GENERAL STUDIES - 3

TEST – 3

• Indian Economy and issues relating to planning, mobilization, of resources, growth, development
and employment.
• Inclusive growth and issues arising from it.

1. What is trade deficit? Examine its implications on the Indian economy and measures needed to
keep deficit within acceptable limits. 250 words)
2. What is Index of Industrial Production (IIP)? How is it calculated? Is it losing its relevance as
measures of economic growth? Analyse. (250 words)
3. Managing inflation and its impact on the savings rate requires a coordinated effort from
policymakers, central banks, and individuals. Analyse. (250 words)
4. “Make in India” initiative was launched with an aim to promote manufacturing and boost
economic growth by encouraging domestic production within the country. Critically examine its
performance. (250 words)
5. Addressing the need for social security in India requires a comprehensive and integrated
approach that includes measures for income support, healthcare, education, and protection
against various social and economic risks. Substantiate. (250 words)
6. Critically analyse India’s efforts towards achieving the Sustainable Development Goals (SDGs) by
2030. What course corrections are required to meet the targets?
7. Payments banks are often seen as crucial for promoting financial inclusion, especially in regions
with limited access to traditional banking services. As payments banks play a vital role in the
financial ecosystem, stricter regulations can help prevent systemic risks and protect the interests
of depositors. Discuss. (250 words)
8. What Is the Dutch Disease? Discuss the pros and cons of the influx of foreign capital in the
economy. (250 words)
9. The Index of Industrial Production (IIP) has faced criticism for its relevance and limitations in
capturing the complexities of contemporary industrial activities. Analyse. (250 words)
10. The rise of payments banks and digital financial services has significantly impacted the
traditional banking sector in India. In the light of the above, discuss the reforms that are needed
in the banking sector for improved risk management and embracing technological innovation.
(250 words)
 GENERAL STUDIES - 3

11. Iron ore mining has played a pivotal role in India’s development, contributing significantly to the
country’s economic growth and industrialization. However, the industry faces critical challenges
related to sustainability and fairness that must be addressed for its long-term viability. Analyse.
(250 words)
12. Examine the reasons behind India’s low tax-GDP ratio and suggest measures to propel India
towards a higher tax-to-GDP ratio. (250 words)
13. Freebies may be implemented without adequate fiscal planning, potentially leading to
budgetary deficits and financial instability over time. Examine. (250 words)
14. Analyse the macroeconomic factors contributing to high unemployment rates in India. Is
achieving employment goals contingent on a dedicated focus beyond rapid GDP growth?
Comment (250 Words)
15. The Planning Commission and its Five-Year Plans contributed to significant economic and social
development in India; however, they also faced numerous challenges and limitations. Examine.
(250 words)
16. The Liberalization, Privatization, and Globalization (LPG) reforms of 1991 played a significant role
in transforming India’s economy, promoting growth, and attracting foreign investment. However,
they also brought about social, environmental, and economic challenges that need to be
addressed through further policy interventions and reforms. Critically analyse. (250 words)
17. Unified Payments Interface (UPI) has revolutionized digital payments in India. Addressing its
shortcomings will be essential for ensuring its sustained growth and relevance in the evolving
payments landscape. Discuss. (250 words)
18. Fostering an enabling environment for Micro, Small and Medium Enterprises (MSMEs) can
further enhance their contributions to India’s economic and social development. Discuss. (250
words)
19. How does inflation affect welfare measures in the country? The government must carefully
monitor inflationary trends and adjust welfare policies accordingly to mitigate adverse effects on
vulnerable populations and ensure the effective delivery of social assistance programs. Analyse.
(250 words)
20. Discuss the measures that are needed to stimulate economic growth, create employment
opportunities, and address the challenges of unemployment and underemployment in India.
(250 words)
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21. Addressing the challenges faced by Regional Rural Banks is crucial for their sustained success
inpromoting rural development. Examine. (250 words)
22. Throw light on major issues facing the banking sector in India in the recent times. Suggest
measures that will ensure long-term viability of the banking sector. (250 words)
23. What is Gross Domestic Product (GDP)? Examine the limitations pertaining to GDP as an
economic performance measurement framework of the country. (250 words)
24. What is national income? Throw light on various methods of computing national income.
Explain. (250 words)
25. National income serves as a critical tool for to understand and evaluate the economic health and
progress of a nation. Discuss. Throw light on its shortcomings. (250 words)
26. To achieve inclusive growth and realize the vision of Viksit Bharat, India needs comprehensive
policy interventions that address structural barriers to inclusive development. Explain. (250
words)
27. There is a need for the government to address the root causes and implement effective
measures to mitigate the adverse impacts of black money and promote inclusive and sustainable
economic development. Critically examine. (250 words)
28. Implementing policies and measures to expand the direct tax base should be a priority for India’s
fiscal and economic policymakers. Discuss. (250 words)
29. A well-designed Universal Basic Income (UBI) can be a powerful tool in promoting inclusive
economic growth and social well-being. Critically analyse. (250 words)
30. While maintaining price stability is paramount, the RBI also focuses on supporting economic
growth. It does this by ensuring that its monetary policy fosters a conducive environment for
investment and sustainable economic expansion. Examine. (250 words)
31. National income provides insight into the overall health of an economy, its growth rate, and the
distribution of income among its citizens. Discuss various methods to compute it. (250 words)
32. India’s pharmaceutical industry stands at a crucial juncture where enhancing research and
development (R&D), fostering innovation, and maintaining high-quality manufacturing are
pivotal for sustained growth and global competitiveness. Discuss (250 words)
33. A trade imbalance can have significant implications for the Indian economy. India must manage
its trade balance more effectively, ensuring sustainable economic growth and stability. Examine.
(250 words)
 GENERAL STUDIES - 3

