17 June Ras Mains Answer Writing

Ras mains answer writing practice

Click here to download the schedule – English Medium | Hindi Medium

SUBJECT – Indian Economy

TOPIC – Agriculture – growth and productivity trends in Indian agriculture. Food processing sector and food management. Agricultural reforms and challenges | Trends in the Industrial Sector – Industrial Policy and Industrial Finance | Liberalization, Globalization, Privatization, and economic reforms | Infrastructure and economic growth

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Indian Economy PYQs – Click Here

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Q1 What are the Objectives and Components of the PM KISAN SAMPADA Scheme ? 5M

Answer:

Scheme for Agro-Marine Processing and Development of Agro-Processing ClustersMinistry – MoFPI

  • Announced in 2017, With a total allocation of 6000 crore 
  • Objectives – Double farmer’s income, Employment in rural area, Reduce food wastage, Increase export, increase choices to consumers, Treat malnutrition, Check inflation
  • 7 components – 
  1. Mega Food Parks – So far 24 Mega Food Parks are operational
    • In Rajasthan – Greentech Mega Food Park, Ajmer
  2. Integrated Cold Chain and Value Addition Infrastructure
  3. Infrastructure for Agro-Processing Clusters 
  4. Creation of Backward and Forward Linkages 
  5. Creation/Expansion of Food Processing & Preservation Capacities 
  6. Food Safety and Quality Assurance Infrastructure – Food Testing Laboratories 
  7. Human Resources and Institutions

Q2 List the major challenges of the Indian industrial sector and the major reforms undertaken to make India a global manufacturing hub. 10M

Answer:

With 17% of the nation’s GDP and over 27.3 million workers, the manufacturing sector plays a significant role in the Indian economy. The Indian government hopes to have 25% of the economy’s output come from manufacturing by 2025. 

Challenges – 

  1. Lack of Infrastructure – 
  • Power 
  • Transportation 
  • Communication
  1. Lack of fund/finances – 
  • MSMEs dependent on informal sources 
  • Bad loan / NPA Poor/immature capital market 
  1. Poor performance – 
  • Poor Debt to equity ratio 
  • Poor Interest coverage ratio 
  • Four balance sheet problem – Banks + Infra companies + NBFC companies + Real state companies
  1. Bureaucratic hurdles – 
  • Red tape 
  • Corruption 
  • Too many Compliances 
  • The Chakravyuha Challenge: Ease to enter, barriers to exit

Ex – In India, it takes 18 days on an avg to start a firm. In Newzealand, it’s only half day It takes almost 4 years to enforce a contract in India and almost 1/3rd of claim cost. In China it’s only 1.5 years [Eco Survey]

  1. External problems – 
  • USA-China trade war 
  • Competition with china 
  • Russia-Ukraine War (Costly inputs) 
  • Covid – 19 (Global slowdown) 
  • Volatile FPI

Reforms undertaken 

  1. Financial reforms – 
  • The Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs 
  • Insolvency and Bankruptcy Code, 2016 
  • Institutional credit –
    • ICICI – Industrial Credit and Investment Corporation of India 
    • IFCI – Industrial Finance Corporation of India 
    • IDBI – Industrial development bank of India 
    • SIDBI – Small Industries Development Bank of India 
  • Production Linked Incentive scheme 
  • Corporate tax cut [22% for existing and 15% for new] 
  • Budget 2024 – Capex budget is 11.11 lakh crore [11% increase] Capex to GDP ratio – 3.4% 
  • SEBI reform to developed bond market 4R for Banks [Now NPA reduced from 10% to 4%] Recognize, Recapitalize, Resolve, Reform
  1. Governance reform – 
  • Udhyami Mitra portal 
  • National Single Window System 
  • Make In India 2.0 
  • GST 
  • PM Gati Shakti National Master Plan (NMP) 
  • Industrial Corridor Development Programme
  •  Rationalization of 29 labour laws into 4 codes  – Code on Wages, 2019,  Industrial Relations Code, 2020,  Social Security Code, 2020 and  Occupational Safety, Health, and Working Conditions Code, 2020
  1. Reforms to solve external problems – 
  • Allowing many industries to Get 100% FDI through automatic route 
  • Ex recently defense manufacturing was allowed to get 100% FDI using an automatic route 
  • MoU between India and Japan in the field of steel industry 
  • UAE-India MoU to drive investment and collaboration in industry and advanced technologies 
  • MoU between India and USA to Enhance Innovation in industries 
  • Aatmnirbhar Bharat Abhiyan (ABY) to deal with covid – 19 shocks

India currently stands among the top three preferred global manufacturing locations and holds substantial potential to achieve exports valued at 1 trillion US dollars by 2030. These ongoing reforms will further bolster India’s trajectory towards becoming a major global manufacturing hub.

