Sl. No.

Jun 3/18

VAJIRAM & RAVI

[Institute for IAS Examination]
GENERAL STUDIES
TEST NO. 3
Paper – 3

Indian Economy

Time Allowed: Three Hours Maximum Marks: 250

INSTRUCTIONS
Candidates should attempt all Questions.

The number of marks carried by each question is indicated

at the end of the question.

Important: Attempt questions in the “Answer Booklet” in

the same serial order in which they are printed in the
question paper. If you skip a question, indicate it
accordingly in your “Answer Booklet”.

Pages left blank in the answer book are to be clearly struck

out in ink. Any answers that follow pages left blank may not
be given credit.

9-B, Bada Bazar Marg, Old Rajinder Nagar, New Delhi-

110060

1
1. The rise in NPAs and lack of credit off-take have necessitated
the recent recapitalisation of public sector banks but its success
depends on future reforms. Critically analyze.
(10 Marks, 150 Words)
2. To empower women in lieu of their contribution to agriculture
in India, "Gender Mainstreaming" was made an important
pillar of the National Policy for Farmers. Explain.
(10 Marks, 150 Words)
3. What do you understand by dryland agriculture? Discuss the
prospects and constraints of dryland agriculture.
(10 Marks, 150 Words)
4. India's agriculture trade policy is often targeted to attain short-
term goals which have long-term repercussions. Comment.
Also explain how draft Agri Export Policy seeks to address the
issue.
(10 Marks, 150 Words)
5. By killing transparency and competition, crony capitalism
harms free enterprise, opportunity and economic growth.
Discuss.
(10 Marks, 150 Words)
6. What are the components of land reforms in India? Critically
evaluate the success of land reforms in India.
(10 Marks, 150 Words)
7. What do you understand by inflation targeting monetary
policy? How has India's monetary policy framework changed
in the recent years?
(10 Marks, 150 Words)
8. India’s corporate bond market is still underdeveloped and
therefore unable to meaningfully share the credit burden of the
banking system. Examine.
(10 Marks, 150 Words)
9. The inclusive growth approach takes a longer term perspective
with focus on productive employment rather than on direct
income redistribution. Discuss with reference to Mudra
Yojana.
(10 Marks, 150 Words)

2
10. Evaluate how far the e-NAM has been able to create a unified
national agriculture market. Suggest measures for
improvement.
(10 Marks, 150 Words)
11. Universal electrification will have true meaning only when
people receive reliable and affordable electricity, and not just
the connections. To achieve this, household electrification
must be accompanied by reforms in electricity distribution
(discoms). Discuss.
(15 Marks, 250 Words)
12. India's relatively high GDP growth rates in the recent times
have been achieved despite the slowdown in investment rate.
Critically analyze the factors behind this slowdown. What
measures can be taken to revive the investment rate?
(15 Marks, 250 Words)

13. In light of the ill-effects of input-intensive agriculture being

practised in India, discuss the need for organic farming and
bring out the salient features of the Paramparagat Krishi Vikas
Yojana.
(15 Marks, 250 Words)
14. Agricultural extension plays a crucial role in promoting
agricultural productivity by helping move research from the
lab to the field. Explain, along with the significance of Krishi
Vigyan Kendras in this regard.
(15 Marks, 250 Words)
15. Marine fisheries are an important source of food, nutrition,
employment and income generation and any means of
production enhancement must be sustainable. Discuss how the
recent National Policy on Marine Fisheries seeks to promote
this sector while ensuring the health and ecological integrity of
the marine living resources.
(15 Marks, 250 Words)
16. The fiscal deficit rule has been honoured more in breach than
in observance. Discuss if the fiscal policy should be rigid to
maintain fiscal discipline or flexible to adjust to economic
downturns.
(15 Marks, 250 Words)
3
17. Demonetization and the Goods and Services Tax (GST) aimed
to, among other things, increase the formalization of the
economy and bring more Indians into the income tax net.
Evaluate how far the two measures have succeeded in this
regard.
(15 Marks, 250 Words)
18. India has followed very cautious and selective approach
regarding foreign capital, but liberalisation of foreign direct
investment (FDI) policy started with the reforms of 1991. In
this context, assess the evolution of FDI policy since 1991.
(15 Marks, 250 Words)
19. In order to reduce logistics costs and make the economy
competitive, India’s logistics sector needs a reset from a
“point-to-point” model to a “hub-and-spoke” model. Discuss
how the ambitious multi-modal 'Logistics Parks' can help bring
about this change.
(15 Marks, 250 Words)
20. The Hybrid Annuity Model (HAM) has not only increased
comfort level for all major stakeholders in the PPP
arrangement but also helped in revival of the infrastructure
sector. Explain.
(15 Marks, 250 Words)