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Indian Economy

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Home/Indian Economy/Page 4

Mains Answer Writing Latest Questions

Rohit Valiyan
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Rohit ValiyanLearner
Asked: June 22, 2024In:
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Talk about how climate change could affect agriculture in India. In this regard, what actions has the government taken? (Answer in 200 words)

upsc: sustainable development
  1. Arundhati Chowdhury
    Arundhati Chowdhury Begginer

    The world is currently experiencing significant climate change, leading to increased temperatures, rising sea levels, changes in cultivation patterns, and crop production, among other effects. According to data from 2022-23, around 18-19% of India's GDP is contributed by agriculture and related actiRead more

    The world is currently experiencing significant climate change, leading to increased temperatures, rising sea levels, changes in cultivation patterns, and crop production, among other effects. According to data from 2022-23, around 18-19% of India’s GDP is contributed by agriculture and related activities. Consequently, climate change can have a noticeable impact on Indian agriculture.
    • Challenging for specific crops: Crops like beet, broccoli, wheat , Cauliflower and other kharif crops tend to grow better in colder weather. An increase in temperature raises a challenge in their cultivation.
    • Water Scarcity: The rising temperature levels also deplete the freshwater supply. India has approximately 4% of the world’s total freshwater reserve, 80% of which is utilized for agriculture. In India, agriculture without adequate irrigation is nearly impossible.
    • Decrease in food supply: In case of challenging cultivation environment crop failure becomes common which poses a further negative impact on the availability of food crops in the long run. In India most food crops experience crop failure at a rate of 30-25 per cent.
    Given the current situation, the Government of India has implemented sufficient research programs, actions, and schemes in response.
    • National Mission for Sustainable Agriculture: As the name suggests the organisation not only focuses on sustainable Agricultural practices but also studies soil health, Climatic science, monitoring, modelling and networking.
    • National Action Plan on Climate Change: Set up in 2008 by the Prime Minister’s Council on Climate Change; the primary aim of the organisation is to protect restore and enhance India’s diminishing forest cover so as to bring climate change under control.
    The government also carries out numerous other activities to mitigate climate change. Agriculture is a significant part of the Indian economy, and its vulnerability to climate change is a cause of concern that requires immediate attention.

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Suraj Singh
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Suraj SinghLearner
Asked: June 21, 2024In:
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Assess the Pradhan Mantri Jan-Dhan Yojana’s contribution to India’s financial inclusion. (Answer in 200 words)

upsc: inclusive growth & economic development
  1. Ronak Lal
    Ronak Lal Begginer

    Pradhan Mantri Jan Dhan Yojana (PMJDY) is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The plan envisages universal access to banking facilities with at least one basic banking accRead more

    Pradhan Mantri Jan Dhan Yojana (PMJDY) is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility.
    Role of Pradhan Mantri Jan-Dhan Yojana in ensuring financial inclusion in India:

    • Opening Bank accounts: PMJDY has brought the unbanked into the banking system, expanded the financial architecture of India and brought financial inclusion to almost every adult. As per government data, 55% Jan-Dhan account holders are women and 67% Jan Dhan accounts are in rural and semi-urban areas
    • Access to Government schemes: PMJDY has been the foundation stone for people-centric economic initiatives. It has ensured a bank account for every adult which is required to get benefits of schemes like COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, life and health insurance cover. Under PM Garib Kalyan Yojana, a total of Rs. 30,945 crore have been credited in accounts of women PMJDY account holders during Covid lockdown.
    • Formal Financial System: Pradhan Mantri Jan-Dhan Yojana provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders.
    • Prevent Systemic leakages: In today’s COVID-19 times, there is witnessed a remarkable swiftness and seamlessness with which Direct Benefit Transfer (DBTs) have empowered and provided financial security to the vulnerable sections of society. An important aspect is that DBTs via PM Jan Dhan accounts have ensured every rupee reaches its intended beneficiary and prevent systemic leakage. About 5.1 crore PMJDY account holders receive direct benefit transfer (DBT) from the Government under various schemes and because of PMJDY, the percentage of total DBT failures has decreased from 13.5% (FY 19-20) to 5.7% (FY 20-21).

