GS Paper III — Q2
What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to…
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 marks
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)
Model answer
Drafted with AI by UPSC Answer Check against this question's marking rubric, to the 150-word length. UPSC does not publish answers for Mains — this is one way to score well, not an official key. How we build rubrics and answers.
Global geo-economic fragmentation and rising protectionism present critical headwinds for the Indian economy:
Challenges Before India First, escalating tariff barriers—the US-China trade war and steep US tariffs on Indian goods in 2025—hurt export competitiveness in sectors such as textiles, gems and jewellery, and seafood, while non-tariff measures like the EU's Carbon Border Adjustment Mechanism raise compliance costs. Second, trade diversion from bilateral and mega-regional pacts threatens export displacement, visible in the competitive disadvantages following India’s exit from the Regional Comprehensive Economic Partnership (RCEP). Third, supply chain reconfiguration risks expose critical vulnerabilities in high-dependency sectors like semiconductors and pharmaceuticals. Fourth, the paralysis of the WTO Appellate Body erodes multilateral dispute settlement, leaving India vulnerable to unilateral trade measures.
Strategic Measures India must counter these disruptions by negotiating agile, comprehensive bilateral Free Trade Agreements (FTAs), expanding on recent pacts with the UAE, Australia, the UK and the EU. Domestically, enhancing manufacturing competitiveness through Production Linked Incentive (PLI) schemes will fortify critical supply chains. Internationally, India must advocate for WTO reforms to revive rule-based multilateralism. Ultimately, policy must align with Atmanirbhar Bharat, balancing domestic self-reliance with strategic global integration.
How this answer will be evaluated
Framework: GS3 Economy: Trade policy and globalisation
What earns full marks: Precise challenges mapped to specific, implementable measures with current data.
Evaluation rubric
Each sub-part is marked on its own, against the marks and word limit printed on the paper.
- The answer Identify the challenges for India from the global shift to protectionism and bilateralism and map workable responses to each. 10 marks · 150 words
challenges— 3-4 challenges → solutions mapped to them → conclusion
Must cover
- 3-4 specific challenges (tariffs on exports, trade diversion, supply-chain shifts, weakened WTO dispute settlement)
- Specific response mapped to each challenge
- Responses that are implementable (FTAs, PLI, logistics, WTO diplomacy, market diversification)
- Context: the shift from multilateralism to bilateral and plurilateral deals
Loses marks
- Aspirational solutions without implementation detail
- Summary of global events without economic analysis
- Ignoring the bilateralism aspect
Earns more
- Specific sectors hit (textiles, gems and jewellery, pharma, IT services)
- Recent FTAs: UAE CEPA, Australia ECTA, India–UK CETA (2025), EFTA TEPA, India–EU FTA (2026)
- Non-tariff barriers such as the EU CBAM
- Domestic competitiveness: PLI, logistics policy, MSME credit
Extra mark
- A current figure (e.g., US tariffs on Indian goods in 2025; PLI outlay of about ₹1.97 lakh crore)
- Simple flowchart of trade-flow disruption
What "What" is asking you to do
What is an interrogative rather than a command word. It opens a multi-part stem — what the thing is, then its causes, risks or remedies — and the definitional clause is the gate rather than the answer, with the marks spread across the clauses that follow it.
Structure that answers it
What it is, in two or three lines → the second clause of the stem, at length → the third clause, at length → a closing line only if room remains
Where marks are lost
Spending half the answer establishing the object and leaving the later clauses, which carry most of the marks, thinly answered.
Practice this exact question
Write your answer and it is marked point by point against the model answer above — what you covered, what you missed, what you got wrong.
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