Economics

UPSC Economics 2022 — Paper II

All 8 questions from UPSC Civil Services Mains Economics 2022 Paper II (400 marks total). Every stem reproduced in full, with directive-word analysis, marks, word limits, and answer-approach pointers.

8Questions
400Total marks
2022Year
Paper IIPaper

Topics covered

Indian economic history and planning (1)National income, RBI establishment and green revolution (1)Poverty measurement, jute industry and small industries (1)Private sector, income distribution and agricultural subsidies (1)Economic planning, WTO, FDI and public expenditure (1)Exchange rate management, skill development policy and GATS (1)Poverty alleviation, capital account convertibility and monetary policy (1)Privatisation, foreign trade policy and FRBM Act (1)

A

Q1
50M 150w Compulsory outline Indian economic history and planning

Answer the following questions in about 150 words each: (a) Outline the factors that caused decline of handicrafts during British rule in India. (10 marks) (b) Discuss the features of targeted Public Distribution System in India and point out the obstacles in its implementation. (10 marks) (c) Point out the contribution of C. N. Vakil to Indian Economic Planning. (10 marks) (d) Describe the direct and indirect effects on women empowerment through 73rd and 74th Constitutional amendments. (10 marks) (e) Examine the impact of land tenure system during British India on Indian agriculture. (10 marks)

हिंदी में पढ़ें

निम्नलिखित में से प्रत्येक प्रश्न का उत्तर लगभग 150 शब्दों में लिखिए : (a) उन कारकों की रूपरेखा प्रस्तुत कीजिए जिनके कारण भारत में ब्रिटिश शासन के दौरान हस्तशिल्प का ह्रास हुआ । (10 अंक) (b) भारत में लक्षित सार्वजनिक वितरण प्रणाली की विशेषताओं की विवेचना कीजिए तथा इसके कार्यान्वयन में आने वाली बाधाओं का उल्लेख कीजिए । (10 अंक) (c) भारतीय आर्थिक आयोजन में सी. एन. वकील के योगदान को चिह्नित कीजिए । (10 अंक) (d) 73 वें तथा 74 वें संवैधानिक संशोधन द्वारा महिला सशक्तिकरण पर पड़ने वाले प्रत्यक्ष तथा अप्रत्यक्ष प्रभावों का वर्णन कीजिए । (10 अंक) (e) ब्रिटिश भारत की अवधि में, भू-धारण प्रणाली का भारतीय कृषि पर प्रभाव का परीक्षण कीजिए । (10 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) highlight: name the salient points > one line of substance each > close | (b) discuss: intro > 3-4 dimensions > example > balanced close | (c) highlight: name the salient points > one line of substance each > close | (d) describe: define > structure or process in order > labelled diagram > significance | (e) examine: intro > how/why with reasoning > evidence > conclusion Full marks: Comprehensive, specific, and well-structured answers with clear reasoning and relevant examples.

  • Import of cheap machine-made goods
  • Destruction of traditional guilds
  • High taxation on artisans
  • Loss of export markets
  • Definition of targeted PDS (TPDS)
  • Identification of beneficiary categories (APL, BPL)
  • Mention of specific obstacles (leakage, exclusion)
  • Reference to ration card system
Q2
50M highlight National income, RBI establishment and green revolution

(a) Highlight the major features of National Income trend and its sectoral composition during the last five decades. (20 marks) (b) Describe in brief the factors that led to the establishment of Reserve Bank of India (RBI) in the country. (15 marks) (c) Discuss, how the green revolution has affected the indigenous crops in India? What measures have been initiated by the Government in the later years to improve the productivity? (15 marks)

हिंदी में पढ़ें

(a) विगत पांच दशकों में राष्ट्रीय आय की प्रवृत्ति तथा इसकी क्षेत्रीय संरचना की प्रमुख विशेषताओं को चिह्नांकित कीजिए । (20 अंक) (b) उन कारकों को संक्षेप में बताइये जिनके फलस्वरूप देश में भारतीय रिजर्व बैंक की स्थापना हुई । (15 अंक) (c) विवेचना कीजिए कि किस प्रकार हरित क्रांति ने भारत में देशज फसलों को प्रभावित किया है । उत्पादकता में सुधार हेतु, सरकार द्वारा बाद के वर्षों में कौन से उपाय शुरू किए गये हैं ? (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) highlight: name the salient points > one line of substance each > close | (b) describe: define > structure or process in order > labelled diagram > significance | (c) discuss: intro > 3-4 dimensions > example > balanced close Full marks: Comprehensive, data-driven, with specific policy references and clear structural analysis.

