o Eg: Maharashtra attracted ₹2.81 lakh crore with 661 projects in Q2 2024.

Implications for economic growth

1. Infrastructure development: Increased capex enhances infrastructure, vital for

economic growth. Roads, railways, and airports facilitate smoother logistics and
connectivity.
o Eg: Bharatmala Pariyojana aims to develop 34,800 km of highways by
2027.
2. Job creation: Investment in infrastructure and manufacturing creates direct and
indirect employment, boosting disposable incomes and consumption.
o Eg: Metro rail projects in cities like Bengaluru and Surat have created over 1
lakh jobs.
3. Multiplier effect: Capital expenditure triggers a multiplier effect, stimulating demand
for materials, labor, and services, thus boosting GDP growth.
o Eg: Moody’s report suggests that India’s capex will add 1.5% to GDP growth
by FY 2025.
4. Increased productivity: Investment in sectors like manufacturing and digital
infrastructure improves productivity, fostering innovation.
o Eg: PLI (Production Linked Incentive) schemes incentivized ₹2.22 lakh
crore worth of manufacturing projects in FY 2024.

Complementary roles of public and private investments

1. Crowding-In Effect: Public investments often act as catalysts, encouraging private

sector participation, especially in infrastructure and technology.
o Eg: BharatNet and Digital India programs attracted private telecom players
for last-mile connectivity.
2. Risk sharing: Public investments take on high-risk projects (e.g., infrastructure),
enabling private investors to focus on profitable ventures.
o Eg: Public-Private Partnerships (PPP) in roads and airports (e.g., Delhi-
Mumbai Expressway).
3. Sectoral collaboration: Public investment in sectors like renewable energy opens
avenues for private firms to innovate and scale up.
o Eg: India’s solar energy program under International Solar Alliance
attracts private players like Tata Power.
4. Regional balance: Public sector investments address regional imbalances, while
private investments follow, stimulating overall growth.
o Eg: Jammu & Kashmir attracted ₹18,592 crore in new projects in Q2 FY
2024 after public investment in infrastructure.
Conclusion
Balanced public-private investment synergy is key to sustaining India’s growth. Swift and
efficient execution of capex plans will further unlock India’s economic potential and create
a robust, inclusive economy for the future.

Q. “The widening economic divide among Indian states poses challenges for
balanced regional development”. Examine how economic disparities between
states impact India's growth trajectory. Suggest ways to promote more equitable
development. (15 M)

Introduction
India’s economic diversity has resulted in significant regional disparities, with some states
prospering while others lag far behind. This widening divide threatens balanced regional
development, a cornerstone of sustainable national growth.

Body

The widening economic divide and challenges for balanced regional development

1. Investment concentration: Richer states attract more private investment due to

better infrastructure, governance, and market size, while poorer states lag behind.
o E.g.: States like Maharashtra and Gujarat receive the largest share of
foreign direct investment (FDI) due to their industrial hubs.
2. Public resource allocation: Unequal allocation of public investment exacerbates
disparities, with richer states often receiving preferential treatment.
o E.g.: The Eleventh Finance Commission faced criticism for favouring
resource-rich states, which widened the gap.
3. Fiscal federalism strain: Richer states have voiced concerns over resource
devolution, arguing that they contribute more to the national exchequer but receive
proportionately less.
o E.g.: The 2023 Kerala Conclave of southern states called for a re-evaluation
of resource-sharing mechanisms.
4. Social inequalities: Economic disparities also result in social and political tensions,
with poorer states suffering from higher migration rates, unemployment, and
inadequate public services.
o E.g.: Bihar and Uttar Pradesh continue to see large-scale migration to cities
like Mumbai and Delhi in search of better opportunities.

Impact of economic disparities on India’s growth trajectory

1. Skewed economic growth: Economic concentration in a few states leads to an

imbalanced national growth trajectory, with poorer states failing to catch up.
o E.g.: Maharashtra contributes over 14% to the national GDP, while Bihar
and Odisha contribute less than 4% combined (MoSPI, 2023).
 2. Low human development in poor states: Poorer states experience lower levels of
human development due to inadequate investments in education and healthcare,
weakening the national workforce.
o E.g.: States like UP and Jharkhand score below the national average in the
HDI Index (NITI Aayog, 2023).
3. Uneven industrialization: While industrial hubs in the south and west grow rapidly,
eastern and northern states remain largely agrarian, contributing to sectoral
imbalances in the economy.
o E.g.: Tamil Nadu and Karnataka have advanced manufacturing and
technology industries, while states like Bihar remain dependent on
agriculture.
4. Migration and urban strain: Large-scale migration from poorer to wealthier states
puts pressure on urban infrastructure in wealthier regions and depopulates rural areas
in poorer states.
o E.g.: Delhi and Mumbai experience significant urban congestion due to
migration from poorer states like UP and Bihar.
5. Disparities in infrastructure development: Richer states benefit from advanced
infrastructure, leading to better economic outcomes, while poorer states lack basic
infrastructure, hindering their growth potential.
o E.g.: Gujarat’s infrastructure, including ports and highways, has attracted
significant investment, while Bihar struggles with poor road connectivity and
power shortages.

Ways to promote more equitable development

1. Increased public investment in lagging states: The Centre needs to increase

targeted public investments in poorer states to develop infrastructure, healthcare,
and education, promoting local economic growth.
o E.g.: The Eastern Freight Corridor project aims to improve connectivity and
boost economic activities in underdeveloped eastern states.
2. Incentivizing private sector investment: Tax breaks and subsidies should be
provided to incentivize private investments in underdeveloped regions.
o E.g.: The government’s North East Industrial Development Scheme
(NEIDS) offers subsidies to promote industrialization in north-eastern states.
3. Promoting skill development: Vocational training and skill development programs
in backward states can improve labour productivity, reducing migration and attracting
investments.
o E.g.: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has trained
over 20 million youth, with a focus on states with higher unemployment rates.
4. Strengthening fiscal federalism: Reforms in tax devolution and ensuring a more
equitable resource-sharing mechanism between the Centre and states can help reduce
fiscal imbalances.
o E.g.: The Fifteenth Finance Commission recommended increasing fiscal
transfers to poorer states like Bihar and UP to address regional disparities.
 5. Developing rural economies: Emphasizing agro-based industries and promoting
sustainable agriculture in poorer states can create rural employment and reduce
migration.
o E.g.: The National Rural Livelihood Mission (NRLM) has improved rural
incomes, particularly in states like Madhya Pradesh.
6. Encouraging balanced urbanization: Promoting smart cities and industrial clusters
in backward states can attract investment and balance urban growth across regions.
o E.g.: Under the Smart Cities Mission, cities like Ranchi and Patna are being
developed to improve urban infrastructure and attract investments.

Conclusion
Addressing the widening economic divide is essential for inclusive growth and maintaining
national unity. A multi-pronged strategy of targeted public investments, private sector
incentives, and governance reforms can help create a more equitable development path,
ensuring balanced regional growth and long-term prosperity for India.

Q. What are the potential economic consequences of slowing core sector growth
on India’s GDP? Suggest strategies to mitigate these effects and ensure balanced
industrial development. (10 M)

Introduction

Core sectors, such as coal, electricity, and steel, form the foundation of India's industrial
growth. Any slowdown in these sectors can have far-reaching impacts on GDP, industrial
output, and employment.

Body

Economic consequences of slowing core sector growth

1. Reduced industrial output: As core sectors contribute to 40% of the Index of

Industrial Production (IIP), a decline here slows industrial growth, directly
impacting GDP.
 o E.g.: September 2024 saw an 8-month low in core sector output, dragging
down industrial production .
2. Employment decline: A decline in output affects employment in labor-intensive
industries like construction and steel, leading to job losses.
o E.g.: The contraction in steel output in September 2024 affects related
industries like construction and automobile.
3. Supply chain disruptions: A slowdown in sectors like oil and natural gas increases
reliance on imports, widening the trade deficit and causing inflationary pressures.
o E.g.: The shrinkage in crude oil production led to higher import
dependency in 2024.
4. Lower capital formation: Reduced investment in core sectors leads to a slowdown in
capital formation, hindering long-term growth potential.
o E.g.: Slow growth in the power sector has affected new investments in
renewable energy infrastructure.
5. Inflationary pressure: A fall in domestic production in core sectors, especially oil
and gas, increases import dependency, leading to higher input costs, which fuels
inflation.
o E.g.: Rising crude oil imports in 2024 increased inflationary pressure,
impacting overall economic stability.

Strategies to mitigate the effects

1. Boost infrastructure investment: Targeted infrastructure investment can drive

demand in core sectors, stimulating growth and ensuring long-term economic
stability.
o E.g.: The National Infrastructure Pipeline (NIP) is projected to boost
demand for steel and cement through large-scale construction projects.
2. Strengthening domestic supply chains: Enhancing domestic supply chains to reduce
dependency on imports, particularly in sectors like crude oil, can help mitigate
external shocks.
o E.g.: India’s push for Atmanirbhar Bharat aims to strengthen domestic
energy production and reduce crude oil import dependency.
3. Diversification into renewable energy: Promoting renewable energy sources like
solar and wind can reduce over-reliance on traditional energy sectors and create new
jobs.
o E.g.: The National Solar Mission is focusing on increasing solar energy’s
contribution to the energy mix.
4. Public-private partnerships (PPP): Leveraging PPP models in sectors like power
and steel can attract private investment, improving efficiency and output.
o E.g.: The Ujjwal DISCOM Assurance Yojana (UDAY) aimed at revamping
power distribution through PPP.
5. Incentivize technology upgradation: Encourage technology-driven improvements in
traditional sectors to enhance productivity and competitiveness.
 o E.g.: Adoption of Green Steel technology will increase production efficiency
and reduce the carbon footprint of steel manufacturing.
6. Fiscal and monetary support: Implementing countercyclical fiscal policies and
monetary easing could boost demand for core sector products, stimulating overall
growth.
o E.g.: During the COVID-19 pandemic, the Reserve Bank of India’s
monetary stimulus helped maintain liquidity and mitigate the industrial
slowdown.
7. Policy reforms and regulatory easing: Sector-specific policy reforms to address
issues such as land acquisition and regulatory delays can help unlock growth potential
in core industries.
o E.g.: Recent easing of coal mining regulations led to increased domestic
production.

Conclusion

Sustained growth in the core sectors is essential for maintaining industrial output and GDP
growth. A comprehensive approach, involving infrastructure investment, policy reforms, and
technological advancements, is crucial to mitigating the effects of a slowdown and ensuring
balanced industrial development in India.

Inclusive Growth and issues arising from it.

Q. “Inclusive institutions foster long-term economic growth, whereas extractive

institutions impede it”. Examine this statement with relevant examples from
India and other developing countries. (15 M)

Introduction
Inclusive institutions, which ensure equal access to resources, political rights, and
opportunities, promote long-term economic growth. In contrast, extractive institutions,
controlled by elites to maintain power and wealth, hinder equitable progress.
Body
Inclusive Institutions and Economic Growth

 Rule of law and property rights: Inclusive institutions ensure the rule of law and
protection of private property, fostering investor confidence.
o E.g.: In India, the establishment of Special Economic Zones (SEZs) with
stable legal frameworks has attracted foreign investment.
 Broad-based economic opportunities: These institutions enable equal access to
markets and resources, driving innovation and productivity.
o E.g.: In Rwanda, post-genocide reforms aimed at promoting inclusive
growth have lifted millions out of poverty through agricultural development.
 Political stability and accountability: Inclusive institutions promote political
stability by creating accountability mechanisms, ensuring fair representation of all
groups.
o E.g.: In South Korea, democratic governance reforms after the 1980s
strengthened accountability, facilitating rapid economic growth.
 Economic freedom: Ensuring economic freedoms enhances entrepreneurship and
labor mobility.
o E.g.: Botswana has leveraged its democratic and transparent institutions to
become one of Africa’s fastest-growing economies.
 Inclusive social policies: Institutions focusing on healthcare, education, and social
welfare create a skilled workforce.
o E.g.: Brazil’s Bolsa Família program, aimed at reducing inequality, has
contributed to the country's inclusive growth.

Extractive institutions and economic stagnation

 Concentration of wealth and power: Extractive institutions are designed to benefit a

small elite, often leading to economic stagnation.
o E.g.: In Zimbabwe, land reforms led to the transfer of land to a small elite,
crippling agricultural productivity.
 Weak rule of law: Extractive institutions lack legal transparency, leading to
corruption and inefficiency.
o E.g.: Venezuela has seen economic collapse due to rampant corruption under
extractive political leadership, despite vast oil wealth.
 Political instability: When institutions concentrate power, political instability and
civil unrest often follow, hampering economic growth.
o E.g.: Syria’s authoritarian regime stifled political dissent, leading to a
prolonged conflict that devastated the economy.
 Inequitable distribution of resources: Extractive institutions deny equitable access
to resources, limiting growth and increasing poverty.
o E.g.: In DR Congo, the exploitation of mineral resources by elites has
deprived the wider population of economic benefits.
  Low human capital investment: Extractive institutions often neglect education and
healthcare, leading to low human capital development.
o E.g.: Myanmar’s military junta spent heavily on defense, leaving little for
social services, which has stunted long-term growth.

Way Forward

1. Strengthening rule of law: Enhance legal transparency and property rights to

encourage investment and equitable growth.
o E.g.: Implementing land reforms that ensure fair distribution, as seen in
successful agrarian reforms in Brazil.
2. Inclusive policy formulation: Promote policies that include marginalized groups and
ensure equitable resource distribution.
o E.g.: Expanding social welfare schemes like India's PM Garib Kalyan
Yojana to ensure widespread benefits.
3. Accountability and transparency: Strengthen institutional accountability to reduce
corruption and inefficiencies.
o E.g.: Adoption of blockchain technologies in public procurement can enhance
transparency, as tested in Georgia.
4. Investment in human capital: Increase budgetary allocation for education and
healthcare to build a skilled workforce.
o E.g.: South Korea’s focus on education post-1980s shows how human
capital can drive growth.
5. Political decentralization: Encourage local governance reforms to increase citizen
participation and inclusiveness.
o E.g.: India's Panchayati Raj has successfully empowered rural areas through
decentralization

Conclusion
Inclusive institutions create the foundation for sustainable and broad-based economic
growth, while extractive institutions concentrate power and wealth, undermining
development. Governments must foster inclusive reforms to ensure equitable and sustained
growth.

Q. “The concept of Universal Basic Income (UBI) has gained renewed interest
globally in light of rising unemployment and inequality”. Discuss its potential
advantages and challenges in the context of financial constraints and existing
welfare schemes. (15 M)

Introduction

The concept of Universal Basic Income (UBI), which provides a regular, unconditional cash
transfer to all citizens, has gained renewed global attention due to rising unemployment and
income inequality. UBI is being considered as a solution to the economic disruptions caused
by automation and global crises, such as the COVID-19 pandemic.

Body

Rising global interest due to unemployment and inequality

1. Automation and job losses: Rapid automation is displacing jobs, making income
security essential for those left behind in the labor market.
o Eg: World Economic Forum (2021) predicts that 85 million jobs may be lost
by 2025 due to automation.
2. Widening income inequality: Income disparity is increasing, with wealth
concentration among the top 1%, making economic inclusion through UBI more
attractive.
o Eg: Oxfam Report (2022) states that the world's richest 1% own more than
40% of global wealth.
3. Post-pandemic economic disruptions: The COVID-19 pandemic worsened
unemployment and economic inequality, pushing nations to explore radical economic
measures like UBI.
o Eg: Spain implemented a minimum basic income in 2020 to support
vulnerable households post-pandemic.

Advantages of UBI

1. Reduction in poverty and inequality: UBI ensures a minimum income for all,
reducing extreme poverty and narrowing income inequality.
o Eg: The Madhya Pradesh pilot (2011) showed increased consumption and
improved well-being in households receiving cash transfers.
2. Simplicity of implementation: UBI simplifies the welfare system by reducing
bureaucratic hurdles and eliminating the need for complex eligibility verification.
o Eg: Finland’s UBI experiment (2017-2018) found it easier to administer than
targeted welfare programs.
3. Boost to consumer demand: Regular cash transfers increase purchasing power,
stimulating local economies and enhancing demand for goods and services.
o Eg: Alaska’s Permanent Fund Dividend boosts the local economy by
providing annual cash payments to residents.
4. Enhanced individual freedom: UBI provides financial freedom, allowing
individuals to pursue education, entrepreneurship, or other personal goals without the
fear of income loss.
o Eg: Kenya’s UBI trial (2016) reported increased investments in education
and entrepreneurship among recipients.
5. Social protection in crises: UBI can serve as an economic buffer during crises like
pandemics or natural disasters, ensuring that citizens have a financial safety net.
 o Eg: Spain’s minimum basic income (2020) during the COVID-19 pandemic
provided immediate relief to vulnerable populations.

Challenges of UBI in the context of financial constraints and existing welfare schemes

1. Financial constraints: Implementing UBI on a large scale requires significant

financial resources, which can strain government budgets.
o Eg: In India, the Economic Survey (2017) estimated that UBI would cost
around 4.9% of GDP, posing a significant fiscal challenge.
2. Inflationary pressure: UBI could lead to inflation, particularly in countries with
supply-side constraints, reducing its effectiveness over time.
o Eg: Cash transfers in some African nations have led to localized inflation, as
noted by the World Bank (2020).
3. Disincentive to work: There is concern that guaranteed income might reduce the
incentive to work, potentially lowering productivity.
o Eg: Critics of Finland’s UBI experiment (2017-18) argued that UBI may
encourage early retirement or decreased work effort.
4. Phasing out of existing welfare schemes: The introduction of UBI could lead to the
withdrawal of targeted welfare schemes, potentially leaving certain vulnerable groups
without adequate support.
o Eg: Critics argue that UBI in India may replace key programs like PDS and
MGNREGA, which cater to specific needs.
5. Equity issues: Providing equal cash transfers to everyone, regardless of their
economic status, could result in an inefficient use of public resources.
o Eg: Wealthier individuals receiving UBI may not need the same level of
support, raising questions about its equity.

Measures to enhance ubi’s effectiveness

1. Gradual implementation: Introduce UBI in phases, starting with vulnerable

populations, to minimize fiscal stress and evaluate its impact.
2. Complementary to welfare schemes: UBI should complement existing welfare
schemes rather than replace them, ensuring targeted support continues for those most
in need.
3. Financing through progressive taxation: Use progressive taxation, such as wealth
or carbon taxes, to fund UBI without straining government finances.

