General Studies 2025 GS Paper III 10 marks 150 words Compulsory What

Q2

What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism ? How can these challenges be met ? (Answer in 150 words) 10

हिंदी में प्रश्न पढ़ें

भारतीय अर्थव्यवस्था के समक्ष वे कौन-सी चुनौतियाँ हैं जब विश्व स्वतंत्र व्यापार तथा बहुपक्षीयता से दूर होकर संरक्षणवाद तथा द्विपक्षीयता की ओर बढ़ रहा है। इन चुनौतियों का सामना किस तरह किया जा सकता है ? (उत्तर 150 शब्दों में दीजिए)

Evaluate your answer to this question → See all 2025 General Studies questions

Directive word: What

This question asks you to what. 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 directive 'what' combined with 'how' requires a dual-structure response: first identifying specific economic challenges posed by rising protectionism and bilateralism, then proposing concrete policy measures. Structure as: brief context → 3-4 challenges (trade diversion, supply chain disruptions, WTO weakening, investment uncertainty) → 3-4 mitigation strategies (diversifying trade partnerships, strengthening domestic manufacturing via PLI, active FTAs, WTO reform advocacy) → forward-looking conclusion.

Key points expected

Impact of US-China trade war and tariff escalations on Indian export competitiveness
Challenge of trade diversion effects where Indian exports face displacement by preferential bilateral deals (e.g., RCEP exclusion costs)
Supply chain reconfiguration risks and India's vulnerability in critical sectors like semiconductors and pharmaceuticals
WTO Appellate Body paralysis and erosion of multilateral dispute resolution affecting India's trade interests
Strategic response through Production Linked Incentive (PLI) schemes and active FTA negotiations (UAE, Australia, UK)
Need for Atmanirbhar Bharat balancing self-reliance with strategic global integration

Evaluation rubric

Dimension	Weight	Max marks	Excellent	Average	Poor
Demand-directive understanding	20%	2	Clearly distinguishes between protectionism (tariffs, non-tariff barriers) and bilateralism (preferential FTAs) as distinct but overlapping phenomena; addresses both 'challenges' and 'how to meet' components in balanced proportion without conflation.	Mentions protectionism and bilateralism but treats them interchangeably; covers both parts of the question but with uneven weightage (typically overemphasizing challenges).	Misidentifies the core phenomenon (e.g., confuses with deglobalization generally); answers only one part of the question or provides generic discussion without addressing the specific shift from multilateralism.
Content depth & accuracy	20%	2	Identifies 4+ specific challenges (trade diversion, rules of origin circumvention, investment uncertainty, WTO weakening) and 4+ concrete solutions (PLI schemes, critical mineral partnerships, FTA diversification, dispute resolution alternatives) with accurate economic reasoning.	Lists 2-3 challenges and 2-3 solutions with basic accuracy but lacks specificity in causal mechanisms; some generic points like 'strengthen manufacturing' without explaining how.	Vague or inaccurate content (e.g., claiming India benefits from protectionism); factual errors about trade agreements or conflates bilateralism with regionalism; solutions unrelated to the identified challenges.
Structure & flow	20%	2	Clear demarcation between challenges and responses; logical progression from external environment → sectoral impacts → policy responses; effective use of signposting within 150-word constraint; no structural imbalance.	Basic two-part structure present but transitions are abrupt; some mixing of challenges and solutions; word allocation slightly skewed but both sections visible.	No clear structure or paragraph organization; challenges and solutions scattered randomly; severely imbalanced (e.g., 120 words on challenges, 30 on solutions) or incomplete due to poor time management.
Examples / case-law / data	20%	2	Deploys 2+ specific contemporary examples: RCEP exclusion impact, India-Australia/UK FTA negotiations, US Section 232 tariffs on steel/aluminum, PLI scheme allocations, or WTO Appellate Body blockage since 2019; data points like India's trade deficit trends or FDI inflows under specific sectors.	One concrete example (typically RCEP or PLI) with one generic reference; or multiple examples lacking specificity (e.g., 'recent FTAs' without naming countries).	No contemporary examples; relies on outdated references (pre-2018 trade policy) or irrelevant cases; examples factually wrong (e.g., claiming India is in RCEP).
Conclusion & analytical edge	20%	2	Synthesizes into a strategic insight: India must navigate 'strategic autonomy' between selective bilateralism and preserving multilateral rules; or identifies the paradox that India's FTA push itself contributes to bilateralism while advocating WTO reform; forward-looking without being speculative.	Standard optimistic conclusion about India emerging stronger; or simple summary of points made; no analytical tension or synthesis.	No conclusion or abrupt ending; conclusion contradicts body (e.g., advocating pure free trade after detailing protectionist responses); purely descriptive sign-off with no analytical value.

Practice this exact question

Write your answer, then get a detailed evaluation from our AI trained on UPSC's answer-writing standards. Free first evaluation — no signup needed to start.

Evaluate my answer →