  • Trend of National Income growth (e.g., 1950-2020)
  • Sectoral composition: Primary, Secondary, Tertiary shares
  • Structural transformation: shift from agriculture to services
  • Key phases: pre-liberalization vs post-1991 growth
  • Inadequacy of the Imperial Bank of India (1921)
  • Need for a central bank for currency management
  • Recommendations of the Hilton Young Commission (1926)
  • Role of the RBI Act, 1934
Q3
50M discuss Poverty measurement, jute industry and small industries

(a) Do you think that Multi Dimensional Poverty Index (MPI) is a better measure of poverty? Give reasons in support of your answer. What is the position of India in respect of MPI? (20 marks) (b) Discuss the development of Jute industry during pre-independent India. What were the main problems faced by this industry? (15 marks) (c) 'The small and cottage industries promote indigenous entrepreneurship'. Comment on the statement with respect to India. (15 marks)

हिंदी में पढ़ें

(a) क्या आपको लगता है कि बहुआयामी गरीबी सूचकांक (एम पी आई) गरीबी के माप का श्रेष्ठतर माप है ? अपने उत्तर के पक्ष में तर्क दीजिए । एम पी आई के संदर्भ में, भारत की क्या स्थिति है ? (20 अंक) (b) स्वतंत्रतापूर्व भारत में जूट उद्योग के विकास की विवेचना कीजिए । इस उद्योग द्वारा सामना की जाने वाली प्रमुख समस्याएं क्या थीं ? (15 अंक) (c) 'लघु तथा कुटीर उद्योग देशज उद्यमिता को बढ़ावा देते हैं'। भारत के संदर्भ में, इस कथन पर टिप्पणी कीजिए। (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) justify: claim > 3-4 reasons > evidence > conclusion | (b) discuss: intro > 3-4 dimensions > example > balanced close Full marks: Precise definitions, clear contrast with HCR, specific data points, and a balanced view of the Jute industry's structural issues.

  • Define MPI and its three dimensions (health, education, standard of living).
  • Contrast MPI with Headcount Ratio (HCR) or BPL line.
  • Explain the 'deprivation' and 'weighted' nature of MPI.
  • State India's current MPI rank or score (e.g., NITI Aayog data).
  • Trace the growth of the industry in Bengal (19th-20th century).
  • Identify the 'Golden Age' of the industry (pre-1930s).
  • List key problems: raw material shortage, labor unrest, competition.
  • Mention the impact of the 1930s depression or WWII.
Q4
50M evaluate Private sector, income distribution and agricultural subsidies

(a) Do you subscribe to the view that private sector is a key driver to economic development of India? Give reasons in support of your answer. (20 marks) (b) The economic growth has caused deterioration in income distribution in India during liberalisation period. Comment. (15 marks) (c) Discuss the rationale for continuance of power and irrigation subsidy in the agriculture sector in India. (15 marks)

हिंदी में पढ़ें

(a) क्या आप इस मत से सहमत हैं कि भारत में आर्थिक विकास हेतु निजी क्षेत्र एक प्रमुख चालक है ? अपने उत्तर के पक्ष में कारण दीजिए। (20 अंक) (b) उदारीकरण की अवधि में, आर्थिक संवृद्धि ने भारत में आय के वितरण में गिरावट पैदा की है। इस कथन की समीक्षा कीजिए। (15 अंक) (c) भारत में कृषि क्षेत्र में ऊर्जा तथा सिंचाई हेतु सहायकी की निरंतरता को बनाए रखने के औचित्य का परीक्षण कीजिए। (15 अंक)

Answer approach & key points

Framework: Economics Paper II (Indian Economy). (4(a)) justify: claim > 3-4 reasons > evidence > conclusion | (4(b)) comment: context > arguments both sides > judgment > close | (4(c)) discuss: intro > 3-4 dimensions > example > balanced close Full marks: Comprehensive, data-driven, balanced, and well-structured with specific examples and references.