    Going forward, there is a need to move from financial inclusion to financial empowerment by providing credit. The PMJDY should become PM Jan Dhan Vridhi Yojana with universal access to bank credit to the most underprivileged sections of the society. Also, infrastructure needs to be cost effective and there is a need to build up a database to capture the income transaction history of the Jan Dhan account holders on the basis of which credit delivery models can be worked out.

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Bhavesh singh
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Bhavesh singhBegginer
Asked: June 17, 2024In:
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Outlining the many uses for money, discuss its advantages over other kinds of assets.(Answer in 200 words)

upsc: banking & monetary policy
  1. Sanya Dhir
    Sanya Dhir Begginer
    This answer was edited.
    Bringing out the various functions of money, mention its advantages over other types of assets.

    .  

    .

     

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Anonymous
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Anonymous
Asked: July 9, 2024In: ,
  • 1

education finance money management
  1. Krishnaveni 033
    Krishnaveni 033 Begginer

    For someone without a commerce background, learning about money management and finance can seem daunting but is essential for personal financial health. Start by familiarizing yourself with basic concepts through accessible resources like books, online courses, or reputable financial websites. FocusRead more

    For someone without a commerce background, learning about money management and finance can seem daunting but is essential for personal financial health. Start by familiarizing yourself with basic concepts through accessible resources like books, online courses, or reputable financial websites. Focus on understanding concepts like budgeting, saving, investing, and managing debt.

    Practical experience is also invaluable. Begin by creating a budget to track your income and expenses, helping you understand where your money goes and identifying areas for savings. Explore different types of savings accounts and learn about interest rates and compounding to make informed decisions about saving money effectively.

    When it comes to investing, start with simpler options like mutual funds or index funds, which offer diversification without requiring extensive knowledge of individual stocks. Take advantage of free workshops or seminars offered by banks or financial institutions to gain insights from experts and ask questions. Finally, seek guidance from financial advisors who can provide personalized advice based on your financial goals and situation. Building a solid foundation in money management takes time and patience, but with consistent effort and learning, anyone can develop the skills needed to navigate and grow their finances effectively.

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Darshan Pareek
  • 3
Darshan PareekBegginer
Asked: July 9, 2024In: , , , ,
  • 3

  1. Raghav Mishra
    Raghav Mishra Begginer

    The Phrase that "Discrimination is in our blood" readily implies that it is something hard-wired in human nature. Although this is true to a great extent—that humans have the tendency to organize, segregate information, and thus, differentiate on the basis of various attributes like race, gender, agRead more

    The Phrase that “Discrimination is in our blood” readily implies that it is something hard-wired in human nature. Although this is true to a great extent—that humans have the tendency to organize, segregate information, and thus, differentiate on the basis of various attributes like race, gender, age, and so on—it is also important to know how to differentiate natural propensity from socially constructed behaviors.

    Psychologically and sociologically:

    1. Evolutionary Psychology: Some argue that humans were evolutionarily programmed to quickly put people into categories as a human survival mechanism. This provided the early humans with the ability to rapidly see who was friend and who was foe. It may have created an evolutionary predisposition toward those who are like us and distrust of those who are different.

    2. Socialization: Much of what we view as discriminatory behavior we learn through socialization. Family, media, peers, and institutions were those who taught us the norms, values, and biases. These learned behaviors can turn out to reinstate and perpetuate discrimination.

    3. Cultural Context: Discrimination varies a lot from one culture to another and throughout history. What in one context is perceived to be discriminative might not be so in another, hence it suggests that much of this behavior is culturally determined as opposed to being biologically disposed.

    4. Malleability: Human behavior is very easily modifiable. Whereas we might have some hard-wired tendencies, we are also capable of empathy, insight, and change. Education, awareness, and policy have an enormous potential for reducing discriminatory behaviors.

    5. Moral and Ethical Responsibility: Notwithstanding any natural tendency, we have the moral and ethical responsibility to struggle for equality and justice. Inequities and biased behaviors are recognized and challenged as a part of building a society that is fairer and more inclusive.

