Page-17 of GS-III: Economy & Economic Development

Give an account of the hurdles faced in financing of infrastructure in India. Also mention the steps taken by the government to resolve them.

Indian needs about $1.5 trillion investment in infrastructure to become a $5 trillion economy by 2025. Issues faced in infrastructure financing: Fiscal constraints (FRBM). Unavailability of funds. Huge...

February 4, 2024

Trace the evolution of Budget in India since East India Company rule.

Model Answer: A rough budget of East India Company was prepared in 1790.After the end of East India’s Company’s rule, India’s first budget was presented on February 18,...

February 3, 2024

Objectively differentiate between Demand-led, Investment-led and Consumption-led Economic Growth models. Which model suits to Indian Economy? Discuss.

Model Answer: There are several drivers of Economic Growth such as: Demand-led Growth The policy of fiscal stimulus or increase in government expenditure, decrease in taxes may allow...

January 31, 2024

The Digital monopolies are often accused of posing a threat to the fundamental fabric of market competition. In this context examine the effectiveness of the regulatory Framework in India to deal with digital monopolies.

The digital monopolies denote the collectivity of a few digital cooperation who have come to establish a global hegemony over the world’s digital space. E.g. Facebook, Microsoft, Amazon,...

January 29, 2024

Highlight the potential, significance of food processing sector in India. Also mention the issues that have plagued the development of this sector.

Food processing sector represents the sunshine sector contributing to over 13% of our GDP and 1/3rd of total food market. Potential: Consumer demand – High growth in organic...

January 29, 2024

Highlight the need for promoting energy efficiency in India. Mention the steps taken by the government in this regard.

Energy efficiency refers to optimal utilisation of produced output with minimal wastage/ loss in its transmission or consumption. Current status: India is among top 3 consumer of energy...

January 28, 2024

Microcredit has multiple advantages but its effectiveness as a financial tool has come under question in recent times. Discuss in the context of India.

Microcredit refers to small amount of credit given to small entrepreneurs and other poorer sections to help them become self employed or start a small business. It is...

January 28, 2024

The infrastructure is considered as a key determinant of the economic development of a nation. In this context, highlight the issues faced in infrastructure financing in India.

Infrastructure is the key to quality of public life and level of economic activity in a nation. Characteristics (National statistical Commission): Public good High externality Non tradability of...

January 27, 2024

"The success of a GST system is largely dependent on the width of its coverage."Comment.

Model Answer: The success of GST tax regime will depend on the width of its coverage i.e larger the number of items for GST to be imposed; the...

January 26, 2024

The proposed 1% additional levy on supply of goods under GST will contradicts the actual purpose of GST introduction. Comment.

Model Answer: GST being a destination-based consumption tax, is levied in the states or places where the goods or services are consumed rather than on places from supply...

January 23, 2024