Q3 Enlist the major challenges In the Indian agriculture sector and reforms taken to double the farmer’s income. 10M 

Answer:

India’s agriculture plays a crucial role in ensuring national food security, maintaining affordable food prices for a significant low-income population, and providing employment for almost 55% of the country’s workforce. However, the sector faces various challenges that adversely impact its development and threaten the livelihoods of farmers.

In conclusion, advancing the recommendations of the Ashok Dalwai committee, which include conceptualizing agriculture as an enterprise, strengthening agricultural marketing, enhancing infrastructure, refining price dissemination strategies, and expanding the network of FPOs and FPCs, offers a promising pathway towards achieving the ambitious objective of doubling farmer income.

In conclusion, advancing the recommendations of the Ashok Dalwai committee, which include conceptualizing agriculture as an enterprise, strengthening agricultural marketing, enhancing infrastructure, refining price dissemination strategies, and expanding the network of FPOs and FPCs, offers a promising pathway towards achieving the ambitious objective of doubling farmer income.

Q4 The food processing industry has immense potential to solve many problems in India. However, due to many challenges, we have yet to utilize this industry’s full potential. Explain. 10M

Answer:

Sol – The food processing sector involves converting raw agricultural and livestock products into processed and value-added food products suitable for consumption. It is a significant contributor to India’s economy, accounting for 13% of exports and 6% of industrial investment.

Potential to solve many problems – 

  • Unemployment
    • Approx 12% of all registered factories workers in Food processing industry 
    • Approx 50 lakh unregistered workers
  • Food Wastage
    • Food processing can save the 92500 crore post harvest losses 
  • Low farmer’s income
    • Avg Income of agri household is below Avg Indian Income 
    • Food processing in Dairy, Meat, Poultry, Spices can give additional buffer income 
  • Food inflation
    • Due to hoarding or crop failures, agri commodities price become many fold 
    • Processed food like Ketchup and packaged food gives alternative to consumers 
  • Low Agri export [Aim of $60 Billion under Agri export Policy 2018] 
  • Problem of malnutrition
    • 57% of women [15-49 years age] are anaemic
    • 67% children Below 5 years age are anaemic
    • Food processing methods like Rice and milk fortification can solve this problem of Anaemia, Stunting, Wasting and malnutrition 
  • Problem of monocropping
    • Food processing promote sustainable agriculture by promoting millets, agro-forestry, livestock rearing etc 
  • Poor mechanization and technology in primary sector in India
    • Food processing is the link between agriculture and industry. Hence it induces new technology and innovation in agriculture. 

Challenges – 

At farm level – 

  • Poor Quality produce (गुणवत्ता की कमी) 
  • Poor Yield (उत्पादन में कमी) 
  • Safety norms [Excessive use of Fertilizers, Pesticides etc] – Sanitary and phytosanitary (SPS) measures 

At factory level – 

  • > 75% is unorganized  – Credit crunch, Obsolete Machinery ,Outdated skill
  • Competition with MNCs and Globalization 
  • Poor quality and safety standards 
  • High cost of marketing and packaging 

At Logistic level – 

  • No of cold chain, Refrigerated trucks 
  • Road and Rail network, Kaccha roads 
  • logistical barriers – Indian national highways, while accounting for 2 per cent of the total road network, carry 40 per cent of all cargo 
  • Exit problems at ports and custom points

At consumer level – 

  • Health concern 
  • Ex – MDH- allegations of cancer-causing pesticide in Spices Prefer Fresh food (Culture) 
  • Prefer Fresh food (Culture)
  • Prefer brands
  • No national character of food

Owning to above challenges, Food processing industry is yet to realize it’s potential as evident by facts – 

  • India is the world’s second-largest producer of fruits and vegetables, after China, yet just 2% of the crop gets processed
  • India has the world’s greatest livestock population, but only around 1% of the entire meat population is transformed into value-added goods
  • At present, India is processing less than 10% of its agricultural output [USA – 65%]

Government initiatives such as the inclusion of food & agro-based processing units under Priority Sector Lending (PSL) norms, allowing 100% FDI approval under automatic route, setting up a Special Food Processing Fund of Rs. 2000 crore with NABARD, Pradhan Mantri Kisan Sampada Yojana, Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme, and Production Linked Incentive (PLI) Scheme will help leverage its full potential.

