MGP 2021 (Cohort 7)

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MGP 2021 (Cohort 7) GS Test #7 - Solution

This document has been created by ForumIAS Academy, 19, IAPL House, PUSA Road,Karol Bagh 110005, New Delhi.

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Q.1) Gig is an integral part of innovation driven economy, yet it can create its own divide. Analyze.

Approach- Introduce the answer with the definition of gig-economy. Discuss how gig supports innovation. Next,

analyze how gig creates and widens the divide. Conclude by highlighting the importance of gig and how it can be

used for the nation’s development and welfare.

A gig economy is a free market system in which temporary positions are common and organizations hire

independent workers for short-term commitments. Gig has become a part of economy, especially in an innovation

driven ecosystem of industrial revolution 4.0.

Gig supports innovation in following ways:

1. Gig encourages employee to be on a learning curve to demand higher remuneration for their services,

while also giving chance to employers to have diversity of ideas from different experts.

2. Tech companies can hire gig employees to come up with innovative products and revolutionize service

provided by them. For example: drivers in ola or uber, delivery executives in Zomato or Swiggy etc.

3. Small companies and startups can hire specialized workers for short period of time. Without such an

arrangement smaller companies cannot afford people with specific expertise on permanent payroll.

4. More opportunity to acquire diverse skill sets and work in different roles/ fields/ industries, higher job

satisfaction.

5. More talent enters job market as it allows work from home and other flexibility. For example: freelancing

alongside studying.

Although gig is important for innovation, gig economy also includes informal and ‘casual workers’ segment across

urban and rural areas like temporary farm workers, daily-wage construction laborers, household help etc.

Gig is criticized for creating and widening divide because:

1. Gig economy works purely on market principle of demand and supply. It views humans just as another

resource. So, only highly skilled gig workers can demand high remuneration. On the other hand, easily

replaceable low skill gig laborers are exploited by employers.

2. Most of the quality gig jobs are available in urban areas, widening rural urban divide. Large number of

quality gig employments are generated by tech companies relying on innovative model which requires

basic technical knowledge in worker. Thus, widening digital divide.

3. Lack of benefits: Flexi-workers usually are not entitled to minimum wages, insurances, PF, retirement

plans, paid leave, maternity benefits, etc.

4. Pay difference- Permanent employees have a grade-pay plus benefits like travel allowance, etc. Gig workers

are paid strictly as per the amount of work.

5. Restricted growth: Low skill gig workers cannot move up the organizational hierarchy and not considered

for promotions.

In short term, gig employment is important for addressing unemployment problem as it is easier to create gig jobs

especially for those who do not possess any specific skill. But in a long run, it will increase the divide between the

haves and have-nots. India requires upskilling and reskilling of its work force along with creation of formal

employment for reaping full benefit of IR 4.0. (431 words)

Q.2) Direct monetization of deficit to increase government expenditure in pandemic hit economy is integral to

the questions of reviving growth. Give your opinion.

Approach: In introduction, explain what direct monetization of deficit means. Then discuss merits in adoption of

direct monetization in context of reviving growth in economy. Also, present demerits of this policy option. You can

also suggest other ways to boost economy. Conclude with your opinion on the issue.

Under direct monetization of deficit, RBI prints new currency and purchases government bonds directly from the

primary market (from the government) using this currency. As a result, this supports the spending needs of the

government.

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As India battles the impact of the Covid-19 pandemic, economic indicators like tax revenue, government

expenditure, household savings, demand as well as supply are adversely hit. Thus, some economists including former

RBI governor C Rangarajan have suggested that the government should monetize the deficit.

Merits of directly monetizing the deficit:

1. Sovereign ratings: All top 3 rating agencies i.e., S&P, Moody’s and Fitch have placed India just one notch

above the junk category status (BBB-) in terms of investment. Sovereign rating is very likely dependent on

stabilizing rising public debt and debt-to-GDP ratio. A further downgrade may lead to flight of foreign

capital from India.

2. Prevents crowding out effect: large scale domestic borrowing by government can make it harder for private

sector to raise money.

3. Similar expansion in Money supply: It is argued that whether RBI acquires government bonds from

secondary markets (through OMOs) or directly from Treasury, effect on money supply is similar as long as

inflation is kept under control.

4. Less risk of inflation in immediate term: Transmission of base money (M0) to broad money (M3) is likely

to be slow because of slower credit growth which leads to lower velocity of money (frequency at which one

unit of currency is used to purchase domestically produced goods and services within a given time period).

This low velocity and lesser transmission reduce the inflation risk.

Demerits of this policy action:

1. Rise in inflation in the long-term: as opposed to temporary expansion in money supply in OMOs.

2. Devaluation of rupee: aggressive DM could devalue the currency, causing foreign investors to lose

confidence and pull-out money, putting the existing fiscal financing plan at risk.

3. Possibility of Inefficient Spending: Usually fiscal profligacy is seen among governments when money is

easily available to exploit and it may also lead to rise in corrupt practices.

In this pandemic situation, at a time when demand is low and unemployment is high, monetization is not likely to

create negative effects as it does in normal situations. It has the possibility to set off virtuous cycle of liquidity easing,

leading to a reduced level of insolvency and also a positive impact on the economy which will reduce debt-to-GDP

ratio. Moreover, it is suggested that past fiscal profligacy should not stop deficit monetization and the decision should

be based on present ground situation. (426 words)

Q.3) A mature public private partnership (PPP) framework, along with a robust enabling ecosystem is required

to accomplish the goal of Atmanirbhar Bharat. Comment.

Approach: Start by clarifying the goal of Atmanirbhar Bharat. List the ways in which PPP framework and its

enabling ecosystem helps to protect against disruptions from excessive international exposure. Conclude with way

forward.

“If India is to make a real contribution to Asian and global economic recovery, it can start by helping itself

more.” The External Affairs Minister S Jaishankar has highlighted the importance of Atmanirbhar Bharat in these

words. The goal for Atmanirbhar Bharat or Self-reliance for India is to hedge against excessive international

exposure in supply of goods.

Public private partnership (PPP) along with a robust enabling ecosystem provides important capacity building

opportunities that would be needed to diversify supply chains.

The role of PPP framework can be explained in following ways:

1. Partnership between government-owned labs and research centers and private sector manufacturers can

help build robust products and large manufacturing capabilities. Such as in pharma, food processing

sector etc.

2. PPP would help direct available private expertise towards development of public infrastructure such as in

railways and urban development.

3. PPP can help scale-up grass-root infrastructure efficiently such as in healthcare. It would help protect

against crippling emergencies such as pandemic and also address legacy issues in public health.

4. Large-scale public procurements and local sourcing norms can help incentivize manufacturing sector’s

growth and help small companies scale up.

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The contribution from strengthening a robust enabling ecosystem can be explained in following ways:

1. Improved contract enforcement would improve ease of doing business in the Indian economy.

2. Removal of sectoral disabilities would help liberalize the economy.

3. Creating economies of scale would have agglomeration benefits for small and medium enterprises.

4. Ensuring efficiencies would build product and market competence.

5. Creating a level-playing field will help competitive business ecosystem that can withstand sectoral or

economic disruptions.

6. Setting up an Institute of Excellence in PPP as suggested by Kelkar Committee (2015) would help build

strategies and evaluate measures to improve the PPP mechanism.

7. The government initiatives like Production-linked incentive (PLIs) scheme crowds in public financial

incentives and global private expertise to build-up manufacturing capacities.

Atmanirbhar Bharat is the pursuit of strategic autonomy in economy and supply chains. It has important role to play

in de-risking the global economy from supply disruptions. More effective partnership between public and private

sector is needed to build an economy capable of reliable integration with the global supply chains. (367 words)

Q.4) The National Infrastructure Pipeline (NIP) seeks not only to create world class infrastructure but also

promote inclusive development. Elaborate.