Conclusion

UBI offers a promising solution to address rising unemployment and inequality but faces
significant challenges, especially in terms of fiscal sustainability and integration with existing
welfare schemes. A phased and targeted approach, supported by sound financial
planning, could help realize its potential while avoiding its pitfalls.
Government Budgeting.

Major Crops - Cropping Patterns in various parts of the country,

- Different Types of Irrigation and Irrigation Systems; Storage,
Transport and Marketing of Agricultural Produce and Issues and
Related Constraints; E-technology in the aid of farmers.

Q. Low farmer income in India undermines the goal of inclusive agricultural

growth”. Examine the factors contributing to this problem and propose
comprehensive solutions to address it. (10 M)

Introduction

Low farmer income in India is a critical challenge that hinders the goal of inclusive
agricultural growth. Multiple structural and systemic factors contribute to this issue, and
addressing them is crucial for enhancing farmer profitability and sustainability.

Body

Factors contributing to low farmer income

1. Fragmented Land Holdings: Small and fragmented landholdings, which limit

economies of scale and mechanization, contribute to low productivity and income.
 E.g. According to Agriculture Census 2020-21, over 85% of Indian farmers are
small or marginal landholders, limiting their efficiency and profitability.
2. High Input Costs: Rising costs of inputs like seeds, fertilizers, pesticides, and fuel
reduce profit margins. Moreover, excessive reliance on chemical inputs depletes soil
health, further lowering productivity.
 E.g. The National Sample Survey (NSSO) found that input costs have risen
steadily, straining small farmers' incomes.
3. Inadequate Access to Institutional Credit: A significant proportion of farmers,
particularly smallholders, rely on informal sources of credit due to insufficient access
to institutional finance. This increases their debt burden and financial vulnerability.
 E.g. NABARD’s 2022 report highlights that only 40% of farmers have access
to formal credit institutions.
4. Inefficient Market Linkages: Farmers often depend on intermediaries to sell their
produce, which lowers their share of the consumer price. Limited access to markets
and inadequate market infrastructure exacerbate this issue.
 E.g. The RBI working paper (2022) noted that middlemen reduce farmers'
share in the final consumer rupee significantly, limiting income potential.
5. Lack of Value Addition and Agro-Processing: Most agricultural produce is sold in
raw form, which fetches lower prices compared to processed goods. The lack of agro-
 processing units near farms reduces opportunities for farmers to enhance the value of
their produce.
 E.g. Only 10% of India's agricultural produce is processed, compared to 80%
in developed countries (NITI Aayog).
6. Price Volatility and Lack of MSP Awareness: Farmers often face volatile market
prices, particularly for perishable commodities. Additionally, many farmers are
unaware of the Minimum Support Price (MSP) or lack access to it.
 E.g. A 2021 survey by the Centre for the Study of Developing Societies
(CSDS) found that a significant number of farmers are unaware of MSP
benefits.
7. Limited Irrigation and Water Resources: Agriculture in India is highly dependent
on monsoons, and limited access to irrigation reduces crop yields. Poor irrigation
infrastructure exacerbates income challenges, particularly for rain-fed agriculture.
 E.g. Only about 52% of the gross cropped area in India is irrigated, with the
rest dependent on erratic rainfall (Ministry of Agriculture, 2022).

Comprehensive Solutions

1. Land Consolidation: Encourage cooperative farming models or land consolidation

through pooling to achieve economies of scale and increase productivity.
 E.g. Haryana’s Land Pooling Scheme (2021) has improved efficiency and
profitability for farmers with consolidated land.
2. Sustainable Agriculture Practices: Promote organic and natural farming to reduce
input costs and improve soil health, leading to long-term productivity gains.
 E.g. The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) promotes
sustainable farming practices to reduce dependency on chemical inputs.
3. Expand Access to Institutional Credit: Strengthen Kisan Credit Cards (KCC) and
introduce fintech solutions to widen access to institutional credit, especially for small
and marginal farmers.
 E.g. The expansion of KCCs has benefitted 25 million farmers, but there is a
need to reach marginal farmers who remain excluded.
4. Strengthening Market Linkages: Expand e-NAM and improve market infrastructure
to allow farmers to directly access consumers, eliminating middlemen.
 E.g. Over 1,000 mandis are connected to e-NAM, yet there is scope to
enhance connectivity and participation across states.
5. Agro-Processing and Cold Storage: Increase investment in food processing
infrastructure and cold storage facilities at the farm level to reduce post-harvest losses
and increase value addition.
 E.g. The Pradhan Mantri Kisan SAMPADA Yojana focuses on agro-
processing units and cold chain development, but coverage remains limited.
6. Leverage Technology: Use precision agriculture, IoT, and AI-based tools to optimize
farming practices, reduce costs, and improve yield.
 E.g. Digital agriculture initiatives, such as drone-based monitoring and AI-
enabled crop health analysis, are improving efficiency and reducing input
costs in pilot projects.

Conclusion
Addressing low farmer income requires a multi-faceted approach, involving market
reforms, sustainable practices, and better credit access. Enhancing infrastructure and
addressing systemic inefficiencies will not only improve farmer incomes but also ensure
inclusive agricultural growth in India.

Q. How has the focus on high-yield crops affected India’s agricultural

biodiversity and sustainability? Suggest measures to promote a more holistic
approach to agriculture. (10 M)

Introduction
The focus on high-yield crops post-Green Revolution significantly improved India's food
production but has led to a decline in agricultural biodiversity and sustainability. This
approach has resulted in monocultures, environmental degradation, and reduced resilience to
climate change.

Body

Impact of high-yield crops on agricultural biodiversity and sustainability

1. Monoculture dominance: The emphasis on crops like rice and wheat has reduced the
cultivation of traditional and diverse crops such as millets, pulses, and oilseeds,
leading to a loss of biodiversity.
o E.g.: Millet cultivation dropped by over 50% between 1961 and 2018,
according to FAO data.
2. Genetic erosion: The widespread use of high-yielding hybrid seeds has led to the
disappearance of indigenous seed varieties, affecting the genetic diversity of crops.
o E.g.: In West Bengal, the number of traditional rice varieties has
significantly declined.
3. Soil depletion: Intensive use of chemical fertilizers and pesticides in high-yield crop
farming has degraded soil quality, reducing its fertility and long-term productivity.
o E.g.: Punjab, a Green Revolution state, now faces severe soil degradation
and reduced crop yields.
4. Water overuse: High-yield crops like paddy and sugarcane are highly water-
intensive, causing a sharp decline in groundwater levels, especially in regions reliant
on irrigation.
o E.g.: The Central Groundwater Board has reported critically low
groundwater levels in Punjab and Haryana due to excessive water use for
paddy cultivation.
5. Vulnerability to climate change: Monocultures are more susceptible to pests,
diseases, and extreme climate events, reducing their resilience in changing weather
patterns.
o E.g.: Paddy monocultures in Tamil Nadu have faced increased pest attacks
during irregular monsoon periods, affecting yields.

Measures to promote a more holistic approach to agriculture

 1. Promote traditional crops: Encouraging the cultivation of traditional crops like
millets, pulses, and oilseeds, which are more climate-resilient and require fewer
resources, can help restore biodiversity and enhance food security.
o E.g.: The National Millet Mission (2021) aims to revive the cultivation of
millets, which are drought-resistant and nutritionally superior.
2. Agroforestry and mixed farming: Adopting agroforestry and mixed farming
systems, where multiple crops are grown alongside trees and shrubs, can improve soil
health, enhance biodiversity, and reduce dependency on chemical inputs.
o E.g.: Agroforestry in the Western Ghats of Karnataka has improved soil
fertility and provided diverse income streams for farmers.
3. Efficient irrigation: Promoting efficient water-use practices like drip irrigation and
rainwater harvesting can significantly reduce water wastage and ensure more
sustainable agricultural practices.
o E.g.: The Pradhan Mantri Krishi Sinchayee Yojana encourages water-
efficient farming techniques, benefiting water-stressed regions.
4. Organic and natural farming: Reducing the reliance on chemical inputs by
promoting organic farming practices can improve long-term soil health, restore
biodiversity, and reduce environmental degradation.
o E.g.: Sikkim, the first fully organic state in India, has seen improved soil
quality and crop diversity.
5. Community seed banks: Establishing community-managed seed banks can help
preserve indigenous seed varieties, ensuring genetic diversity and reducing
dependence on commercial hybrid seeds.
o E.g.: Community seed banks in Uttarakhand have successfully revived
traditional rice varieties, improving local food security and biodiversity.

Conclusion
While the focus on high-yield crops has ensured food security, it has compromised
agricultural biodiversity and sustainability. To promote a more balanced approach,
diversified cropping systems, efficient water use, and support for traditional crops can help
restore ecological balance and ensure the long-term resilience of Indian agriculture.

Q. "India's agricultural sustainability is closely tied to its fertilizer production

and import policies”. Analyze the key factors affecting India's fertilizer sector
and suggest strategies for reducing dependence on imports. (15 M)
Introduction
India's agricultural sector, which supports nearly 60% of the population, is heavily dependent
on fertilizers to ensure high crop yields. The country's agricultural sustainability is closely
tied to its ability to balance domestic fertilizer production and import policies for ensuring
food security and economic stability.

Body
India's agricultural sustainability is closely tied to its fertilizer production and import
policies:
 1. Food security dependence: Fertilizers are critical to maintaining high yields in major
crops, especially rice and wheat, which are essential for food security.

o Eg: India consumed 579.67 LMT of fertilizers in 2021-22, vital for its
agricultural output (Ministry of Chemicals and Fertilizers, 2023).

2. Heavy import dependence: India imports 50-60% of its DAP and 100% of its
potash needs, reflecting its reliance on global markets.
o Eg: In 2021-22, imports filled the gap for urea and potash, crucial for rabi
and kharif crops (Parliament Standing Committee Report, 2023).

3. Fiscal burden from subsidies: Fertilizer imports come with a heavy fiscal burden
due to high government subsidies, which affect overall economic health.

o Eg: The fertilizer subsidy allocation for 2023-24 is ₹1.79 lakh crore, a 40%
increase due to rising global prices (Union Budget, 2023-24).

4. Vulnerability to global crises: India is vulnerable to price fluctuations and supply

chain disruptions, as seen with the Russia-Ukraine conflict and the West Asia crisis.

o Eg: The Russia-Ukraine conflict led to a surge in potash prices, impacting

imports (FAO report, 2023).

5. Slow domestic growth: Despite increasing demand, India's domestic fertilizer

production has grown only moderately, making it reliant on imports to bridge the gap.

o Eg: India’s total fertilizer production increased from 385 LMT in 2014-15 to
435 LMT in 2021-22.

Key factors affecting India's fertilizer sector:

1. Geopolitical uncertainty: Global supply chains for fertilizers are disrupted by
geopolitical tensions, such as those in Russia, Belarus, and West Asia, driving up
costs.

o Eg: Russia and Belarus account for a significant share of global potash
production, impacting India's imports during the Ukraine crisis (FAO, 2023).

2. Dependence on limited suppliers: India's dependence on a few countries, like China

and Russia, for essential fertilizers such as DAP and potash, limits its supply
flexibility.

o Eg: In 2023, China limited its DAP exports, affecting India’s supplies
(ICRA Report, 2023).

3. Energy costs: Fertilizer production, especially urea, is highly energy-intensive, and

rising natural gas prices have increased production costs.

o Eg: Natural gas prices have risen by 35% globally, affecting urea production
costs (IEA, 2023).
 4. Inefficiencies in usage: The overuse of urea, which is subsidized, leads to soil
nutrient imbalances and affects crop productivity in the long run.

o Eg: India's per hectare use of urea is one of the highest globally, resulting in
declining soil fertility (ICAR Report, 2023).

5. Infrastructure and technological gaps: Outdated infrastructure in fertilizer

production limits efficiency, and investment in modern technologies like nano
fertilizers is still in early stages.

o Eg: India's nano urea production, though promising, needs scale-up for
wider impact (IFFCO, 2024).

Strategies for reducing dependence on imports:

1. Enhancing Domestic Production Capacity: Increasing investment in domestic
production units and reviving closed units can boost self-reliance in fertilizer
production.

o Eg: The revival of plants like Barauni and Sindri under the Atmanirbhar
Bharat initiative has added 7 million tonnes of urea capacity in 2023
(Government Data, 2023).
2. Promotion of Nano Fertilizers: Nano urea and other nano fertilizers can drastically
reduce the volume of chemical fertilizers required, improving efficiency.

o Eg: IFFCO’s nano urea is expected to replace 20 million tonnes of

conventional urea annually (IFFCO, 2024).

3. Diversification of Import Sources: Broadening the range of countries from which

India imports fertilizers will reduce dependency on any single region, safeguarding
against geopolitical risks.

o Eg: India has signed long-term potash import agreements with countries
like Canada and Jordan.

4. Balanced Fertilizer Usage: Policies promoting balanced use of fertilizers, through

programs like the Soil Health Card scheme, can reduce over-reliance on urea and
improve soil health.

o Eg: The Soil Health Card has been instrumental in reducing excessive urea
use by 10% in participating regions.

5. Public-Private Investments: Encouraging private investments through tax incentives

and public-private partnerships can drive growth in fertilizer production.

o Eg: The Investment Policy 2012 has led to the establishment of new urea
plants, increasing capacity by 76.2 LMT annually.

Conclusion
India must invest in modernizing its domestic fertilizer production, promoting sustainable
alternatives, and diversifying import sources to reduce its vulnerability to global
disruptions. A resilient, self-reliant fertilizer sector is crucial for ensuring India's agricultural
sustainability and long-term food security.

Issues related to Direct and Indirect Farm Subsidies and

Minimum Support Prices; Public Distribution System -
Objectives, Functioning, Limitations, Revamping; Issues of
Buffer Stocks and Food Security; Technology Missions;
Economics of Animal-Rearing.
Food Processing and Related Industries in India- Scope’ and
Significance, Location, Upstream and Downstream Requirements,
Supply Chain Management.

Land Reforms in India.

Effects of Liberalization on the Economy, Changes in Industrial
Policy and their Effects on Industrial Growth.
Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Q. Evaluate the role of public-private partnerships in India’s nuclear energy

sector. How can the government balance private investment with public safety
and regulatory control? (15 M)

Introduction
Public-Private Partnerships (PPP) in India’s nuclear energy sector present a significant
opportunity to boost energy capacity, particularly in light of the country’s decarbonization
goals. However, integrating private players requires balancing investment incentives with
stringent safety and regulatory control.

Body

Role of Public-Private partnerships in India’s nuclear energy sector

1. Boosting R&D and Innovation: PPPs can accelerate research in emerging

technologies like Bharat Small Modular Reactors (BSMR) and Small Modular
Reactors (SMRs), improving nuclear efficiency.
  E.g.: Government’s July 2024 Budget proposal to collaborate with the private
sector on developing BSMR technology. (Source: Union Budget, 2024)
2. Reducing Financial Burden on Government: Private investments can supplement
the capital-intensive nature of nuclear energy projects, reducing the burden on the
government.
 E.g.: NITI Aayog’s 2023 report estimates $26 billion private investment is
needed for nuclear sector growth. (Source: NITI Aayog, 2023)
3. Expanding Energy Capacity: Private sector involvement can help meet India’s
target of 500 GW non-fossil fuel energy by 2030 by speeding up nuclear energy
development.
 E.g.: The World Nuclear Association (2024) projects a 32 GWe increment in
nuclear energy production. (Source: World Nuclear Association, 2024)
4. Enhanced Engineering and Construction: Private firms’ participation in
engineering, procurement, and construction (EPC) contracts can enhance
infrastructure quality and efficiency.
 E.g.: Megha Engineering’s involvement in NPCIL’s nuclear infrastructure
projects. (Source: NPCIL, 2023)
5. Global Collaborations and Technology Transfer: Public-private partnerships can
attract global nuclear companies to invest in India’s nuclear sector, fostering
technology transfers.
 E.g.: Collaborations with global nuclear firms to advance SMR technologies.
(Source: NITI Aayog, 2023)

Challenges and concerns with private involvement

1. Regulatory Ambiguity: Current laws, including the Atomic Energy Act, 1962,
restrict private participation in core nuclear activities, creating legal uncertainties for
investors.
 E.g.: The Supreme Court, in Sandeep T.S. v. Union of India (2024), upheld
restrictions on private nuclear licensing. (Source: SC Order, 2024)
2. Safety and Liability Issues: Private participation raises concerns about nuclear safety
and liability, particularly regarding potential accidents.
 E.g.: The Chernobyl and Fukushima disasters highlight the critical need for
stringent safety oversight. (Source: Sundarrajan v. Union of India, 2013)
3. Constitutionality of Civil Liability for Nuclear Damage Act (CLNDA): Pending
court challenges to the CLNDA raise concerns about the liability framework,
deterring private investment.
 E.g.: Ongoing Supreme Court petitions challenge CLNDA’s constitutionality,
causing uncertainty for private investors. (Source: CLNDA Petition, 2023)
4. Lack of Independent Regulatory Oversight: The Atomic Energy Regulatory Board
(AERB) lacks independence, which can create conflicts of interest and undermine
trust in regulatory controls.
  E.g.: The Nuclear Safety Regulatory Authority Bill (2011) remains pending,
highlighting the need for an independent regulator. (Source: AERB, 2022)
5. Transparency Concerns: Private involvement necessitates public accountability, yet
nuclear projects often operate with limited transparency, raising public concern.
 E.g.: Kundankulam protests highlighted public fears over nuclear safety and
insufficient transparency. (Source: SC Order, 2013)

Balancing private investment and public safety

1. Amendment to Atomic Energy Act: Amend the Act to allow private R&D
participation while ensuring stringent oversight for safety and regulatory compliance.
 E.g.: Proposed NITI Aayog recommendation to allow private participation in
SMRs. (Source: NITI Aayog, 2023)
2. Establish an Independent Regulator: Enact the Nuclear Safety Regulatory
Authority Bill to create an independent oversight body for monitoring nuclear safety
and regulatory compliance.
 E.g.: Reform AERB’s structure to ensure independent functioning and
accountability.
3. Strengthen Liability Framework: Clarify and update the CLNDA to provide clear
liability provisions for private players and align with international standards.
 E.g.: Amend the CLNDA to provide clear guidelines for private participation
while protecting public safety.
4. Transparent PPP Framework: Develop a PPP model where the government retains
majority control (51%) in nuclear projects to ensure public accountability and safety
oversight.
 E.g.: NPCIL-led projects with private partners contributing capital and
expertise but under government oversight. (Source: NITI Aayog, 2023)
5. Public Engagement and Communication: Ensure open dialogue with local
communities and transparent decision-making processes to build public trust and
minimize protests.
 E.g.: Regular public disclosures on nuclear project safety under the RTI Act.

