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Indian Economy

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Home/Indian Economy/Page 6

Mains Answer Writing Latest Questions

ALISHA SAGAR
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ALISHA SAGARBegginer
Asked: July 18, 2024In: , ,
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diplomacyinternational relations
  1. Sreeja depa
    Sreeja depa Begginer

    To make peace in global conflicts, the world needs better international diplomacy. This means talking more and finding ways to understand each other. One way to do this is by having neutral countries help conflicting parties talk things out. International groups like the United Nations (UN) can alsoRead more

    To make peace in global conflicts, the world needs better international diplomacy. This means talking more and finding ways to understand each other. One way to do this is by having neutral countries help conflicting parties talk things out. International groups like the United Nations (UN) can also greatly help. They can organize peace talks, send peacekeepers to stop any fighting, and help everyone follow global rules.

    Soft power, like sharing culture or offering economic benefits, can also convince countries to solve problems peacefully. If countries see they can gain from peace, they might be more willing to talk. Understanding each other’s cultures can make countries more sympathetic towards each other.

    But it’s not just about stopping fights; it’s also about fixing what caused them, like bad economies, unfair politics, or social issues. International diplomacy should help countries make these significant changes for lasting peace.

    In short, by talking more, using international help, and fixing deep problems, diplomacy can be stronger and make the world more peaceful.

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Team
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TeamSupreme
Asked: September 11, 2024In:
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What is the defense industry’s public-private partnership model? (125 Words) [UPPSC 2018]

uppsc: investment models
  1. Pranav Shah
    Pranav Shah Learner

    Public-Private Partnership (PPP) Model in Defence: The Public-Private Partnership (PPP) model in the defence sector involves collaboration between government entities and private companies to enhance defence capabilities and infrastructure. Key Features: Collaboration: Private sector partners contriRead more

    Public-Private Partnership (PPP) Model in Defence:

    The Public-Private Partnership (PPP) model in the defence sector involves collaboration between government entities and private companies to enhance defence capabilities and infrastructure.

    Key Features:

    1. Collaboration: Private sector partners contribute expertise, technology, and investment while the government provides regulatory support and policy framework.
    2. Investment and Technology: Private firms invest in and develop advanced defence technologies and infrastructure, such as manufacturing facilities and research centers.
    3. Shared Responsibilities: Both sectors share responsibilities for project development, management, and operational efficiency, aiming to leverage each other’s strengths.
    4. Capacity Building: This model helps in building domestic manufacturing capabilities and innovation in defence technology, reducing reliance on foreign suppliers.

    The PPP model aims to improve efficiency, innovation, and cost-effectiveness in defence projects.

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Madhav Pransukhka
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Madhav PransukhkaBegginer
Asked: July 24, 2024In: ,
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  1. Anita Dhruw
    Anita Dhruw Legend

    India is combating rising inflation through the channel of monetary, fiscal, and administrative measures: 1. Monetary Policy: To put it bluntly, interested institutions, like RBI, have the burden to use interest rates to influence demand pull inflation. In turn, the RBI increases the repo rates makiRead more

    India is combating rising inflation through the channel of monetary, fiscal, and administrative measures:

    1. Monetary Policy: To put it bluntly, interested institutions, like RBI, have the burden to use interest rates to influence demand pull inflation. In turn, the RBI increases the repo rates making borrowing expensive and thus pulling down money supply as a way of controlling demand pull inflation. It also employs implements such as open market operations to influence the level of liquidity within an economy.

    2. Supply-Side Measures: The government intervening in the availability of the organisations’ products in an aim to fight the inflationary pressure that arises due to interruption of the supply chain,especially when it comes to foods. For instance, it liberates stocks that contain grains, controls exportation and even acts on cases of hoarding with an aim of standardizing the prices of basic products.

    3. Import Duty Adjustments: The government can lower deposit on imported goods; such as edible oils, pulses or fuel so that the price of imported goods does not exert inflation pressure on the consumer.

    4. Fiscal Policies: In order to mitigate the impact of inflation, government offers subsidies to the basic needs employing products like fertilizer for farmers / food for the public, and welfare schemes including but not limited to supply of free grains to the poor (like in PMGKAY).

    5. Energy Price Control: Taxes can be varied or more fundamentally the government can control the price of the inflation index, which is fuel pricing.