34. The implementation of the Insolvency and Bankruptcy Code (IBC), 2016 needs concerted efforts
to enhance expertise, streamline procedures, and address legal complexities to ensure the
efficient functioning of the insolvency regime. Examine. (250 words)
35. A ban on agricultural exports may initially lower domestic prices but can disrupt supply chains,
harm farmers, and strain international relations. Critically examine. (250 words)
36. Critically examine the potential benefits and challenges associated with central bank digital
currency (CBDC). (250 words)
37. Ensuring the well-being of informal sector employees is crucial for creating a more inclusive and
equitable labour market in India. Examine. (250 words)
38. Robust Goods and Services Tax (GST) revenues present a significant opportunity for the
government to prioritize vital reforms aimed at enhancing economic growth, fiscal sustainability,
and administrative efficiency. Analyse. (250 words)
39. The evolution of the India’s service sector after economic reforms in 1991 has been instrumental
in driving economic development, fostering innovation, and improving standards of living.
Discuss. (250 words)
40. India has made significant progress in its Universal Immunization Programme (UIP); however,
there are still challenges to overcome and opportunities to explore. Discuss. (250 words)
41. Inequality in India stems from various factors, both historical and contemporary. Hence, targeted
interventions should focus on vulnerable groups to ensure equitable access to social services and
support systems. Analyse. (250 words)
42. To ensure adequate job creation, India needs a multi-faceted approach that can collectively
foster a robust job market and sustainable economic growth. Discuss. (250 words)
43. Goods and Services Tax (GST) has brought significant benefits to the Indian economy. However, it
also faces several limitations. Analyse. (250 words)
44. Debt instruments play a crucial role in the global financial system by providing various entities
with access to capital markets to finance their operations and investments. Discuss. (150 words)
45. What is Inflation? Moderate inflation is a normal aspect of a growing economy, but when
inflation is too high or too low, it can have serious economic consequences. Examine. (250
words)
46. Moving towards a Direct Tax Code can offer significant benefits in terms of simplification,
transparency, and economic growth. Critically examine. (250 words)
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47. While some degree of inequality can drive economic growth and foster political dynamism,
excessive inequality poses significant threats to democratic processes. Do you agree? (250
words)
48. The Goods and Services Tax (GST) system has faced periodic challenges in revenue generation
since its implementation." Examine the factors affecting GST revenue growth in India and
suggest measures to ensure more robust collections. (15 M)
49. The Goods and Services Tax (GST) system has faced periodic challenges in revenue
generation since its implementation." Examine the factors affecting GST revenue growth in India
and suggest measures to ensure more robust collections. (15 M)
50. Analyze the key factors leading to the decline in private sector investment in India and propose
measures to revive and stimulate investment. (15 M)
51. The Indian textile industry is at a crossroads, facing both global and domestic challenges”.
Critically analyze the reasons for the slowdown in the Indian textile sector and suggest
comprehensive measures to revive its growth trajectory. (15 M)
52. Examine the role of Non-Banking Financial Companies (NBFCs) in fostering financial inclusion in
India. Highlight the key challenges faced by NBFCs in ensuring sustainable growth and suggest
comprehensive solutions to overcome these challenges. (15 M)
53. Analyze the recent trends in capital expenditure in India and their implications for economic
growth. How do public and private sector investments complement each other in this regard?
(15 M)
54. Inclusive institutions foster long-term economic growth, whereas extractive institutions
impede it”. Examine this statement with relevant examples from India and other developing
countries. (15 M)
55. The concept of Universal Basic Income (UBI) has gained renewed interest globally in light of rising
unemployment and inequality”. Discuss its potential advantages and challenges in the context of
financial constraints and existing welfare schemes. (15 M)
56. Discuss the potential economic benefits of increasing women’s labour force participation by
valuing and redistributing unpaid household work. How might this shift affect India's GDP. (10 M)
57. Analyze the paradox of stagnant rural wages in India despite a buoyant GDP growth. Examine the
factors driving this stagnation and suggest measures to enhance rural wage growth. (15 M)
 GENERAL STUDIES - 3