    Also, despite knowing that discrimination hurts and damages, it does not cease to exist due to several psychological, social, and structural reasons. Reasons as to why this contradiction subsists along with examples are:
    1. Implicit Bias: Most people have unconscious biases that drive human behavior, unbeknownst to them. They can be socially induced norms, media portrayals, or personal experiences.
    Example: An employer may reach subconsciously for resumes with names that sound like they belong to a particular race, even though they are consciously pro-diversity.
    2. Socialization: People learn behavior and attitudes from their family, friends, and society. From a very tender age, one may be socialized to hold discriminatory beliefs.
    Example: Children can pick up racist or sexist attitudes from their parents or peers and transport these attitudes into adulthood.
    3. Fear and Ignorance: Another factor that creates discrimination is dislike–fear of the unknown or unfamiliar. Often it is merely lack of information about other cultures, different lifestyles, or various abilities that creates prejudice themselves.
    Example: In most cases, xenophobia has no basis other than lack of information about other cultures and fear of economic or social changes.
    4. Power and Privilege: Those in power may discriminate in an effort to establish and secure themselves in their position over others. Discrimination may further serve to solidify created hierarchies.
    Example: Institutional racism in law enforcement allows for the continued targeting and mass incarceration of minorities in those communities.
    5. Economic and Social Competition: People may discriminate against others whom they feel are a threat to them in terms of their livelihood, or even adequate employability or social status.
    Example: Anti-immigrant sentiment is highest during periods of economic contraction, as native-born citizens might view immigrants as job competitors at times when jobs are scarce.
    6. Historical Legacies: Society’s structures and attitudes often flow from historical events and practices, such as colonialism, slavery, and segregation, that leave behind residuals.
    Example: The legacy of apartheid lives on in race relations and disparate economic outcomes for South Africans.
    7. Media Representation: Media can reinforce stereotypes and biases in views, attitudes, and perceptions across a variety of diverse groups in society.
    Example: Representations of Muslims as terrorists in movies and news reports can further Islamophobia.
    8. Social Conformity: People may potentially engage in acts of discrimination just to belong or to fit in with their social group or community.
    Example: A teenager might bully a classmate with a disability to fit in with their friends.

    Somehow, while the roots of in-group favoritism may be partially related to evolutionary factors, discrimination in the form it occurs today is essentially of social and cultural origin. This means that it is also within our powers to change with education, policy, and personal responsibility.

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Anshika Singh
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Anshika SinghLearner
Asked: June 19, 2024In:
  • 1

What does inflation targeting entail? How does India’s inflation targeting mechanism work? (Answer in 200 words)

upsc: inflation
  1. Drishti Aggarwal
    Drishti Aggarwal Begginer

    Inflation targeting is a monetary policy framework where a central bank sets a specific inflation rate as its target and uses monetary policy tools to achieve and maintain price stability. In India, the inflation targeting framework was adopted in 2016, and the Reserve Bank of India (RBI) is responsRead more

    Inflation targeting is a monetary policy framework where a central bank sets a specific inflation rate as its target and uses monetary policy tools to achieve and maintain price stability. In India, the inflation targeting framework was adopted in 2016, and the Reserve Bank of India (RBI) is responsible for its implementation.

    Here’s how it operates in India:

    1. Target: The RBI sets an inflation target of 4% with a tolerance band of +/- 2% (i.e., 2-6%).
    2. Framework: The RBI uses a flexible inflation targeting framework, which means it considers growth and other macroeconomic factors while setting policy rates.
    3. Tools: The RBI uses monetary policy tools like the repo rate (short-term lending rate), reverse repo rate, and open market operations to manage liquidity and inflation.
    4. Decision-making: The RBI’s Monetary Policy Committee (MPC) meets every two months to review inflation trends, growth, and other factors to decide on policy rates.
    5. Communication: The RBI communicates its inflation projections and policy decisions to the public, ensuring transparency and accountability.

    By adopting an inflation targeting framework, India aims to maintain price stability, promote economic growth, and enhance the credibility of monetary policy.