Approach: Introduce by defining NIP. Then briefly explain its objectives of infrastructure creation. Then discuss

how the creation of infrastructure would aid inclusive development. Also, highlight some challenges and conclude

with some suggestions to address these challenges.

National Infrastructure Pipeline (NIP) is a collection of infrastructure projects sought to be implemented over the

period of 2020-2025. The aim is to map the infrastructure needs of the country and ease the flow of investment for

creation of required infrastructure.

NIP’s role in creating world-class infrastructure:

1. It would help address the bottlenecks in implementation of large infrastructure projects through high level

monitoring.

2. Creation of India Investment Grid for NIP creates visibility for the projects among global investors.

3. Measures such as Infrastructure investment trusts (InvITs) and National Investment and Infrastructure Fund

(NIIF) will help to pool in large investments in infrastructure.

4. Development Finance Institutions such as the proposed National Bank for Financing Infrastructure and

Development (NaBFID) will help to fill in for the commercial banks’ lack of expertise in managing finance

for complex projects.

5. Allocation of responsibility for mobilizing funds between central government (39%), state governments (39%)

and private sector (22%) brings in clarity about sources of financing.

6. It provides better view of project supply and gives sufficient time to developers prepare for project bidding,

reducing aggressive bids and resultant failure in project delivery.

7. It is expected to create a risk-assessment mechanism based on expected losses to appeal to long-term

investors.

Importance of NIP for inclusive development:

1. It will lead to job creation through infrastructure construction and through growth of businesses due to better

infrastructure.

2. It will help provide equitable access to infrastructure, making cities more inclusive, and villages more

connected as projects for housing for all, road and rail connectivity and waterways get implemented.

3. Well-developed infrastructure would enhance economic activity. This will expand the tax base of government,

creating additional fiscal space for welfare schemes. Improvements in the quality of infrastructure spending

will also make fiscal expenditure more efficient.

4. Disaster resilient infrastructure would protect development gains from being lost due to disasters such as

floods and cyclones.

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However, successful implementation of NIP would require addressing challenges related to land acquisition,

investment-related disputes, bankruptcy that have created barriers in infrastructure projects in past as well. In

addition, the role of NaBFID will need to take into account the past failures of DFIs in India to avoid similar missteps.

It is only through equitable infrastructure that development can be inclusive. National Investment Pipeline has the

potential to leapfrog the legacy issues in infrastructure and development if associated challenges can be managed.

(401 words)

Q.5) Despite several steps taken to improve agricultural exports, they remain abysmally low with little policy

transmission. Analyse.

Approach: Start with presenting the facts related to agricultural exports in India. List the important steps taken by

the government to increase the Agri export from India. Discuss reasons for low agriculture exports despite several

government initiatives. Conclude with the way forward.

India is one of the 10 leading exporters of agricultural products in the world. But, given the fact that India is one of

the largest producers of agricultural products, it continues to underperform in agricultural exports.

Various government steps to encourage Agricultural exports in India:

1. Dedicated institution to boost export: India has created a dedicated body named APEDA under the APEDA

Act 1985. It is assisting the exporters of agricultural products under the Export Promotion Scheme.

2. National Agriculture Export Policy in 2018: The policy aims to double farmers’ income by doubling

agricultural exports from US$ 30+ Billion to ~US$ 60+ Billion by 2022 the country. It will integrate Indian

farmers and agricultural products into the global value chain.

3. Transport and Marketing Assistance Scheme for Specified Agriculture Products: It helps in assisting the

international component of freight handling and marketing of agricultural products.

4. Investment: 100% FDI is allowed in the various export activities of agriculture through the automatic route.

5. Financial Support: ₹1 lakh crore for Agri-infrastructure was provided under the Atmanirbhar Bharat

economic package of ₹20 lakh crore in wake of pandemic related slowdown, to boost Agricultural exports.

However, India’s total agricultural export basket accounts for only a little over 2.15 percent of the world agricultural

trade. Policy transmission has not happened because of various challenges associated with the exporting of

agricultural commodities, such as

1. Policy issues: Essential commodities act and stocking limit create disincentive for exporters to keep large

stocks. On the other hand, lot of food grains remain in FCI stock, even rot in godowns, but not exported.

2. Low processing: Most of the high value agricultural products have low shelf life. Low level of processing

and poor refrigeration infrastructure means they can't be exported.

3. Numerous agencies: Multiplicity of agencies such as ministry of external affairs, APEDA, FSSAI, Export

inspection council, and many others, create the issue of cooperation between exporters and government

bodies. This creates challenges in increasing the access of India’s Agri-exports to markets of other

countries.

4. Poor phytosanitary conditions increase the quality concerns of Indian products in the international market.

For example, USA banned Indian poultry imports.

5. Uncertainty of international market: The exporters of agro-commodities are not successful due to

uncertainty in the foreign trading regime and variation in international prices.

Government must re-invigorate agricultural research and education, create village level procurement center (NITI

AYOG), and augment the cargo handling facilities at ports and airports. This would help in achieving target of national

Agri export policy and doubling the farmer income by increasing India's share in the global export basket. (433 words)

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Q.6) The shift towards promotion of millets as nutri-cereals will help in not only addressing the issues of dry-

land farming region but also adds to dietary diversity. Discuss.

Approach: Introduce by explaining dry-land farming and its features. Mention about nutri-cereals. Discuss in points

about issues of dry-land farming in India. Explain how millets will solve those issues. Conclude accordingly.

Dry-land farming refers to cultivation of crops in areas receiving rainfall between 750 mm to 1150 mm. 128 districts

in India have been recognized as dry-land farming areas. The policy of promoting Nutri-crops like millets; jowar, bajra,

ragi will help address the issue of nutrition, promote dietary diversity as well as problems associated with dry-land

farming regions in India.

Constraints of Dry-land farming in India:

1. Deficit rainfall: Late onset and early withdrawal of monsoon creates water shortage, moisture loss from

soil impacts growth of crops.

2. Uncertain crop yields: As a result of the abrupt rainfall or the lack of it, there is no certainty of the crop

yields.

3. Soil erosion: These areas suffer from various process of soil degradation especially soil erosion.

4. Small size of holdings: These areas are having small size of land holdings (less than 2 hectares) usually

fragmented and scattered, creating socio-economic problems, crop failures.

Millet farming can help in solving issues of dry-land farming as:

1. Not water intensive- Millets are not water or input-intensive crop and have extremely low water footprint,

millets require 80 percent less water than crops like rice or sugarcane.

2. Resistant to climatic stress- Millets have tendency to resist climate change stress and diseases, thereby

reduce the burden of low yield on these areas.

3. Good for soil- Millets are good for the soil. Their slow composting nature helps in maintaining soil structure

and retaining water, thus preserving soil health for extended durations. Also, millets have wide adaptability

to different soil from very poor to very fertile and can tolerate a certain degree of alkalinity.

4. Boost in Farm incomes- Millets have shorter cultivation cycles and require less cost-intensive cultivation

helping poor and small farmers to raise incomes.

Millets also contribute to dietary diversity:

1. Green revolution and MSP regime has created skewed cropping pattern in favor of wheat and rice. Though

calorie rich, wheat and rice do not provide sufficient micronutrient. Excessive dependence on wheat and

rice has reduced dietary diversity and resulted in hidden hunger.

2. Inclusion of millet in food diversifies the diet. Millets are high in dietary fiber. Nutri-cereals are a rich

source of nutrients including iron, calcium, zinc, magnesium, phosphorus, copper, vitamins and antioxidants.

They are also known to reduce risk of diabetes and cardiovascular diseases.

3. With growing health consciousness, demand for millets have increased. For example: multi-grain bread or

ragi chips.