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Nikhil 64
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Nikhil 64
Asked: July 26, 2024In:
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What comprehensive policy recommendations would you suggest to eradicate nepotism from public administration and corporate governance in India?

policies
  1. Raudas Singh
    Raudas Singh Begginer

    Eradicating nepotism from public administration and corporate governance in India requires a multi-faceted approach. Here are some comprehensive policy recommendations: Public Administration: Merit-based recruitment: Implement a transparent and merit-based recruitment process for all government jobsRead more

    Eradicating nepotism from public administration and corporate governance in India requires a multi-faceted approach. Here are some comprehensive policy recommendations:

    Public Administration:

    1. Merit-based recruitment: Implement a transparent and merit-based recruitment process for all government jobs, with clear eligibility criteria, strict qualifications, and rigorous testing.
    2. Transparent appointment procedures: Ensure that all appointments, promotions, and transfers are made through a transparent and publicly disclosed process, with no scope for personal connections or biases.
    3. Code of Conduct: Establish a strict code of conduct for government officials, including clear guidelines on ethical behavior, conflict of interest, and accountability.
    4. Whistleblower protection: Provide a safe and secure mechanism for employees to report corruption, nepotism, or other malpractices without fear of retaliation.
    5. Constitutional Amendment: Amend the Constitution to explicitly prohibit nepotism and ensure that it is punishable by law.
    6. Independent Oversight Bodies: Establish independent bodies to monitor government operations, investigate complaints, and ensure accountability.

    Corporate Governance:

    1. Independent Boards: Ensure that boards of directors have a majority of independent directors who are not related to the promoter group or management.
    2. Board Composition: Define clear criteria for board composition, including expertise, diversity, and independence.
    3. Code of Conduct: Establish a code of conduct for directors and senior management, emphasizing ethical behavior, transparency, and accountability.
    4. Confidential Whistleblower Mechanism: Implement a confidential mechanism for employees to report unethical or illegal activities without fear of retaliation.
    5. Transparent Disclosure: Mandate public disclosure of ownership structures, related-party transactions, and conflicts of interest.
    6. Regulatory Oversight: Strengthen regulatory bodies to monitor corporate governance practices and take prompt action against non-compliance.

    Education and Training:

    1. Value-based Education: Incorporate values like integrity, transparency, and accountability into school curricula to promote ethical behavior from an early age.
    2. Professional Training: Provide regular training sessions for government officials and corporate executives on ethics, conflict of interest, and governance best practices.
    3. Mentorship Programs: Develop mentorship programs to pair young professionals with experienced leaders who can guide them on ethical decision-making.
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Ranjanaa
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RanjanaaBegginer
Asked: July 24, 2024In:
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How do banks manage liquidity to ensure they meet their obligations while earning a profit?

bankbank policybankingbanking and monetary policymonetary policy
  1. Anita Dhruw
    Anita Dhruw Legend

    1. Maintaining Adequate Reserves: Banks are supposed to maintain an absolute amount of cash reserves under the respective regulation-such as Cash Reserve Ratio or CRR. The reserves offer capacity for any cash claims that may occur in an unusual way from their depositors. Despite the fact that maintaRead more

    1. Maintaining Adequate Reserves: Banks are supposed to maintain an absolute amount of cash reserves under the respective regulation-such as Cash Reserve Ratio or CRR. The reserves offer capacity for any cash claims that may occur in an unusual way from their depositors. Despite the fact that maintaining such reserves generates no interest, they provide liquidity for money at the bank’s end.

    2. Asset/Liability Mismatch Management: They control their asset (loans and investments) and liability maturity profile to storage the inflow from the maturity of asset liability outflow thus minimizing the factor of liquidity risk.

    3.Lending and Interbank Market: Also, banks can borrow from other banks in the interbank market or rely on short term funding instruments like repos if funds are immediately required. It would thus enable the servicing of their short term liabilities without compelling the sale of long term assets that would fetch high prices in the market.

    4. Liquidity Pool: They possess a pool of HQLAs that can be sold easily at any time, amongst which are government bonds ,inter alia to allow the generation of cash in case of a thick of liquidity.

    5. Diversification of funding source: The use of funding by banks reduces on distinct sources of funding for instance retail deposits, wholesale funding, bonds and yet reduces the risk of a short supply of liquidity.

    6. Profitability through Lending and Investments: The liquidity that banks establish with regard to income earning activities for loans and securities would guarantee that liquid assets are properly utilized to generate profits without compromising on the capacity to meet its obligations.

    This strategic management ensures availability of liquidity and profitability with reduction of the probability of high liquidity.

