Management 2022 Paper II 50 marks Critically examine

Q6

(a) Critically examine government's policy with regard to Small-Scale Industries (SSIs). Highlight the role of Industrial Development Bank of India (IDBI) and National Bank for Agriculture and Rural Development (NABARD) for promotion of growth of SSIs and for overcoming their financial, managerial and operational sickness. (15 marks) (b) "Many objectives of public enterprises are not clear and are conflicting." Discuss the statement and point out whether public enterprises have achieved the objectives laid down by the government. (15 marks) (c) (i) Elaborate the relationship between Corporate Social Responsibility (CSR) and Corporate Governance. Discuss how the government regulations have influenced CSR actions of large companies. (10 marks) (ii) What are the major economic impacts of cybercrime? Are the Indian cyber-laws adequate to effectively deal with cyber-security threats? Discuss. (10 marks)

हिंदी में प्रश्न पढ़ें

(a) लघु-स्तरीय उद्योगों (एस० एस० आई०) के संबंध में सरकार की नीति का आलोचनात्मक परीक्षण कीजिए। एस० एस० आई० के विकास को बढ़ाने एवं इनकी वित्तीय, प्रबंधकीय तथा परिचालन रुग्णता को दूर करने में भारतीय औद्योगिक विकास बैंक (आई० डी० बी० आई०) तथा कृषि एवं ग्रामीण विकास राष्ट्रीय बैंक (एन० ए० बी० ए० आर० डी०) की भूमिका पर प्रकाश डालिए। (15 अंक) (b) "सार्वजनिक प्रतिष्ठानों के अनेक उद्देश्य अस्पष्ट एवं विरोधाभासी हैं।" इस कथन की विवेचना कीजिए तथा इंगित कीजिए कि क्या सार्वजनिक प्रतिष्ठानों ने सरकार द्वारा निर्दिष्ट उद्देश्यों को प्राप्त किया है। (15 अंक) (c) (i) नैगमिक सामाजिक दायित्व (सी० एस० आर०) एवं नैगमिक शासन के बीच संबंध को सविस्तार प्रतिपादित कीजिए। विवेचना कीजिए कि किस प्रकार सरकारी नियमों ने बड़ी कम्पनियों की सी० एस० आर० क्रियाओं को प्रभावित किया है। (10 अंक) (ii) साइबर अपराध के मुख्य आर्थिक प्रभाव क्या हैं? क्या भारतीय साइबर कानून साइबर सुरक्षा धमकियों से प्रभावी ढंग से निपटने हेतु पर्याप्त हैं? विवेचना कीजिए। (10 अंक)

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Directive word: Critically examine

This question asks you to critically examine. 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

Begin with a brief introduction acknowledging the multi-dimensional nature of government-industry interface. For part (a), critically examine SSI policy evolution from reservation to cluster-based approach, then detail IDBI's direct/indirect finance and NABARD's SHG-Bank linkage for SSIs. For part (b), discuss the triple objectives conflict (social vs commercial vs national interest) using BHEL/NTPC examples, then evaluate achievement through disinvestment and turnaround cases. For part (c)(i), establish CSR-CG nexus through stakeholder theory, citing Section 135 and Schedule VII impacts. For part (c)(ii), quantify cybercrime costs (NASSCOM data) and critically assess IT Act 2000/2008 gaps versus emerging threats. Allocate approximately 30% time to (a), 30% to (b), 20% to (c)(i), and 20% to (c)(ii), ensuring balanced coverage across all four sub-parts.

