Economics

UPSC Economics 2024 — Paper II

All 8 questions from UPSC Civil Services Mains Economics 2024 Paper II (400 marks total). Every stem reproduced in full, with directive-word analysis, marks, word limits, and answer-approach pointers.

8Questions
400Total marks
2024Year
Paper IIPaper

Topics covered

Economic history and contemporary schemes (1)Unemployment, development strategy and industrial history (1)MSMEs, national income growth and industrialisation (1)Fiscal policy, farmers and corporate sector, TRIMS (1)Planning models, growth patterns, FDI and poverty (1)Foreign investment, exports and second green revolution (1)Fiscal federalism, women in agriculture, rural poverty (1)Monetary policy, agricultural credit and subsidies (1)

A

Q1
50M 150w Compulsory discuss Economic history and contemporary schemes

Answer the following questions in about 150 words each: (a) Mention the items of 'Economic Drain' from India as conceived by Dadabhai Naoroji. (10 marks) (b) Discuss why the railway system developed by the East India Company went against the Indian interest. (10 marks) (c) Discuss why 'Laissez Faire' was not good for India during the pre-independence India. (10 marks) (d) Describe why farmers derived little benefits from the commercialisation of agriculture in pre-independence India. (10 marks) (e) What are the implications of "PM-Kisan Samman Nidhi" scheme ? (10 marks)

हिंदी में पढ़ें

निम्नलिखित में से प्रत्येक प्रश्न का उत्तर लगभग 150 शब्दों में लिखिए : (a) दादाभाई नौरोजी द्वारा विचारित भारत से 'आर्थिक निकास' (Economic Drain) की अवधारणा में सम्मिलित मदों का उल्लेख कीजिए । (10 अंक) (b) विवेचना कीजिए कि ईस्ट इंडिया कंपनी के द्वारा विकसित रेलवे व्यवस्था क्यों भारत के हितों के विरुद्ध गयी । (10 अंक) (c) विवेचना कीजिए कि स्वतंत्रता-पूर्व भारत में अहस्तक्षेप नीति भारत के लिए क्यों अच्छी नहीं थी । (10 अंक) (d) वर्णन कीजिए कि स्वतंत्रता-पूर्व भारत में कृषि के वाणिज्यीकरण से किसानों को क्यों अल्प लाभ ही प्राप्त हुआ । (10 अंक) (e) "पी. एम. किसान-सम्मान निधि" योजना के क्या निहितार्थ हैं ? (10 अंक)

Answer approach & key points

Framework: UPSC Economic History & Policy Analysis. (a) highlight: name the salient points > one line of substance each > close | (b) discuss: intro > 3-4 dimensions > example > balanced close | (c) discuss: intro > 3-4 dimensions > example > balanced close | (d) describe: define > structure or process in order > labelled diagram > significance | (e) analyse: intro > causes > effects > stakeholders/linkages > way forward Full marks: Precise, specific, and analytical; uses correct terminology and historical context.

  • Identify Dadabhai Naoroji as the originator
  • Mention 'Home Charges' (interest, pensions, military)
  • Cite profit remittances by British firms
  • Note the lack of return on capital invested
  • Explain 'radial' layout for resource extraction
  • Mention underdevelopment of internal transport (roads)
  • Note the destruction of indigenous transport (bullock carts)
  • Highlight the import of British goods via rail
Q2
50M explain Unemployment, development strategy and industrial history

(a) What schemes are launched by the Government to deal with the problem of unemployment in India ? Why the problem still persists ? (20 marks) (b) Why the Mahalanobis strategy of development was abandoned ? What were its inadequacies ? (15 marks) (c) Explain the problems faced by the Jute industry during pre-independence India. Why the problem aggravated after partition of the country ? (15 marks)

हिंदी में पढ़ें

(a) भारत में बेरोजगारी की समस्या के निराकरण हेतु सरकार ने किन योजनाओं को शुरू किया है ? यह समस्या अभी भी क्यों बनी हुई है ? (20 अंक) (b) विकास की महालनोबिस रणनीति का क्यों परित्याग कर दिया गया ? इस रणनीति की क्या अपर्याप्तताएं थीं ? (15 अंक) (c) भारत में स्वतंत्रता-पूर्व, जूट उद्योग द्वारा सामना किये गये समस्याओं को समझाइए । देश के बंटवारे के पश्चात् यह समस्या क्यों और गंभीर हो गयी ? (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) explain: definition/context > points in order > small example > short close | (b) critique: the claim > its strengths > its weaknesses > your judgment | (c) explain: definition/context > points in order > small example > short close Full marks: Precise scheme names, clear structural analysis, and specific historical context for Jute.