Conclusion
Public-private partnerships in India’s nuclear energy sector can drive growth, innovation, and
decarbonization. However, this must be balanced with robust regulatory frameworks,
independent oversight, and clear liability provisions to ensure public safety and long-term
sustainability.

Q. “Railway safety in India has seen improvements, yet the occurrence of major
accidents remains a concern”. Discuss the key challenges to railway safety and
suggest measures that can be adopted to enhance safety standards in the future.
(15 M)
Introduction
Indian Railways, the fourth-largest railway network in the world, has made strides in
safety improvements, particularly with the introduction of modern technology. However,
recurring accidents like derailments and collisions continue to pose serious concerns,
affecting both safety and public trust in the system.

Body

Railway safety in India: recent improvements

1. Introduction of KAVACH: Indian Railways has introduced KAVACH, an Automatic

Train Protection (ATP) system to prevent collisions, enhancing safety on high-density
routes.
2. Track Renewal Programs: The Railways have focused on track renewal and
upgradation, replacing old tracks with modern ones, reducing derailments
significantly.
3. Improved Rolling Stock: The introduction of modern trains like Vande Bharat and
upgrading older rolling stock have improved safety through better design and
technology.
 Use of much more safer LHB coaches instead of conventional ICF coaches.
4. Fire Safety Measures: Indian Railways has improved fire safety by installing fire
alarms and automatic braking systems in trains, reducing the risk of fire-related
incidents.
5. Enhanced Safety Audits: Regular safety audits and the implementation of
recommendations from the Kakodkar Committee have contributed to systemic safety
improvements in operations.

Key challenges to Railway safety

1. Outdated Infrastructure: Much of the railway infrastructure, including tracks and

bridges, is aging and prone to wear and tear, leading to derailments and other
accidents.
 E.g.: The 2023 Balasore train accident in Odisha highlighted issues with track
maintenance and signalling systems.
2. Overcrowded Network: Indian Railways operates at over 110% of its capacity,
leading to overburdened tracks and reduced maintenance windows, increasing
accident risks.
 E.g.: Busy corridors like Delhi-Mumbai and Howrah-Chennai are often
overused, with little time for adequate repairs.
3. Lack of Modern Signaling Systems: Many sections of the rail network still rely on
outdated signaling technology, making the system vulnerable to human errors.
 E.g.: The KAVACH Automatic Train Protection (ATP) system is yet to be
implemented across the entire rail network, leaving many routes dependent on
manual signaling.
 4. Human Error and Fatigue: Railway staff, including drivers and maintenance
workers, often work under high stress and long hours, leading to fatigue-induced
errors.
 E.g.: The Kundakulam Express accident in 2019 was attributed partly to driver
fatigue and communication lapses.
5. Inadequate Safety Audits: While audits are conducted, their implementation often
lags due to bureaucratic inefficiencies and lack of accountability.
 E.g.: Despite safety audit recommendations post the Amritsar train disaster
(2018), the ground-level implementation of safety standards remains slow.

Measures to enhance Railway safety

1. Modernizing Infrastructure: Invest in upgrading and replacing old tracks, bridges,

and rolling stock to prevent derailments and other accidents.
 E.g.: The Dedicated Freight Corridor project has helped ease congestion,
allowing for better maintenance on passenger lines.
2. Expansion of Automatic Protection Systems: Accelerate the installation of
advanced signaling technologies like KAVACH across all rail routes to minimize
human error.
 E.g.: As of 2023, KAVACH has been deployed on certain critical routes,
reducing the risk of collisions.
3. Improved Track Monitoring and Maintenance: Use technologies like GPS-based
monitoring and ultrasonic flaw detection to identify and repair track defects early.
 E.g.: The Track Management System (TMS) is helping Indian Railways
monitor real-time conditions of the tracks.
4. Training and Reducing Fatigue: Implement more comprehensive training programs
and better working conditions to reduce errors caused by human fatigue.
 E.g.: The Railway Staff College in Vadodara provides continuous training and
simulation-based learning for railway employees.
5. Strengthening Accountability: Regular and effective safety audits must be enforced
with strict accountability to ensure that recommended measures are implemented
swiftly.
 E.g.: Establishing an independent Railway Safety Authority can monitor and
enforce compliance with safety norms.

Conclusion

While Indian Railways has made progress in improving safety, addressing challenges such as
outdated infrastructure, human error, and inadequate technology implementation is crucial.
With strategic investments in technology, infrastructure modernization, and staff
training, Indian Railways can enhance safety and reduce the occurrence of major accidents,
ensuring safe journeys for millions of passengers.
Q. “The UDAN scheme is a significant step towards democratizing air travel in
India”. Critically examine the achievements of the UDAN scheme and assess the
challenges it faces in expanding regional connectivity across India. (15 M)

Introduction
The UDAN (Ude Desh ka Aam Nagrik) scheme, launched in 2017, is a crucial step towards
making air travel affordable and accessible for the general population. By focusing on
regional connectivity and under-served areas, the scheme aims to transform the aviation
landscape in India.

Body

UDAN scheme: a step towards democratizing air travel

1. Affordable airfares: The scheme sets a price cap of ₹2,500 for flights under 500 km
on select routes, ensuring that even lower-income groups can afford air travel.
2. Viability gap funding (VGF): The government provides financial support to airlines
to make unviable routes operational, ensuring that regional air travel remains
affordable.
3. Development of under-served airports: The scheme promotes the development of
under-served and un-served airports across Tier-2 and Tier-3 cities.
4. Regional connectivity fund (RCF): A dedicated fund collected from a levy on
domestic flights is used to subsidize air travel on regional routes.
5. Priority to remote areas: The scheme focuses on connecting remote and difficult
terrains such as the North-East, Jammu & Kashmir, and islands.

Achievements of the UDAN scheme

 1. Increased air connectivity: The scheme has connected over 400 routes and
operationalized around 70 airports as of 2023, enhancing connectivity across the
country.
o Eg: Airports in Gondia, Jharsuguda, and Kannur were operationalized,
boosting regional tourism and economy.
2. Economic impact: Improved connectivity has boosted regional economies by
promoting tourism and trade in under-served areas.
o Eg: Tourism in Andaman and Nicobar Islands increased due to better air
connectivity under UDAN, helping the local economy.
3. Enhanced infrastructure: Several un-served and under-served airports have been
developed, improving the overall aviation infrastructure.
o Eg: The revival of Hubballi Airport in Karnataka under UDAN has enhanced
economic prospects for the region.
4. Private sector participation: The scheme has attracted private airlines, leading to
competitive pricing and improved services.
o Eg: IndiGo and SpiceJet operate several routes under the UDAN scheme,
enhancing service quality.
5. Job creation: The operationalization of new airports and increased connectivity have
led to job creation in both aviation and allied sectors.
o Eg: The revival of Shirdi Airport created direct and indirect employment
opportunities in the tourism and service sectors.
6. Boost to tourism: Enhanced connectivity under UDAN has significantly boosted
tourism in areas previously hard to reach.
o Eg: Increased air connectivity to Nashik, known for its wine tourism, has seen
a rise in tourist inflow, benefiting the local economy.

Challenges in expanding regional connectivity

1. Financial viability of routes: Many routes under UDAN are not financially viable
due to low passenger demand, leading to unsustainable operations.
o Eg: Several routes, like Shimla-Delhi, witnessed flight cancellations due to
poor load factors and high operational costs.
2. Operational challenges: Several smaller airports lack adequate infrastructure, such as
night-landing facilities, making operations difficult.
o Eg: The Jeypore airport in Odisha faced operational delays due to lack of
modern infrastructure.
3. Airline participation: Private airlines are often reluctant to participate due to low
profitability on regional routes despite the viability gap funding provided by the
government.
o Eg: Many routes, such as Nashik-Hyderabad, have been discontinued by
airlines citing poor profitability.
4. Delayed project implementation: Many airports face delays in infrastructure
development, causing disruptions in connectivity.
 o Eg: The development of Kishangarh airport was delayed, affecting its
operational timeline under the UDAN scheme.
5. Environmental and regulatory issues: Air connectivity to ecologically sensitive
regions faces environmental clearances and regulatory hurdles, slowing down
expansion.
o Eg: Expansion of air routes in Ladakh has faced regulatory delays due to
environmental concerns.

Way Forward

1. Strengthening financial viability: Offering more flexible incentives and revising the
viability gap funding can attract greater airline participation and sustain operations.
o Eg: A NITI Aayog report (2022) recommended enhancing the viability gap
funding model for better private sector participation.
2. Improving infrastructure: Developing robust infrastructure at smaller airports,
including modern facilities for night operations and better runway capacity.
o Eg: The Civil Aviation Ministry's 2023 roadmap focuses on upgrading 50
airports under the next phase of UDAN.
3. Enhancing airline participation: Encouraging regional airlines and smaller carriers
to operate on UDAN routes with better financial support.
o Eg: Promoting low-cost carriers through additional subsidies could expand
connectivity to under-served areas.
4. Timely project execution: Fast-tracking airport infrastructure projects with better
coordination between central and state governments.
o Eg: The Government of India’s 2023 fast-track initiative focuses on timely
completion of airport development projects.

Conclusion
While the UDAN scheme has made notable progress in democratizing air travel, it faces
challenges in financial viability and infrastructure development. Addressing these issues
through policy reforms and enhanced stakeholder participation will ensure sustainable
regional connectivity and contribute to India's economic growth.
Investment Models.
Science and Technology- Developments and their Applications
and Effects in Everyday Life.

Q. “While geoengineering solutions present ambitious possibilities, they raise

environmental concerns”. Analyze the benefits and risks of geoengineering as a
tool for climate change mitigation. (10 M)

Introduction

Geoengineering offers ambitious possibilities for addressing climate change, presenting new
approaches to mitigating global warming. However, while these interventions offer
significant benefits, they also raise environmental concerns that must be carefully
considered.

Body

Benefits of Geoengineering

1. Rapid Reduction in Global Temperatures: Geoengineering techniques like Solar

Radiation Management (SRM) can help reduce global temperatures quickly by
reflecting sunlight away from the Earth. This is vital in managing extreme weather
events and sudden climate changes.
 o Eg: Stratospheric aerosol injections mimic volcanic eruptions, which have
shown temporary cooling effects, lowering global temperatures significantly
2. Supplement to Emission Reduction: Geoengineering can serve as a complementary
solution to conventional emission reduction efforts, especially when global CO2
levels need rapid intervention.
o Eg: Carbon Dioxide Removal (CDR) technologies like direct air capture
absorb CO2 from the atmosphere, contributing to a more balanced climate
3. Cost-Effective Climate Intervention: Some geoengineering methods are considered
more economically feasible compared to large-scale decarbonization, offering
quicker relief from rising temperatures.
o Eg: Afforestation and reforestation, widely implemented as low-cost
solutions, can act as carbon sinks while regenerating ecosystems
4. Temporary Fix for Delayed Emissions Goals: In the event that global climate
targets are missed, geoengineering could serve as a temporary solution to delay
severe climate impacts, buying time for nations to adopt sustainable practices.
o Eg: Marine Cloud Brightening increases cloud reflectivity to reduce solar
heat, potentially protecting vulnerable areas like coastal regions from rising
temperatures
5. Protection of Vulnerable Regions: Geoengineering solutions can be deployed to
safeguard vulnerable regions from extreme climate impacts such as droughts or
floods.
o Eg: Local SRM projects could protect specific areas at risk from climate
hazards, such as heatwaves or crop failure in regions dependent on stable
weather patterns

Risks of Geoengineering

1. Environmental Disruptions: Geoengineering could lead to unintended consequences

such as disruptions in weather patterns and precipitation, negatively affecting
agriculture and ecosystems.
o Eg: SRM could alter global monsoon cycles, impacting millions of people
who depend on seasonal rains for agriculture, particularly in South Asia
2. Biodiversity Loss: Large-scale interventions, such as ocean fertilization, could
disrupt marine ecosystems and cause a cascading effect on biodiversity, leading to
species loss.
o Eg: Unregulated geoengineering techniques may accelerate biodiversity loss,
especially in fragile marine ecosystems like coral reefs
3. Moral Hazard: The availability of geoengineering technologies might reduce the
urgency to cut greenhouse gas emissions, leading to over-reliance on temporary
solutions without addressing the root causes of climate change.
o Eg: Policymakers may prioritize quick technological fixes, delaying necessary
transitions to renewable energy
 4. Lack of Global Governance: There are no comprehensive international
agreements to regulate the deployment of geoengineering technologies, raising
concerns about unilateral actions by powerful nations or corporations.
o Eg: The RAND report (2021) emphasized the need for global governance
mechanisms to avoid geopolitical conflicts stemming from unregulated
geoengineering practices
5. Irreversible Consequences: Some geoengineering solutions could lead to
irreversible environmental impacts, making it difficult to reverse any unintended
damage once the intervention is deployed.
o Eg: Stratospheric aerosol injections, if suddenly stopped, could lead to a
rapid rebound effect, where temperatures could rise sharply, exacerbating
global warming

Conclusion

Geoengineering offers significant short-term potential to mitigate climate change but also
carries substantial risks that could lead to long-term environmental damage. It is crucial to
establish robust international governance frameworks and ensure that geoengineering is
used as a complement to, rather than a replacement for, sustainable emission reduction
efforts.

Achievements of Indians in Science & Technology; Indigenization

of Technology and Developing New Technology.

Q. Analyze the advantages and challenges of electric propulsion systems in

satellite missions. In light of ISRO’s upcoming electric-propelled satellite launch,
evaluate how this shift can impact India's space exploration and global
competitiveness. (15 M)

Introduction

Electric propulsion systems represent a significant technological leap in satellite missions,

offering enhanced fuel efficiency and operational flexibility. ISRO’s upcoming launch of
fully electric-propelled satellites demonstrates India's push for innovative and cost-effective
space technology.
Body

Advantages of electric propulsion systems

1. Fuel efficiency: Electric propulsion consumes significantly less fuel compared to

chemical propulsion, reducing the satellite’s overall mass.
o E.g.: ISRO’s TDS-01 satellite will use 10 times less propellant than
traditional systems, making the satellite lighter and more efficient.
2. Extended satellite lifespan: Efficient fuel usage allows satellites to remain
operational for longer periods, reducing the need for frequent replacements.
o E.g.: Communication satellites in geostationary orbits can maintain precise
positioning for years, reducing overall mission costs.
3. Lower launch costs: With lighter satellites, ISRO can reduce launch costs, making
missions more affordable and enabling more frequent satellite deployments.
o E.g.: The weight reduction in electric-propelled satellites allows for larger
payloads, optimizing mission capacity.
4. Precise orbital control: Electric propulsion allows for more refined orbital
adjustments, making it ideal for navigation, remote sensing, and scientific research
missions.
o E.g.: Missions requiring precise Earth observation and advanced scientific
tasks benefit from the high manoeuvrability of electric propulsion.
5. Larger payload capacity: Electric propulsion enables the inclusion of more
instrumentation or payload due to the reduced weight from fuel, which enhances the
satellite's functionality.
 o E.g.: The ability to carry more payload opens up possibilities for advanced
Earth observation systems and interplanetary missions.

Challenges of electric propulsion systems

1. Slower orbit-raising: Electric propulsion produces lower thrust compared to

chemical propulsion, leading to longer orbit-raising times.
o E.g.: Traditional chemical systems can reach geostationary orbits in a week,
while electric systems may take up to three months.
2. Complex technology and high initial costs: Designing and implementing electric
propulsion systems requires advanced technology and significant initial investments.
o E.g.: Developing the TDS-01 propulsion system required years of research
and high costs in developing specialized knowledge.
3. Power dependency: Electric propulsion requires continuous power, which
necessitates large solar panels, potentially limiting its use on smaller satellites.
o E.g.: Smaller satellites with limited power generation may struggle to
sustain electric propulsion over long missions.
4. Limited thrust for high-speed manoeuvres: Electric propulsion is not suited for
missions requiring rapid repositioning or emergency manoeuvres due to its lower
thrust.
o E.g.: Missions that require quick response, such as defence-related satellites,
may still rely on chemical thrusters for immediate orbital adjustments.
5. Extended mission timelines: The slow acceleration of electric propulsion can extend
the mission duration, impacting time-sensitive missions.
o E.g.: Satellites involved in emergency services or disaster management
may face delays in deployment with electric propulsion.

Impact on India’s space exploration and global competitiveness

1. Global competitiveness: ISRO’s adoption of electric propulsion aligns India with

leading space agencies like SpaceX and OneWeb, enhancing its reputation in the
global space industry.
o E.g.: ISRO’s TDS-01 places India on par with China and other global players
utilizing advanced satellite technology.
2. Cost-effective missions: Electric propulsion reduces operational and launch costs,
making ISRO’s satellite missions more affordable and attractive to global clients.
o E.g.: The reduced cost of satellite operations strengthens India’s position in
the commercial satellite launch market.
3. Extended satellite capabilities: The longer lifespan and greater payload capacity of
electric-propelled satellites enable ISRO to expand into advanced Earth observation,
communication, and deep-space missions.
o E.g.: Future Mars and Moon missions will benefit from the fuel efficiency
and longevity of electric propulsion technology.
 4. Sustainability in space exploration: Electric propulsion is more environmentally
friendly, with fewer emissions compared to chemical thrusters, contributing to
sustainable space missions.
o E.g.: As space agencies globally push for sustainable missions, ISRO’s use
of electric propulsion will enhance its leadership in eco-friendly technology.
5. Enhanced flexibility for diverse missions: Electric propulsion opens up
opportunities for multi-mission capabilities in the same satellite, such as combining
remote sensing with scientific research.
o E.g.: This flexibility allows ISRO to diversify its satellite applications and
undertake multi-functional space missions.

Conclusion

ISRO’s adoption of electric propulsion marks a critical advancement in space exploration,

enhancing mission efficiency, cost-effectiveness, and environmental sustainability. This
technology will not only strengthen India’s position in the global space industry but also pave
the way for future deep-space missions and multi-functional satellite applications.

Awareness in the fields of IT, Space, Computers, Robotics, Nano-

technology, Bio-technology and issues relating to Intellectual
Property Rights.

Q. What are Cyber-Physical Systems (CPS). Evaluate the significance of the

National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) in
positioning India as a global leader in emerging technologies. (10 M)

Introduction
Cyber-Physical Systems (CPS) are integrations of computational elements with physical
processes, enabling real-time interaction between digital and physical components. CPS
form the backbone of emerging technologies such as robotics, autonomous vehicles, smart
grids, and advanced healthcare systems.
Body

What are Cyber-Physical Systems (CPS)?