Key points expected

  • Critical examination of SSI policy shift from protectionist reservation (1956-1991) to de-reservation and cluster development post-1991, including MSME Act 2006
  • IDBI's role in SSI financing: direct refinance, bills rediscounting, seed capital, and rehabilitation finance; NABARD's role in rural SSI promotion through SHG-Bank linkage, RIDF, and microfinance institutions
  • Analysis of conflicting public enterprise objectives: social welfare vs profit vs national security, with evaluation of performance through Navratna/Maharatna status and turnaround of sick PSUs like BSNL/MTNL
  • CSR-CG relationship through stakeholder theory, agency theory, and legitimacy theory; impact of Companies Act 2013 Section 135, Schedule VII activities, and mandatory disclosure requirements
  • Economic impacts of cybercrime: direct costs (financial fraud, IP theft), indirect costs (reputation damage, compliance costs), and macroeconomic impacts on GDP and FDI; critical assessment of IT Act 2000, 2008 amendments, and inadequacies regarding data protection, crypto-jacking, and cross-border enforcement
  • Managerial and operational sickness in SSIs: causes (marketing constraints, technology obsolescence, working capital shortage) and institutional mechanisms for rehabilitation
  • Government regulations' influence on CSR: mandatory spending threshold, penal provisions for non-compliance, and emergence of CSR committees and impact assessment requirements
  • Cyber-law adequacy gaps: absence of comprehensive data protection law (pre-2019), limited CERT-In powers, jurisdictional challenges, and need for harmonization with global frameworks like GDPR

Evaluation rubric

DimensionWeightMax marksExcellentAveragePoor
Concept correctness20%10Precise definitions of SSI/MSME classification criteria, accurate distinction between IDBI's direct vs indirect lending windows, correct articulation of CSR-CG theoretical frameworks (stakeholder vs shareholder), and accurate enumeration of IT Act provisions with recent amendmentsBasic understanding of SSI policy evolution and IDBI/NABARD functions; general awareness of CSR-CG link without theoretical depth; superficial knowledge of cybercrime types and IT Act existenceConfusion between IDBI and SIDBI roles, conflation of CSR with philanthropy, or treating cybercrime only as hacking without economic dimension; factual errors in policy dates or legal provisions
Framework citation20%10Cites Khadi and Village Industries Commission (KVIC) model, Tiwari Committee recommendations on SSI sickness, Raghuram Rajan Committee on financial sector reforms for MSMEs; references OECD Guidelines on Corporate Governance, UN Global Compact principles; cites Justice Srikrishna Committee on data protection for cyber-law critiqueMentions MSME Act 2006, Companies Act 2013 Section 135, and IT Act 2000 without specific committee or reform context; generic reference to government schemes without institutional frameworkNo framework or committee references; relies solely on general knowledge without anchoring to specific policy documents, acts, or expert recommendations
Case / Indian example20%10Specific cases: Coir Board/Handloom clusters for SSI success; IDBI's role in rehabilitating sick SSIs like Kanpur leather units; BHEL/NTPC for public enterprise multi-objective tension; Tata Steel's CSR governance integration; Infosys/Wipro cyberattack experiences; Nirav Modi PNB fraud for cyber-finance crime; CERT-In incident response examplesGeneral references to 'village industries' or 'public sector banks' without specific names; mentions CSR activities of 'large companies' without naming; generic reference to 'banking fraud' without specificsNo Indian examples; uses hypothetical or foreign cases exclusively; incorrect attribution of schemes or policies to wrong states/institutions
Multi-perspective analysis20%10For (a): government, bank, and entrepreneur perspectives on SSI policy; for (b): political, economic, and administrative perspectives on public enterprise objectives; for (c)(i): shareholder vs stakeholder vs societal perspectives on CSR-CG; for (c)(ii): individual, corporate, and national security perspectives on cybercrime; balanced criticality showing both strengths and limitationsTwo-sided analysis for some parts but one-dimensional treatment of others; acknowledges trade-offs without exploring underlying tensions deeplySingle perspective throughout; purely descriptive without critical examination; unbalanced advocacy for or against government policies without nuance
Conclusion & recommendation20%10Synthesizes across all four sub-parts to argue for integrated MSME-public enterprise-CSR-cyber governance ecosystem; specific actionable recommendations: single window clearance for SSIs, professionalization of PSU boards, mandatory CSR impact assessment, and dedicated cybercrime tribunals; forward-looking on Digital India and Atmanirbhar Bharat convergenceSeparate conclusions for each sub-part without cross-linking; generic recommendations like 'government should do more' without specificity; restates main points without synthesisNo conclusion or abrupt ending; recommendations unrelated to analysis; purely ideological stance without evidence-based policy suggestions; ignores any sub-part in conclusion

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