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Rajni Gautam
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Rajni GautamBegginer
Asked: June 26, 2024In:
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The emergence of climate change is contributing to the resurgence of millet farming. Talk about it. Mention the initiatives the government has taking to boost millet production in India as well. (Answer in 150 words)

upsc: cropping pattern
  1. Bhairavi Gauatam
    Bhairavi Gauatam Begginer

    The agricultural sector is one of the sectors most sensitive to climate change because the climate of a region determines the nature and characteristics of vegetation and crops. In such a situation, there is a need to look for crops, which can survive the ongoing climate change. In this context, theRead more

    The agricultural sector is one of the sectors most sensitive to climate change because the climate of a region determines the nature and characteristics of vegetation and crops. In such a situation, there is a need to look for crops, which can survive the ongoing climate change. In this context, the cultivation of millets is being revived owing to the following reasons:

    • Millets are hardy crops that can thrive in varying agro-climate regions and can withstand extreme temperatures and droughts. Some varieties of pearl millets survive at temperatures up to 46 degrees Celsius.
    • These crops help mitigate the effects of climate change through their lower carbon footprint per hectare as compared to wheat and rice.
    • Millets also require less water than rice, sugarcane, and wheat. They grow well in dry zones as rain-fed crops.
    • They grow well on poor soils as well. In many areas, millets are cultivated on grazing lands, which were unused for any other profitable work prior to this.
    • Their cultivation cost is lesser when compared to other crops since millets are mostly cultivated on natural farming-based techniques, eliminating a lot of other input costs.
    • Millets are called ‘famine reserves’ as they have a short growing season of 65 days and can be stored for two years or beyond.

    Moreover, climate change, which is now impacting agricultural production and food stability, threatens nutritional security as well. In this context, millets gain importance as they act as rich sources of macronutrients and micronutrients, with high levels of calcium, iron, zinc, potassium, protein, and essential amino acids. They are non-glutinous and rich in antioxidants as well. India currently has around 14 million hectares of land under millet cultivation. Further, according to the fourth advance estimates for the year 2021-22, about 16 million tonnes of millet have been produced in India, which is about 5 percent of the national food grain basket. Considering the benefits, various steps have been taken by the government to promote millet cultivation, including:

    • Initiative for Nutritional Security through Intensive Millet Promotion (INSIMP), which was launched in 2011-12 to promote millets as “Nutri-cereals” and enhance India’s nutritional security. It is a part of Rashtriya Krishi Vikas Yojana.
    • The government declared 2018 as the National Year of Millets and launched the Millet Mission as part of the National Food Security Mission, which has led to the promotion of technological interventions, improvement in seed quality, and a minimum support price (MSP).
    • Integrated Cereals Development Programmes in Coarse Cereals under Macro Management of Agriculture scheme to increase the overall productivity under specific crop-based systems.
    • The government allowed the inclusion of “nutri- cereals” in the Public Distribution System (PDS) and the Mid-Day Meal scheme.
    • State governments have launched several schemes to give an impetus to the production of millets, such as the Odisha Millets Mission.

    With 2023 being the UN-designated International Year of Millets, there is a need to promote and strengthen the value chain for millets and millet-based products, including the ready-to-eat category. Millets are being increasingly recognized as climate-smart crops with enormous nutritional and health benefits.

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Rajeshwari Meena
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Rajeshwari MeenaBegginer
Asked: July 2, 2024In:
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What impact has climate change had on India’s productivity and agricultural output? Do you believe that climate savvy water-saving agritechnologies are now essential? (Answer in 150 words)

upsc: technology missions in agriculture
  1. Sita mata
    Sita mata Begginer

    Climate change events like erratic monsoon patterns, heat stress due to temperature extremes, changes in pest and disease patterns, reduced water availability, etc. affect agricultural production and productivity. According to a study by the National Innovations in Climate Resilient Agriculture, raiRead more