1. Integration of Digital and Physical Systems: CPS combine software (cyber)

systems with physical components like sensors and actuators to monitor and control
real-world processes in real-time.
2. Real-Time Data Processing: CPS use embedded systems, IoT, and cloud computing
to gather and analyze data, enabling real-time decision-making and automation.
E.g.: Autonomous vehicles rely on CPS for real-time navigation and safety control
through data from sensors and AI-driven computations.
3. Interconnectivity and Automation: These systems are highly interconnected and
enable automated control and feedback loops across industries, improving efficiency
and precision.
E.g.: In smart manufacturing, CPS can monitor machine performance, adjust
operations autonomously, and predict maintenance needs.
4. Applications in Critical Sectors: CPS are used in sectors like healthcare (robot-
assisted surgery), agriculture (precision farming), and energy (smart grids) to enhance
productivity and safety.
E.g.: Smart grids use CPS to manage energy distribution in real-time, balancing
demand and supply efficiently.

Significance of the National Mission on Interdisciplinary Cyber-Physical Systems (NM-

ICPS)

1. Fostering Innovation and Research: NM-ICPS aims to develop foundational

technology platforms by promoting interdisciplinary research and innovation in areas
like robotics, AI, and IoT.
  E.g.: The mission has led to the establishment of Technology Innovation Hubs
(TIHs) across India, which focus on critical areas like quantum computing and
AI-driven healthcare.
2. Strengthening India's Technology Ecosystem: By encouraging academia-industry
collaboration, NM-ICPS aims to boost India’s capacity in next-gen technologies,
positioning the country as a leader in CPS research and development.
 E.g.: IIT Madras is spearheading work on autonomous systems under the NM-
ICPS framework, creating pathways for smart mobility solutions.
3. Boosting Manufacturing and Industry 4.0: CPS enables the development of smart
factories and the adoption of Industry 4.0, where automation, data exchange, and
advanced manufacturing systems converge.
 E.g.: Bharat Electronics Limited is using CPS to modernize defense
manufacturing, contributing to Atmanirbhar Bharat in the defense sector.
4. Enabling Digital Transformation: NM-ICPS focuses on leveraging CPS to improve
national capabilities in sectors such as healthcare, agriculture, and energy, driving
digital transformation.
 E.g.: CPS-powered precision agriculture systems, developed under NM-ICPS,
are improving productivity by optimizing resource usage through real-time
monitoring.
5. Global Leadership in Emerging Technologies: By investing in CPS, India aims to
strengthen its global leadership in emerging technologies like Artificial Intelligence
(AI), robotics, and advanced computing.
 E.g.: The mission aligns with global efforts like the Industry 4.0 revolution,
where countries are rapidly moving toward integrating cyber and physical
systems for technological supremacy.

Challenges

1. Capacity Building: There is a need for more skilled manpower to work on CPS
development and adoption across industries. India must prioritize technical education
and training.
2. Infrastructure Development: A lack of robust digital and physical infrastructure can
hinder CPS deployment, particularly in rural areas.
3. Data Security and Privacy: The increasing integration of cyber systems raises
concerns over data security and privacy, particularly with sensitive sectors like
healthcare and defense.
4. Investment and Funding: CPS development requires significant funding for R&D,
which needs to be scaled up to meet global standards.

Conclusion

The NM-ICPS is crucial for India's technological leadership. By focusing on building skilled
talent, enhancing infrastructure, and ensuring cybersecurity, India can fully leverage
CPS to drive innovation and economic growth, securing its global competitiveness in
emerging technologies.

Q. “AI can accelerate India's progress towards the Sustainable Development

Goals (SDGs) by 2030”. Discuss the potential and challenges of AI in this context.
(15 M)

Introduction
Artificial Intelligence (AI) has the potential to play a transformative role in accelerating
India’s progress towards achieving the Sustainable Development Goals (SDGs) by 2030.
From healthcare to agriculture and governance, AI can drive efficiency, equity, and
innovation. However, several challenges need to be addressed to harness its full potential.

Body

Potential of AI in Achieving SDGs

1. AI in Healthcare (SDG 3: Good Health and Well-Being): AI can enable early

diagnosis, predictive healthcare, and personalized treatment, improving health
outcomes and reducing costs.
 E.g. AI-based tools are being used to detect diabetic retinopathy in India,
helping millions of people access early treatment.
2. AI in Agriculture (SDG 2: Zero Hunger): AI-powered precision farming can
enhance productivity by optimizing water, fertilizer, and pesticide usage, and
minimizing waste.
 E.g. Startups like Fasal and CropIn use AI to assist farmers in making data-
driven decisions.
3. AI in Education (SDG 4: Quality Education): AI enables personalized learning
experiences, addressing individual student needs and enhancing the quality of
education.
 E.g. Platforms like BYJU’s and Embibe use AI to customize learning based on
student performance data.
4. AI in Climate Action (SDG 13: Climate Action): AI can predict natural disasters,
monitor environmental changes, and optimize energy usage, aiding in disaster
management and climate mitigation.
 E.g. The Indian government uses AI for flood prediction and resource
management.
5. AI in Governance (SDG 16: Peace, Justice, and Strong Institutions): AI-based
data analytics can improve public service delivery, track corruption, and enhance
transparency in governance.
 E.g. AI tools are being employed to identify irregularities in public welfare
schemes.

Challenges of AI in achieving SDGs

 1. Data Privacy and Security: AI relies heavily on data, raising concerns about privacy,
misuse, and data security. The absence of a robust data protection framework
exacerbates these issues.
2. Digital Divide and Access Inequality: The benefits of AI may be concentrated in
urban areas, leaving rural and marginalized communities behind due to inadequate
infrastructure.
 E.g. A large portion of rural India lacks access to high-speed internet, limiting
the reach of AI-driven solutions.
3. Job Displacement: Automation through AI may displace jobs, particularly in low-
skill sectors like agriculture and manufacturing, potentially leading to unemployment.
 E.g. Studies by ILO predict large-scale job losses due to AI-driven automation
in sectors such as textile manufacturing.
4. AI Bias and Ethical Concerns: AI systems can perpetuate biases if trained on biased
datasets, resulting in discriminatory outcomes, especially in areas like law
enforcement and hiring.
 E.g. Globally, AI-based facial recognition systems have been criticized for
racial and gender biases, raising ethical concerns.
5. Shortage of Skilled Workforce: India faces a shortage of AI professionals and
researchers, which hinders the development and application of AI technologies across
sectors.
 E.g. According to NASSCOM, India currently has a shortage of AI and data
science professionals, slowing the pace of AI adoption.

Solutions to overcome challenges

1. Bridging the Digital Divide: Expanding digital infrastructure in rural areas will
ensure that the benefits of AI are accessible to all, not just urban populations.
 E.g. The Digital India initiative focuses on expanding internet connectivity in
remote areas to enable AI adoption.
2. Reskilling and Upskilling: Government and private sectors must collaborate to
provide AI-specific training and reskilling programs to prepare the workforce for the
AI revolution.
 E.g. NASSCOM’s FutureSkills platform aims to train 2 million professionals
in AI-related skills by 2025.
3. Establishing Ethical AI Frameworks: Creating AI governance frameworks that
ensure fairness, transparency, and accountability in AI systems is crucial.
 E.g. NITI Aayog’s “AI for All” strategy emphasizes ethical AI development,
focusing on bias reduction and transparency.
4. Public-Private Collaboration: Fostering partnerships between the government,
industry, and academia will accelerate AI research and its practical application across
sectors.
 E.g. The National AI Strategy by NITI Aayog promotes collaboration between
public and private stakeholders for AI development.

Conclusion

AI has immense potential to fast-track India's progress towards the SDGs, particularly in
sectors like healthcare, education, and agriculture. However, overcoming challenges like data
privacy, the digital divide, and job displacement is essential. With the right policies,
infrastructure, and ethical frameworks in place, AI can be a key driver for sustainable and
inclusive growth by 2030.

Q. “Genome-editing technologies have revolutionized the field of genetic

research." Discuss the potential of genome-editing in addressing diseases and
improving public health outcomes in India. Also, examine the regulatory
frameworks governing these technologies. (15 M)

Introduction
Genome-editing technologies like CRISPR have revolutionized genetic research, offering
new avenues for addressing diseases and improving public health. However, effective
regulation and ethical considerations remain critical to ensuring their safe application.

Body

Potential of Genome-Editing in addressing diseases

1. Correction of Genetic Disorders: CRISPR enables direct correction of faulty genes

responsible for diseases like sickle-cell anemia and hemophilia.
 E.g. Clinical trials are using CRISPR to correct genetic mutations for sickle-
cell disease
2. Cancer Treatment Advancements: Genome-editing allows for precise targeting of
cancer-causing genes, improving the efficacy of therapies.
 E.g. CRISPR-based immunotherapies for leukemia are under trial to boost
cancer detection
3. Preventing Genetic Diseases: Editing germline cells can prevent the transmission of
genetic disorders across generations.
 E.g. Potential application in preventing diseases like cystic fibrosis from
being passed to offspring

Potential of Genome-Editing in Public Health

1. Enhanced Diagnostics: Genome-editing is used to develop rapid, accurate

diagnostics for genetic and infectious diseases.
E.g. CRISPR-based tests have been employed for faster diagnosis of COVID-19
2. Vaccine Development: Genome-editing accelerates vaccine production by modifying
pathogens to create safer vaccines.
E.g. Research into next-generation vaccines for diseases like HIV and influenza

Regulatory Framework Governing Genome-Editing in India

1. ICMR Guidelines (2019): India regulates gene therapy trials to ensure safety and
ethical practices
2. Relaxation of SDN1 and SDN2 Rules (2022): The government eased rules for
genome-editing techniques, expediting approval for gene-edited products
 3. GEAC Oversight: The Genetic Engineering Appraisal Committee (GEAC) monitors
genome-editing in agriculture and healthcare, ensuring compliance with
environmental and safety standards
4. Ethical Considerations: India follows international guidelines, like those from
WHO, to address ethical concerns, especially for germline modifications
5. Biosafety and Environmental Regulations: Gene-editing in agriculture and
healthcare also comes under the Environmental Protection Act (EPA) of 1986,
 Specifically, for products that might impact biodiversity and the environment.
 The Ministry of Environment, Forest and Climate Change (MoEFCC) plays a
crucial role in ensuring that genome-editing technologies do not pose
unforeseen ecological risks
6. Ethical Approval and Human Trials: In the context of human genome-editing, India
mandates Institutional Ethics Committees (IEC) to review and approve gene therapy
clinical trials.
 Any experimental treatments using gene-editing technology must comply with
guidelines issued by both the Indian Council of Medical Research (ICMR) and
Drug Controller General of India (DCGI).

Conclusion

Genome-editing has immense potential to transform healthcare by curing genetic disorders

and improving public health infrastructure. However, a robust regulatory framework is
crucial to balance innovation with safety and ethical considerations.

Q. “The Global Digital Compact seeks to harness digital technologies for the
common good." In light of this statement, analyze the role of GDC in addressing
the digital divide and promoting global digital cooperation. (10 M)

Introduction

The Global Digital Compact (GDC), adopted at the 2024 Summit of the Future, aims to
create a shared framework for the governance of digital technologies. Its primary focus is to
leverage these technologies for the collective good while addressing critical issues such as the
digital divide and fostering global digital cooperation.

Body

Role of GDC in addressing the digital divide

1. Ensuring Universal Connectivity: The GDC emphasizes the need to connect every
individual, school, and hospital to the internet, ensuring that no one is left behind in
the digital age.
o E.g.: The GDC’s goal includes bridging connectivity gaps, particularly in
developing nations where access to digital infrastructure remains limited.
 2. Digital Inclusion for Marginalized Groups: The Compact calls for actions to ensure
that marginalized groups, including women, rural communities, and low-income
populations, have equal access to digital tools and opportunities.
o E.g.: Initiatives under the GDC push for gender equality in digital access,
promoting the use of technology to empower women and girls globally.
3. Tackling Affordability Issues: By promoting multilateral cooperation among
governments, the GDC aims to reduce the cost of digital access, making it more
affordable for lower-income countries.
o E.g.: The push for open-source software and lower-cost devices is central to
closing the affordability gap for millions of people.
4. Building Digital Literacy: The GDC supports efforts to enhance digital literacy,
especially in regions where technological know-how is lacking, aiming to equip
citizens with the skills to navigate the digital world.
o E.g.: Programs under the Compact target digital education for youth in
Africa and South Asia, where digital literacy rates remain low.
5. Infrastructure Development in Remote Areas: One of the key pillars of the GDC is
investment in infrastructure for hard-to-reach areas, ensuring that even the most
remote regions gain access to the digital ecosystem.
o E.g.: The Compact encourages partnerships between governments and the
private sector to build digital infrastructure in underserved areas.

Promoting global digital cooperation

1. Fostering Multistakeholder Collaboration: The GDC brings together governments,

civil society, and the private sector to collaborate on common goals in digital
governance, creating a more inclusive digital future.
o E.g.: By promoting cooperation between tech companies and governments,
the GDC aims to develop ethical standards for emerging technologies like AI
and big data.
2. Internet Fragmentation Prevention: The Compact stresses the importance of
keeping the internet unified and preventing the fragmentation of the digital space,
ensuring that it remains open and accessible for all.
o E.g.: Initiatives under the Compact focus on preventing the rise of isolated
digital systems that could create inequalities between countries.
3. Ethical AI Development and Governance: The GDC plays a pivotal role in
establishing global standards for AI governance, ensuring that AI technologies are
developed ethically and benefit all nations equally.
o E.g.: The GDC supports the formation of an International Scientific Panel
on AI, which will ensure that AI advancements align with human rights
principles.
4. Cybersecurity and Data Protection: Another critical component of the Compact is
the promotion of cybersecurity standards and protection of individual data rights
across borders.
o E.g.: Agreements on data governance, privacy protection, and
cybersecurity will be critical to securing a safe online environment globally.
5. Open Data Initiatives: The Compact calls for greater openness in data sharing and
access to global digital resources, fostering innovation and collaboration across
nations.
o E.g.: Promoting open-source models and cross-border data exchange will
facilitate innovation, particularly in healthcare and education sectors.
Conclusion

The Global Digital Compact seeks to address global inequalities by promoting universal
access to digital technologies and fostering a cooperative approach to governing the
digital world. Its success lies in the collective commitment of all nations to ensuring that
the digital revolution benefits every individual, bridging the digital divide while promoting
ethical governance of emerging technologies like AI.

Q. Discuss the key objectives of NASA's Europa Clipper mission and its
significance for space exploration. (10 M)

Introduction

NASA’s Europa Clipper mission (launched in October 2024) is a groundbreaking attempt

to explore Jupiter’s moon Europa, an ocean world with the potential to support life. Its
findings could significantly impact our understanding of habitable environments beyond
Earth.

Body

Key objectives of europa clipper:

1. Assessing habitability: The mission aims to determine whether Europa’s subsurface

ocean beneath its icy crust could support life, making it one of the most promising
targets for astrobiology.
o E.g.: The mission will use ice-penetrating radar to confirm the depth and
salinity of Europa’s ocean
2. Surface composition analysis: Instruments will map the chemical composition of
the surface and thin atmosphere to detect potential organic materials.
o E.g.: Clipper’s spectrometers will analyze surface composition to search for
carbon-based molecules essential for life
3. Geological activity study: The mission will investigate geological processes like
tectonic movement and cryovolcanism, essential for understanding Europa’s
evolution.
o E.g.: The mission will study the icy shell for signs of recent eruptions of
water, which could indicate active geology
4. Mapping magnetic and gravity fields: By studying Europa’s magnetic field and
gravity, the spacecraft will uncover information about the moon’s internal ocean
dynamics and core.
 5. Identifying future landing sites: Europa Clipper will also assess potential landing
zones for future missions, crucial for detailed surface exploration.

Significance for space exploration:

1. Discovering life beyond earth: Europa Clipper could reveal whether life exists in
extreme environments, shifting our understanding of habitability in the solar system.
o E.g.: If signs of habitability are found, it could increase the chances of
finding life on other ocean worlds like Enceladus
2. Technological milestones: The mission pioneers the use of advanced technologies
like ice-penetrating radar and enhanced spectrometers to explore icy bodies.
o E.g.: The spacecraft’s magnetometer, tested in 2024, will offer insights into
Europa’s deep interior
3. Precedent for future missions: The mission is key to planning for future robotic
landers on Europa or other ocean worlds, expanding the scope of planetary
exploration.
o E.g.: NASA’s future projects, including potential missions to Saturn’s Titan,
could be shaped by Europa Clipper’s success
4. International collaboration: Europa Clipper fosters global partnerships with
institutions across the world, enhancing international efforts in deep-space research.
 o E.g.: NASA has collaborated with Caltech and international partners on the
scientific instruments onboard
5. Inspiring future astrobiological research: The success of Europa Clipper will likely
inspire missions to explore other icy moons and foster innovation in space
exploration technologies.

Conclusion

Europa Clipper’s findings could transform our understanding of habitable environments

beyond Earth. By uncovering potential biosignatures on Europa, it could spark a new era of
astrobiological exploration, expanding humanity’s quest for life in the universe.

Q. Analyze the importance of India's Venus Orbiter Mission in the context of

global space exploration. How could studying Venus help us understand Earth's
climate dynamics and planetary evolution? (10 M)

Introduction:
India’s Venus Orbiter Mission (Shukrayaan-1) marks a pivotal step in planetary
exploration, placing India at the forefront of global space science. By studying Venus, this
mission will provide critical insights into Earth’s climate dynamics and planetary
evolution, reinforcing India's position in space exploration.

Body

Strategic importance of India’s Venus orbiter mission in global space exploration:

1. Expanding global scientific collaboration: The mission fosters opportunities for

international partnerships with space agencies, advancing global space diplomacy
and collaborative research in planetary sciences.
o Eg: NASA’s involvement in sharing data from Venus missions (like
DAVINCI+) will benefit India’s Venus studies (NASA, 2024).
2. Advancement of space technologies: Developing advanced technologies such as
Synthetic Aperture Radar (VSAR) and thermal mapping cameras strengthens
India's technical prowess in space exploration.
o Eg: These innovations will map Venus’s surface and detect volcanic
activity, enhancing global scientific understanding (ISRO, 2024).
3. Positioning india in planetary exploration: By joining the race to explore Venus,
India bolsters its reputation in planetary research alongside nations like the U.S.
and Europe.
o Eg: The Venus Orbiter mission will complement missions by NASA, ESA,
and Russia to explore planetary atmospheres and evolution (India Today,
2024)
 4. Global leadership in space exploration: Successful execution of this mission will
establish India as a leader in planetary exploration, enabling future collaborations
on Mars or beyond.
o Eg: India’s achievements with Chandrayaan and Mangalyaan pave the way for
deeper involvement in space diplomacy (ISRO, 2024).