Q5 Briefly describe the measures taken during LPG reform and their long-term impact on the Indian Economy. 10M

Answer:

India initiated the LPG (Liberalization, Privatization, Globalization) reforms in 1991 in response to a severe economic crisis. This crisis was characterized by a balance of payments crisis, low GDP growth, high inflation, and burgeoning fiscal deficits.

Measures taken – 

  • Liberalization
    • Import licensing was abolished except in case of hazardous and environmentally sensitive industries
    • Dismantling of quantitative restrictions on imports and exports
    • Reduction of taxes
    • The rupee was made fully convertible on the current account and partially on the capital account
    • Market-determined exchange rate regime with occasional intervention by RBI
    • Narsimhan committee – Recommended privatization of bank and deregulation of RBI
  • Privatization
    • Dilution of the role of the public sector through strategic disinvestment, Complete privatization or token privatization
    • In 1991-92, it was targeted to mobilise Rs 2500 crore through disinvestment. The government was able to mobilise 3,040 crore more than the target.
    • Privatisation of Air India
    • Privatisation of airports – Mumbai, Delhi, Hyderabad etc
    • Disivestment of LIC, ONGC, Coal India etc
  • Globalization –
    • Free entry to foreign investment and technology
    • Signing FTAs, joining Economic blocks

Impact on the Indian Economy

  • India’s GDP growth rate increased. 
    • India is 5th largest economy [In 1991 – 17th position] 
    • Today, third-largest by purchasing power parity 
    • Remittances constitues Kerala’s 36% GSDP 
  • There was a strong flow of FDIs – Better use of resources 
  • In 1990 – $ 97 million
    Crossed $ 85 billion [Almost 1000 times] 
    •  
  • Decline in unemployment 
    • IBM has more employees in India than in the United States 
  • Per capita income increased 
  • Tax revenue as a % of GDP increased 
  • Exports increased 
  • Poverty rate declined – From almost 50% to 21% [Suresh Tendulkar committee] 
    • Helped to bring 600 million people out of poverty 
  • Better service delivery and better choices 
    • In 1991, it took two years for anyone to get a telephone landline connection. N. R. Narayana Murthy, head of top software company Infosys, recalls that in the 1980s, it took him three years to get permission to import a computer and over one year to get a telephone connection 
  • IT Sector boom Infosys, Wipro, and HCL 
  • Specialization of labour – Global value chain 
  • Peace – When trade stops, War happens [Jack Ma]

The LPG reforms have changed India’s economy, making it more open, competitive, and resilient. While they’ve delivered notable advantages like increased growth and global connections, there are also issues like income inequality and environmental harm that require attention.

Q6 Write a letter to the Editor of a national daily highlighting the deteriorating condition of historical sites (buildings) in Rajasthan, suggesting measures to protect them. 

Answer:

E-84, Van Vihar
Ambabari, Jaipur 

12 December, 2023

The Editor 
The Times of India
Jaipur

Subject: Need for proactive State action to protect our heritage sites.

Sir

I would like to draw the attention of the authorities and the public to the deteriorating condition of historical sites in Rajasthan. Rajasthan has a lot of treasures and every village has some connection with the history. Many historical buildings and structures are being neglected in Rajasthan. As some of these monuments are not more than 100 years old, these are neither under the care of the state nor the centre.

As per records, the ASI (Archeological Survey of India) at present is looking after 227 buildings, including forts and places of archeological significance, in the state as protected monuments. But the inclusion of more monuments in the category will facilitate their conservation and help attract more tourists and develop tourism in the state. It is, therefore, suggested that the state Archaeological Dept should make sincere efforts to identify and include all historical monuments in the category of protected buildings and restore and protect them. There are a number of baoris (step-wells), forts, and palaces in Rajasthan which need conservation and restoration. There is a provision of grant upto Rs. 5 lakh by the ASI for the restoration of such structures.

Yours truly 

Manish Kumar 

(A concerned citizen)

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