As the government eyes to solve issues of a malnutrition and doubling farmers’ incomes and to take farmers towards

Atmanirbhar Bharat, the promotion of nutri-cereals seems to be a policy shift in the right direction. (436 words)

Value Addition:

The Government interventions include:

1. Production- Steps to ramp up ramping up millet production to extend its cultivation in 112 districts in 14 states.

2. MSP- For ragi has been increased by 113 per cent, followed by bajra and jowar at 72 per cent and 71 per cent

respectively.

3. Ministry of Agriculture & Farmers’ Welfare is running a ₹600-crore scheme to increase the area, production

and yield of nutri-cereals.

4. Millets have been included in the National Food Security Mission along with pulses.

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Q.7) Explaining the concept of Conservation Agriculture, discuss its significance in tackling sustainability related

issues in agriculture.

Approach: Introduce with the explanation of conservation agriculture. Then highlight various issues that agriculture

is facing due to climate change. Then discuss how conservation agriculture will address these issues. Bring out some

challenges in implementation of conservation agriculture. Conclude with some futuristic solution or reference to

SDG’s.

Conservation Agriculture (CA) is a sustainable farming system based upon three practices: 1) minimum soil

disturbance (i.e., no tillage), 2) maintenance of a permanent soil cover, and 3) diversification of plant species. It

enhances biodiversity and natural biological processes which contribute to increased water and nutrient use

efficiency.

Sustainability of agriculture productivity in India is under threat due to issues like erratic rainfall, temperature

variation, rampant attack of pests on crops, deterioration and depletion of soil health, reducing or stagnating crop

yields, land degradation and environmental pollution.

The Conservation Agriculture can effectively address the above discussed issues in following ways:

1) Minimum soil disturbance By no-tillage or reduced tillage avoids soil loss, improves soil fertility and

structure, reduces greenhouse gas emission from field, avoids compaction and

soil surface sealing.

2) Maintenance of permanent

soil covers

It helps in higher water infiltration in soil, less evaporation results in increase

in overall water use efficiency, increases biological activities and soil organic

matter. Also, helps in maintaining soil temperature and enhances crop

productivity while reducing the cost of production.

3) Cropping system diversity,

crop rotations and inter

cropping

It reduces occurrence of pests and diseases by disrupting their life cycles, helps

in weed control, maintains balance in soil nutrient content. It also reduces the

adverse impact like drought or excessive rainfall, increases yields, increases crop

diversification, improves efficient use of resources, and benefits the

environment.

Thus, it can be helpful in alleviating many problems by

1. Conserving natural resources,

2. Fulfilling basic needs for cereals, pulses, oilseeds and vegetables, improving farm income,

3. Securing food and nutritional security,

4. Reducing the use of external inputs, ensuring environmental safety and creating employment opportunity.

Given that the agriculture in India is extremely vulnerable to climate change risks, CA is extremely significant in

Indian context.

However, there are certain challenges in promotion of CA like:

1. Overcoming the bias or mindset about tillage.

2. Competition of crop residues between CA use and livestock feeding.

3. Burning of crop residues to clear the field quickly.

4. Monocropping as a side effect of government policies.

It is important to develop the policy framework, focus on research and strategies to promote CA across the regions.

Promoting CA based practices through providing subsidies on suitable machineries like 'Happy Seeder’ can be scaled

up across the regions. CA will go in long way for achieving the Sustainable Development Goal -2 to “End hunger,

achieve food security and improved nutrition and promote sustainable agriculture”. (412 words)

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Q.8) What do you mean by ‘ecosystem accounting’? Discuss the importance of environmental accounting for

India’s commitment to mitigate the effects of climate change.

Approach: Give an introduction about the concept of ecosystem accounting, its purpose and structure. Explain how

it can help India’s commitment to mitigate the effects of climate change. Conclude with current effort and a

suggestion on the improvement of the situation.

According to the United Nations, Ecosystem accounting is a statistical framework for organizing data, tracking

changes in ecosystem conditions, measuring ecosystem services and linking this information to economic and other

human activity.

It is formally called System of Environmental-Economic accounting (SEEA) and provides a framework for

measuring the link between the environment and economy.

Broadly, there are five ecosystem accounts, both physical and monetary, that are taken into consideration.

Fig. Ecosystem accounts and their inter-relationship.

1. Ecosystem extent It accounts the total area of each ecosystem like nation, province, basin etc.

2. Ecosystem condition Records the characteristics of each ecosystem based on selected characteristics

at specific points of time.

3 and 4. Ecosystem service (physical

and monetary)

Physical account accounts for the supply of monetary services by the assets

and monetary account records use of those ecosystem assets by economic

units.

5.Ecosystem asset account Accounts information on stocks and change in stocks of ecosystem assets.

In India, MOSPI has taken up many initiatives under the “Natural Capital Accounting and Valuation of Ecosystem

Services (NCAVES)”, to take forward the practice of ecosystem accounting in India.

India under the Paris agreement has set ambitious goals for climate change mitigation. Environmental accounting

can help India’s commitment to mitigate climate change in the following manner.

1. Integration of GDP with environmental accounting to highlight value of services provided by ecosystem

can end long standing environment vs development debate. It can be a major step towards sustainable

development and achievement of SDGs.

2. Better impact assessment: The quantification of impact might help in improving the quality of the

Environmental Impact Assessment (EIA).

3. Organization-wise environmental performance: Performance of each category of industry and

individual organizations can be gauged, thus, helping in evolving the better environmental standards.

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4. Identification of hotspots: Environmental footprints of industries or certain regions (like Delhi-NCR,

Gwalior) can be taken into account and steps could be taken to mitigate the negative impacts in those

hotspots.

5. Integrated approach: Multiple areas of concern can be identified and an integrated area-wise approach

can be implemented for addressing the concerns.

a. Ex. The issue of municipal waste, pollution and deforestation in Delhi-NCR region can be

addressed by integrating elements of ecosystem accounting.

6. Targeted strategy: Quantitative targets can be set on quarterly, semi-annual and annual basis and

performance assessment can be done to find out the gaps.

While India has been taking steps for inculcation of environmental accounting through participation in NCAVES,

creation of India-EVL tool (for valuation of ecosystem services) and publication of Envi-Stats India, the need is to

take a further step to increase its horizon through multi-stakeholder engagement in the process in order to boost its

utility. (440 words)

Q.9) The year 2021 witnessed unusually high number of forest fires across the country. Why have incidences of

forest fires increased in recent years? Also, discuss environmental consequences of forest fires.

Approach: Introduce with the definition of forest fires. Discuss why the recent years are seeing unusually high

number of forest fires with examples. Address the 2nd part of the answer by discussing the environmental

consequences of forest fires. Conclude India's preparedness for controlling forest fires.

Forest fire refers to unplanned, unwanted, uncontrolled burning of forest due to either natural or anthropogenic

reasons. Natural fires are caused by high temperature, drought, the friction of dry trees and lightening,

Incidences of forest fire has increased in recent years because of following reasons:

1. Climate change and Global Warming have resulted in higher temperatures and longer dry spells. It has

also caused forest fires to be longer, intense and more frequent. E.g., Bandipore fire.

2. Water table depletion has caused dearth of soil moisture which in turn dries the trees making them

flammable. Total groundwater depletion in India is 122–199-billion-meter cube; this is one of the causes

behind the Simlipal fires.

3. Deforestation leaves the canopy fairly open for the sun to heat wood and soil directly. India has burned

2.8Mha of land so far in 2021 according to global forest watch. E.g., fires of Manipur and Nagaland.

4. Thunderstorms- e.g., Lightning-triggered fires in the Arctic tundra.

5. Human activities-

a. Concretization, developmental projects, living space creation, etc. has caused reduced water

seepage.

b. Covid induced tourism after unlock has seen fires due to cigarette-butts, campfires, etc.

c. Deliberate fires for personal gains and land encroachment are also seen. E.g., in Amazon,

western ghats, Uttarakhand, etc.

d. Replaced natural forest with artificial forests. Example: Pine Forest in Uttarakhand that is fire

prone.