Understanding earth's climate dynamics and planetary evolution:

1. Runaway greenhouse effect: Venus’s atmosphere contains 96% carbon dioxide,

which serves as a model for understanding Earth’s future under uncontrolled global
warming scenarios.
o Eg: Lessons from Venus may help mitigate Earth’s climate crisis by
offering predictive models for climate change (NASA, 2023).
2. Comparative planetology: Venus and Earth share similar size and mass, yet Venus
experienced drastic climate changes, becoming uninhabitable. Understanding this
divergence aids in exploring factors behind planetary habitability.
o Eg: Venus’s loss of water and its dense CO2 atmosphere provide insights
into how planets evolve differently (ESA, 2023).
3. Atmospheric dynamics and super-rotating winds: Venus’s super-rotating
atmosphere offers a comparison for studying extreme atmospheric phenomena on
Earth, such as jet streams and hurricane formations.
o Eg: Understanding Venus’s atmospheric behavior enhances Earth’s
weather modeling capabilities (ISRO, 2024).
4. Geological evolution and volcanism: By studying potential active volcanism on
Venus, scientists can better understand how geological activities affect atmospheric
composition and surface conditions on Earth-like planets.
o Eg: Venus’s geological processes offer clues about Earth’s past volcanic
activity and its influence on climate evolution (India Today, 2024)
5. Solar wind interactions: Venus’s interaction with solar wind will offer insights into
the behavior of Earth’s ionosphere and magnetosphere, helping to refine our models
of space weather and its impact on climate.
o Eg: Venus’s ionospheric studies can help us understand solar radiation
effects on Earth’s atmosphere (ISRO, 2024)

Conclusion
India’s Venus Orbiter Mission will not only bolster global understanding of planetary
climates and evolution but also enhance India’s standing in global space exploration. Its
findings may shape future climate policies and contribute to solving Earth’s environmental
challenges while positioning India as a key player in international space research.

Q. Discuss how the growing use of AI and Big Data is reshaping India's banking
sector. What are the associated risks to financial stability? (10 M)
Introduction
The integration of AI and Big Data in India’s banking sector has transformed operations,
improving efficiency, customer service, and risk management. However, the RBI has
raised concerns about potential systemic risks associated with these technologies.

Body

Ai and big data reshaping the banking sector

1. Customer experience enhancement: AI-driven chatbots and data analytics improve

customer interactions, making banking more personalized and efficient.
o E.g.: ICICI Bank’s iPal chatbot handles banking queries, fund transfers, and
personalized offers.
2. Credit risk assessment: AI helps banks assess creditworthiness more accurately,
allowing faster loan approvals and reducing defaults.
o E.g.: Pre-approved loans through AI-based customer profiling by banks like
SBI.
3. Fraud detection and predictive analytics: AI-powered systems enable early
detection of fraud and reduce financial crimes through real-time data analysis.
o E.g.: Banks use AI to detect suspicious transactions and flag potential fraud.
4. Operational efficiency: Automation reduces human intervention in repetitive tasks,
cutting costs and improving turnaround times.
o E.g.: Automation in data processing has helped banks streamline backend
operations.
5. Early warning systems: AI-based systems allow banks to detect early signs of stress
in loan accounts, mitigating risks of defaults and bad loans.
o E.g.: RBI’s early warning mechanisms based on AI models have helped
prevent loan slippages.

Associated risks to financial stability

1. Concentration risks: Heavy reliance on a few large tech providers for AI systems
could lead to systemic risks if these platforms fail or face disruption.
o E.g.: The RBI flagged concerns about concentration risks in its 2024 report.
2. Cybersecurity vulnerabilities: The growing use of AI increases exposure to
cyberattacks and data breaches, threatening the financial ecosystem.
o E.g.: The surge in cyberattacks on financial institutions globally, as per the
World Economic Forum (2023).
3. Opacity and accountability issues: AI’s opaque decision-making processes make it
difficult to interpret algorithms, raising concerns over transparency and bias in
banking decisions.
o E.g.: AI-based loan rejections without human intervention can lead to
discrimination, as noted in global case studies (OECD, 2022).
4. Systemic disruption: Over-dependence on AI could lead to widespread financial
instability if there are technical failures or unanticipated errors in AI systems.
o E.g.: The RBI warns of unpredictable consequences in the financial markets
due to AI-driven disruptions (2024).
 5. Ethical and regulatory challenges: The use of AI in decision-making, particularly in
loan approvals and risk management, raises ethical concerns over bias and fairness,
which could erode trust in the banking system.
o E.g.: The European Union’s AI Act is focused on ensuring ethical AI use,
including in financial services (2023).

Conclusion
While AI and Big Data offer immense potential to revolutionize India's banking sector,
ensuring financial stability requires a balanced approach. Strengthening regulatory
frameworks, promoting ethical AI practices, and enhancing cybersecurity are critical to
mitigating systemic risks. To harness AI’s full potential, banks must collaborate with
regulators to create transparent, resilient systems that ensure long-term sustainable
growth.

Conservation, Environmental Pollution and Degradation,

Environmental Impact Assessment.

Q. “Erratic weather patterns and extreme hydrological events are increasing

stress on global water resources”. Analyze how climate change is altering the
hydrological cycle and discuss the implications for global water security. (10 M)

Introduction
Erratic weather patterns and extreme hydrological events, exacerbated by climate change, are
significantly altering the global hydrological cycle. These changes pose major challenges
for global water security, with implications for freshwater availability, agriculture, and
ecosystems.

Body

How climate change is altering the hydrological cycle

 1. Increased Evaporation and Precipitation: As global temperatures rise, more
moisture is held in the atmosphere, leading to increased evaporation and extreme
precipitation events.
 E.g. The year 2023 recorded the hottest year on record, leading to
widespread floods in some regions and droughts in others
2. More Intense and Frequent Droughts: The rising temperatures are accelerating soil
drying and reducing water availability in many parts of the world, particularly in arid
regions.
 E.g. In 2023, the Amazon Basin experienced record-low water levels,
severely affecting both ecosystems and local communities
3. Melting Glaciers and Snowpacks: The accelerated melting of glaciers due to
warming has reduced long-term water storage, particularly affecting water availability
during dry seasons.
 E.g. Glaciers suffered the largest mass loss in 50 years in 2023, impacting
water supply in regions dependent on glacial melt, like South Asia
4. Disruption of River Flows: Many of the world’s rivers are showing declining
discharge rates, impacting agriculture, drinking water, and hydropower generation.
 E.g. Major river basins like the Mississippi and Ganges-Brahmaputra
reported below-normal discharge, disrupting water availability for millions
5. Erratic Monsoons and Seasonal Shifts: Climate change is making seasonal
precipitation patterns more unpredictable, leading to both flood and drought risks in
the same regions at different times.
 E.g. India's monsoon variability has been attributed to climate-induced shifts,
leading to alternating periods of drought and excessive rainfall

Implications for global water security

1. Increased Water Scarcity: More than 3.6 billion people currently face inadequate
water access for at least a month each year, a figure expected to rise to over 5 billion
by 2050
2. Impact on Agriculture and Food Security: Reduced river flows and changing
rainfall patterns are threatening agricultural productivity, especially in regions
dependent on rain-fed agriculture.
 E.g. Drought conditions in Argentina led to a 3% GDP loss due to reduced
agricultural output
3. Heightened Risk of Water-Related Disasters: The increased frequency and severity
of floods and droughts are causing significant loss of life and damage to
infrastructure.
 E.g. Floods in Libya in 2023 claimed more than 11,000 lives due to collapsing
dams
4. Conflict over Water Resources: With water becoming scarcer and more erratic,
conflicts over water access and usage are likely to increase, especially in
transboundary river basins.
  E.g. Growing tensions over the Nile River between Egypt, Sudan, and
Ethiopia
5. Depletion of Groundwater: In regions like North America and Europe, prolonged
droughts have led to significant groundwater depletion, endangering long-term water
security

Conclusion

Climate change is profoundly altering the global hydrological cycle, exacerbating both
water shortages and the frequency of extreme weather events. To ensure water security,
urgent measures are needed, including better monitoring, sustainable water management,
and global cooperation to mitigate climate impacts.

Q. Examine the key drivers behind the sharp decline in wildlife populations
globally. How do these factors interplay with the dual crises of climate change
and biodiversity loss? (10 M)

Introduction
The WWF’s Living Planet Report 2024 warns of a staggering 73% decline in wildlife
populations globally from 1970-2020, driven by habitat loss, climate change, and
overexploitation. These interconnected crises threaten biodiversity and humanity, with
irreversible environmental tipping points on the horizon.

Body

Key drivers behind the sharp decline in wildlife populations

1. Habitat Loss and Degradation: Conversion of forests, wetlands, and grasslands for
agriculture and urbanization is the leading cause of wildlife decline.
o E.g.: Freshwater species populations have declined by 85% due to habitat
destruction.
2. Overexploitation: Unsustainable hunting, fishing, and logging practices have
severely depleted wildlife populations.
o E.g.: Illegal poaching of African elephants and overfishing in marine
ecosystems have caused significant species decline.
3. Invasive Species and Diseases: Non-native species outcompete local species, disrupt
ecosystems, and spread diseases.
o E.g.: The introduction of water hyacinth in Indian freshwater bodies has
degraded local biodiversity.
4. Pollution: Industrial waste, plastics, and chemical runoffs have polluted ecosystems,
causing severe damage to wildlife.
o E.g.: Marine life has suffered due to microplastic pollution and oil spills,
with a 56% decline in oceanic species.
5. Climate Change: Rising temperatures, ocean acidification, and changing weather
patterns directly threaten species’ survival.
o E.g.: Coral bleaching due to warmer waters has devastated coral reefs
globally, a vital marine ecosystem.
Interplay of wildlife decline with climate change and biodiversity loss

1. Ecosystem Vulnerability: Habitat loss and declining wildlife populations weaken

ecosystems, making them more vulnerable to climate change impacts.
o E.g.: The Amazon rainforest faces tipping points due to deforestation and
droughts, risking collapse.
2. Feedback Loops: The loss of biodiversity accelerates climate change by reducing
carbon sinks, such as forests and wetlands.
o E.g.: Wetland degradation in Chennai has increased the city's
vulnerability to floods and droughts.
3. Species Extinction and Ecosystem Services: The extinction of key species disrupts
ecosystem services such as pollination, water purification, and flood regulation,
exacerbating climate challenges.
o E.g.: Vulture population decline in India has affected the natural
scavenging system, increasing carcass decay and disease.
4. Increased Likelihood of Tipping Points: The simultaneous occurrence of
biodiversity loss and climate change raises the probability of irreversible tipping
points.
o E.g.: Coral reef die-offs threaten food security for millions of coastal
communities.
5. Human Livelihoods and Security: Wildlife decline and climate change together
threaten food security, water availability, and human health.
o E.g.: The decline of fish stocks in Southeast Asia due to overfishing and
warming seas threatens regional food supplies.

Conclusion

The sharp decline in global wildlife populations is a distress signal of the broader crises of
climate change and biodiversity loss. Addressing these intertwined issues requires urgent
and comprehensive actions to protect ecosystems and species, ensuring a sustainable future
for both nature and humanity

Q. “Climate change amplifies existing vulnerabilities in India's agricultural

sector". Analyze the major climate-related challenges in Indian agriculture.
What measures can be taken to minimize the risks and support sustainable
agricultural development? (15 M)

Introduction

Climate change is increasingly exacerbating the vulnerabilities of India's agricultural

sector, leading to reduced crop yields, soil degradation, and water scarcity. These challenges
threaten the livelihood of millions dependent on agriculture.

Body

Existing vulnerabilities in India's agricultural sector:

 1. Dependency on monsoon: Over 60% of Indian agriculture is rainfed, making it
highly dependent on the monsoon for irrigation, which increases vulnerability to
rainfall variability.
o E.g.: Delayed monsoons in 2023 led to a significant drop in Kharif crop
yields, especially in states like Madhya Pradesh and Bihar.
2. Small and fragmented land holdings: More than 86% of farmers in India are small
or marginal, with less than 2 hectares of land, limiting their ability to invest in modern
technology and irrigation.
o E.g.: According to NABARD (2023), smallholders struggle with low
productivity and lack of economies of scale.
3. Low level of mechanization: Indian agriculture continues to rely heavily on
traditional farming techniques, with limited use of machinery, which reduces
efficiency and output.
o E.g.: States like Uttar Pradesh and Bihar have significantly lower levels of
mechanization compared to states like Punjab.
4. Depleting soil fertility: Continuous use of chemical fertilizers and poor soil
management practices have led to declining soil health and reduced agricultural
productivity.
o E.g.: The ICAR Soil Health Report (2023) highlighted severe soil
degradation in Punjab due to excessive use of urea.

Major climate-related challenges in Indian agriculture

1. Erratic rainfall patterns: Unpredictable monsoon patterns and increased frequency

of droughts severely affect crop yields, especially in rainfed regions.
o E.g.: According to the India Meteorological Department (2024), rainfall
during the monsoon season was 6% below normal, impacting paddy
cultivation in states like Uttar Pradesh.
2. Increased frequency of extreme weather events: Rising incidents of cyclones,
floods, and heatwaves are damaging standing crops and reducing productivity.
o E.g.: Cyclone Biparjoy (2023) caused massive crop losses in Gujarat and
coastal Maharashtra.
3. Heat stress on crops: Rising temperatures are causing heat stress on crops like
wheat, impacting their growth cycle and leading to lower yields.
o E.g.: The 2024 heatwave in North India resulted in a significant decline in
wheat output by nearly 15% (Source: Ministry of Agriculture).
4. Soil degradation: Higher temperatures and changing precipitation patterns are
accelerating soil erosion and reducing soil fertility.
o E.g.: According to the ICAR Report (2023), soil degradation has worsened in
states like Rajasthan, affecting agricultural productivity.
5. Water scarcity: Over-exploitation of groundwater and decreasing rainfall levels are
leading to water shortages for irrigation.
o E.g.: The Central Ground Water Board (2024) highlighted a 20% drop in
groundwater levels in Punjab and Haryana.
 6. Pest and disease outbreaks: Warmer temperatures create favorable conditions for
pests and diseases, increasing crop losses.
o E.g.: The fall armyworm infestation in 2023 damaged large areas of maize
crops in Karnataka and Tamil Nadu.

Measures to minimize risks and support sustainable agricultural development

1. Promotion of climate-resilient crops: Encourage the adoption of drought-tolerant,

heat-resistant crop varieties to withstand climatic changes.
o E.g.: Introduction of climate-resilient rice varieties like ‘DRR Dhan 44’ in
Andhra Pradesh (Source: ICAR, 2024).
2. Efficient water management practices: Implement techniques like micro-irrigation,
drip irrigation, and rainwater harvesting to conserve water resources.
o E.g.: The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) has led to a
10% increase in irrigation efficiency across major agricultural states.
3. Agroforestry and sustainable land use: Integrate trees with crops to enhance soil
fertility, water retention, and carbon sequestration.
o E.g.: National Agroforestry Policy (2014) has successfully increased tree
cover on agricultural land by 15% (Source: MoEFCC, 2023).
4. Use of technology and data analytics: Leverage satellite data, weather forecasting,
and mobile apps to provide timely advisories to farmers.
o E.g.: Kisan Suvidha app offers real-time weather updates, market prices, and
best agricultural practices to farmers.
5. Strengthening crop insurance schemes: Expand coverage of insurance schemes like
Pradhan Mantri Fasal Bima Yojana (PMFBY) to reduce farmers' financial risks.
o E.g.: In 2023, PMFBY coverage increased by 20%, benefiting over 3
million small and marginal farmers (Source: Ministry of Agriculture).
6. Promotion of organic and sustainable farming: Shift towards organic farming
practices to reduce dependency on chemical inputs and enhance soil health.
o E.g.: Sikkim’s model of 100% organic farming has improved soil quality
and agricultural productivity significantly.
7. Capacity building and training: Provide training to farmers on climate-resilient
agricultural techniques and sustainable practices.
o E.g.: Initiatives under the National Mission on Sustainable Agriculture
(NMSA) focus on capacity building for climate-smart agriculture.

Conclusion

To ensure long-term agricultural sustainability, India must adopt an integrated approach that
combines technological innovation with traditional wisdom. Strengthening institutional
frameworks and empowering farmers with knowledge and resources will be key to
making Indian agriculture resilient to climate change.
Q. “The water crisis requires a fundamental rethinking of water governance”.
Evaluate the importance of a circular water economy and innovative solutions
for addressing global water scarcity. (10 M)

Introduction

The global water crisis, worsened by climate change and population growth, requires a
fundamental shift in water governance. A circular water economy offers a sustainable
approach to water management, while innovative solutions can help address the growing
water scarcity.

Body

The water crisis requires a fundamental rethinking of water governance

1. Inefficient water usage: Current governance focuses on over-extraction, leading to

depletion of resources. A shift towards efficient water management and conservation
is essential.
o Eg: Global Water Partnership (2021) emphasizes demand-side management
to reduce wastage.
2. Fragmented global frameworks: Lack of cohesive international water governance
leads to poor resource sharing and transboundary water disputes. A global, integrated
water governance approach is needed.
o Eg: The Nile Basin Initiative aims to improve transboundary water
management in Africa.
3. Climate change impact: Existing governance models fail to address water variability
due to climate change. A resilient and adaptive governance framework is crucial for
future water security.
o Eg: The IPCC (2022) stresses adaptive water management to cope with
changing rainfall patterns globally.

Importance of circular water economy

1. Efficient resource use: A circular water economy promotes the recycling and reuse of
water, reducing the demand for freshwater and limiting wastage.
o Eg: Singapore’s NEWater project treats and recycles wastewater, providing
up to 40% of the nation’s water needs.
2. Reducing environmental impact: By minimizing water extraction and discharge, it
helps protect aquatic ecosystems and biodiversity.
o Eg: Israel recycles around 90% of its wastewater, primarily for agricultural
purposes, reducing its reliance on freshwater resources.
3. Sustainable agriculture: Wastewater reuse in agriculture reduces groundwater
depletion and enhances food security.
o Eg: The Netherlands combines advanced irrigation techniques with treated
wastewater for agriculture.
 4. Decentralized water management: Encouraging localized water reuse reduces
dependence on centralized infrastructure, enhancing resilience to water crises.
o Eg: Cape Town’s Water Crisis (2018) saw an increase in decentralized
rainwater harvesting and greywater reuse systems.
5. Climate change adaptation: Circular water practices help regions adapt to water
variability caused by climate change by improving water storage and reuse.
o Eg: India’s Jal Jeevan Mission (2020) emphasizes rainwater harvesting and
groundwater recharge, especially in drought-prone areas.