  • Name at least 3-4 specific schemes (e.g., MGNREGA, PMEGP, Skill India).
  • Explain the mechanism of one scheme (e.g., wage guarantee).
  • Identify structural causes (e.g., skill mismatch, informal sector).
  • Link causes to the persistence of the problem.
  • Define the core of the Mahalanobis strategy (heavy industry focus).
  • State the reason for abandonment (e.g., 1991 reforms, balance of payments).
  • List at least 3 inadequacies (e.g., neglect of agriculture, high capital intensity).
  • Mention the shift to the New Economic Policy (NEP) 1991.
Q3
50M highlight MSMEs, national income growth and industrialisation

(a) Highlight the role of MSMEs in Indian Economy. What steps have been taken by the Government to enhance its contribution ? (20 marks) (b) Describe the trend in the growth rate of national income in India from 1950 to 1980 and its impact on poverty. (15 marks) (c) Discuss the inadequacies in the process of industrialisation in the pre-liberalised India. (15 marks)

हिंदी में पढ़ें

(a) भारतीय अर्थव्यवस्था में एम एस एम ई (सूक्ष्म, लघु, मध्यम उद्यमों) की भूमिका पर प्रकाश डालिए । इसके योगदान को बढ़ाने के लिए सरकार ने कौन से कदम उठाये हैं ? (20 अंक) (b) वर्ष 1950 से 1980 के दौरान भारत में राष्ट्रीय आय की वृद्धि-दर की प्रवृत्ति तथा इसका गरीबी पर पड़ने वाले प्रभाव की विवेचना कीजिए । (15 अंक) (c) उदारीकरण से पूर्व भारत में औद्योगीकरण की प्रक्रिया में अपर्याप्तताओं का वर्णन कीजिए । (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: Precise data, specific policy names, and clear logical flow.

  • Employment generation and rural industrialization
  • Contribution to GDP and exports
  • Credit access measures (e.g., CGTMSE, MUDRA)
  • Policy reforms (e.g., Udyam Registration, 2020 criteria)
  • Identification of 'Hindu Rate of Growth' (approx 3.5%)
  • Linkage between low growth and stagnant poverty
  • Reference to Five Year Plans (1st-4th)
  • Population growth outpacing income growth
Q4
50M discuss Fiscal policy, farmers and corporate sector, TRIMS

(a) Discuss the changes made by the Government of India in the fiscal policy since liberalisation. How far these changes proved to be conducive to growth with social justice in the country ? Discuss. (20 marks) (b) For faster increase in farmers' income, is it necessary to link them with corporate sector in India ? Discuss. (15 marks) (c) What are the main features of 'TRIMS' ? How does it act against India's interest ? (15 marks)

हिंदी में पढ़ें

(a) उदारीकरण के उपरान्त, भारत सरकार द्वारा राजकोषीय नीति में किए गए परिवर्तनों की व्याख्या कीजिए । किस सीमा तक ये परिवर्तन देश में सामाजिक न्याय के साथ संवृद्धि में सहायक सिद्ध हुए हैं ? विवेचना कीजिए । (20 अंक) (b) भारत में किसानों की आय में तीव्रतर वृद्धि हेतु क्या उनको निगमित क्षेत्र से जोड़ा जाना आवश्यक है ? विवेचना कीजिए । (15 अंक) (c) 'ट्रिम्स' की प्रमुख विशेषताएं क्या हैं ? यह किस प्रकार भारत के हितों के विरुद्ध कार्य करता है ? (15 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II Rubric. (a) discuss: intro > 3-4 dimensions > example > balanced close | (b) discuss: intro > 3-4 dimensions > example > balanced close | (c) explain: definition/context > points in order > small example > short close Full marks: Comprehensive analysis with data, balanced arguments, and clear policy implications.