Natural forest fires can have positive environmental consequences like:

1. Fire climax communities depends on periodic fires.

2. It cleans the accumulated dead leaves and branches allowing the sunlight to reach the ground and help in

seed germination.

3. It rids forests of diseases and insects that harm trees.

4. It creates wood-ash which helps in soil rejuvenation.

5. It also helps in natural selection and survival of the fittest.

However, recent spells of forest fire are anthropogenic fires which invariably have negative consequence for

environment-

1. Air pollution and toxicity increases due to harmful fumes further increasing diseases as breathing disorders

or eye irritation.

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2. These fires destructive, causing loss of biodiversity- plant and animal along with loss of human life and

property. E.g., wildfires in Australia killed or displaced 3 billion animals.

3. It damages soil nutrient and increases the risk of soil erosion due to loss of vegetation.

4. It contributes to Global warming with outflow of black and brown carbon, CO2, CH4, etc.

5. Rise in animal-human conflicts due to habitat destruction.

According to FSI, almost half of the Indian forests are fire prone. Central government have launched National Action

Plan on Forest Fires in 2018. But, a comprehensive solution to the problem lies in responsible behavior of

individuals, disaster preparedness and building capacities of institution to tackle forest fires. (440 words)

Q.10) Restoration of urban wetlands and lakes hold the key to solve urban ecological crisis. Analyze.

Approach: Start with a basic definition of an urban wetland. Link it with urban ecological crisis. Then give reasons

for urban ecological crisis. List the ways in which restoration of urban wetlands can resolve the urban ecological

crises. You can conclude with steps taken by the government to restore the urban wetland.

The urban wetland is a unique and productive ecosystem which are present between the terrestrial and aquatic

system in urban areas. Many experts see in them the solution to the increasing instances of urban ecological crisis such

as urban floods, water scarcity, urban heat islands etc.

Reasons for Urban ecological crisis:

1. Rising urbanization and encroachment are causing loss of urban wetlands as these are often sidelined to

execute various development projects. A study by Wetland International South Asia has revealed that

Mumbai has lost 71% of its wetlands.

2. Deforestation: Cutting of trees in the cities leads to soil erosion and siltation, thereby altering the wetland

ecosystem and causing ecological crises.

3. Climate change: Increased temperature, shifts in rainfall, sea-level rise, etc. also affecting urban areas.

4. Imbalance between green and grey infrastructure is turning cities into heat islands.

Restoration of urban wetlands and lakes can help in restoring these ecological crises in following ways:

1. Water services: The growing urban population is increasing the demand for drinking water. As competition

between Agriculture, domestic water use, the industry will increase in coming times, restoration of urban

wetlands can play a pivotal role to provide drinking water. For example, Bengaluru or the city of lakes can

protect itself from heading towards day zero i.e., drinking water emergency.

2. Carbon sequestration: Wetlands act as carbon sinks for CO2 and other greenhouse gases. Thus, these could

help in combating the ill effects of climate change such as growing heat wave that is leading to urban heat

islands.

3. Combating urban flash floods: Urban wetlands can reduce urban flooding. Wetlands act as natural

sponges/barriers to absorb excess rainfall in cities. For example, Environment experts have linked the

Mumbai 2005 floods with its 40% loss of urban wetland between 1995 to 2005.

4. Food and income securities: Healthy urban wetlands also give food and livelihood to urban people. For

example, East Kolkata wetlands provide a living to over 50,000 fishermen and small farmers in West Bengal.

5. Natural filter: Wetland's vegetation act as a key player in the filtering of urban wastewater thus help in

preventing eutrophication of lakes and rivers.

The government has brought a scheme of National wetland conservation programs, wetland (conservation and

management) rules 2017, and most recently announced the establishment of a center for wetland conservation and

management (CWCM) for holistic development of lake and wetlands as per Ramsar convention.

A far-sighted approach like incorporating multiple stakeholders, new technologies creation of data back of wetland

can further help in creating healthy cities for future. (424 words)

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Q.11) How far do you agree that recent amendment to Essential Commodities Act 1955 (ECA) can remove

erstwhile bottle necks in critical agro-infrastructure and bring price stability for the consumer? Discuss.

Approach: Give a brief introduction about the Essential Commodities Act, 1955 and the recent amendment.

Highlight the amendments introduced in the act in a comparative manner. Explain how the amendments seek to

remove the erstwhile bottlenecks in critical agro-infrastructure and bring price stability for the consumer. Highlight

the issues that still remain. Conclude with a suggestion of striking a balance between extreme regulation or too less

regulation while accounting for the interests of various stakeholders.

The Essential Commodities Act, 1955, which gave the state the powers to regulate supply or production of food

items and impose stock limits, was recently amended in order to bring about major reforms in the agriculture

sector. The major amendments made in the previous act are as follows:

Aspect Act of 1955 Amendment of 2020

Regulation of food

items

Empowered the government to designate

food items, fertilizers, and petroleum

products as essential commodities. The

government may regulate or prohibit the

production, supply, trade of such

commodities.

Removes many of the primary food items, such as

cereals, pulses, oilseeds, edible oils, onions and

potatoes, from the list of “essential

commodities” by allowing their regulation only

under extra-ordinary circumstances like war,

famines, extra-ordinary price rise and natural

calamity of grave calamity.

Stock limit States imposed stock limits on any item

deemed essential to prevent hoarding.

The amendment intends to make the stock limit

provision subject to price rise. A 100% rise in

horticultural products and 50% in non-

perishable with reference to the price in last 1

year or average price of last 5 years (whichever

is lower)

Limits on

agrobusinesses

Discretionary limits can be imposed as

above.

The stock of agrobusinesses equivalent to their

export order won’t be subject to any limits.

The issues associated with critical agro-infrastructure and price stability owing to the provisions of the ECA act,

1955 have been addressed by the new amendments as follows:

Issue Addressed in the amendment

Trade distortion due to over-stocking. Imposition of stock limits has been restricted to price rise,

thus, reducing the scope of over-stocking and dealing with

the issue of trade distortion.

Lack of investment in the critical agro-infrastructure

as private sector gets discouraged by the regulation

regime.

De-regulation and eased stocking limits might encourage

the private sector and entrepreneurs to invest in agro-

infrastructure like cold storage, warehouses, processing

and export infrastructure.

Post-harvest losses due to non-acceptance of produce of

farmers by traders leads to poor price realization by the

farmers.

The reduction of scope for regulation might encourage

traders to stock more than earlier.

Consumer price inflation due to mismatch in demand

and supply

Price stability can be ensured due to smooth movement of

food across the supply chain from farmers to consumers via

traders and processors.

However, certain issues still persist in the current regime. These include:

1. Farmers may face issues: While deregulation seeks to establish free trade regime, farmers might face issues

like high transaction charges and lack of information on prices and arrival of produce, as seen in case of

Bihar.

2. Vagueness may be leveraged upon: The genuineness of export order of the private sector is another issue

as fake orders might be placed to evade regulation.

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3. Hoarding and black marketing: The amendments might render the states powerless in keeping a check

upon hoarding and black-marketing practices.

4. Might push inflation upwards: Open stock limits might increase inflationary trends due to hoarding

practices, rather than checking it.

The need, therefore, is to establish a regime of optimum regulation keeping in account the interest of farmers,

consumers, traders and entrepreneurs. (514 words)

Q.12) The Micro Small and Medium enterprise (MSME) sector has been the focus of successive governments due

to its potential to propel economic growth and social development, yet it continues to be plagued by dwarfism

and the problem of missing middle. In this context, examine the challenges faced by the sector and suggest

measures to improve its performance.

Approach: Define MSME in introductions and comment on its potential to propel economic growth and social

development. Also, mention some government schemes to show that the relevance of MSME has been recognized.