58. Tax evasion under the GST regime in India has seen evolving and complex trends, impacting both
revenue and compliance”. Examine these trends and suggest measures to strengthen enforcement and
improve compliance. (10 M)
59. The gig economy in India provides flexible work opportunities but often at the cost of job security
and fair wages.” Discuss the challenges faced by gig workers in securing dignified employment. (10 M)
60. Innovation in technical textiles is essential for achieving self-reliance in critical sectors Analyze in
the context of the National Technical Textiles Mission. (10 M)
61. Examine the challenges and opportunities in enhancing the own-tax revenue of municipal
corporations in India. What strategic measures can bolster their financial robustness while fostering
efficient urban service delivery? (15 M)
62. The cooperative sector is critical for achieving the goal of inclusive economic growth". (15 M)
63. Explain the difference between Current Account and Capital Account in BoP. Why is Current
Account Deficit (CAD) a concern for India’s economy? (10 M)
64. FDI inflows are essential for economic growth but can lead to market dependency and sectoral
imbalances”. Evaluate the opportunities and challenges of FDI in India. (15 M) Discuss the role of the
International Monetary Fund (IMF) in addressing economic crises and the challenges it poses for
underdeveloped countries. (10 M)
65. Bilateral and regional cooperation is no longer just an economic imperative but a strategic
necessity”. Discuss(15 M)’
66. What are Special Drawing Rights (SDRs)? Discuss their role in enhancing global liquidity. (10 M)
67. The unorganized sector continues to dominate India’s industrial landscape, contributing both
dynamism and vulnerability." Discuss the structural reforms needed to integrate this sector into the
formal economy. (15 M)
68. “The World Bank has played a significant role in poverty alleviation across the globe, but its
policies are often criticized for being neoliberal and growth-centric”. Comment. (15 M)
69. Discuss the significance of Gross Value Added (GVA) in understanding the structural
transformation of the Indian economy. How does it complement GDP as an economic indicator? (10 M)
70. “The dichotomy between urban and rural employment in India reflects deeper structural
inequalities”. Analyze how fiscal and monetary policies can be synchronized to address the disparities.
(15 M)
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71. Examine the role of External Commercial Borrowings (ECBs) in India's financing structure. Discuss
their potential in bridging investment gaps and ensuring financial stability, along with the associated
risks in the current economic scenario. (15 M)
72. Despite being a major employment provider, the unincorporated sector suffers from low capital
investment and limited access to institutional credit. Examine the reasons behind this and suggest
policy measures for financial resilience and growth. (15 M)
73. Examine the relationship between household consumption expenditure and fiscal policy. How
can targeted government interventions enhance household purchasing power without fuelling
inflationary pressures? (15 M)
74. Why does India lag behind in textile exports despite being a global leader in fibre production?
How do fragmented supply chains and high production costs affect competitiveness? What measures
can enhance efficiency and integration? (15 M)
75. Ensuring financial sustainability in Primary Agricultural Credit Societies (PACS) requires reducing
subsidy dependence through innovative revenue models. Discuss how alternative financial instruments
can enhance their long-term viability and analyze the challenges in their rural implementation. (15 M)
76. What are aspiration-centric jobs, and why are they crucial for India’s youth in the context of rural
development and demographic dividend? Suggest strategies to promote such jobs. (15 M)
77. A modern tax system should be simple, predictable, and reduce litigation. Analyze whether the
Income Tax Bill, 2025, achieves these goals. Suggest additional measures for reform. (15 M)
78. Public sector banks have seen significant recapitalization, yet credit delivery to priority sectors
remains sluggish. Examine the reasons behind this paradox. Suggest structural reforms to address it.
(10M)
79. Indian capital markets are increasingly driven by speculative flows, not fundamentals. Critically
assess this trend. Discuss its implications for financial stability. Suggest policy safeguards to insulate the
real economy. (15 M)
80. How do contingent liabilities and off-budget borrowings pose hidden fiscal risks? Why must they
be incorporated into fiscal sustainability assessments? Recommend tools to transparently measure
such liabilities. (15 M)
81. What are the global economic and geopolitical factors influencing gold prices? How do these
impact India’s macroeconomic stability? Suggest policy approaches to insulate the economy from
external gold shocks. (15 M)
GENERAL STUDIES - 3