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Team
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TeamSupreme
Asked: August 23, 2024In:
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Roadmap for Answer Writing 1. Introduction Define mob violence and its significance as a law and order problem in India. Introduce notable examples, such as the Dadri lynching (2015) and Alwar violence (2017), to illustrate the issue. 2. Causes of Mob Violence A. Communal Tensions Discuss ...

upsc: socio-economic issues
  1. Team
    Team Supreme

    Model Answer Introduction Mob violence is increasingly becoming a serious law and order problem in India, characterized by uncontrolled public disorder and chaos. Notable incidents, such as the Dadri lynching in 2015 and the Alwar violence in 2017, highlight the severity of this issue. Causes of MobRead more

    Model Answer

    Introduction

    Mob violence is increasingly becoming a serious law and order problem in India, characterized by uncontrolled public disorder and chaos. Notable incidents, such as the Dadri lynching in 2015 and the Alwar violence in 2017, highlight the severity of this issue.

    Causes of Mob Violence

    1. Communal Tensions:
      Many incidents of mob violence stem from deep-rooted religious and caste conflicts, often exacerbated by divisive politics. For instance, the Alwar lynching in Rajasthan in 2017 was fueled by suspicions of cow smuggling, leading to a tragic mob attack on a dairy farmer motivated by religious sentiments .
    2. Social Media Misinformation:
      The rapid spread of rumors and fake news through social media platforms can incite violence. The 2018 WhatsApp lynchings serve as a stark example, where unfounded rumors about child kidnappings resulted in numerous deadly mob attacks across the country .
    3. Weak Law Enforcement:
      The inadequate response or reluctance of law enforcement agencies to act decisively often allows situations to escalate. The 2013 Muzaffarnagar riots in Uttar Pradesh exemplify this failure, where law enforcement’s inaction contributed to widespread violence .

    Consequences of Mob Violence

    1. Loss of Lives and Property:
      The most immediate consequence is the tragic loss of lives and extensive damage to property during such violent outbreaks.
    2. Social Disintegration:
      Mob violence can create lasting divisions within communities, fostering fear and mistrust among different groups, leading to social fragmentation.
    3. Law and Order Breakdown:
      Frequent mob violence undermines public faith in law enforcement and the judicial system, eroding the rule of law and creating a cycle of impunity.
    4. Economic Impact:
      The disruption caused by mob violence negatively affects local economies, leading to business closures, loss of livelihoods, and an environment that discourages investment.

    Conclusion

    Mob violence in India is a complex issue driven by social, technological, and institutional factors. Addressing it effectively requires improved law enforcement, judicial accountability, and social awareness campaigns to counter misinformation and promote communal harmony.

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Kumudini Lakhia
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Kumudini LakhiaEnthusiast
Asked: January 21, 2025In:
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Roadmap for Answer Writing 1. Introduction  Briefly introduce the food processing sector’s importance to India’s economy. Mention its contribution to manufacturing GDP, exports, and industrial investment (14%, 13%, and 6%, respectively). Fact: India’s food processing industry contributes 14% to manufacturing GDP, 13% to exports, ...

upsc: food processing
  1. Team
    Best Answer
    Team Supreme

    Model Answer Introduction India’s food processing industry holds significant potential to become a global powerhouse, contributing 14% to the manufacturing GDP, 13% to exports, and 6% of total industrial investment. By leveraging its comparative advantages, India can transform this sector to play aRead more

    Model Answer

    Introduction

    India’s food processing industry holds significant potential to become a global powerhouse, contributing 14% to the manufacturing GDP, 13% to exports, and 6% of total industrial investment. By leveraging its comparative advantages, India can transform this sector to play a pivotal role in the global food supply chain.

    Strategic Geographic Location

    India’s strategic geographic location places it close to major export markets like the Middle East and Southeast Asia. However, the country faces high logistics costs, approximately 14% of GDP, which hampers competitiveness. Developing infrastructure and policy reforms are crucial to reduce these costs. Improving supply chain efficiency will help India capitalize on its geographical advantage and enhance export potential.

    Diverse Agro-climatic Conditions

    India’s diverse agro-climatic zones enable the cultivation of a wide variety of crops, ensuring a steady supply of raw materials for food processing. However, productivity remains a challenge, with India’s wheat productivity at 3.08 tons per hectare, much lower than the Netherlands’ 8.54 tons. To maximize this advantage, improving agricultural productivity through better farming techniques and innovations is essential.

    Adoption of Advanced Technologies

    Integrating advanced technologies can revolutionize the food processing industry by improving efficiency, product consistency, and quality standards. Technologies like AI for crop monitoring, supply chain management, and automated packaging can streamline operations and help meet international quality standards. This will not only improve productivity but also enhance the competitiveness of Indian processed food in global markets.

    Large Workforce and Growing Domestic Market

    India’s young workforce, with more than 600 million people aged between 18 and 35, offers significant labor potential for the food processing industry. However, there is a need for skilling programs to improve labor productivity. Simultaneously, India’s large domestic market and rising middle class are driving the demand for processed food. Ensuring quality assurance is vital, as 24.6% of food samples analyzed by FSSAI were found non-conforming to standards.