Then discuss various issues faced by this sector which are responsible for dwarfism and problem of missing middle

in this sector. For the next part of question, suggest some measures to address these challenges. Conclude with

mentioning the need of post pandemic economic revival or achieving the goals of Atmanirbhar Bharat.

MSMEs are a class of industries classified on the basis of investment and turnover as shown in table below:

Micro Enterprises Investment of less than 1 crore and turnover

less than 5 crore

Small Enterprises Investment of less than 10 crore and turnover

less than 50 crore

Medium Enterprises Investment of less than 50 crore and turnover

less than 250 crore

MSMEs are considered as growth accelerators that can propel economic growth and social development in India

as:

1. They contribute around 30% of the GDP, are an integral part of the supply chain and account for around

40% of the overall exports.

2. They are important for employment generation, and currently employ about 110 million people.

3. They are intertwined with the rural economy as more than half of the MSMEs operate in rural India.

The MSME sector has been the focus of successive governments due to its potential and relevance as discussed

below:

1. Small Industries Development Organization (SIDO) was established in 1954. Further, this sector was

promoted through KVIC, Coir Board etc.

2. Small Scale Industries was established in 1999, MSME Act in 2006 was passed to give a more focused

approach for the development of this sector.

3. Other schemes like PMEGP, CGTFMSE, Credit link capital subsidy scheme for technology upgradation,

more recently schemes like Udyog –Aadhar memorandum, ASPIRE etc. have been launched.

4. In Union Budget 2021, the government announced funds worth ₹10,000 crores for ‘Guarantee Emergency

Credit Line’ (GECL) facility to eligible MSME borrowers, giving a major boost to the sector.

5. Launch of CHAMPIONS portal: To help MSMEs in terms of finance, raw materials, labour,

permissions, etc.

In recent time, MSMEs are most damaged sectors by the COVID-19 pandemic as supply chains that supported its

operations got disrupted. The following are problems and possible solutions which are responsible for dwarfism I.e.,

small size of the industry and problem of missing middle I.e., either companies are too big or too small.

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Problems Solutions

The problem of Credit: There is credit supply shortage

to MSMEs. They rely on NBFCs and MFIs, given the lack

of access to the banking sector.

Bond Market can be developed for participation of

MSME to raise the funds.

Hesitation for Formalization: Almost 86% of the

manufacturing MSMEs are unregistered. Labour laws and

other company laws in India disincentivize industry from

becoming too big.

Labour Laws need to strike the right balance between

providing a growth-oriented framework for MSME and

protection for the rights of workers.

Ease of Doing: Sector requires a lot of government

services and approvals, like getting construction permits,

enforcing contracts etc. continue to constrain doing

business.

Independent Regulators can be created to advise and

provide consultancy to MSMEs. It is imperative that they

are provided with a hassle-free regulatory framework.

Technological Disruption: The emerging new

technologies like Artificial Intelligence, Data Analytics,

Robotics etc. possess challenge for MSMEs.

Technological upgradation and re-skilling of workers is

paramount.

Problem of Scale: The MSME space is formed by a

plethora of small and local shops and hence, scaling is a

problem.

This can be dealt with upscaling with the help of

government support and subsidies.

To enhance performance of this sector the government should invest in providing more back-end services, and

subsidize globally available technologies. The revival of this sector is imperative for growth of economy post covid

and for the achievement of the goals of Atmanirbhar Bharat. (550 words)

Q.13) The 1991 economic reforms have brought profits and ease of doing business at the center while people and

human development have been relegated to periphery. Do you agree?

Approach: Introduce with comment on LPG reforms introduced in 1991. List the business-friendly aspects of 1991’s

economic reforms. Balance it with brief counter argument. List the ways in which development was ignored after

1991. Then present a counter argument that governments have taken initiatives to promote human development. In

conclusion present your opinion on the issue with some suggestion.

The economic reforms introduced in 1991 repositioned the role of government in India. The government took a

back seat in economy and promoted business friendly policies for economic growth. This was expected to give

government fiscal capacity for its welfare functions in the medium to long run. However, experts have suggested that

the welfare function of the government took a permanent backseat.

Business-centric Reforms:

1. Removal of import restrictions lowered the input costs, increased profitability and improved business

competence.

2. Removal of license and permit system for most sectors of economy increased opportunities to do business,

while also reducing corruption.

3. Increased inflow of financial capital and access to external commercial borrowings improved the

availability of financial resources for businesses.

4. Businesses got better access to technology through increased collaboration with Multi-national companies

as restriction on FDI were eased.

But these reforms also increased the competition for businesses, and changed the domestic market from producers’

market into consumer’s market.

Neglect of development role of the state:

1. Limited Fiscal Space: In the short to medium term, government was forced to restrict its fiscal expenditure.

Transfer of funds to states was also affected. Thus, the overall welfare expenditure reduced.

2. Privatization of education: Increase in emphasis on private sector’s role extended to social sectors such as

education, while public expenditure on education declined. This disproportionately affected the children

from poorer socio-economic background.

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3. Neglect of agriculture: The economic reforms largely ignored agriculture reforms. As a result, structural

weaknesses of agriculture sector such as ecological and regional imbalance, disguised unemployment, and

vulnerabilities of small farmers continued to intensify.

4. Neglect of Social Infrastructure: Public infrastructure in health and education continued to decline due to

limited public expenditure. Private expenditure on health and education has squeezed family’s food budget,

and created gender inequities.

5. Jobless growth: Insufficient industrialization along with poor education and skills has yielded the worst of

both worlds as market economy produced jobless growth, while government’s neglect of education has

produced unemployable youth.

6. Poor social security: Failure of market and government has also created a large informal sector of economy,

which lacks social security. The grave sufferings of migrant workers during pandemic-related lockdown

highlighted their neglect by the governments over the years.

However, it would be unjust to say that state completely abdicated its developmental role and neglected human

development:

1. Maternal Mortality rate (437 in 1990, to 130 in 2016) and infant mortality rate (125 in 1990 to 34 in 2016)

have improved by leaps over the same period.

2. Fiscal capacity of state increased in the long run. Disinvestment created fiscal space for social expenditure

e.g., the National Investment Fund was created out of the disinvestment funds for expenditure on social

welfare.

3. Right to education, National Food Security Act and MGNREGA have been implemented to address the

development needs of the poor.

In conclusion, we can say that the economic and human development journey of India since 1991 has been a mixed

bag. The exigencies of 1991’s economic crisis forced the state to limit its role not just in economy but welfare as well.

But the development needs of the country require governments to commit to its welfare role sooner than later. (536

words)

Q.14) Bad Banks can be an effective option to tackle Non-Performing Assets (NPA) crisis, promote health of

banking sector and preserve stability of financial system. However, bad banks are not without their own set of

challenges. Analyze.

Approach: Introduce your answer by defining a Bad Bank. In the main body highlight the role of a Bad Bank in

tackling NPA issue, promoting health of banking sector and preserving stability of financial system. Also, give

some challenges associated with the implementation of Bad Banks. Conclude your answer by suggesting a way

forward.

A bad bank is an asset management company that takes over the bad loans of commercial banks, manages them

and finally recovers the money over a period of time. The bad bank does not lend and take deposits, but helps

commercial banks resolve bad loans and clean up their balance sheets. In the wake of the covid-19 pandemic and

resultant economic lockdown, creation of Bad bank in India has been suggested to tackle the potential increase in

NPAs or bad loans.

Indian Banks have 11-13% of their loans and advances as NPA. Band Bank can act as an effective option to tackle

NPA crisis in following ways:

1. A single Bad Bank to deal with bad loans will speed up the clean-up process as against resolution plan

comprising multiple banks.

2. Banks are hesitant to sell NPA at loss due to enquiry by CVC, CBI and CAG. Bad Bank can solve this.

3. Global experience has shown potential of bad banks. For example, Troubled Asset Relief Programme

(TARP) in the US after 2008 global financial crisis.