  • Define fiscal policy changes (taxation/expenditure) post-1991
  • Explain shift from direct to indirect tax reliance
  • Link fiscal changes to GDP growth figures
  • Critically evaluate impact on social justice (inequality)
  • Define corporate-farmer linkage (contract farming)
  • Identify benefits: market access, technology, credit
  • Identify risks: exploitation, dependency, land issues
  • Provide a balanced conclusion on necessity

B

Q5
50M 150w Compulsory examine Planning models, growth patterns, FDI and poverty

Answer the following questions in about 150 words each: (a) Examine the alternative model of planning given by C. N. Vakil. (10 marks) (b) Is service-led growth in India sustainable ? Comment. (10 marks) (c) What are the implications of depreciating Rupee on Indian Economy ? (10 marks) (d) Comment on FDI in Multi-brand Retail sector in India. (10 marks) (e) Is poverty 'capability deprivation' ? Discuss. (10 marks)

हिंदी में पढ़ें

निम्नलिखित में से प्रत्येक प्रश्न का उत्तर लगभग 150 शब्दों में लिखिए : (a) सी. एन. वकील द्वारा नियोजन के वैकल्पिक प्रारूप (model) का परीक्षण कीजिए । (10 अंक) (b) क्या भारत में सेवा-आधारित विकास पोषणीय है ? टिप्पणी कीजिए । (10 अंक) (c) रुपये के मूल्य में गिरावट से भारतीय अर्थव्यवस्था के लिए क्या निहितार्थ हैं ? (10 अंक) (d) भारत के बहु-ब्रांड खुदरा क्षेत्र में एफ.डी.आई. (प्रत्यक्ष विदेशी निवेश) पर टिप्पणी कीजिए । (10 अंक) (e) क्या गरीबी 'क्षमता-वंचन' है ? विवेचना कीजिए । (10 अंक)

Answer approach & key points

Framework: UPSC Economics Paper II. (a) examine: intro > how/why with reasoning > evidence > conclusion | (b) comment: context > arguments both sides > judgment > close | (c) analyse: intro > causes > effects > stakeholders/linkages > way forward | (d) comment: context > arguments both sides > judgment > close | (e) discuss: intro > 3-4 dimensions > example > balanced close Full marks: Comprehensive, well-structured, with data and named references

  • Define Vakil's model of planning
  • Contrast with standard planning models
  • Explain the reasoning behind the model
  • Provide evidence or examples
  • Define service-led growth
  • Present arguments for sustainability
  • Present arguments against sustainability
  • Provide a balanced judgment
Q6
50M evaluate Foreign investment, exports and second green revolution

(a) Evaluate the policy of Government of India with regard to foreign investment in the country. Do you feel that there is a need for control of their activities ? (20 marks) (b) What steps have been taken by the Government of India to increase exports during the last 10 years ? Have these yielded the desired result ? Examine. (15 marks) (c) Why second green revolution was advocated for India ? Mention the recommendation of the National Commission for Farmers in this regard. (15 marks)

हिंदी में पढ़ें

(a) देश में विदेशी निवेश के सन्दर्भ में भारत सरकार की नीति का मूल्यांकन कीजिए । क्या आप महसूस करते हैं कि उनके क्रिया-कलापों को नियंत्रित करने की आवश्यकता है ? (20 अंक) (b) विगत दस वर्षों में निर्यातों में वृद्धि हेतु भारत सरकार द्वारा कौन से कदम उठाए गए हैं ? क्या इनसे वांछित परिणाम प्राप्त हुए ? परीक्षण कीजिए । (15 अंक) (c) भारत में द्वितीय हरित क्रांति का पक्ष-समर्थन क्यों किया गया ? इस संदर्भ में राष्ट्रीय कृषक आयोग की संस्तुतियों का उल्लेख कीजिए । (15 अंक)

Answer approach & key points

Framework: UPSC General Studies Paper II (Economics). (a) evaluate: criteria > evidence > balanced judgment | (b) examine: intro > how/why with reasoning > evidence > conclusion | (c) explain: definition/context > points in order > small example > short close Full marks: Precise policy analysis with specific data, balanced judgment, and clear linkage between measures and outcomes.

