AIR 465 · CSE 2024 · GS3 · 54 pages

Sanjeev Gupta: GS3 answer copy

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

The questions

The answers

Question 1 · 10 marks · 141 words written

Explain the concept of the "Missing Middle" in India's industrial ecosystem. How does it affect economic growth and employment generation?

Opening · a definition

"Missing middle" refers to phenomenon in which either big industrial units perform or smaller ones with "middle" companies stagnant role in industrial ecosystem. Impact on economic growth & unemployment

Body · points and prose

pport to MSME → reason for dwarfism (Eco survey)

  • Lack of infrastructure (power, connectivity to grid)
  • Economies of scale - with big industrial player → distorts cost competitiveness of smaller firms
  • Global competitiveness - from cheap chinese imports

Impact on economic growth & unemployment

  1. Hindrance to inclusive growth - as not enough job is created in industrial sector (eg 8.3% unemployment rate)

  2. Lack of women participation - in labour force due to missing middle (only 37% female LFPR - as PLFS-2022-23)

  3. Informalisation of economy - 90% of India economy is informal due to missing 'middle' industrial sector

  4. Rise in gig economy - as no formal jobs is created (Around 77 lakh jobs in gig economy - NITI Aayog)

  5. Capital intensive instead of labour intensive growth - leading to "jobless" growth in India.

Close · a way forward

MSME need to be promoted to fulfil "missing middle" based on UK sinha committee, to attain $5 trillion economy.