Bad Banks can make way for a healthier banking sector in following ways:

1. Monetary Policy Transmission (MPT) does not happen because banks don’t reduce lending rates to

recover NPA losses. By cleaning the balance sheets of banks, bad banks facilitate MPT.

2. Banks would be able to extend fresh loans from which they can make profit.

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3. Indian Banks would be able to meet Basel III norms related to asset quality. (a sign of healthy banking

sector)

Bad banks also help preserve the stability of the financial system, such as:

1. They provide banks the ability to tide over major shocks and uncertainties in banking system such as the

2008 global financial crisis or the recent pandemic related slowdown.

2. It will clean the books of PSBs, allowing them to play crucial role in economic recovery and demand

generation post covid.

However, there are many challenges in the path of Bad Bank, such as:

1. Creation of bad banks merely shifts the NPA from one pocket of the government to other without solving

the issue.

2. Asset reconstruction companies already exist, but they are not willing to take up NPAs of public sector

banks, reflecting a mistrust on the public banks’ competency. Using a public sector bad bank to solve issues

of public sector banks creates conflict of interest.

3. Bad bank is unlikely to solve the underlying systemic issues in public sector banks such as credit quality,

monitoring and management.

4. Raghuram Rajan asserted that it may lead to moral hazard and banks may restart reckless lending.

5. Reluctance of public sector banks to sell loans to the bad bank at a significant haircut as it would amount

to significant losses on part of the banks.

In this regard the following suggestions can be considered as a way forward

1. Dual Model: One private and one national asset management company.

2. Alternate Approach: An Insolvency and Bankruptcy Code (IBC)-led resolution, or sale of bad loans to

already existing Asset Reconstruction Company (ARC).

Despite a series of measures by the RBI, as well as massive doses of capitalization by the government, the problem

of NPAs continues. Bad Bank is an interesting idea to solve it, but it needs to be executed with caution. (550 words)

Useful Information:

1. US (1988): US-based Mellon Bank created the first bad bank in 1988, after which the concept was implemented

in other countries including Sweden, Finland, France and Germany.

2. Sweden (1992): Sweden created two bad banks. The cost of bad bank was ~ 2% of GDP, but both banks eventually

made a positive return. They were later merged. The rescued bank Nordea is now considered one of the strongest and

best performing banks in Europe

3. Indonesia (1998): During the Asian Financial Crisis of 1997 and 1998, the Indonesian government established the

Indonesian Bank Restructuring Agency as an official body to oversee the asset disposals of an extensive number of

distressed banks.

4. Conversion of ARCs into banks, which lend or guarantee lending, have also created issues of reckless lending in

some countries.

Q.15) Assess the performance of PM-KISAN in the light of various criticism in its design and implementation.

Approach: Introduce your answer by briefing about PM-KISAN. In the main body highlight the significance of the

scheme. Also, give some challenges associated with the design and implementation of the scheme. Conclude your

answer by suggesting a way forward.

PM-KISAN scheme, was launched in December 2018 by the central government to transfer an amount of ₹6,000

per year, in three equal instalments, directly into the bank accounts of all landholding farmers irrespective of the

size of their land holdings. It has the objective of increasing farmers income and preventing them from falling into

clutches of money lenders.

The significance of the scheme can be understood in the following ways:

1. The cash transfer can take care of consumption expenditure thus providing room for investment in

agriculture inputs and technology.

2. Cash transfer has an immediate impact on reducing hunger and rural poverty.

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3. Demand generation due to this scheme will provide stimulus to local economy. Moreover, direct benefit

transfer weeds out intermediaries and hence corruption.

4. During Covid-19 it has provided income support to rural India.

However, it has been unable to bring substantial changes in the daily lives of the farmers, who were the intended

beneficiaries of the scheme. And the major reason is the way it is designed are:

1. Usurpation of State scheme, I.e., PM- KISAN is scaling up of Rythu Bandhu of Telangana which might not

fit equal for all the states. Also, the name “PM” indicates central nature of scheme resulting less enthusiasm

from the states.

2. Meagre amount offered: PM-Kisan offers ₹6000 in three installments, which is about 1/10th of consumption

expenditure for a poor household or production cost per hectare.

3. Not linked to land size: The cash transfer is not linked to the size of the farmer’s land holding. Example

Telangana government’s Rythu Bandhu farmers receive ₹8,000 per acre owned.

4. Landless tenants, migrant farm laborer's have been left out of the scheme, who are the most vulnerable

section. For example, Orissa’s KALIA scheme include poor landless household.

5. The scheme is not a fix for larger structural issues like irrigation, seed availability, price realization etc.

There have also been some implementational issues such as:

1. Direct Benefit Transfers (DBT) bypasses the federal layers, resulting less or no participation of states

governments.

2. Registration: Due to changing norms like Aadhar requirement, mobile numbers etc. & the sheer size (14.5

crore), the complete registration of beneficiaries has not been done yet.

3. Majority of the States have incomplete tenancy records and land records are not digitized, this makes

identification of beneficiary difficult.

4. Challenges in recognition of land rights in tribal and forest areas who are among the most vulnerable

people. For example, in northeastern States, land ownership rights are community-based.

5. Last mile Banking and issue of financial inclusion especially for small and marginal farmers.

6. Lack of grievance redressal mechanism makes the scheme susceptible to corruption.

There has been mismatches in data of amount allocated and amount actually received by beneficiaries of this

scheme.

The following suggestions can be considered as way forward:

1. PM-KISAN Mobile App developed under the scheme could be used for grievance redressal.

2. Land record digitization using block-chain technology could bring transparency and efficiency.

3. Tenancy provision could be added to benefit tenants and also farmers renting out their land.

Thus, PM-KISAN has brought many benefits to the farmers in rural India but some issues remain in its design and

implementation, which needs to be resolved. (540 words)

Q.16) Analyze the critical challenges in implementation of ‘One Nation One Ration Card’ (ONORC) scheme,

with special emphasis on concerns raised by the states. Can the ONORC scheme resolve problems faced by Public

Distribution System (PDS)?

Approach: Introduce with explaining the concept of ONORC and its importance in India. Then explain various

challenges in its implementation. Also mention specific concern of different states like Assam, West Bengal etc. In

the next part, mention that the PDS is a comprehensive system that starts from procurement of food grains from

farmer and ends with distribution of food to consumers. ONORC can resolve problem at consumer stage but overall

reform in PDS system also requires other steps. Conclude by giving some suggestions.

Under the ‘One Nation, One Ration Card’ system, beneficiary will be able to buy subsidized food grains from any

fair price shops across country using their existing/same ration card that is Aadhaar linked.

Importance of ONORC scheme for India:

1. Portability of Ration Card: The beneficiaries from one state can get their share of rations in other states.

2. Empowering Migrants: ONORC seeks to provide universal access to PDS food grains for migrant workers.

3. Empowering Consumers: ONORC will also give the beneficiaries the opportunity to opt for the dealer of

their choice.

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Challenges in implementation of ONORC:

State-specific issues:

1. Low Aadhar seeding in Assam (only 36-38% against all India average of 92%) due to concern

related to National Citizens register.

2. The centre-state tussle has been delaying the scheme in states such as Bengal. Delhi wants to

implement its own door-to-door ration delivery system.

3. Chhattisgarh has its own digitized system of PDS which creates issue of compatibility with

ONORC system

Common challenges:

1. SC has directed that Aadhar can not be made mandatory for government benefits but ONORC cannot

work without Aadhar.

2. Technological Issues:

a. Aadhaar authentication failures due to various technical issues.

b. e-PoS machines- As per data on the Annavitran portal, out of total 79,050, only 37,392 FPS have e-

PoS machines as of January 2020. This is further low in states like Bihar and West Bengal, with

some of highest out-migration rates in India.

c. Poor Internet connectivity and reliability

3. Poor quality of rural electrification- Survey by Ministry of Rural Development in 2017 indicates that only

half of all villages get more than 12 hours of power supply, with power failures being rampant.