  • Define the role of private sector in GDP growth
  • Cite FDI inflows and private investment data
  • Link private sector to employment generation
  • Mention specific sectors (IT, manufacturing, services)
  • Define income distribution and Gini coefficient
  • Present data on income inequality pre- and post-1991
  • Discuss regional disparities (urban vs rural)
  • Provide a balanced judgment on the claim

B

Q5
50M 150w Compulsory critically analyse Economic planning, WTO, FDI and public expenditure

Answer the following questions in about 150 words each: (a) Do you think that Indian development planning is a transition from centralised planning to indicative planning and subsequently to market based development? Explain. (10 marks) (b) Discuss the prospects and challenges faced by Indian Agriculture due to World Trade Organisation (WTO) provisions. (10 marks) (c) Analyse the challenges for economic recovery in India posed by sluggish growth in rural wage rates during the pandemic period. (10 marks) (d) Do you think that flow of Foreign Direct Investment (FDI) would always be good for the growth of Indian economy? Critically analyse. (10 marks) (e) Discuss the desirability of increased public expenditure in India in recent years. (10 marks)

हिंदी में पढ़ें

निम्नलिखित में से प्रत्येक प्रश्न का उत्तर लगभग 150 शब्दों में लिखिए : (a) आपके मत में, क्या भारत का विकास आयोजन केन्द्रीकृत आयोजन से सांकेतिक आयोजन, तत्पश्चात् बाजार-आधारित विकास की ओर संक्रमण है ? स्पष्ट कीजिए। (10 अंक) (b) विश्व व्यापार संगठन के प्रावधानों के कारण, भारतीय कृषि पर पड़ने वाले प्रभावों की संभावनाओं तथा चुनौतियों की विवेचना कीजिए। (10 अंक) (c) भारत में महामारी की अवधि में ग्रामीण मजदूरी-दरों में धीमी वृद्धि के कारण, आर्थिक पुनरुत्थान की चुनौतियों का विश्लेषण कीजिए। (10 अंक) (d) क्या आपको लगता है कि विदेशी प्रत्यक्ष निवेश का प्रवाह भारतीय अर्थव्यवस्था के विकास के लिए सदैव अच्छा होगा ? आलोचनात्मक विश्लेषण कीजिए। (10 अंक) (e) हाल के वर्षों में, भारत में और अधिक सार्वजनिक व्यय करने की वांछनीयता की विवेचना कीजिए। (10 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II (Development Planning & Policy). (a) explain: definition/context > points in order > small example > short close | (b) discuss: intro > 3-4 dimensions > example > balanced close | (c) analyse: intro > causes > effects > stakeholders/linkages > way forward | (d) critically evaluate: positives > negatives/limits > conditions/safeguards > conclusion | (e) discuss: intro > 3-4 dimensions > example > balanced close Full marks: Comprehensive, well-structured, and uses specific examples and data.

  • Define centralised vs indicative planning
  • Identify the 1991 shift to market-based development
  • Mention the role of the NITI Aayog
  • Conclude on the current hybrid model
  • Identify key WTO provisions (e.g., TRIPS, SPS)
  • Discuss the impact on Indian agriculture
  • Mention the challenges (e.g., competition, subsidies)
  • Conclude on the prospects
Q6
50M discuss Exchange rate management, skill development policy and GATS

(a) What is the objective of exchange rate management? Do you think that the present regime of exchange rate management has been satisfactory in terms of building adequate foreign exchange reserves in India? Discuss. (20 marks) (b) Highlight the main features of National Policy for Skill Development and Entrepreneurship 2015. (15 marks) (c) What is the main purpose of General Agreement on Trade in Services (GATS)? What are the services covered under it? State the modes under which the services are supplied. (15 marks)

हिंदी में पढ़ें

(a) विनिमय दर प्रबंधन का उद्देश्य क्या है ? आपके विचार में, क्या विनिमय दर प्रबंधन की वर्तमान व्यवस्था, भारत में पर्याप्त विदेशी विनिमय भंडार बनाये रखने में संतोषप्रद है ? विवेचना कीजिए । (20 अंक) (b) कौशल विकास और उद्यमिता पर राष्ट्रीय नीति 2015 की प्रमुख विशेषताओं को चिह्नांकित कीजिए । (15 अंक) (c) सेवा में व्यापार पर सामान्य समझौता (गैट्स) का प्रमुख उद्देश्य क्या है ? इसके अंतर्गत कौन सी सेवायें आच्छादित हैं ? उन तरीकों का उल्लेख कीजिए जिनके अंतर्गत सेवाओं की आपूर्ति की जाती है । (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) discuss: intro > 3-4 dimensions > example > balanced close | (b) highlight: name the salient points > one line of substance each > close | (c) explain: definition/context > points in order > small example > short close Full marks: Precise definitions, accurate policy names, and clear distinction between modes/regimes.

