Economics 2021 Paper II 50 marks 150 words Compulsory Examine

Q5

Answer the following questions in about 150 words each: (a) Examine the arguments to explain the theory of 'economic drain' from India in the second half of the 19th century. (10 marks) (b) Analyse the effectiveness of the major commitments of Agreement on Agriculture (AoA) of the Uruguay Round of WTO on Indian agriculture. (10 marks) (c) Analyse the new initiatives taken by the Government of India to boost food processing sector. (10 marks) (d) Discuss the strategies adopted by the RBI to promote financial inclusion in India. (10 marks) (e) Evaluate the role of MGNREGA in asset creation and poverty alleviation. (10 marks)

हिंदी में प्रश्न पढ़ें

निम्नलिखित में से प्रत्येक प्रश्न का उत्तर लगभग 150 शब्दों में लिखिए : (a) उन्नीसवीं शताब्दी के दूसरे भाग में भारत से 'आर्थिक निकास' सिद्धांत को समझाने के लिए दिए गए तर्कों की जांच कीजिए। (10 अंक) (b) भारतीय कृषि पर विश्व व्यापार संगठन (डब्ल्यू. टी. ओ.) के उरुग्वे चक्र (राउंड) के अंतर्गत किए गए कृषि पर समझौता (ए. ओ. ए.) की प्रमुख प्रतिबद्धताओं की प्रभावशीलता का विश्लेषण कीजिए। (10 अंक) (c) खाद्य प्रसंस्करण क्षेत्र को बढ़ावा देने के लिए भारत सरकार द्वारा की गई नवीन पहलों का विस्तृत विवरण कीजिए। (10 अंक) (d) भारत में वित्तीय समावेशन को बढ़ावा देने के लिए भारतीय रिजर्व बैंक (आर० बी० आई०) द्वारा अपनाई गई रणनीतियों की विवेचना कीजिए। (10 अंक) (e) संपत्ति निर्माण तथा निर्धनता उन्मूलन में महात्मा गांधी राष्ट्रीय ग्रामीण रोजगार गारंटी अधिनियम (मनरेगा) की भूमिका का मूल्यांकन कीजिए। (10 अंक)

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Directive word: Examine

This question asks you to examine. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.

See our UPSC directive words guide for a full breakdown of how to respond to each command word.

How this answer will be evaluated

Approach

The question demands examination across five distinct areas: for (a) examine Dadabhai Naoroji's drain theory with Home Charges components; for (b) analyse AoA's three pillars (market access, domestic support, export subsidies) and their Indian impact; for (c) analyse PMFME, PLI scheme, SAMPADA and Mega Food Parks; for (d) discuss RBI's PMJDY, SHG-Bank Linkage, BC model and digital initiatives; for (e) evaluate MGNREGA's asset creation through convergence and poverty impact via wage employment. Allocate approximately 30 words per sub-part (150 words each), spending roughly equal time given equal marks, with crisp introductions and evidence-backed conclusions for each.

Key points expected

  • (a) Drain theory: Naoroji's 'wealth drain' concept, Home Charges (interest on railway debt, civil/military expenditure, remittances), unilateral transfer of surplus, deindustrialization linkage, and nationalist economic critique
  • (b) AoA effectiveness: Amber Box reduction commitments vs India's de minimis entitlement, market access through tariffication, export subsidy prohibition impact on Indian farm exports, and food security concerns
  • (c) Food processing initiatives: PM Formalisation of Micro Food Processing Enterprises (PMFME), PLI scheme for food products, Pradhan Mantri Kisan SAMPADA Yojana, Mega Food Parks, and Operation Greens
  • (d) RBI financial inclusion: PMJDY account penetration, SHG-Bank Linkage Programme, Business Correspondent model, payment systems (UPI, AePS), and financial literacy initiatives
  • (e) MGNREGA evaluation: Asset creation through convergence with agriculture/irrigation departments, wage-material ratio 60:40, poverty alleviation via guaranteed employment, and challenges like delayed payments

Evaluation rubric

DimensionWeightMax marksExcellentAveragePoor
Concept correctness25%12.5Precise articulation of Naoroji's drain theory mechanics; accurate distinction between Amber/Green/Blue Boxes in AoA; correct understanding of PMFME's OTOP approach; clarity on RBI's regulatory vs developmental role; nuanced grasp of MGNREGA's legal guarantee frameworkBasic identification of drain theory existence; superficial AoA coverage mentioning only subsidies; generic food processing schemes without specificity; conflated RBI and government initiatives; descriptive MGNREGA without evaluationFactual errors like attributing drain theory to R.C. Dutt alone; confusing AoA with GATT 1947; outdated schemes like Food Parks without PMFME; missing RBI's unique role entirely; treating MGNREGA as mere employment scheme without asset creation
Diagram / model10%5Flow diagram showing drain channels (trade, remittances, charges); schematic of AoA domestic support boxes; value chain diagram for food processing; financial inclusion pyramid showing last-mile connectivity; asset creation cycle under MGNREGASimple list-format representation of drain components; basic tariff structure mention without visualization; linear process description for food processing; account opening statistics without framework; employment-days graph for MGNREGANo diagrams where appropriate (especially for drain theory flows and financial inclusion architecture); irrelevant diagrams; messy unlabelled sketches; missing visual representation of interconnectedness between components
Quantitative reasoning15%7.5Specific figures: drain as percentage of national income (~4%); India's de minimis limit 10% of agricultural GDP; PMFME target 2 lakh micro enterprises; PMJDY 50+ crore accounts; MGNREGA 14+ crore active workers with wage rate dataRounded estimates of drain magnitude; general awareness of subsidy limits; approximate food processing growth rates; broad financial inclusion percentages; vague MGNREGA employment generation figuresNo quantitative backing for any sub-part; invented statistics; confused units (crores vs lakhs); outdated data from pre-2014 period; irrelevant macroeconomic aggregates not tied to specific schemes
Indian / empirical examples25%12.5For (a): Curzon's observation on poverty; for (b): India's peace clause usage and food security programs; for (c): Amul, FPO success stories, specific Mega Food Parks (Haridwar, Chittoor); for (d): Jan Dhan-Aadhaar-Mobile (JAM) trinity, specific BC networks; for (e): Jal-Jeevan-Hariyali convergence, watershed assets in Maharashtra/Madhya PradeshGeneric mention of British exploitation; standard developing country agriculture concerns; common food processing examples; basic banking expansion references; routine MGNREGA road construction examplesNo Indian specificity—treating drain as generic colonialism; discussing AoA without Indian context; foreign food processing models; developed country financial inclusion comparisons; missing state-level MGNREGA variations entirely
Policy implication25%12.5Critical evaluation: drain theory's relevance to neo-colonialism; AoA's asymmetry demanding permanent solution on public stockholding; food processing's employment potential and export competitiveness; RBI's shift from exclusion to inclusive finance; MGNREGA's graduation strategy and productive asset critique with convergence recommendationsDescriptive policy listing without evaluation; balanced pros-cons without stance; scheme objectives without outcome assessment; chronological RBI initiative narration; MGNREGA achievements without structural critiqueNo evaluation despite 'analyse'/'evaluate'/'examine' directives; purely historical treatment of drain; uncritical acceptance of AoA; promotional tone for government schemes; ignoring MGNREGA's leakages and asset quality concerns

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