    Climate change events like erratic monsoon patterns, heat stress due to temperature extremes, changes in pest and disease patterns, reduced water availability, etc. affect agricultural production and productivity. According to a study by the National Innovations in Climate Resilient Agriculture, rain fed rice yields in India are projected to reduce by less than 2.5% in 2050 and 2080 and irrigated rice yields by 7% in 2050 and 10% in 2080 scenarios. Further, wheat yields are projected to reduce by 6-25% and maize yields by 18-23% in 2100.
    To meet the challenges posed by climate change, while also meeting food and energy needs in an environmentally and socially sustainable way, climate smart water saving agri-technologies are becoming popular around the globe.
    This is due to their significance in the following ways:

    • Adapting to climate change: Climate smart water saving agri-technologies help to improve water management practices, using which farmers can maintain crop productivity even under changing climatic conditions.
    • Water conservation: Irrigation can be improved through micro irrigation, mulching, use of water absorbents, etc. to maintain soil moisture. The use of these water-saving irrigation practices reduces the consumption of water by 25-85 percent.
    • Saving energy: Renewable energy can be used as an alternative, especially for petroleum products used for on-farm irrigation pumps. It may also lead to reduced greenhouse gas emissions from such conventional on-farm irrigation pumps. For example, use of solar water pumps and solar sprays.
    • Sustainable resource management: Climate smart water saving agri-technologies promote sustainable management of water resources. These technologies can minimise the dependency on groundwater, thus ensuring its sustainable use. In this regard, India is the largest user of groundwater in the world with over 60 percent of irrigated agriculture and 85 percent of drinking water supplies dependent on aquifers.
    • Enhanced crop yield: Water saving technology like sub-surface irrigation can be used to enhance water-use efficiency, as it uses a buried diffuser that supplies water directly to the root zone and is 15-20 per cent more efficient than drip irrigation, thus enhancing crop productivity.
    • Reduced input costs: These technologies can help reduce labour costs for farmers, thus lowering the input cost. Once installed, they require very little labour to operate, allowing farmers to focus on other tasks such as crop management and harvesting.

    Though climate-smart water-saving agri-technologies are significant, their implementation and widespread adoption face several challenges like cost and affordability, lack of awareness about these technologies, etc. It is necessary to make these technologies available, accessible and affordable for farmers. Also, an integrated approach needs to be implemented in agricultural water management through adoption of innovative measures such as water harvesting, micro-irrigation and resource conservation farming to increase water-use efficiency in agriculture.

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Rajeshwari Meena
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Rajeshwari MeenaBegginer
Asked: July 2, 2024In:
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What role do women play in India’s cattle rearing industry? What problems do women in India’s cattle industry currently face? (Answer in 150 words)

upsc: economics of animal-rearing
  1. Sita mata
    Sita mata Begginer

    The livestock sector is one of the most rapidly growing components of the rural economy of India, accounting for 5% of national income and 28% of agricultural GDP in 2018-19. In the last six years, the livestock sector grew at 7.9% (at constant prices) while crop farming grew by 2%. Livestock contriRead more

    The livestock sector is one of the most rapidly growing components of the rural economy of India, accounting for 5% of national income and 28% of agricultural GDP in 2018-19. In the last six years, the livestock sector grew at 7.9% (at constant prices) while crop farming grew by 2%. Livestock contribute significantly to the income of poor households, particularly the income controlled by women, and enables poor and landless women to earn income using common-property resources.
    Contribution of women to livestock rearing in India

    • Women constitute about 69% of the workforce engaged in the livestock sector. In tribal populated states of India such as Jharkhand, Chhattisgarh, Odisha etc. their (women) share comes to around 90%.
    • Women accounted for 31% of all members of dairy producer cooperatives in 2020-21.
      • In India, the number of women’s dairy cooperative societies rose from 18,954 in 2012 to 32,092 in 2015-16.
      • There were five million women members in dairy co-operatives in 2015-16, and this increased further to 5.4 million in 2020-21.
    • Women play an important role in activities dealing with livestock such as care and management or transformation and marketing of certain livestock products.
      • They are also involved in milk production, although not all women control the sale of milk and its products
      • Women are typically responsible for milking ewes, providing feed/fodder and water, caring for newborn lambs/kids and sick animals.
      • Young girls are also involved in the grazing of goats and sheep.
    • Furthermore, livestock ownership patterns especially for small stock and poultry appear more equitable than that of other assets like land, capital, and knowledge.

