AIR 442 · CSE 2023 · GS3 · 49 pages

Priyanshu Agrawal: GS3 answer copy

12 answers by Priyanshu Agrawal, as written in the test. Each question opens a page with how other toppers answered it.

The questions

  1. Q1Recent Economic Survey highlighted fiscal deficit of 5.6%. Critically analyze the reasons and consequences of high fiscal deficit. Suggest measures for fiscal consolidation. 2. Discuss the potential of and challenges to capital investment in achieving a $7 trillion economy. 3. Analyze the opportunities and challenges associated with peri-urban agriculture in the context of increasing urbanization in India.
  2. Q4Indian agriculture despite employing 45% population, accounts only 20% to GDP due to low diversification and orientation towards crops like pulses.
  3. Q5The recent Cambridge report observed golden opportunity for India to use biowaste like in ethanol blending towards Panchamrit targets. Potential in sustainable green economy. Discuss. 6- In order to ensure reusability and reliability in Satellite launch vehicles, Reusable Launch Vehicle provide best alternative for sustainable technology. Explain.
  4. Q7Carbon Credit Trading Scheme is devised in order to formalize and develop integrated market for financial support to clean development
  5. Q9The India's cybersecurity vulnerability seen by increased cases 22% Year on year basis, accounting for specific doctrine for the same.
  6. Q10With goal of One border one force, BSF monitoring across Bangladesh and Pakistan holds critical role, due to difficult terrain and disturbed areas. Discuss the necessity to extend its territorial jurisdiction. Also, examine potential issues and way forward.
  7. Q13Indian agriculture suffers from 2 V's, vulnerability of monsoon and volatility of market, that makes MSP as preferred way to safeguard farmer interest
  8. Q14Food Corporation of India is created with the mandate of compulsory procurement, storage and distribution under PDS system to aid farmers to ensure market protection. Discuss.
  9. Q15Nanotechnology as per Oxford Study, holds key for zero hunger and achieving nutritional target under SDG target of zero hunger
  10. Q16Quantum dots have emerged as "state of the art" development based on principles of quantum mechanics that can bring revolution to learn and use quantum based solution.
  11. Q17The recent IPCC report highlighted loss of over 60% of flora and fauna since last century can largely be traced to increased development on cost of environment degradation.
  12. Q19India being at affinity to Golden triangle at South-East region and golden crescent at West, make it as centre point of drug cartel. Discuss the causes of drug trafficking and suggest a multi-pronged strategy to tackle it. 20- Recent violent clash in Sukma district, marked prevalence of Left Wing Extremism, not only killing 39 Maoists but also 3 army personnels. Prevailing hard security measures. Discuss the need for a soft approach to counter the menace.

The answers

Question 1 · 449 words written

Recent Economic Survey highlighted fiscal deficit of 5.6%. Critically analyze the reasons and consequences of high fiscal deficit. Suggest measures for fiscal consolidation. 2. Discuss the potential of and challenges to capital investment in achieving a $7 trillion economy. 3. Analyze the opportunities and challenges associated with peri-urban agriculture in the context of increasing urbanization in India.

Opening · a figure

1- Recent Economic Survey highlighted fiscal deficit of 5.6%, still over FRBM limit of 3% of GDP.

Body · points

Diagram
High FDI because → Low tax to GDP ratio (11%) → Narrow tax base (4% Indian fill Income tax) → Culture of freebies and subsidies → Poor fiscal consolidation due dependency culture

Potential consequences

  1. Virtuous cycle of crowding out
Diagram
High fiscal deficit → Now low investment position ↑ ↓ low debt sustainability ← Increase borrowing
  1. The poor international ratings. Based on negative international trade position, hampering export potential.

iii) Increased borrowing for repay of old loans causing positive interest rate growth differential.

iv) Problem of dependency like demand for loan waivers or legalize MSP further deterioate receipts potential.

ways to ensure consolidation

  1. Nandan Nilekani suggested on independent fiscal council to monitor and suggest reforms.

ii) Ensuring strict implementation of FRBM act.

iii) Increase tax buoyancy and coverage by formalization of economy.

iv) Overcoming populist tendency by strict regulation on freebies.

In that manner, we can achieve goal of consolidation as per 15th Finance Commission.

2- With year on year growth of 11% of capital investment, economic survey held it as mean to achieve goal of $7 trillion economy.

Potential of Capital Investment

  1. High multiplier effect. Work bank observed 2.5x outcome.

  2. Promote crowding in effect. Like China's manufacturing model by SEZ's.

  3. Ease of doing business. Logistics improvement for better linkage.

1v) Export competitiveness. By reducing cost through economies of scale for $1 trillion target by 2030.

v) Increased employment opportunity. To reduce unemployment rate of 3.2%.

Challenges faced :-

  1. Poor labour law reforms, depriving of needed foreign investment.

  2. Bureacratic hurdles by regulatory cholestrol, impacting efficiency.

  3. Low focus of inclusive investment as 30% is limited to IT related sector.

1v) The problem of fund shortage to Government due subsidy regime.

v) Problem of poor linkages as World Bank logistic report ranked 38.

Diagram
Way forward → Need to use Brownfield project under National Monetization pipeline → Promote Ease of doing by e-governance method → Support investment through PPP (Bibek Debroy suggestion)

Thus increasing scope to Viksit Bharat by 2047.

3- According to Urban Mobility Report, 50% of Indians will move to urban area by 2041, causing huge problem of carrying capacity.

Opportunity with peri-urban agriculture

  1. Providing linkage to rural-urban continuum under PURA Mission.

  2. Improving peri-urban area development with economic-housing cooperation.

  3. Promoting ease of logistics by reducing travel time to urban market.

1v) Overcoming rural based agrarian distress due reduce land productivity.

v) Scope of crop diversification as Ashok Gulahti observed potential for Operation GREEN in the region.

Challenges associated

  1. Problem of gentrification, causing peri-urban area to become real-estate.

  2. The issue of social security, due poor facility of social capital like slums creation in the region.

  3. Problem of market expansion due poor network for export markets.

IV) The prevailing dominance of dominant caste like Bhalla study on peri-urban area in Haryana seen dominance of Jats etc.

Way forward → Linking agriculture to National Mission on Sustainable agriculture. → Promoting extension services for better development. → Social inclusion facilities.

Close · a way forward

Thus resolving crisis of urban sprawl by sustainable solution.