Management 2025 Paper II 50 marks Critically evaluate

Q6

(a) (i) "Small-Scale Industries play a vital role in the growth of economic activities of a country." Explain giving examples. (10 marks) (ii) How can Government initiatives expedite the growth and success of small-scale industries ? Discuss. (5 marks) (b) (i) "Government should not enter into business activities." Do you agree ? Explain with examples. (10 marks) (ii) "Privatisation of Industries has not achieved its objectives." Give your critical comments. (10 marks) (c) "Consumer Protection Act 2019 (CPA) has changed the business scenario in India." Do you agree ? Describe at least eight features of CPA giving suitable examples. (15 marks)

हिंदी में प्रश्न पढ़ें

(a) (i) "किसी देश की आर्थिक गतिविधियों के विकास में लघु उद्योग एक महत्वपूर्ण भूमिका निभाते हैं।" उदाहरण देते हुए समझाइये। (10 अंक) (ii) सरकारी पहल लघु उद्योगों के शीघ्र विकास और सफलता कैसे कर सकते हैं ? विवेचना कीजिए। (5 अंक) (b) (i) "सरकार को व्यावसायिक गतिविधियों में प्रवेश नहीं करना चाहिए।" क्या आप सहमत हैं ? उदाहरणों सहित समझाइये। (10 अंक) (ii) "उद्योगों का निजीकरण अपने उद्देश्यों को प्राप्त नहीं कर पाया है।" अपनी आलोचनात्मक टिप्पणी दीजिए। (10 अंक) (c) "उपभोक्ता संरक्षण अधिनियम 2019 (सी पी ए) ने भारत में व्यावसायिक परिदृश्य बदल दिया है।" क्या आप सहमत हैं ? उपयुक्त उदाहरण देते हुए सी पी ए की कम से कम आठ विशेषताओं का वर्णन कीजिए। (15 अंक)

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Directive word: Critically evaluate

This question asks you to critically evaluate. 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 'critically evaluate' demands balanced judgment with evidence. Allocate approximately 25% time/words to (a)(i) on SSI role, 12% to (a)(ii) on government initiatives, 20% each to (b)(i) on government in business and (b)(ii) on privatisation critique, and 23% to (c) on CPA 2019. Structure: brief introduction acknowledging SSI importance, then systematic treatment of each sub-part with examples, ending with synthesized conclusion on state-market-consumer balance.

Key points expected

  • (a)(i) Economic roles of SSI: employment generation, regional dispersion, export contribution, entrepreneurship development—illustrated with Khadi clusters, Coimbatore textile SMEs, or Moradabad brassware
  • (a)(ii) Government initiatives: PMEGP, CGTMSE, MUDRA, MSME Development Act 2006, single-window clearance, technology upgradation through MSME-Technology Centres
  • (b)(i) Balanced view on government in business: arguments for (market failure, strategic sectors, social welfare) and against (inefficiency, political interference)—examples from Air India, BSNL, vs. successful PSUs like ISRO or SAIL
  • (b)(ii) Critical assessment of privatisation: achievements (disinvestment proceeds, efficiency gains in Maruti, VSNL) versus shortcomings (job losses, asset stripping, strategic sale controversies, limited revenue generation)
  • (c) CPA 2019 transformation: eight features—e-commerce inclusion, product liability, mediation, enhanced pecuniary jurisdiction, CCPA establishment, strict liability, misleading advertisement penalties, and class action suits—with examples like Amazon/Flipkart consumer disputes or Maggi case implications

Evaluation rubric

DimensionWeightMax marksExcellentAveragePoor
Concept correctness20%10Precisely defines SSI thresholds (investment-based post-2006), distinguishes between privatisation and disinvestment, accurately identifies CPA 2019 provisions versus 1986 Act, and correctly applies economic rationale for government interventionBasic definitions present but conflates terms (e.g., privatisation with liberalisation), vague on SSI criteria, mixes CPA 1986 and 2019 provisionsFundamental conceptual errors—wrong SSI definition, treats privatisation as synonymous with globalisation, misstates CPA provisions
Framework citation20%10Cites relevant policy frameworks: MSME Development Act 2006, Industrial Policy Resolution 1956 vs. 1991, Disinvestment Commission reports, Raghuram Rajan committee on PSUs, Law Commission recommendations for CPA 2019Mentions generic government schemes without specific legislation or committee references; framework awareness superficialNo framework citation; purely descriptive without policy anchoring
Case / Indian example20%10Rich Indian examples: for (a)—Khadi and Village Industries Commission, Tirupur knitwear cluster; for (b)—Air India disinvestment, BALCO privatisation impact, successful PSU turnaround like NTPC; for (c)—CCPA action against Amazon, Patanjali misleading ads case, product liability in Johnson & Johnson baby powder caseGeneric examples without specificity (e.g., 'small industries in India') or dated references; limited integration across sub-partsNo Indian examples or irrelevant foreign cases; hypothetical illustrations only
Multi-perspective analysis20%10For (b)(i)—presents both market failure and public choice theory perspectives; for (b)(ii)—evaluates efficiency vs. equity trade-offs; for (c)—balances consumer empowerment with compliance burden on businesses; acknowledges sectoral variations in SSI impactOne-sided argument or superficial balance; acknowledges opposing views but doesn't develop them with evidenceCompletely one-sided (e.g., only pro-privatisation or only anti-government); no recognition of complexity
Conclusion & recommendation20%10Synthesizes across sub-parts into coherent thesis: optimal state-market boundary with empowered consumers; specific recommendations—strengthening MSME credit guarantee, conditional privatisation with social safeguards, strengthening CCPA enforcement; forward-looking on digital consumer protectionSummary conclusion repeating points without synthesis; generic recommendations ('government should help MSMEs')No conclusion or abrupt ending; contradictory recommendations across sub-parts

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