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General Studies 2023 GS Paper III 15 marks 250 words Compulsory Discuss

GS Paper III — Q14

What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade…

What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies. (Answer in 250 words) 15 marks

हिंदी में प्रश्न पढ़ें

भारत में कृषि क्षेत्र को प्रदान की जाने वाली प्रत्यक्ष एवं अप्रत्यक्ष सब्सिडी क्या हैं? विश्व व्यापार संगठन (डब्ल्यू० टी० ओ०) द्वारा उठाए गए कृषि सब्सिडी संबंधित मुद्दों की विवेचना कीजिए। (उत्तर 250 शब्दों में दीजिए)

Q14 of the 2023 UPSC Mains General Studies GS Paper III, as printed
The question as printed in the 2023 General Studies paper
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Model answer

Written by UPSC Answer Check against this question's marking rubric, to the 250-word length. UPSC does not publish answers for Mains — this is one way to score well, not an official key.

Agricultural subsidies in India are transfers that lower production costs or raise farm incomes, but their WTO treatment depends on whether they distort trade.

Direct subsidies include MSP-based procurement of rice and wheat, PM-KISAN income support, fertilizer subsidy, seed subsidy, irrigation and power subsidies, and credit subsidy through interest subvention on crop loans. Indirect subsidies cover rural roads, cold storage and market infrastructure, agricultural extension, research and development, crop insurance under PMFBY, and broader market support.

The WTO classifies support into Amber Box, which is trade-distorting and must stay within de minimis limits—10 per cent of aggregate production for developing countries—Green Box, non-trade-distorting, and Blue Box, tied to production limits. This classification matters because Amber Box support can trigger disputes, while Green Box spending is largely exempt. India’s MSP for rice and wheat has been raised by the US and others in WTO committees as potentially Amber Box, while the formal 2018 dispute over sugar subsidies was brought by Australia, Brazil and Guatemala. The Bali Peace Clause is an interim due-restraint mechanism for public stockholding for food security, subject to conditions, not a permanent exclusion of new programmes.

India defends its support on food security, small and subsistence farming, and the need for a Special Safeguard Mechanism, unlike commercial agriculture in developed countries. A balanced way forward is rationalising input subsidies, expanding Green Box measures such as research, extension, insurance and infrastructure, strengthening domestic reforms, and pursuing a permanent solution in WTO negotiations for public stockholding.

What "Discuss" is asking you to do

Lay the issue out from more than one side — how it arose, what is claimed for it, what is held against it, and where it now stands. UPSC attaches discuss to broad topics with several live dimensions, so coverage of the dimensions earns more than the strength of your opinion.

Structure that answers it

Set the issue up → the case as it is made → the case against → the dimension both sides leave out → where the balance now lies

Where marks are lost

Listing facts with no thread between them, or arguing one side throughout and calling it a discussion.

All UPSC directive words, compared →

How this answer will be evaluated

Approach

Framework: Situation > Analysis > Measures > Assessment. discuss: intro > 3-4 dimensions > example > balanced close Full marks: Precise categorization of subsidies with specific schemes and clear WTO 'Box' analysis.

Key points expected

  • Define direct subsidies (input support, MSP, credit)
  • Define indirect subsidies (power, water, tax exemptions)
  • Explain WTO 'Amber Box' vs 'Green Box' distinction
  • Analyze India's 'de minimis' limit and trade-off issues

Evaluation rubric

Each sub-part is marked on its own, against the marks and word limit printed on the paper.

  1. The answer Categorize Indian farm subsidies and analyze WTO compliance issues.  · 250 words

    discuss— intro → 3-4 dimensions → example → balanced close

    Must cover

    • Define direct subsidies (input support, MSP, credit)
    • Define indirect subsidies (power, water, tax exemptions)
    • Explain WTO 'Amber Box' vs 'Green Box' distinction
    • Analyze India's 'de minimis' limit and trade-off issues

    Loses marks

    • Confusing direct and indirect subsidy categories
    • Ignoring the WTO 'Box' classification system
    • Vague generalities without specific scheme names

    Earns more

    • Mention specific schemes (PM-KISAN, PMFBY)
    • Reference 'Peace Clause' or 'Special Safeguard Mechanism'
    • Mention 'Blue Box' for output-linked support
    • Cite specific WTO dispute (e.g., US-India)

    Extra mark

    • Cite specific budgetary outlay figures for subsidies
    • Mention 'Food Security Act' as a legal basis

Practice this exact question

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