  • Define FDI and distinguish FDI from FPI
  • Explain the Automatic vs. Approval route mechanism
  • Cite specific sectoral caps (e.g., Media, Defence, Insurance)
  • Provide a balanced judgment on the need for control
  • List key measures (e.g., RoDTEP, EPCG, SEZs)
  • Explain the mechanism of at least two measures
  • Provide evidence of export growth or stagnation
  • Conclude on whether desired results were achieved
Q7
50M distinguish Fiscal federalism, women in agriculture, rural poverty

(a) Distinguish between fiscal federalism, fiscal consolidation and cooperative federalism. Comment on the outcome of cooperative federalism in India. (20 marks) (b) Whether the role of women in agriculture has changed after liberalisation in India ? Comment. (15 marks) (c) Explain the various estimates of rural poverty in India. What measures have been adopted by the Government to reduce it ? (15 marks)

हिंदी में पढ़ें

(a) राजकोषीय संघवाद, राजकोषीय समेकन तथा सहकारी संघवाद में भेद कीजिए । भारत में सहकारी संघवाद की उपलब्धियों पर टिप्पणी कीजिए । (20 अंक) (b) भारत में उदारीकरण के उपरांत, क्या कृषि में महिलाओं की भूमिका बदल गई है ? टिप्पणी कीजिए । (15 अंक) (c) भारत में ग्रामीण निर्धनता के विभिन्न अनुमानों को समझाइये । इसको कम करने हेतु, सरकार द्वारा कौन से उपाय अपनाये गए हैं ? (15 अंक)

Answer approach & key points

Framework: Fiscal Federalism & Rural Development. (a) compare: paired headings or table > key differences > significance > conclusion | (b) comment: context > arguments both sides > judgment > close | (c) explain: definition/context > points in order > small example > short close Full marks: Clear distinctions, specific Indian examples, data-driven, balanced judgment

  • Define fiscal federalism, consolidation, and cooperative federalism
  • Distinguish between the three concepts clearly
  • Comment on the outcome of cooperative federalism in India
  • Provide specific examples of cooperative federalism in India
  • Define women's role in agriculture pre-liberalisation
  • Identify changes post-1991 liberalisation
  • Provide evidence of changes or continuity
  • Offer balanced judgment on the extent of change
Q8
50M discuss Monetary policy, agricultural credit and subsidies

(a) What are the main objectives of monetary policy adopted by the R.B.I. during last 5 years ? Discuss the steps taken by the R.B.I. to encourage investment and maintain price-stability during this period. (20 marks) (b) Why in spite of massive expansion of institutional finance, contribution of non-institutional sources in providing agricultural credit is still predominant ? (15 marks) (c) What are the various forms of subsidies that go into agriculture sector in India ? What is the justification for these ? (15 marks)

हिंदी में पढ़ें

(a) विगत पांच वर्षों में, आर.बी.आई. द्वारा अपनायी गई मौद्रिक नीति के प्रमुख उद्देश्य क्या हैं ? इस अवधि में निवेश को प्रोत्साहन देने तथा कीमत-स्थिरता को बनाए रखने हेतु उठाए गए कदमों की विवेचना कीजिए । (20 अंक) (b) कृषि-साख प्रदान करने में संस्थागत वित्त में व्यापक प्रसार के बावजूद गैर-संस्थागत स्रोतों का योगदान सर्वाधिक क्यों है? (15 अंक) (c) भारत में कृषि क्षेत्र को प्राप्त होने वाले विभिन्न प्रकार के अनुदान कौन से हैं ? इनका क्या औचित्य है ? (15 अंक)

Answer approach & key points

Framework: Monetary Policy Framework (Inflation Targeting) & Agricultural Credit/Subsidy Analysis. (a) discuss: intro > 3-4 dimensions > example > balanced close | (b) explain: definition/context > points in order > small example > short close | (c) justify: claim > 3-4 reasons > evidence > conclusion Full marks: Precise, data-driven, covers all dimensions with specific examples and clear justification.

  • Identify Inflation Targeting (4% +/- 2%) as primary objective
  • Explain MPC structure and its role in policy decisions
  • Detail steps for price stability (Repo rate, CRR, SLR)
  • Detail steps for investment (Liquidity management, credit policy)
  • Identify 'institutional' vs 'non-institutional' sources clearly
  • Explain 'last mile' connectivity failure of banks
  • Discuss the 'convenience' and 'speed' of informal credit
  • Mention the role of moneylenders in distress situations

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