4. Huge gap in data on patterns of domestic migration- This will challenge state governments in making

appropriate quantities of rationed commodities available for masses.

5. Logistical Issues: An FPS receives the monthly quota of products strictly in accordance with the number of

people assigned to it. ONORC, when fully operational, would disrupt this practice, owing to migration of

people.

PDS is a comprehensive Indian food security system. The central government, through FCI, is responsibility for

procurement, storage, transportation and bulk allocation of food grains to the states. The operational

responsibilities including allocation within the State, identification of eligible families, issue of ration cards and

supervision of fair price shops etc., rest with the state governments.

ONORC can solve problem at final stage (consumer) of distribution of food to beneficiaries but other problems of

PDS need more comprehensive reforms. PDS suffers from following issues:

1. There is also the problem of “human rat”. Whenever food grains have been found siphoned off from FCI

godowns, it was said that “rats” ate away all the food grains.

2. Its complete lack of pro-active liquidation policy. Despite having (a) vast buffers of food-grains, and (b) no

place to store them, FCI is not seen keen on releasing the stock in Open Market or through exports.

3. High leakage and diversion of subsidized food grain, adulteration of food grain.

4. Lack of viability of FPS due to low margins.

5. It is operationally expensive, inefficient and corrupt.

Hence, PDS reforms are incomplete without reforming FCI. There is need to implement Shanta Kumar Committee

Report to bring in efficiency and innovation in food management. (549 words)

Q.17) How has the green revolution affected ground water availability, crop diversity and cropping pattern in

Northern India? What is its impact on health and well-being?

Approach: Introduce by mentioning in brief about green revolution. Give a reference to its negative impact. In body,

list the impact of green revolution on water availability, crop diversity and cropping patterns in Northern India.

Then, list the impact of green revolution on health and wellbeing. Conclude with way forward.

Green revolution transitioned India from the days of food scarcity to food surplus. Green revolution’s success was

built on pillars of high yield variety seeds (HYVs), use of fertilizer, irrigation and assured prices. However, over

the years these very factors of green revolution’s success have started to have harmful effect on ground water

availability, crop diversity and cropping pattern in Northern Indian states like Punjab, Haryana, Western UP etc.

as discussed below:

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The effect on Ground Water Availability -

1. Green revolution promoted paddy cultivation in relatively rain scarce states leading to excess use of water

from canals, aquifers and tube wells over decades which has nearly exhausted ground water in many such

regions.

2. High water requirement of HYVs have added to the increased water demand and excessive ground water

extraction.

3. Low emphasis has been laid on water use efficiency. Flood irrigation and similar wasteful practices

continue to add to the water demand.

4. Free provision of electricity also continues to facilitate excessive use of ground water in green revolution

states.

5. Water scarcity has also been leading to river-water dispute between states such as between Punjab and

Haryana on Satluj-Yamuna Canal.

6. Rampant use of fertilizers had also led to salination of soils and ground water pollution.

The effect on Crop Diversity -

1. Due to green revolution, the areas of cultivation of pulses, oilseeds and other crops shifted to wheat-rice

cropping cycle. This has promoted monoculture.

2. Crops not supported by local agro-climatic conditions are being cultivated due to continuance of policies

supporting green revolution.

3. Genetic variety within same crop has also declined due to increasing use of lab-designed varieties.

4. Uniform growing conditions reduce the soil fertility making it unfit for various crops.

The effect on Cropping pattern -

1. Practice of mixed cropping has declined and given way to fixed crop-cycles of uniform crops. An associated

effect is increased pest attacks and crop failures.

2. Increased reliance on fertilizers has led to decline of the crop rotation cycle of nitrogen fixating and

nitrogen consuming crops.

3. Crop rotation practices such as cycle of short and long root crops have declined due to wide adoption of a

rice-wheat crop-cycle.

4. Practices such as inter-cropping have been marginalized through expansion of uniform crop-cycle across

states.

The effect on health and wellbeing -

1. Unsafe use of pesticides has caused serious harms and even deaths among farmers and farm laborers. Due

to this a spurious reputation for pesticide residue in Indian agricultural products has negatively impacted

exports.

2. Environment contamination such as of arsenic poisoning of ground water in Punjab from fertilizers and

flood irrigation has been cited as the reason for increasing cases of cancer.

3. Green revolution has increased productivity but also enhanced cost of inputs. This has disproportionately

impacted small farmers and agriculture has become non-remunerative for them.

4. Practices such as surface irrigation and fertilizer usage have destroyed micro-habitats in farmland making

them unfit for integrated farming practices such as fish breeding. This has also caused nutritional loss for

farmers.

Green revolution pulled India out of the days of famine, and made self-reliant in food security. With the change in

the context, the policies that were framed for food scarcity, needs to give way to policies for farmers welfare. (547

words)

Q.18) The discussion surrounding the Environment impact Assessment (EIA) has moved away from issues of

procedural implementation to the more substantive goals of EIA and its place within broader decision-making

contexts. Assess the effectiveness of EIA and suggest reforms to make it an integral part of developmental

planning.

Approach: Introduce with explanation of EIA and briefly explain the context of question. For the main body, bring

out success and failures of EIA in India with some example and comment on its effectiveness. Then based on the

Page 17 of 21


shortcomings, suggest reforms to improve the performance of EIA. Conclude with a comment on draft EIA

notification 2020 and need for a social impact assessment framework.

EIA is an anticipatory environment management tool which predicts environmental and economic impacts of a

project and seeks to mitigate their adverse impacts. For long, EIA has been viewed as a mere compliance exercise

which has to be implemented for project approvals. However, because of growing environmental consciousness

discussion around EIA has shifted as:

1. Goal of EIA has to shift from utilization of environment to conservation of environment.

2. EIA has to be a part of planning and decision-making process from inception stage itself rather than an

add-on or after thought.

Performance of EIA can be assessed on basis of success and failures:

Successes Failures

1. Mandatory to conduct EIA and consult with

public, making people partners in development.

2. Made the companies conscious of the

environment footprint, thus treating environment

cost at par with economic cost.

3. Created awareness about the importance of

preserving environment.

4. Embodies the idea of sustainable development

through close monitoring of development projects.

1. Status of pollution, water, air etc, across India is a testimony

of poor implantation of EIA.

2. Seen as an impediment to development, rather than a tool

of sustainable development. Draft EIA notification 2020

seeks to dilute EIA.

3. Instead of integrating EIA in planning, companies plan to

avoid EIA by breaking their large projects in to smaller ones.

4. National Board for Wildlife approved the diversion of 1,792

hectares of wildlife habitat in 2020 for various projects. Many

projects pass through ecologically sensitive areas. For

example, multiple diversions approved within Bhagwan

Mahaveer Wildlife Sanctuary and Mollem National Park.

Therefore, EIA as an idea is good in various aspects, but on ground it has not been able to make much difference

due to the following reasons:

1. Public hearing process continue to remain a formality. People are not provided timely information or

provided too much technical details to overwhelm them.

2. Various projects with significant environmental impacts fall in the exempted category.

3. EIA is funded by companies who want to execute projects, consultants tend to present reports that support

the interest of their employers. Often teams formed for conducting EIA studies lack the expertise.

4. Baseline data is mostly absent. This makes comparison regarding impact of project difficult (especially long-

term impact).

5. Generally, EIA reports are bulky and technical which is of little use for policy makers.

6. Monitoring of execution of mitigation measures and Environment Management Plan is neglected, and

more so for strategic projects like nuclear power plants.

In view of above, following measures should be taken to make EIA integral part of development planning:

1. Public participation to begin early in the project. Process should be flexible enough as per unique

circumstances of projects and population groups.