Innovative solutions for addressing global water scarcity

1. Desalination technology: Converting seawater into potable water offers a reliable

solution for water-scarce regions near coastlines.
o Eg: Saudi Arabia relies on desalination for nearly 50% of its water supply,
utilizing advanced reverse osmosis technology.
2. Wastewater recycling: Reusing treated wastewater for non-potable and potable
purposes significantly reduces freshwater consumption.
o Eg: California’s Orange County Water District recycles wastewater for
groundwater replenishment, providing a model for urban water recycling.
3. Smart water management systems: Using IoT and AI for real-time monitoring of
water usage, leak detection, and efficient distribution reduces wastage.
o Eg: Denmark implemented smart metering systems that reduced water
leakage by 40%.
4. Atmospheric water harvesting: Technologies that extract moisture from the air to
produce clean water provide solutions in arid regions.
o Eg: Zero Mass Water’s Source Panels use solar energy to extract potable
water from atmospheric humidity, deployed in places like Dubai.
5. Aquifer recharge systems: Artificially replenishing underground aquifers with
stormwater or treated wastewater can help mitigate groundwater depletion.
o Eg: India’s Managed Aquifer Recharge (MAR) systems in Rajasthan help
revive groundwater in drought-affected regions.

Conclusion

The water crisis demands a combination of circular water management and innovative
solutions such as desalination, smart water systems, and wastewater recycling. These
approaches are critical to ensuring sustainable water availability for future generations in a
world facing growing climate challenges.
Q. “The mobilization of climate finance is crucial for sustainable development in
vulnerable nations”. Assess the role of climate finance in meeting the
developmental and environmental goals of developing countries. (10 M)

Introduction
Mobilizing climate finance is critical for supporting the sustainable development and climate
resilience of vulnerable nations. Developing countries face substantial challenges in
balancing environmental protection with economic growth, making climate finance a key
enabler of both.

Body

Role of climate finance in achieving environmental goals

1. Mitigation of greenhouse gas emissions: Climate finance supports the shift to

renewable energy and cleaner technologies in developing nations, helping reduce
emissions.
o Eg: India’s International Solar Alliance has utilized international climate
finance to boost its solar energy capacity, contributing to its emission
reduction goals
2. Building climate resilience: Climate finance helps in developing infrastructure that
can withstand extreme weather events such as floods, storms, and droughts, crucial
for adaptation.
o Eg: Bangladesh’s coastal resilience programs, funded through climate
finance, have significantly reduced vulnerability to cyclones
3. Protecting ecosystems: It funds initiatives that restore and protect biodiversity and
ecosystems, which are vital for environmental sustainability.
o Eg: Indonesia's mangrove restoration efforts have been financed by
international grants to protect coastal ecosystems
4. Promoting circular economy: Climate finance supports waste management and
circular economy initiatives that reduce the environmental footprint of urbanization.
o Eg: South Africa's waste-to-energy projects, funded through concessional
loans, have reduced landfill waste while generating clean energy
5. Sustainable agricultural practices: Climate finance supports climate-smart
agricultural technologies, reducing environmental degradation while ensuring food
security.
o Eg: Ethiopia's adaptation of drought-resistant crops, financed through
climate funds, has mitigated environmental damage while securing livelihoods

Role of climate finance in fostering development goals

1. Supporting green economic growth: Green investments, funded through climate

finance, are critical in creating new sectors such as renewable energy, which fosters
economic development.
 o Eg: Kenya’s wind energy projects, supported by climate finance, have
spurred economic growth and created local jobs
2. Expanding energy access: Climate finance helps extend electricity to remote areas
through renewable off-grid solutions, bridging the energy access gap.
o Eg: Off-grid solar projects in Sub-Saharan Africa have increased energy
access in rural areas
3. Reducing climate vulnerability: By funding adaptive infrastructure, climate finance
reduces the vulnerability of impoverished communities to climate-related disasters.
o Eg: Nepal's climate-resilient infrastructure projects, supported by
international climate finance, have safeguarded communities from floods
4. Public health improvements: By addressing environmental degradation and
reducing pollution, climate finance contributes to better public health outcomes.
o Eg: Climate finance initiatives aimed at improving air quality in Delhi have
reduced respiratory diseases in the city
5. Capacity building: Climate finance builds the institutional and technical capacity
required for sustainable development, empowering nations to manage climate risks
independently.
o Eg: Fiji’s climate action plan, supported by climate finance, has built local
capacity for disaster preparedness

Way Forward

1. Scaling up finance commitments: Developed countries need to urgently meet and

exceed the $100 billion annual target for climate finance, and future targets must
align with the estimated $6 trillion needed by 2030
2. Simplifying access and delivery: Streamlining access to climate finance and
improving the transparency of fund disbursements will enable faster project
execution, especially in vulnerable nations.
o Eg: The Climate Finance Access Network suggests reforms to minimize
delays and improve fund distribution
3. Targeting dual benefits: Climate finance should focus on projects that offer both
developmental and environmental gains, such as green infrastructure or climate-
resilient agriculture.
o Eg: Green infrastructure projects like urban reforestation in Latin America
have demonstrated both economic and environmental benefits

Conclusion
While climate finance has made substantial progress in supporting the developmental and
environmental goals of vulnerable nations, significant funding gaps remain. Scaling up
commitments, improving access, and focusing on dual-benefit projects are crucial steps to
ensuring that climate finance delivers sustainable results.
Q. “Nature-based solutions are increasingly seen as a key strategy to combat
biodiversity loss and climate change”. Critically analyze the potential and
limitations of nature-based solutions in achieving global conservation goals. (15
M)

Introduction

Nature-based solutions (NBS) are increasingly seen as a key strategy to combat

biodiversity loss and climate change. NBS refers to the sustainable management of natural
ecosystems to address societal challenges, such as restoring wetlands to mitigate floods or
planting trees to absorb carbon emissions. These approaches leverage nature to provide cost-
effective, resilient solutions for environmental protection.

Body

Understanding Nature-Based Solutions (NBS):

1. Holistic Ecosystem Management: NBS focuses on enhancing natural processes and

ecosystems to solve environmental issues.
o Eg: Wetland restoration projects to combat flooding and improve
biodiversity.
2. Climate Mitigation and Adaptation: NBS supports both climate mitigation through
carbon sequestration and adaptation by increasing ecosystem resilience.
o Eg: Mangrove forests acting as buffers against coastal storms and absorbing
carbon.
3. Cost-Effective and Sustainable: NBS offers a more sustainable and cost-effective
solution compared to engineered approaches.
o Eg: Reforestation and afforestation are cost-efficient compared to carbon
capture technology.

Potential of Nature-Based Solutions

1. Climate change mitigation: NBS can absorb a significant amount of CO2,

contributing to climate goals.
o Eg: Reforestation could sequester up to 10 gigatons of CO2 annually
(Source: IPCC, 2023).
2. Enhancing biodiversity: By preserving and restoring ecosystems, NBS directly
contributes to halting biodiversity loss.
o Eg: Coral reef restoration projects in Australia have improved marine
biodiversity and protected coastal areas.
3. Resilience to natural disasters: NBS like mangroves and wetlands provide natural
protection against floods, storms, and coastal erosion.
o Eg: The Sundarbans mangroves acted as a buffer during Cyclone Amphan
(2020), protecting local communities.
4. Cost-effective climate adaptation: NBS provides a sustainable and cost-efficient
alternative to traditional infrastructure solutions.
o Eg: The Miyawaki urban forest model has been used in Indian cities to
restore green cover quickly and at low cost.
 5. Socio-economic benefits: NBS supports local economies by enhancing ecosystem
services, tourism, and livelihoods.
o Eg: In Costa Rica, the Payment for Ecosystem Services (PES) program has
financially incentivized forest conservation.

Limitations of Nature-Based Solutions

1. Scale of implementation: NBS may not be effective if not implemented on a large

enough scale to address global challenges like climate change.
o Eg: Reforestation efforts must cover millions of hectares globally to meet
climate targets.
2. Vulnerability to climate extremes: Natural ecosystems used in NBS can be
vulnerable to extreme climate events, reducing their effectiveness.
o Eg: Wildfires in the Amazon have destroyed large swathes of forest intended
for carbon sequestration.
3. Limited immediate impact: NBS, such as tree planting, often takes years to deliver
measurable results, which may not align with urgent climate goals.
o Eg: Afforestation projects may take decades to absorb significant carbon
dioxide.
4. Resource-intensive management: Restoring and managing ecosystems often
requires significant resources, including land, labor, and funding.
o Eg: The UN Decade on Ecosystem Restoration (2021-2030) highlights the
high financial and logistical requirements for large-scale restoration.
5. Potential for misuse: There is a risk of greenwashing, where NBS are promoted as a
solution without addressing the root causes of environmental degradation.
o Eg: Companies may engage in superficial tree-planting schemes without
reducing their carbon footprint.

Way Forward

1. Integrating NBS with Climate Policy: Governments should incorporate NBS into
national climate strategies, ensuring they complement engineered solutions.
o Eg: India's National Action Plan on Climate Change (NAPCC) includes
NBS as part of its strategy for climate adaptation.
2. Community Involvement and Ownership: Local communities must be engaged in
the planning and implementation of NBS to ensure sustainability and equitable
benefits.
o Eg: The Chilika Lake Restoration Project in Odisha involved local
fishermen and resulted in both ecological and economic benefits.
3. Scientific Research and Monitoring: Continuous research and monitoring are
essential to assess the effectiveness of NBS and address challenges like climate
vulnerability.
o Eg: Satellite monitoring of the Green Wall Initiative in Africa ensures
ongoing assessment of the project’s impact on desertification.

Conclusion
Nature-based solutions hold significant potential for combating climate change and
biodiversity loss. However, to maximize their effectiveness, they must be implemented at
scale, integrated into broader climate policies, and involve local communities. With
careful planning and continuous monitoring, NBS can play a critical role in achieving global
conservation and sustainability goals

Q. “Cloud chambers could revolutionize weather management by providing

deeper insights into cloud behaviour”. Analyze the potential scientific and
practical outcomes of India's cloud chamber initiative. (10 M)

Introduction
India’s cloud chamber initiative under Mission Mausam aims to advance weather
management and understanding of cloud dynamics. By simulating cloud formation, this
initiative seeks to transform both weather prediction and modification techniques.

Body

Role of the cloud chamber in weather management:

1. Cloud formation studies: The cloud chamber allows controlled experiments on

cloud particle interactions, shedding light on the complex processes of cloud
formation.
o E.g: It will simulate conditions leading to rain droplets and ice particles,
helping understand phenomena like cloudbursts
2. Weather modification research: The chamber enables controlled cloud seeding
experiments to test rain enhancement or suppression techniques, helping manage
weather events.
o E.g: Findings from CAIPEEX have shown that rainfall can be increased by
46% under favorable conditions, guiding future seeding strategies
3. Monsoon dynamics: Studying Indian monsoon clouds in a simulated environment
will refine monsoon predictions and help in better planning for agriculture and
disaster management.
o E.g: Understanding how moisture from cyclones affects cloud layers will
improve seasonal rainfall forecasts, especially during monsoons
4. Tropical weather insight: The chamber will focus on typical Indian tropical
conditions, helping understand how tropical weather patterns evolve and how to
intervene effectively.
o E.g: Simulating interactions between different cloud layers in tropical
climates will improve disaster prediction and management

Practical Outcomes of the Cloud Chamber Initiative:

1. Enhanced disaster preparedness: The insights gained will enable better early
warnings for extreme events like cyclones, thunderstorms, and floods, improving
evacuation and disaster management.
o E.g: The chamber's findings will refine IMD’s Nowcast systems, reducing
warning times for extreme weather from 3 hours to 1 hour
 2. Agricultural support: Better rainfall predictions will provide farmers with more
accurate information on monsoon patterns, aiding in irrigation and crop cycle
planning.
o E.g: Improved forecasts from the cloud chamber will support crop
insurance schemes like PMFBY, reducing agricultural losses due to
unanticipated weather
3. Air quality forecasting: The initiative will help study cloud interactions with
pollutants, improving air quality predictions and public health responses in urban
areas.
o E.g: Enhanced air quality forecasts could improve public health outcomes in
polluted cities like Delhi by addressing smog and particulate matter
4. Hailstorm management: By studying how clouds form hailstones, the cloud
chamber could lead to methods for suppressing hailstorms, protecting crops and
infrastructure from damage.
o E.g: Insights from the chamber could be used to develop strategies to prevent
hail damage in agricultural regions

Conclusion
The cloud chamber initiative will revolutionize weather management in India by providing
critical insights into cloud behavior, improving disaster response, and supporting agricultural
planning. These advancements will ensure a more weather-resilient India in the future.

Disaster and Disaster Management.

Q. What are heat waves? Analyze the measures that can be taken to enhance
preparedness for extreme heat events in India. (10 M)

Introduction

Heat waves are extreme weather events characterized by prolonged periods of

excessively high temperatures. These events pose significant health, environmental, and
socio-economic risks, particularly in countries like India where they are becoming more
frequent due to climate change.

Body

About Heat Waves

 1. Definition of Heat Waves: Heat waves are periods of abnormally high temperatures,
typically lasting for several days, that can cause serious harm to health, agriculture,
and infrastructure.
2. IMD Criteria for Heat Waves:
o Plains: When maximum temperature exceeds 40°C and is 4.5°C or more
above normal.
o Coastal areas: When temperature exceeds 37°C.
o Hilly regions: When temperature exceeds 30°C and is 4.5°C or more above
normal.
3. Causes of Heat Waves:
o Climate Change: Rising global temperatures due to increased greenhouse gas
emissions.
o Atmospheric Pressure Systems: High-pressure systems trap heat, preventing
it from dissipating.
o Urban Heat Island Effect: Lack of vegetation and heat-absorbing surfaces in
cities increases temperatures.

Key measures to enhance preparedness for extreme heat events in India

1. Early Warning Systems: Accurate forecasting and real-time alerts through IMD and
NDMA are crucial for early warnings.
 E.g. IMD’s heat wave alerts have helped reduce mortality rates in affected
regions.
2. Heat Action Plans: Developing region-specific Heat Action Plans to manage extreme
heat impacts.
 E.g. Ahmedabad’s Heat Action Plan is a model for urban heat resilience.
3. Infrastructure Adaptation: Encouraging green spaces, cool roofs, and shaded public
infrastructure to mitigate urban heat effects.
 E.g. Hyderabad’s Cool Roof initiative helps reduce indoor temperatures.
4. Public Health Measures: Training healthcare workers and establishing cooling
centers to provide relief during heat waves.
 E.g. Cooling kits are distributed to vulnerable groups like outdoor workers in
Maharashtra.
5. Long-Term Climate Action: Implementing policies that address the root causes of
rising temperatures through sustainable energy and climate resilience measures.
 E.g. India’s National Action Plan on Climate Change (NAPCC) emphasizes
reducing emissions.

Conclusion

Heat waves are a growing threat in India, but with a combination of early warning
systems, adaptive infrastructure, and robust public health measures, the country can
effectively mitigate the impact of extreme heat events and safeguard vulnerable populations.
Q. Critically evaluate India’s approach to disaster risk reduction (DRR) in the
context of increasing frequency of climate-related disasters. Suggest measures to
improve disaster preparedness and resilience at both national and local levels.(15
M)

Introduction

India’s vulnerability to climate-related disasters such as floods, cyclones, and heat waves
has increased in recent years. While India has made significant progress in disaster risk
reduction (DRR), the rising frequency of extreme weather events calls for a critical
evaluation of its current approach and the need for improvements at both the national and
local levels.

Body

India’s Approach to Disaster Risk Reduction (DRR)

Institutional Framework for DRR

1. National Disaster Management Authority (NDMA): Established under the Disaster

Management Act of 2005, NDMA is responsible for policy formulation and
overseeing disaster management.
 E.g. NDMA's guidelines during Cyclone Fani (2019) led to a drastic reduction
in casualties compared to earlier cyclones.
2. State and District Disaster Management Plans: Every state has State Disaster
Management Authorities (SDMAs) for localized disaster planning and response,
ensuring regional preparedness.
 E.g. Odisha’s model for cyclone management is often cited as a success story
in DRR.
3. Sendai Framework Alignment: India aligns its disaster risk management with the
Sendai Framework (2015–2030), focusing on risk reduction, resilience, and building
back better.
 E.g. The National Action Plan for DRR (2019-2030) focuses on community
resilience and capacity-building.
4. National Cyclone Risk Mitigation Project (NCRMP): This project enhances
disaster resilience in cyclone-prone coastal areas, focusing on early warning, capacity
building, and infrastructure.
E.g. NCRMP's impact was seen in reducing damage during Cyclone Amphan (2020).
5. National Disaster Response Force (NDRF): A specialized force for disaster
response, NDRF plays a key role in rescue and relief operations during major
disasters.
 E.g. NDRF’s timely intervention in the Uttarakhand flash floods (2021) saved
numerous lives.

Challenges in India’s DRR Approach

1. Insufficient Early Warning Systems: While the IMD’s forecasting has improved,
gaps in localized and real-time early warning dissemination still exist, especially in
rural areas.
  E.g. In 2022, flash floods in Himachal Pradesh caused significant damage due
to delayed alerts.
2. Inadequate Funding: Disaster management funding is often insufficient at both the
state and local levels, leading to delays in response and recovery.
 E.g. According to CAG, state disaster response funds were found lacking in
several states.
3. Infrastructure Gaps: Critical infrastructure like roads, hospitals, and schools often
remain unprotected or vulnerable in high-risk areas, hindering effective disaster
management.
 E.g. Cyclone Yaas (2021) highlighted the vulnerability of key infrastructure
along the eastern coast.
4. Limited Community Participation: Community engagement in disaster
preparedness and resilience-building remains inadequate, particularly in rural and
tribal areas.
 E.g. In Kerala, many communities lacked training during the 2018 floods,
which increased the impact of the disaster.
5. Climate Change Impact: Increasing unpredictability and intensity of climate-related
disasters pose a significant challenge for existing DRR frameworks, which are often
reactive rather than preventive.
 E.g. Heat waves are now more frequent, and the 2022 heat wave caused over
1,500 deaths.