  • Define objectives: stability, competitiveness, reserves
  • Identify current regime: Managed Floating
  • Link RBI policy to reserve accumulation
  • Balanced judgment on 'satisfactory' status
  • Mention 'One Nation One Skill Mission'
  • Reference 'Skill India' mission
  • Mention 'National Skill Development Corporation'
  • Focus on 'Entrepreneurship' as a skill
Q7
50M critically examine Poverty alleviation, capital account convertibility and monetary policy

(a) Critically examine the various poverty alleviation programmes in India since 1970's. (20 marks) (b) Differentiate between Current Account convertibility and Capital Account convertibility. What were the pre-conditions recommended by Tarapore Committee-I for adopting Capital Account convertibility. (15 marks) (c) Describe the main features of Monetary Policy, 2022. How far the objectives of this policy differ from the previous monetary policy? (15 marks)

हिंदी में पढ़ें

(a) वर्ष 1970 के बाद से, भारत में विभिन्न गरीबी निवारण कार्यक्रमों की आलोचनात्मक समीक्षा कीजिए । (20 अंक) (b) चालू खाता परिवर्तनीयता तथा पूंजी खाता परिवर्तनीयता में भेद कीजिए । तारापोर समिति-I द्वारा पूंजी खाता परिवर्तनीयता को अपनाने के लिए किन पूर्व-शर्तों की अनुशंसा की गई थी ? (15 अंक) (c) मौद्रिक नीति 2022 की प्रमुख विशेषताओं का वर्णन कीजिए । इस नीति के उद्देश्य पूर्ववर्ती मौद्रिक नीति से किस सीमा तक भिन्न हैं ? (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) critically evaluate: positives > negatives/limits > conditions/safeguards > conclusion | (b) compare: paired headings or table > key differences > significance > conclusion | (c) describe: define > structure or process in order > labelled diagram > significance Full marks: Comprehensive, critical, and well-structured with specific data and named committees.

  • Chronological coverage of schemes from 1970s to present
  • Identification of specific programmes (e.g., NREP, MGNREGA, PMAY)
  • Assessment of effectiveness and structural limitations
  • Balanced conclusion on the evolution of policy
  • Clear distinction between Current and Capital Account
  • Definition of convertibility in both contexts
  • Listing of Tarapore Committee-I pre-conditions
  • Explanation of why pre-conditions are necessary
Q8
50M elucidate Privatisation, foreign trade policy and FRBM Act

(a) What are the various methods of privatisation? Point out the methods adopted by the government for disinvestment in India. Comment on the proceeds from disinvestment in India. (20 marks) (b) What are the expectations from Foreign Trade Policy 2021-26? Elucidate your answer. (15 marks) (c) Point out the main features of Fiscal Responsibility and Budget Management (FRBM) Act. To what extent, it has been successful in achieving the targets? (15 marks)

हिंदी में पढ़ें

(a) निजीकरण की विभिन्न विधियां कौन सी हैं ? भारत में विनिवेश हेतु सरकार द्वारा अपनायी गई विधियों का उल्लेख कीजिए । भारत में विनिवेश से प्राप्तियों पर टिप्पणी कीजिए । (20 अंक) (b) विदेशी व्यापार नीति 2021-26 से हमारी क्या प्रत्याशायें हैं ? अपने उत्तर को स्पष्ट कीजिए । (15 अंक) (c) राजकोषीय उत्तरदायित्व एवं बजट प्रबंधन (एफ आर बी एम) अधिनियम की प्रमुख विशेषताओं का उल्लेख कीजिए । किस सीमा तक, यह अपने लक्ष्यों को प्राप्त करने में सफल रहा है ? (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) comment: context > arguments both sides > judgment > close | (b) explain: definition/context > points in order > small example > short close | (c) critically evaluate: positives > negatives/limits > conditions/safeguards > conclusion Full marks: Precise definitions, clear distinction between concepts, specific Indian examples, and a balanced critical assessment.

  • Define privatization and distinguish it from disinvestment
  • List methods: sale of stake, IPO, FPO, GDR, ADR
  • Identify Indian modes: public offer, strategic sale, buyback
  • Critique proceeds: use for deficit vs. capital investment
  • State the goal: $1 trillion exports by 2030
  • Mention the shift to a positive list regime
  • Explain the 'Ease of Doing Business' measures
  • Highlight the focus on MSMEs and women entrepreneurs

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