2. Independent EIA Authority can be established, a system of accreditation of EIA consultant can be put in

place.

3. Monitor the implementation under strict supervision and automatic withdrawal of clearance if the

conditions being violated.

4. Creation of centralized baseline data bank.

5. Bring all activities impacting environment under EIA irrespective of budget or sector.

Draft EAI notification 2020 allows post-facto approval, reduces time for public consultation, makes compliance

report annual (earlier half yearly). There is need to strengthen EIA, rather than weakening it, and add a component of

Social Impact Assessment for attaining sustainable development. (549 words)

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Q.19) Coastal sand mining and constructions, whether legal or illegal, poses grave threats to coastal environment.

Assess the impact of Coastal Regulation Zone (CRZ) Rules 2019 on our coastal regions for sustainable

development.

Approach: Introduce the coastal ecosystems by mentioning examples. Mention the threats posed to them by sand

mining and construction. List the provisions of CRZ Rules 2019. Assess their positive and negative impact on coastal

regulation zone. Suggest what else can be done for sustainable development of coastal regions. Conclude by

suggesting the Government takes note of the adverse effect of CRZ 2019.

Coastal ecosystems are one of the most sensitive and degradation prone areas in the biosphere. They include shore

ecosystems, wetland, mangrove, mudflats, sea grass, salt marsh and seaweed ecosystems.

Sand mining and construction pose grave threats to this fragile ecological system which may include coastal erosion,

degradation of fresh water and fisheries, loss of biodiversity and soil depletion

Coastal Regulation Zone (CRZ) Rules 2019

1. About-CRZ Rules govern human and industrial activity close to the coastline, in order to protect the fragile

ecosystems near the sea.

2. Mandate- Under the Section 3 of Environment Protection Act, 1986, were first framed in 1991 and latest

amended in 2019.

3. Objective- To promote sustainable development based on scientific principles taking into account the

natural hazards such as increasing sea levels due to global warming.

4. Classification – Of coastal areas into four categories—CRZ-I, CRZ-II, CRZ-III and CRZ-IV

5. Effect of CRZ-The CRZ notification is critical to the lives and livelihoods of around 171 million people or

14% of India’s population – living across 70 coastal districts, 66 in mainland India and four in island territories.

Impact of CRZ Rules 2019 on sustainability:

1. Critically Vulnerable Coastal Areas (CVCA): CRZ identifies sensitive areas like Sundarbans, Gulf of

Khambat, Vembanad, Bhaitarkarnika etc. as CVCA thus helping in sustainable management of these areas.

2. No Development Zone of 20 meters has been introduced for all islands close to the main land coast and for

all Backwater Islands in the main land. Thus, reducing man made interferences.

3. Pollution Control- Waste Treatment facilities have been made permissible in CRZ-I B area (area between

Low Tide Line and High Tide Line).

4. Planning- All the coastal States with such islands will prepare Integrated Island Management Plans and get

them approved by the Ministry. These plans will be kept sustainability of these areas in perspective.

Negative impact of CRZ 2019

1. Ecological disturbance- Mining for rare earth minerals in sand dunes and waste treatment in sensitive

inter-tidal areas may disturb the sensitive balance of nature.

2. Marine pollution- De-freezing the Floor Space Index and permitting FSI for construction projects will lead

to rampant construction activity thus leaving behind much of cement and other plastic pollution in marine

areas.

3. Reduction in No Development Zone- Rural areas, with a population density of 2,161/square kilometer,

which fall under CRZ-III A, shall now have NDZ of 50 metres from the HTL, against 200 metres stipulated

in the 2011 notification.

4. Effect on Bio-Diversity- Many critically endangered species living in areas like Eastern & Western Ghats

are threatened further by the human activities in these areas.

5. Exposure to natural hazards- Human activities in these areas adjoining the coast may expose tourists and

other service providers to natural hazards like cyclones, storms and tsunamis.

6. Livelihood issues-Developing beach tourism may further lead to conflict with the fishermen who depend

on the beach for their livelihoods.

The objective of the rules is to promote sustainable development through tourism and livelihood opportunities

while restricting ecosystem loss. The government would do well by addressing the negative impacts of CRZ 2019 to

truly safeguard the coastal areas. (520 words)

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Q.20) Transition to ethanol economy can reduce import dependence for fossil fuel, decrease harmful vehicular

emissions and improve farmer’s life, but it can also cause unwarranted environmental distortions. Discuss with

reference to recent government decision to advances 20% ethanol-blending in petrol to 2025.

Approach: Introduce with an explanation of word ethanol economy and refer to recent government decision of 20%

ethanol blending by 2025. Discuss the advantages of shift to ethanol economy with special emphasis on reduced

import dependence for fuel, reduced emissions and better monetary return for farmers. Then present a discussion

arguing that such shift can also produce environmental distortions. Conclude with suggestions regarding alternative

feedstock use.

Ethanol economy is an economy in which ethanol, a biofuel is used by blending with fossil fuels as a means of energy

for transportation. The government of India has advanced the target for 20 per cent ethanol blending in petrol (also

called E20) to 2025 from 2030. The central government has also released an expert committee report on the

Roadmap for Ethanol Blending in India by 2025. The roadmap proposes a gradual rollout of ethanol-blended fuel

to achieve E10 fuel supply by April 2022 and phased rollout of E20 from April 2023 to April 2025.

Advantages of shifting to ethanol economy:

1. Reduced import dependence

a. India imports 75-80% of its crude oil demand, making it vulnerable to international supply shocks.

b. It can potentially reduce the auto fuel import bill by a yearly $4 billion, or Rs 30,000 crore.

2. Reduced emissions

a. Ethanol is high in oxygen content, which therefore allows an engine to more thoroughly combust

fuel.

b. Since it is plant-based, it is considered to be a renewable fuel.

c. Use of ethanol-blended petrol decreases emissions such as carbon monoxide (CO), hydrocarbons

(HC) and nitrogen oxides (NOx). For instance, higher reductions in CO emissions were

observed with E20 fuel — 50 per cent lower in two-wheelers and 30 per cent lower in four-wheelers.

3. Better monetary return for farmers

a. It also provides for farmers to earn extra income if they grow crop that helps in ethanol production.

b. Opportunities available for farmers: Availability of large arable land, rising production of food

grains and sugarcane leading to surpluses, availability of technology to produce ethanol from

plant-based sources.

Transition to ethanol economy can also cause following unwarranted environmental distortions:

1. Inefficient water usage: While India has become one of the top producers of ethanol but it lags top producers,

the USA and Brazil, by a huge margin and remains inefficient in terms of water usage.

2. Availability of water: India’s water requirements for producing ethanol are not met through rainwater and

the groundwater is used for drinking and other purposes.

3. Large water footprint: Water footprint includes water required to produce a liter of ethanol, includes

rainwater at the root zone used by ethanol-producing plants such as sugarcane, and surface, ground water,

and fresh water are required to wash away pollutants.

4. Handling issues: Ethanol being a highly flammable liquid marks obligatory safety and risk assessment

measures during all phases of production, storage and transportation, thus increasing the opportunity cost

and risk factor.

5. Stress on other crops: In order to achieve a 20% blend rate, almost one-tenth of the existing net sown area

will have to be diverted for sugarcane production. Any such land requirement is likely to put a stress on

other crops and has the potential to increase food prices.

The Centre must look at ways to reduce the program’s dependence on the sugarcane. Alternative feedstock like

agricultural waste, recycled cooking oil, provides for more environmentally friendly bio-fuels. There is a need to focus

on raising the non-cane contribution to the ethanol mix. This can be done by incentivizing both public and private

players to set up second-generation ethanol facilities. Further, development of new green fuels (like green Hydrogen)

and renewable source of energy (solar, wind etc.) is also important for energy security in India. (550 words)

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MGP 2021 (Cohort 7)