Measures to Improve Disaster Preparedness and Resilience

1. Strengthening Early Warning Systems

 Localized Alerts and Real-Time Monitoring: Enhance real-time monitoring and

early warning systems to cover rural and remote areas effectively.
o E.g. Improved radar systems and better communication networks can bridge
gaps in warning dissemination.
 Community-Based Early Warnings: Involve local communities in disseminating
early warnings through grassroots networks.
o E.g. Odisha’s successful evacuation system during cyclones uses local
volunteers and leaders.

2. Capacity Building at Local Levels

 Training Local Authorities: Conduct regular capacity-building programs for local

authorities, NGOs, and disaster response teams to ensure they are equipped to handle
disasters.
o E.g. Gujarat’s local government regularly conducts disaster preparedness
training for panchayats.

3. Climate-Resilient Infrastructure

 Climate-Proofing Critical Infrastructure: Retrofit critical infrastructure such as

schools, hospitals, and bridges to withstand extreme weather events.
o E.g. Assam's flood-resilient infrastructure project aims to improve flood
control mechanisms.
4. Enhanced Financial Resources for DRR

 Increased Budgetary Allocation: Allocate more financial resources for disaster

preparedness at both the national and state levels.
o E.g. India’s National Disaster Relief Fund (NDRF) requires significant
strengthening to meet growing needs.
 Insurance Mechanisms: Introduce risk transfer mechanisms like crop insurance and
disaster insurance to protect vulnerable communities.
o E.g. Pradhan Mantri Fasal Bima Yojana offers insurance for crop loss due to
extreme weather.

5. Leveraging Technology for DRR

 Use of GIS and Remote Sensing: Incorporate GIS mapping and remote sensing for
risk assessment and real-time tracking of disaster events.
o E.g. The Indian Space Research Organisation (ISRO) has been instrumental in
monitoring floods and cyclones.
 Smart City DRR Strategies: Encourage cities under the Smart Cities Mission to
integrate DRR into their urban planning and disaster management strategies.
o E.g. Surat’s flood forecasting and warning system has been integrated into its
Smart City initiative.

Conclusion

While India has made strides in disaster risk reduction, gaps in infrastructure, funding, and
community preparedness remain. Strengthening early warning systems, building climate-
resilient infrastructure, and enhancing local capacity are essential for improving
disaster preparedness. India's approach must evolve to be more preventive, integrating
climate resilience into national and local strategies.

Q. “Stampedes during religious and public events have led to significant loss of
life in India”. Identify the key challenges in managing large crowds and suggest
disaster management protocols to minimize the risk of stampedes. (10 M)

Introduction
Stampedes during religious and public events have been a recurring issue in India, resulting
in significant loss of life. Recent incidents such as the 2022 Char Dham Yatra stampede
highlight the critical need for better crowd management and disaster protocols to prevent
such tragedies.

Body

Key challenges in managing large crowds

Crowd management during mass gatherings in India presents several challenges:

1. Inadequate Infrastructure: Many religious and public event sites lack adequate
space and facilities to manage large crowds safely.
 o E.g.: The 2013 Kumbh Mela stampede in Allahabad was partly caused by a
lack of crowd-control measures.
2. Overcrowding: Poor crowd estimation and the absence of regulated entry points lead
to dangerous levels of overcrowding.
o E.g.: The 2011 Sabarimala stampede occurred due to the influx of more
pilgrims than the venue could accommodate.
3. Poor Communication Systems: A lack of real-time communication between
authorities and the public results in panic during emergencies, worsening the
situation.
o E.g.: During the Mumbai Elphinstone railway stampede in 2017,
miscommunication contributed to the chaos.
4. Insufficient Security and Trained Personnel: There is often a shortage of trained
security personnel to manage the crowd effectively, leading to uncontrolled
movements.
o E.g.: The 2019 Vaishno Devi stampede showed how the absence of crowd
marshals led to loss of life.
5. Panic and Behavioral Triggers: Sudden fear due to rumors, natural causes, or
accidents can quickly lead to a stampede, as the crowd behaves unpredictably.
o E.g.: The 2016 Kolkata Vivekananda Road bridge collapse led to a
stampede due to panic-driven crowd behavior.

Suggested disaster management protocols

To minimize the risk of stampedes, a comprehensive disaster management approach is

essential.

1. Advance Planning and Crowd Estimation: Accurate crowd estimation and strategic
event planning, with designated entry/exit points, must be prioritized.
o E.g.: The Kumbh Mela 2019 successfully managed crowds through real-time
monitoring and crowd distribution systems.
2. Use of Technology: Real-time crowd management technology like drones, AI-based
monitoring systems, and predictive analytics can help detect overcrowding and
manage risks.
o E.g.: Drones were used during Kumbh Mela 2019 for real-time surveillance,
reducing overcrowding incidents.
3. Deployment of Trained Personnel: Ensuring a sufficient number of trained security
personnel and crowd marshals for crowd regulation and emergency response.
o E.g.: During Rath Yatra 2022, well-trained personnel managed the flow of
devotees efficiently.
4. Public Awareness and Communication: Ensuring effective communication to the
public through public address systems, SMS alerts, and trained volunteers to guide
crowds in emergencies.
o E.g.: SMS alerts were used during the Maha Kumbh 2019 to alert devotees
about congested areas.
5. Emergency Preparedness and Exit Routes: Setting up multiple exit routes, first-
aid stations, and medical teams on standby for quick evacuation and treatment.
o E.g.: The Vaishno Devi Shrine Board set up multiple exit points and medical
posts to minimize stampede risks during peak pilgrimage times.
Conclusion
Managing large crowds at religious and public events requires a blend of technology, trained
personnel, and emergency preparedness. Implementing robust disaster management
protocols is key to ensuring public safety and preventing future stampedes.

Q. “Greenwashing undermines genuine environmental efforts”. Discuss the

concept of greenwashing and its impact on sustainable business practices in
India. How do the new guidelines by Central Consumer Protection Authority aim
to address this issue? (15 M)

Introduction
Greenwashing, a practice where companies falsely claim environmental benefits for their
products, undermines genuine efforts toward sustainability. It misleads consumers and
damages the credibility of truly sustainable businesses.

Body

Concept of Greenwashing

1. False environmental claims: Greenwashing involves exaggerating or making false

claims about the environmental benefits of products.
o E.g.: Labeling a product “eco-friendly” without any verified sustainable
practices.
2. Deceptive marketing: Use of vague terms like "natural" or "green" without proper
substantiation.
o E.g.: Fast fashion brands claiming sustainability while still using harmful
materials like polyester.

Impact on sustainable business practices

1. Dilutes genuine efforts: Greenwashing overshadows real sustainable initiatives,

confusing consumers and reducing trust in eco-friendly products.
o E.g.: Genuine organic products are overshadowed by false claims made by
large corporations.
2. Perpetuates harmful practices: Companies continue harmful practices while
misleading consumers, perpetuating environmental damage.
o E.g.: A brand using unsustainable palm oil but marketing itself as “green” due
to minor changes.
3. Creates unfair competition: Greenwashing distorts the market, making it harder for
truly sustainable businesses to compete.
o E.g.: Smaller eco-friendly companies are pushed aside by larger corporations
engaging in greenwashing.
4. Weakens industry-wide adoption: Confusion caused by greenwashing slows down
the transition to genuine sustainable practices across industries.
 o E.g.: Consumers grow skeptical of all sustainability claims, impacting the
market for genuinely sustainable products.
5. Delayed Adoption of Sustainable Practices: False green claims reduce the incentive
for businesses to adopt true sustainable practices.
6. Minimal Environmental Impact: Greenwashing allows companies to avoid making
meaningful changes, reducing their contribution to actual environmental
improvements.
o E.g.: Non-recyclable packaging marketed as “eco-friendly.”

Guidelines by Central Consumer Protection Authority (CCPA)

1. Clear definitions: Greenwashing and environmental claims are now clearly defined,
ensuring a common understanding.
o E.g.: Greenwashing is defined in Section 2(f) of the guidelines.
2. Transparency in claims: Companies must now provide credible scientific evidence
to support their environmental claims.
o E.g.: A product labeled as "biodegradable" must prove its claims with
scientific data.
3. Mandatory disclosures: Businesses are required to make adequate and accessible
disclosures about their environmental claims.
o E.g.: A product labeled “eco-friendly” must specify which part of the
product or process is sustainable.
4. Prohibition of misleading terms: Vague terms like "eco-friendly" or "natural" are
prohibited unless backed by specific evidence.
o E.g.: Companies must avoid using terms like “organic” without proof of
certification.
5. Third-party certifications: Environmental claims must be backed by recognized
third-party certifications.
o E.g.: Certifications like ISO 14001 for environmental management must be
referenced.
6. Accountability and penalties: Companies making false claims can face consumer
complaints and penalties under the guidelines.
o E.g.: A fast-moving consumer goods (FMCG) company can be fined for
unsubstantiated “green” claims.

Way Forward

1. Regular Audits: Conduct periodic audits to ensure compliance with the guidelines.
o E.g.: Independent agencies can perform surprise checks for greenwashing
practices.
2. Consumer Education: Enhance consumer awareness to help them identify false
claims.
o E.g.: Government campaigns on social media to educate consumers about
greenwashing.
 3. Stronger Penalties: Impose stricter penalties for companies found guilty of
greenwashing.
o E.g.: Financial penalties and public disclosure of greenwashing violations to
deter misleading practices.

Conclusion

Greenwashing damages consumer trust and hinders genuine environmental efforts. The
CCPA guidelines offer a framework for ensuring that businesses make truthful
environmental claims, thereby promoting sustainable business practices in India. By
strengthening enforcement and raising consumer awareness, India can foster a market based
on authentic sustainability.

Linkages between Development and Spread of Extremism.

Role of External State and Non-state Actors in creating challenges
to Internal Security.
Challenges to Internal Security through Communication
Networks, Role of Media and Social Networking Sites in Internal
Security Challenges, Basics of Cyber Security; Money-
Laundering and its prevention.

Q. “While Armed Forces Special Powers Act(AFSPA) is necessary for

maintaining internal security, it raises concerns about human rights violations”.
Critically analyze this statement in the context of its implementation in conflict-
prone areas. (10 M)

Introduction
The Armed Forces Special Powers Act (AFSPA) is implemented in conflict-prone areas to
maintain internal security and restore peace. However, its provisions granting extraordinary
powers to security forces have raised concerns regarding human rights violations.

Body

Necessity of AFSPA for Internal security

 1. Restoring Law and Order: AFSPA enables the military to act swiftly in disturbed
areas, curbing insurgency and armed rebellion.
 E.g.: AFSPA played a key role in reducing insurgency in Jammu & Kashmir
post-2016. (Source: Ministry of Defence, 2022)
2. Empowering Armed Forces: It provides legal immunity to armed forces personnel,
allowing them to function without fear of legal repercussions during anti-insurgency
operations.
 E.g.: AFSPA was crucial in countering militancy in the North-East,
particularly in Manipur and Nagaland. (Source: Ministry of Home Affairs,
2023)
3. Tackling Cross-border Terrorism: AFSPA is essential in border states like Jammu &
Kashmir and Assam to deal with external threats, including cross-border terrorism and
smuggling.
 E.g.: The Act helped contain infiltration from Pakistan in Jammu & Kashmir
during heightened tensions in 2019. (Source: Intelligence Bureau Report,
2020)
4. Ensuring National Security: AFSPA empowers armed forces to take proactive steps
to secure sensitive national assets and regions, maintaining territorial integrity.
 E.g.: In Assam, AFSPA was invoked to protect oil refineries and infrastructure
from insurgent attacks. (Source: Assam Police Report, 2023)
5. Preventing Armed Separatism: It curbs separatist movements and violent extremism
that threaten India’s sovereignty and unity, especially in border states.
 E.g.: AFSPA helped suppress the Naga insurgency movement in Nagaland.
(Source: Ministry of Home Affairs, 2022)

Human rights concerns associated with AFSPA

1. Excessive Use of Force: AFSPA grants wide-ranging powers, including the right to
shoot to kill, leading to allegations of disproportionate use of force and extra-judicial
killings.
 E.g.: In the Mon district of Nagaland, a 2021 military operation led to civilian
casualties, raising widespread protests. (Source: NHRC Report, 2022)
2. Impunity and Lack of Accountability: The legal immunity under AFSPA has led to
concerns over lack of accountability for human rights violations committed by
security personnel.
 E.g.: The Justice Jeevan Reddy Committee (2005) recommended the repeal of
AFSPA due to cases of misuse and absence of judicial oversight. (Source:
Jeevan Reddy Committee Report)
3. Alienation of Local Populations: Prolonged enforcement of AFSPA leads to distrust
between the armed forces and civilians, fostering resentment and separatist
sentiments.
  E.g.: The prolonged imposition of AFSPA in Manipur has been linked to
growing hostility and insurgency among the youth. (Source: Amnesty
International Report, 2022)
4. Violation of Fundamental Rights: Critics argue that AFSPA infringes upon
fundamental rights such as the right to life and liberty (Article 21) and freedom from
arbitrary detention.
 E.g.: Reports of arbitrary arrests and detentions in Jammu & Kashmir under
AFSPA have been flagged by various human rights organizations. (Source:
Human Rights Watch, 2023)
5. Lack of Judicial Review: There is no judicial oversight of military operations under
AFSPA, making it difficult to challenge actions taken by security forces, leading to
further human rights violations.
 E.g.: The Supreme Court in Extra Judicial Execution Victim Families
Association v. Union of India (2016) criticized the lack of accountability under
AFSPA. (Source: SC Judgment, 2016)

Solutions and Reforms

1. Periodic Review of Disturbed Areas: Implement periodic reviews of areas under

AFSPA to withdraw the Act where the security situation has improved.
2. Enhanced Accountability Mechanisms: Establish independent grievance redressal
mechanisms to investigate allegations of human rights violations by security forces
under AFSPA.
3. Increased Civil-Military Cooperation: Promote greater engagement between local
communities and security forces to build trust and reduce alienation in conflict-prone
areas.
4. Amendment of the Act: Amend AFSPA to include more safeguards against misuse,
including provisions for better accountability and limitations on the powers to search,
seize, and arrest.
5. Strengthening Human Rights Training: Equip security forces with human rights
training to ensure minimal violations during counterinsurgency operations in conflict
zones.

Conclusion
While AFSPA remains crucial for maintaining internal security in conflict-prone areas,
reforms to enhance accountability and protect human rights are essential to prevent misuse
and ensure justice. A balanced approach is required to uphold both national security and civil
liberties.

Q. “The integration of drones in military operations has revolutionized combat

strategies”. Examine the advantages and risks posed by such technologies in
modern warfare. (10 M)

Introduction
The integration of drones in military operations has transformed modern warfare by
providing enhanced surveillance, precision strikes, and reducing human risk. However, these
advantages come with significant risks, including ethical concerns and vulnerability to cyber-
attacks.

Body

Advantages of drone integration in military operations

1. Surveillance and reconnaissance: Drones provide real-time intelligence and

reconnaissance without putting soldiers in harm's way, ensuring more effective
battlefield decisions.
o E.g.: MQ-9 Reaper drones have been extensively used by the US military for
surveillance in conflict zones like Iraq and Afghanistan.
2. Precision strikes: Drones allow for pinpoint targeting, reducing collateral damage
and enhancing operational efficiency in combat zones.
o E.g.: The 2020 US drone strike that killed Iranian General Qasem Soleimani
demonstrated the precision capabilities of military drones.
3. Cost-effectiveness: Drones are cheaper to operate compared to manned aircraft,
making them economically viable for sustained military operations.
o E.g.: The Bayraktar TB2 drones used by Ukraine during the Russia-Ukraine
conflict proved to be cost-effective in aerial combat.
4. Reduced casualties: Drones reduce the need for direct human involvement in
dangerous combat missions, minimizing casualties among soldiers.
o E.g.: The use of Unmanned Aerial Vehicles (UAVs) in counter-terrorism
operations has led to fewer military casualties in recent years.
5. Versatility in warfare: Drones can be deployed in diverse roles, including logistics,
intelligence, electronic warfare, and even in drone swarming techniques to
overwhelm enemy defenses.
o E.g.: China and the US are exploring drone swarms for future battlefield
dominance.

Risks posed by drones in modern warfare

1. Civilian casualties and ethical concerns: Despite their precision, drone strikes often
lead to civilian casualties, raising concerns about accountability and ethical use.
o E.g.: A UN report highlighted that nearly 40% of drone strike casualties in
Afghanistan were civilians (2021).
2. Cyber vulnerabilities: Drones are susceptible to hacking, which can lead to their
hijacking or misuse by adversaries.
o E.g.: In 2019, Iran claimed to have hacked and downed a US RQ-170
Sentinel drone, demonstrating the risks of cyber-attacks.
3. Proliferation of technology: The increasing accessibility of drone technology raises
concerns about its use by non-state actors and terrorist groups.
 o E.g.: ISIS has been known to use commercially available drones for
reconnaissance and attacks in Syria and Iraq.
4. Legal and international concerns: The use of drones for cross-border strikes raises
issues of sovereignty violations and legal ambiguities in international law.
o E.g.: Pakistan has repeatedly condemned US drone strikes within its borders,
citing sovereignty violations.
5. Drone arms race: The growing reliance on drones is fueling an arms race, with
nations investing in advanced drone capabilities and counter-drone technologies,
leading to increased global tensions.
o E.g.: China has rapidly expanded its military drone fleet, contributing to an
escalating arms race in the Asia-Pacific region.

Conclusion

Drones have revolutionized modern combat by enhancing precision, surveillance, and

minimizing human risks. However, the accompanying ethical, legal, and security challenges
demand a careful balancing of military advantages with international norms and regulatory
frameworks to prevent misuse and escalation of conflicts.

Q. “As AI systems advance, the risk of their misuse for military purposes is
increasing”. Evaluate the risk posed by AI in creating security challenges for the
nation. Also propose ways to neutralise this threat. (10 M)

Introduction

As AI systems advance, the risk of their misuse for military purposes is increasing.
Artificial Intelligence (AI) has immense potential in modern warfare, from autonomous
weapons to surveillance systems. However, its misuse can pose serious security challenges,
such as loss of human control and the weaponization of AI technologies.