    Conclusion

    By focusing on these strategic areas—logistics, agricultural productivity, technology adoption, workforce development, and quality assurance—India can harness its comparative advantages to make its food processing sector a global leader.

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Anjali Varandani
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Anjali VarandaniBegginer
Asked: July 21, 2024In:
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  1. Srashti
    Srashti Begginer
    This answer was edited.

    The implications of monetary policy on the risk taking behaviour of banks are: Interest Rate Influence: Lower rates reduce borrowing costs, encouraging banks to lend more, including to riskier borrowers. Higher rates increase borrowing costs, leading to more conservative lending practices. Risk andRead more

    The implications of monetary policy on the risk taking behaviour of banks are:

    Interest Rate Influence:

    Lower rates reduce borrowing costs, encouraging banks to lend more, including to riskier borrowers.

    Higher rates increase borrowing costs, leading to more conservative lending practices.

    Risk and Return Trade-Off:

    Low interest rates diminish returns on safe assets, prompting banks to seek higher yields through riskier investments.

    High interest rates make safe assets more attractive,  reducing the incentive for risk-taking.

    Credit Expansion:

    Expansionary monetary policy can lead to increased lending and borrowing, potentially inflating asset bubbles.

    Contractionary policy typically results in reduced lending and borrowing, cooling down overheated markets.

    Financial Stability:

    Prolonged low interest rates may lead to excessive risk accumulation, increasing financial instability.

    Higher rates can promote stability but may slow economic growth if applied too aggressively.

    Regulatory Impact:

    Inadequate regulatory frameworks during periods of low rates can exacerbate risky behaviour, as seen in the 2008 financial crisis.

    Effective regulation is crucial to balance risk-taking and maintain financial stability under varying monetary policies.

    In summary, monetary policy significantly affects banks’ risk-taking, with lower rates encouraging more risk and higher rates promoting prudence. Balancing these outcomes is essential for economical stability.

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Anita Ratnam
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Anita RatnamLearner
Asked: January 20, 2025In:
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Roadmap for Answer Writing Introduction Define the ‘National Champions’ model of economic growth. Mention how the model involves the government selecting and promoting a few large domestic companies (conglomerates) to lead major infrastructure projects and boost economic growth. Highlight its purpose: fostering growth by ...

upsc: investment models
  1. Team
    Best Answer
    Team Supreme

    Model Answer The "National Champions" model refers to a strategy where the government selects a few large industrial conglomerates to lead major infrastructure projects, leveraging their strength to promote economic growth. This model has been debated in the context of India, especially with the scrRead more

    Model Answer

    The “National Champions” model refers to a strategy where the government selects a few large industrial conglomerates to lead major infrastructure projects, leveraging their strength to promote economic growth. This model has been debated in the context of India, especially with the scrutiny surrounding Adani Group’s trading practices, which brought the feasibility of such a model into question.

    Strengths of the National Champions Model in India

    1. Addressing Infrastructure Bottlenecks: The model focuses on a few large players who can efficiently manage and execute large-scale infrastructure projects, which have long been a challenge for India. This can help fast-track the country’s infrastructure development, promoting growth.
    2. Improved Financing: Large conglomerates, under this model, can leverage their established reputation and financial power to secure financing for projects, reducing dependency on government funding. This also allows the use of these projects as collateral in external credit markets, easing financial constraints.
    3. Global Competitiveness: Tied with government policy, these national champions are better positioned to secure both domestic and international contracts, ensuring their global competitiveness and steady revenue streams.

    Challenges of the National Champions Model in India

    1. Risk of ‘Too Big to Fail’: The close ties between government and conglomerates may lead to a “too big to fail” mentality, creating market distortions and systemic risks. This was evident in the controversy surrounding the Adani Group, raising concerns about the impact of such concentrated power.
    2. Market Concentration: The model encourages monopolistic behavior, concentrating market power in a few hands. This can lead to inefficiency, lack of innovation, and higher costs in the economy.
    3. Industrial Oligarchy and Uneven Playing Field: A reliance on a few conglomerates for infrastructure development could result in an industrial oligarchy, where these firms receive preferential treatment, reducing fair competition and potentially deterring foreign investment.

    Conclusion

    While the National Champions model has strengths, particularly in tackling India’s infrastructure bottlenecks, it also presents significant risks. Drawing lessons from South Korea’s successful adoption of this model for trade-oriented sectors, India must carefully regulate the application of this strategy, especially in non-tradable sectors like infrastructure, to avoid market distortions and ensure sustainable economic benefits.

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