AIR 384 · CSE 2025 · GS3 · 56 pages

Rupam Arora: GS3 answer copy

20 answers by Rupam Arora, as written in the test. Each question opens a page with how other toppers answered it.

The questions

  1. Q1What is deficit financing? Explain its significance in the context of public finance in India.10 marks
  2. Q2Discuss the role of the Unified Payments Interface (UPI) in advancing women's empowerment in India. What challenges remain in ensuring equitable digital access for all women?10 marks
  3. Q3Discuss the role of the informal sector in India's economic development. What are the key challenges in formalizing this sector?10 marks
  4. Q4Enumerate and briefly explain the major functions of the Reserve Bank of India (RBI) as the central bank of the country.10 marks
  5. Q5Examine how enhancing agrobiodiversity can address India's food security challenges while building climate-resilient agricultural systems.10 marks
  6. Q6How will the Axiom-4 mission's outcomes contribute to the Gaganyaan programme and the development of India's space sector?10 marks
  7. Q7What is Green Mining? How is India advancing green mining through policy and technology efforts?10 marks
  8. Q8Why did land reforms fail to achieve their intended goals, and how did this impact the agricultural sector in subsequent decades?10 marks
  9. Q9What do you mean by Non-kinetic warfare? How it is different from traditional kinetic warfare in modern conflicts?10 marks
  10. Q10How do emerging technologies like AI and deepfakes pose new challenges to India's internal security? Suggest countermeasures.10 marks
  11. Q11What are the benefits and risks associated with Free Trade Agreements (FTAs) for Indian farmers and what measures should be taken to safeguard their interests?15 marks
  12. Q12Identify the key structural challenges facing the Indian textile industry and discuss the reforms and policy measures needed to enhance its global competitiveness.15 marks
  13. Q13Evaluate the effectiveness of the Public Distribution System (PDS) in addressing food security in India. What reforms are necessary to improve its efficiency and reach?15 marks
  14. Q14Explain the working principle of sodium-ion batteries. Discuss their advantages and limitations in comparison to lithium-ion batteries in India.15 marks
  15. Q15What are the major challenges facing water management in India, and what integrated policy reforms are needed to ensure long-term water security and sustainability?15 marks
  16. Q16How does the Sendai Framework enhance Disaster Risk Reduction (DRR) in India?15 marks
  17. Q17What are the key impacts of oil spills on the environment, and how can India strengthen its response and management mechanisms?15 marks
  18. Q18Analyze the main objectives of the Bonn Climate Change Conference and discuss its significance in shaping global climate policy and the implementation of international climate agreements.15 marks
  19. Q19Examine the impact of transnational organized crime on India's border security and suggest ways to strengthen inter-agency and international cooperation.15 marks
  20. Q20Critically examine the effectiveness of recent anti-Naxal operations in India. What challenges remain in ensuring long-term peace and development in Naxal-affected regions?15 marks

The answers

Question 1 · 10 marks · 188 words written

What is deficit financing? Explain its significance in the context of public finance in India.

Opening · a definition

Deficit Financing refers to the practice where government of a country or state spends more than it earns through revenue and makes up the balance amount by printing more money or borrowing. Methods of Deficit Finance

Body · points and prose

cits

  • Revenue Deficit
  • Fiscal Deficit
  • Primary Deficit → used for deriving various calculations, analysis & strategy for deficit finance.

Methods of Deficit Finance → Quantitative Easing - printing more money → Borrowing

  • External
  • Internal
    • Using small savings & PPF money.
    • Bonds issued by RBI
    • off budget borrowing.

Significance of Deficit financing in India

  1. Keynesian approach - Spend more than a country earns to sustain development & welfarism.

  2. High Capex required to build public infrastructure.

  3. High subsidy and public welfare scheme money requirement

→ food; fuel, fertiliser subsidy → Antyodaya Yojana. → National Food security Act (80 crore people) → Procurement at MSP.

  1. Low per Capita income - generates less income tax for government than future potential. → Hence need to borrow.

  2. High development demand to increase HDI & Multidimensional Poverty enhancement.

Close · a summary

Government's target to adhere to FRBM Act by bringing down medium term fiscal deficit to 4.5% of GDP from current 5.1% by 2026 is a step in right direction of fiscal management & responsibility.