Body

Risks posed by AI in creating security challenges:

1. Autonomous weapon systems: AI-driven autonomous weapons can operate without

human intervention, raising ethical and security concerns.
o Eg: The use of autonomous drones by state and non-state actors in conflicts
has increased, making warfare more unpredictable.
2. Cybersecurity threats: AI can be used to launch sophisticated cyberattacks that can
cripple national infrastructure, posing a direct threat to critical sectors like defense
and finance.
o Eg: In 2023, AI-enhanced malware attacks have risen globally, targeting
essential services like power grids (Source: Cybersecurity Report, 2023).
3. Ai-driven espionage: AI-based systems can automate large-scale data analysis for
intelligence gathering, increasing the risk of espionage and cyber surveillance.
o Eg: AI-enabled deepfake technologies can be used for disinformation,
creating political and security instability.
 4. Lethal Autonomous Weapon Systems (LAWS): The development of LAWS could
lead to fully automated warfare, increasing the potential for accidental conflicts and
violations of international law.
o Eg: Countries like the US and Russia are already investing in LAWS,
raising global concerns over arms races.
5. AI in Bioweapons: AI can be misused to enhance the development and deployment
of biological weapons, which could bypass traditional defense systems.
o Eg: AI algorithms can accelerate the design of pathogens, posing a severe
bioterrorism threat if misused.

Ways to Neutralize the Threat:

1. Establishing Global AI Governance Frameworks: International agreements and

treaties should regulate the development and deployment of AI for military purposes,
preventing an arms race.
o Eg: India should advocate for a global AI Non-Proliferation Treaty at
platforms like the UN.
2. Strengthening National AI and Cybersecurity Laws: Developing robust national
policies on AI usage, including a legal framework to monitor the use of AI in the
defense sector, is essential.
o Eg: India’s National Cyber Security Strategy 2021 emphasizes the need for
AI-based cyber defense measures.
3. Investing in AI Research for Defense: Governments should invest in AI research
aimed at defense applications with built-in safeguards, ensuring that human control is
maintained over critical systems.
o Eg: India’s Defence AI Council (DAIC) has been set up to promote AI in
defense while maintaining ethical standards.
4. International Collaboration on AI Ethics: Nations should collaborate to create
shared ethical standards for AI usage in military contexts, ensuring transparency and
accountability.
o Eg: Countries can form AI ethics alliances like the Global Partnership on
AI to ensure compliance with international norms.
5. AI-Specific Cybersecurity Training for Defense Personnel: Training defense
personnel to handle AI-based systems and respond to AI-driven cyber threats will
enhance preparedness.
o Eg: Specialized AI security programs can be launched for the military to
strengthen cyber defenses against AI misuse.

Conclusion
AI’s rapid advancement poses serious risks if misused for military purposes. By establishing
global governance frameworks, strengthening national cybersecurity laws, and investing in
ethical AI research, nations can mitigate these threats and ensure the responsible use of AI
technologies in security.
Q. “The rapid growth of the Indian online gaming sector presents challenges in
financial integrity and cybersecurity”. Analyze the risks posed by money
laundering and terror financing in this sector and propose interventions to
address these threats. (15 M)

Introduction
The rapid expansion of India’s online gaming industry has introduced significant challenges
in financial integrity and cybersecurity. As a major player in the global gaming market,
the sector’s digital nature and financial flows present vulnerabilities to money laundering
and terror financing.

Body

Growth of the Indian online gaming sector and associated challenges

1. Rising popularity and revenue: The online gaming sector has experienced a CAGR
of 28% from FY20 to FY23, with revenue projected to reach $7.5 billion by 2028.
o Eg: The Digital India Foundation (DIF) report, 2024 highlights the sector's
growth, attracting both legitimate users and illicit entities.
2. Cybersecurity risks: The growing user base and in-game assets increase
vulnerabilities to cyber-attacks and misuse of user data.
o Eg: Increased use of cryptocurrencies and offshore gaming platforms has
heightened risks of illegal fund transfers.
3. Financial integrity issues: The sector's complex financial flows make it susceptible
to fraudulent activities.
o Eg: DIF identified over $100 billion in deposits annually in illegal betting
markets, indicating serious financial risks.
4. Increase in real money gaming (rmg): The rapid rise of RMG platforms is driving
financial flows, attracting large-scale investments, but also posing regulatory
challenges.
o Eg: KPMG’s 2023 report showed a 33% year-on-year growth in RMG,
underscoring the need for regulatory oversight.
5. Cross-border data flow: Online gaming platforms frequently transfer user data
across borders, increasing the risk of data theft and identity fraud.
o Eg: A MeitY report, 2023 highlighted that international servers hosting Indian
user data are vulnerable to breaches.

Risks posed by money laundering and terror financing in online gaming

1. Money laundering through offshore sites: Illicit actors use offshore gaming
platforms to launder funds, making regulatory tracking difficult.
o Eg: The DIF report, 2024 notes increased laundering through international
gaming and betting platforms that bypass Indian regulatory oversight.
2. Cryptocurrency abuse: The use of cryptocurrencies and other digital assets in
gaming enables untraceable transactions, facilitating money laundering.
o Eg: Multiple cases of crypto-based laundering were identified in 2023 across
gaming platforms.
3. Financing for terror activities: Funds generated in online gaming, especially
through illegal betting, can be channeled towards terror financing.
 o Eg: Interpol’s 2022 report highlighted online gaming as a rising source of
terror financing, especially in regions with weak AML (Anti-Money
Laundering) measures.
4. Layering of illicit funds: Fraudsters use multiple accounts, small transactions, and
frequent transfers to disguise illicit funds as legitimate gaming transactions.
o Eg: FATF (Financial Action Task Force) warned that such layering
techniques are increasingly used to evade detection in digital gaming.
5. Use of fake accounts: Fraudulent gaming accounts are often used to launder money
by cycling it through multiple fake profiles before withdrawal.
o Eg: The DIF report in 2024 noted that approximately 20% of transactions in
certain platforms were flagged as suspicious due to fake accounts.
6. Misuse of digital wallets: Gaming sites allowing digital wallet transactions
facilitate anonymous payments, creating loopholes for laundering.
o Eg: RBI’s Financial Stability Report, 2024 observed that the anonymity of
digital wallets complicates tracking illicit transactions.

Proposed Interventions to Address Money Laundering and Terror Financing Risks

1. Whitelist of Compliant Platforms: Establish a government-mandated whitelist of

compliant gaming companies to ensure that only regulated platforms operate.
o Eg: The DIF’s 2024 report recommends creating a whitelist, with payment
gateways and ISPs serving only registered platforms.
2. Enhanced KYC and AML Protocols: Introduce stringent Know Your Customer
(KYC) and anti-money laundering (AML) requirements across gaming platforms.
o Eg: RBI’s 2023 advisory calls for robust KYC checks and monitoring of
unusual transactions within gaming accounts.
3. Regular Audits and Reporting Mechanisms: Mandate independent audits and
timely reporting of suspicious transactions to regulatory bodies.
o Eg: The Ministry of Home Affairs, 2023 emphasized regular audits to help
trace any transactions linked to illicit activities.
4. Cybersecurity and Forensics: Strengthen cybersecurity frameworks within the
sector, deploying advanced cyber forensic tools for early detection of money
laundering.
o Eg: The Ministry of Electronics and Information Technology (MeitY),
2024 advocated for cyber forensics units to be linked with gaming platforms
for real-time monitoring.
5. Formation of a Dedicated Task Force: Set up a national task force combining
regulatory and enforcement agencies to specifically tackle financial crimes in gaming.
o Eg: DIF suggests a cross-agency task force dedicated to identifying and
prosecuting illegal gaming operations
6. User Awareness Programs: Promote awareness campaigns that educate users about
the risks of unregulated gaming and encourage safe online practices.
o Eg: SEBI’s financial literacy initiative, 2024, includes digital awareness,
which could be expanded to online gaming security.

Conclusion
To foster a sustainable and secure online gaming industry, India must implement strong
regulatory and cybersecurity frameworks to prevent financial misuse. A focus on
monitoring, compliance, and cross-border cooperation will be crucial in safeguarding
financial integrity and promoting safe growth within the sector.
Q. “Digital scams, such as the ‘digital arrest’ fraud, highlight the need for
enhanced digital security measure". Examine the major vulnerabilities in India’s
digital ecosystem and suggest measures to strengthen India’s response to
cybercrime. (10 M)

Introduction
The rise of digital scams like the 'digital arrest' fraud exposes the vulnerabilities in India's
growing digital ecosystem, necessitating urgent steps to enhance cybersecurity and protect
citizens.

Body

Major vulnerabilities in India’s digital ecosystem

1. Weak cybersecurity infrastructure: India's existing infrastructure lacks sufficient

real-time monitoring and defence mechanisms to combat sophisticated cyberattacks.
o Eg: The CERT-In (Computer Emergency Response Team-India) flagged a
23% rise in cyber incidents in 2023.
2. Lack of public awareness: Citizens are often unaware of cybersecurity risks, making
them vulnerable to phishing, frauds, and scams like ‘digital arrest’.
o Eg: Recent scams targeting users through fake law enforcement identities
via video calls.
3. Outdated laws: The Information Technology Act, 2000 is outdated and lacks
provisions for handling new-age cybercrimes like ransomware and AI-based fraud.
o Eg: Absence of clear legal guidelines for emerging technologies like
cryptocurrency fraud.
4. Increased use of digital platforms: The rise in digital payments and online
transactions has expanded the attack surface for cybercriminals, increasing
vulnerability.
o Eg: RBI's 2023 report highlighted a 40% rise in digital payment frauds.
5. Insufficient cyber workforce: India faces a shortage of skilled cybersecurity
professionals to manage and respond to the increasing volume of cyber threats.
o Eg: NASSCOM’s 2022 report highlighted a gap of 1 million cybersecurity
professionals in India.
6. Digital identity frauds: The increased use of Aadhaar-based authentication has led
to identity theft and misuse by cybercriminals.
o Eg: Multiple incidents of Aadhaar-linked bank accounts being targeted in
fraud cases.

Measures to strengthen India’s response to cybercrime

1. Strengthening cybersecurity infrastructure: Increase investment in advanced tools

like AI-based threat detection and real-time monitoring through initiatives like the
National Cyber Coordination Centre (NCCC).
 o Eg: The blocking of thousands of fraudulent IDs by NCCC in 2023.
2. Enhancing public awareness: Conduct nationwide campaigns to educate people
about cyber threats and how to safeguard themselves, especially targeting vulnerable
groups like elderly and students.
o Eg: The launch of Cyber Surakshit Bharat in collaboration with private tech
companies.
3. Policy reforms: Update existing cybersecurity laws, aligning them with current
threats, and introduce stricter penalties for cybercrimes under the Data Protection
Act, 2023.
o Eg: The Justice B.N. Srikrishna Committee recommendations for data
protection and privacy.
4. Strengthening institutional mechanisms: Improve coordination between central and
state governments, financial institutions, and the private sector to ensure quicker
response times to cyber frauds.
o Eg: The setting up of National Cyber Crime Reporting Portal for easy
complaint filing.
5. Capacity building and training: Focus on developing a skilled cybersecurity
workforce by providing specialized training to law enforcement agencies and
cybersecurity professionals.
o Eg: The National Forensic Science University offers specialized
cybersecurity programs.
6. International cooperation: Strengthen international collaboration on cybercrime by
sharing intelligence, technical know-how, and best practices.
o Eg: Interpol’s Global Action on Cybercrime initiatives, where India plays a
key role.

Conclusion
To secure India’s digital future, robust infrastructure and public awareness are key. Timely
reforms and effective implementation of cyber laws will be crucial to protect citizens and
boost trust in the digital ecosystem.

Security Challenges and their Management in Border Areas -

Linkages of Organized Crime with Terrorism.

Various Security Forces and Agencies and their Mandate.

Q. Examine the role of National investigation agency (NIA) in combating

terrorism and discuss its contribution to strengthening internal security. (10 M)

Introduction
The National Investigation Agency (NIA), established under the NIA Act, 2008, plays a
crucial role in combating terrorism and other serious crimes in India. Its mandate is to
investigate and prosecute offences affecting national security, ensuring that India's internal
security remains robust.

Body

Role of NIA in combating terrorism

1. Counterterrorism Investigations: NIA is the premier agency responsible for

investigating terror-related offences across India, regardless of state jurisdiction,
making it pivotal in dismantling terror networks.
 E.g.: NIA’s investigation of the 2019 Pulwama terror attack led to the
identification of key terror operatives involved in cross-border terrorism.
2. Coordination with International Agencies: NIA works closely with international
intelligence and law enforcement agencies, sharing vital intelligence and cooperating
on global terror networks.
 E.g.: The NIA-Interpol collaboration has been crucial in tracking and
apprehending terror suspects with international links.
3. Preventing Radicalization: Through surveillance and investigations, NIA monitors
the spread of radical ideologies and online terror recruitment, disrupting potential
attacks.
 E.g.: The agency's focus on cracking down on ISIS-inspired modules in India
has been a notable success.
4. Effective Use of Legal Provisions: NIA uses strict legal frameworks such as the
Unlawful Activities (Prevention) Act (UAPA) to prosecute terror suspects, ensuring
swift judicial processes.
 E.g.: NIA filed charges under UAPA against militants involved in Nagrota’s
2020 terror attack, leading to successful convictions.
5. Capacity Building and Training: NIA consistently enhances its capabilities by
training law enforcement officers and deploying modern technologies for
investigations.
 E.g.: The NIA established a Cyber Terrorism Investigation Unit to address
online radicalization and cyber-enabled terror activities.

Contribution to strengthening internal security

1. Neutralizing Terror Cells: The NIA has effectively neutralized terror cells and
sleeper networks operating within India, thereby significantly reducing the threat of
terror attacks.
 E.g.: NIA dismantled the Indian Mujahideen (IM) network, leading to the
arrest of top operatives involved in multiple blasts.
2. Combating Financial Terrorism: By investigating terror funding networks, the
NIA has cracked down on the financial channels used to support terrorism in India.
 E.g.: The NIA’s 2021 raids on terror funding networks in Jammu and
Kashmir led to freezing key financial conduits supporting militancy.
3. Handling Cross-Border Terrorism: NIA’s role in tackling cross-border terrorism
has been essential in addressing threats posed by Pakistan-based terror groups.
  E.g.: Investigations into the Uri and Pathankot attacks uncovered crucial
cross-border links, aiding in diplomatic actions.
4. Collaboration with State Agencies: NIA enhances internal security by coordinating
with state police forces, sharing intelligence, and providing technical assistance.
 E.g.: NIA’s joint efforts with state police in Kerala helped in curbing the
activities of terror modules in South India.
5. Securing Critical Infrastructure: NIA investigates cases related to attacks on
India’s critical infrastructure, ensuring the protection of key assets and services.
 E.g.: NIA’s prompt action in the 2013 Bodh Gaya blasts case ensured the
protection of religious sites and tourist hubs.

Conclusion

The NIA has played an indispensable role in India's counterterrorism efforts, contributing to a
safer and more secure internal environment. As terrorism evolves, continued investment
in technology, capacity building, and global collaboration will further empower the NIA to
protect India's security interests.

Q. “The Border Security Force (BSF) has a vital mandate in securing India’s
borders, yet faces significant challenges in fulfilling this role”. Examine. (10 M)

Introduction

The Border Security Force (BSF) plays a critical role in safeguarding India's borders against
threats like infiltration, smuggling, and terrorism. However, despite its vital mandate, it faces
multiple challenges in effectively performing its duties.

Body

Role of BSF in Securing India’s Borders

1. Guarding International Borders: BSF is responsible for securing India’s borders

with Pakistan and Bangladesh, ensuring the territorial integrity of the nation.
o E.g.: BSF's vigilant patrolling has prevented several infiltration attempts from
across the Pakistan border in the Jammu sector (2023).
2. Anti-Smuggling Operations: The force is actively involved in countering smuggling
activities, including drugs, arms, and counterfeit currency, along border regions.
o E.g.: In 2024, BSF seized over 150 kg of narcotics along the Indo-
Bangladesh border (Source: Ministry of Home Affairs).
3. Supporting Internal Security: Besides border duties, BSF also assists in maintaining
internal security during major law and order situations.
o E.g.: BSF was deployed for maintaining peace during the 2023 Panchayat
elections in West Bengal.

Challenges faced by BSF in fulfilling its role

 1. Porous borders: Difficult terrain and porous borders, especially along the Indo-
Bangladesh border, make it challenging to prevent illegal crossings.
o E.g.: Frequent reports of illegal migration and cattle smuggling in the Assam-
Bangladesh border area (Source: NCRB 2023).
2. Technological gaps: The force faces a lack of advanced surveillance and monitoring
equipment, affecting its efficiency in border management.
o E.g.: The Comptroller and Auditor General (CAG) highlighted gaps in
night vision capabilities along sensitive stretches of the Indo-Pakistan
border.
3. Resource constraints: Inadequate manpower and financial resources limit BSF’s
ability to maintain continuous patrolling and deploy modern equipment.
o E.g.: The BSF’s 2023 Annual Report indicated a shortage of over 10,000
personnel in critical areas.
4. Cross-border terrorism: Increased instances of cross-border terrorism and
infiltration attempts, particularly from Pakistan, pose a persistent threat to border
security.
o E.g.: The 2024 attack in Poonch district was traced back to infiltrators
supported by Pakistan-based terror groups (Source: Indian Army).
5. Smuggling networks: Well-established smuggling networks, often with cross-border
links, continue to challenge BSF's anti-smuggling efforts.
o E.g.: Seizure of 300 illegal firearms from smuggling rings operating along
the Indo-Bangladesh border in 2024 (Source: Ministry of Home Affairs).

Steps to Enhance BSF's Capabilities

1. Modernization of equipment: Invest in advanced surveillance technologies like

drones, thermal imaging, and AI-powered sensors to enhance real-time monitoring
capabilities.
o E.g.: Adoption of technology like BOLD-QIT has enhanced its capabilities
2. Capacity building and training: Regular training programs focusing on counter-
infiltration techniques and technological expertise to upgrade the skill set of BSF
personnel.
o E.g.: Collaboration with institutions like the National Defence College
(NDC) for specialized counter-terrorism training.
3. Strengthening intelligence networks: Develop robust intelligence-sharing
mechanisms between BSF and other security agencies to preempt threats and
coordinate responses.
o E.g.: Joint operations with state police have significantly reduced smuggling
incidents in Punjab in 2024.
4. Enhanced infrastructure development: Construct better roads, outposts, and
surveillance towers in remote border areas to facilitate continuous patrolling and
quick response.
o E.g.: Recent efforts in Tripura to build all-weather roads along the Indo-
Bangladesh border have improved mobility for BSF troops.
 5. Boosting manpower and financial resources: Increase the recruitment of personnel
and allocation of funds for modern equipment to address the resource gap.
o E.g.: The Union Budget 2024-25 saw a 15% increase in funding for the BSF,
aimed at addressing its operational needs.

Conclusion

For the BSF to effectively secure India’s borders, a holistic approach focusing on modernization,
intelligence, and infrastructure development is essential. Strengthening these areas will enable the
BSF to counter emerging challenges and ensure robust border security in the face of evolving threats