    Issues faced by women in the livestock sector in India

    • Lack of gender-disaggregated data: Recent employment surveys such as the Periodic Labour Force Survey fail to collect data on women engaged in livestock rearing. This makes them invisible to policymakers.
    • Lack of access to credit & capital: Women in poor households, without collateral to offer to banks, find it difficult to avail loans to purchase livestock.
    • Limited access to extension services: The reach of extension services to women livestock farmers remains scarce owing to distance and cost factors.
    • Lack of technical knowledge: Women livestock farmers lack technical knowledge on choice of animals (breeding) and veterinary care as men invariably perform these specific tasks and take animals for artificial insemination.
    • Lack of decision making powers: Women are usually not aware of the composition and functions of dairy boards as men exercised decisions even in women-only dairy cooperatives. Further, the voice of women from landless or poor peasant Scheduled Caste households was rarely heard.

    In view of these challenges, it is pertinent to ensure that women are included in every stage of decision-making and development of the livestock sector and their invisibility in the official statistics is corrected.

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Meera Singh
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Meera SinghBegginer
Asked: June 29, 2024In:
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Is reviving the livestock industry the answer to improving Indian farmers’ income and ensuring a sustainable way of life? Provide evidence to back up your response.  (Answer in 150 words)

upsc: inclusive growth & economic development
  1. Santosh Singh
    Santosh Singh Learner

    Since the 1991 reforms, India's economy has experienced remarkable growth, with the GDP expanding from $270 billion in 1991 to $3.2 trillion in 2021. Also, India's per capita income at current prices rose at a compound annual growth rate (CAGR) of 11.2% between 1991-92 and 2019-20. Though this robusRead more

    Since the 1991 reforms, India’s economy has experienced remarkable growth, with the GDP expanding from $270 billion in 1991 to $3.2 trillion in 2021. Also, India’s per capita income at current prices rose at a compound annual growth rate (CAGR) of 11.2% between 1991-92 and 2019-20.
    Though this robust economic growth has propelled India to become the fifth-largest economy in the world, but it has not resulted in growth trickling down to the marginalised sections, rendering inclusive growth a major concern as follows:

    • Economic inequality: While India is one of the fastest growing economies in the world, it is also one of the most unequal countries. For example, According to an Oxfam report, the top 10% of the Indian population holds 77% of the total national wealth.
    • Low job creation: India’s growth since 1991 is often termed “jobless growth” with a major proportion of population engaged in low income jobs in agriculture and unorganised sectors. For example, employment CAGR has been a mere 1.04% between 1991-92 and 2017-18.
    • Low human development: The UNDP’s HDI ranked India at 132nd position in 2021 with an average score of 0.633 which is significantly lower than the world average of 0.732.
    • Multidimensional poverty: Poverty is a manifestation of economic exclusion, and its persistence in India is an indicator of the lack of inclusive growth. For example, according to the 2022 report of the UNDP on MPI, 16.4 percent of the population in India is multi-dimensionally poor while an additional 18.7 percent is classified as vulnerable to multidimensional poverty.
    • Low upward mobility: The liberalisation of the economy in the 1990s boosted economic growth but has done little to improve the upward mobility of Indians due to unequal access to opportunities for disadvantaged groups based on factors like gender, caste, and religion.
    • Children’s well-being: NFHS-5 shows that 35.5% of children are stunted, 19.3% are wasted, and 32.1 are underweight.
    • Gender inequality: Women’s role in the household, especially caring for young children, reduces the likelihood of their labour market participation, thus making the process of development less inclusive. For example, India ranked 135 out of 146 countries in the Global Gender Gap Index, 2022.

    To attain inclusive growth, it is necessary to focus on investments in primary as well as vocational education, health infrastructure, generation of employment opportunities, and inclusive financial services. Moreover, in agricultural states, where a major proportion of population is engaged, the establishment of area-specific agricultural industries, processing units, and infrastructural facilities such as storage and transportation can be the way forward.

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