I-WIL-2023 - Without-Eval-Test 7 - GS 3 - Indian Economy & Agriculture-Synopsis

IWIL2023 TEST7 Eco+Agro Synopsis
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Q1. Has the introduction of Goods and Services Tax (GST) led to an expansion of fiscal space for the states in India? Discuss.
(10M)
Introduction
The Goods and Services Tax (GST) is a comprehensive indirect tax system which replaced multiple indirect taxes levied by the
central and state governments, such as excise duty, service tax and value-added tax (VAT). The GST framework in India is
based on the principle of "One Nation, One Tax," and its introduction has brought significant changes to the Indian taxation
system.
Body:
The introduction of GST has led to an expansion of fiscal space for the states in India
• Broader Tax Base: The GST replaced multiple indirect taxes and expanded the tax base as it included previously
untaxed sectors.
o GST has been able to double India’s tax base (by 2022) since the introduction of GST in July 2017
• Improved Compliance: GST introduced a technology-driven system for tax administration, including online
registration, filing of returns, and invoice matching.
o This has streamlined the tax collection process and improved compliance levels.
• Reduced Economic Distortions: The uniformity and standardization brought about by GST have reduced economic
distortions across states.
o GST has provided a level playing field and facilitated inter-state trade.
• Removal of Cascading Effects: Prior to GST, various taxes were levied on goods and services at multiple stages of
production and distribution.
o With the implementation of GST, the cascading effect has been eliminated and this has reduced the overall
tax burden and increased the fiscal space available to the states.
• Greater Revenue Predictability: GST has introduced a more transparent and predictable tax system. With a simplified
tax structure and improved compliance, states have better visibility and predictability of their revenue streams,
which allows for more effective financial planning and resource allocation.
o Buoyancy in direct and indirect taxes GST has stabilized as a major revenue source for Central and State
Governments with gross collection rising by 24.8% on a YoY basis from April – December 2022.
GST has not led to an expansion of fiscal space for the states:
• Revenue Shortfall: The initial implementation of GST led to a revenue shortfall for some of the states. This was mainly
due to the shift from the previous tax regime to the new GST framework, which resulted in an initial disruption and
adjustment period.
• Incomplete Compensation Mechanism: Delays in compensation payments from the centre affected the financial
stability of states and limited their ability to expand their fiscal space.
• Limited Autonomy in Tax Rate Decisions: In the GST council, the vote of the central government has a weightage of
one-third of the total votes cast, while the votes of all the state governments have a weightage of two- thirds. This
restricts the ability of the states to independently adjust tax rates to meet their specific revenue requirements and
hampers their fiscal space expansion.
• Compliance Challenges: GST requires businesses to comply with complex procedures and maintain detailed records.
Lower compliance levels can result in reduced tax revenues for the states, constraining their fiscal space.
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Conclusion:
The introduction of GST has expanded the fiscal space for the states in India through improved compliance, and enhanced
revenue predictability. However, to fully realize the potential of GST, it has to be expanded to include petroleum, electricity
and real estate, and the spirit of cooperative federalism must be encouraged by reducing the central government’s unilateral
imposition of cesses and surcharges which outside the shareable pool of revenues.
Q2. Differentiate between Balance of Trade (BOT) and Balance of Payment (BOP). Suggest the policies that can correct a
deficit in BOP and restore stability. (10M)
Introduction
Balance of Trade (BOT) and Balance of Payments (BOP) are two important concepts in international economics that measure the
economic transactions between a country and the rest of the world. They provide insight into a country's economic performance
in terms of trade and financial flows.
Body:
Difference between Balance of Trade and Balance of payment:

Basis for Balance of Trade Balance of payment
comparison
Meaning Balance of Trade is a statement that captures the BoP is a financial statement that keeps track of all the
country's export and import of goods with the remaining economic transactions by the nation with the rest of
world. the world.
Records It focuses solely on the trade in goods (merchandise Transactions related to both goods and services are
trade) and does not include services or other financial recorded.
transactions.
Component It is a component of the Current Account of the Balance Current Account and Capital Account.
of Payment.
Result The Balance of Trade can show a surplus or deficit or it The net effect of BoP is always zero.
can be balanced too.
As If there is any deficit in any individual account, it
A positive BOT, known as a trade surplus, occurs when a would be covered by a surplus in other accounts, if
country's exports exceed its imports. there is any difference between total debits and total
credits, it would be settled under 'errors & omissions'.
A negative BOT, known as a trade deficit, occurs when
imports exceed exports.
Capital Are not included in the Balance of Trade. Are included in the Balance of Payment.
Transfers
Policies that can correct a deficit in BOP and restore stability:

• Fiscal Policy: Governments can adjust their fiscal policies, such as taxation and government spending, to stimulate
domestic production and reduce imports.
o Increasing export-oriented initiatives, providing export incentives, and promoting domestic industries can help
improve the current account balance.
• Monetary Policy: Central banks can use monetary policy tools to manage the exchange rate and control capital flows.
o Depreciating the domestic currency can make exports more competitive and discourage imports, thus
improving the trade balance.
• Structural Reforms: Implementing structural reforms to enhance competitiveness, productivity, and efficiency can help
boost exports and reduce import dependence.
o This may involve improving infrastructure, reducing trade barriers, promoting innovation, and enhancing the
business environment.
• Import Substitution: Encouraging domestic production of goods and services that are currently imported can help reduce
import dependence and improve the trade balance.
o This can be done through import restrictions, tariffs, or other trade-related measures.
• Foreign Direct Investment (FDI): Attracting foreign direct investment can bring in capital, technology, and expertise,
which can enhance production capacity and export competitiveness. FDI inflows can help improve the financial account
of the BOP.
• Measures from an Indian Perspective
o Adoption of a cautious approach in encouraging large inflows of external commercial borrowing, portfolio
investment by foreigners and a large contribution from NRI in the form of bonds.
o Rising exports by at least 12% per annum.
o Introducing a policy of selective import liberalisation in priority areas.
Conclusion
The balance of payments data should catalyse the finance ministry and RBI to jointly initiate a thorough study of the causes of
the deterioration in the past. Very likely, there are measures which can be initiated quickly to arrest the slide in case the
vulnerability deepens due to global factors.
Q3. Recent economic survey projects the Indian economy to be staging a broad-based recovery across various sectors. Give
reasons for such an assessment. (10M)
Introduction
As per the latest Economic Survey, India is likely to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on
the trajectory of economic and political developments globally. The Indian economy is well placed to grow faster in the coming
decade once the global shocks of the pandemic and the spike in commodity prices in 2022 fade away.
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The reason behind this projection: The optimistic growth forecasts stem from several positives:
• Higher Capital Expenditure (Capex): construction activity, in general, has significantly risen in FY23 as the much-enlarged
capital budget (Capex) of the central government and its public sector enterprises is rapidly being deployed.
o Like the central government, states also have a larger capital budget supported by the centre’s grant-in-aid for
capital works and an interest-free loan repayable over 50 years.
• Credit growth: The banking sector in India has responded in equal measure to the demand for credit.
o The credit growth to the MSME sector has been remarkably high, over 30.5 per cent, on average, during Jan-
Nov 2022, supported by the extended ECLGS of the central government.
• Near universal vaccination coverage enables people to spend on contact-based services such as restaurants, hotels,
shopping malls, and cinemas.
• GST paid by small businesses has risen and crossed pre-pandemic levels.
o Buoyancy in direct and indirect taxes GST has stabilized as a major revenue source for Central and State
Governments with gross collection rising by 24.8% on a YoY basis from April – December 2022.
• The return of migrant workers to cities to income work in construction sites led to a significant decline in the housing
market inventory.
• The strengthening of the balance sheets of the Corporates due to the surge in exports in FY22. Also, After-tax profits
were also boosted by the lower taxes announced in 2019. Better profitability helped corporates pay down debt .
• Release of “pent-up” demand: Accelerating growth in personal loans and housing loans in India testifies to an enduring
release of “pent-up” demand for consumption.
o RBI’s most recent survey of consumer confidence released in December 2022 pointed to improving sentiment
with respect to current and prospective employment and income conditions.
• More formalisation of the economy: The Indian economy has become a lot more formalized as reflected in the EPFO
membership more than doubling to 27 crores.
• Increased digital payments: 74,00 crore digital payments of Rs. 126 lakh crore through UPI in 2022.
• The rebound of private consumption: Although domestic consumption rebounded in many economies, the rebound in
India was impressive for its scale. It contributed to a rise in domestic capacity utilisation.
Conclusion
The Survey states with optimism that the Indian economy appears to have moved on after its encounter with the pandemic,
staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre -pandemic growth path in FY23
Q4. Does the privatization of sectors like health and education offer a viable path to modernize India? Elaborate your views.
(10M)
Introduction
Only 66% per cent of the Indian people are literate (76% of men and 54% of women). Half of India’s schools have a leaking roof
or no water supply, 35% have no blackboard or furniture, and close to 90 per cent have no functioning toilets. Similarly, India
accounts for more than 20% of global maternal and child deaths, and the highest maternal death toll in the world and nearly 67%
of the population in India do not have access to essential medicines.
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Privatization of sectors like health and education offers a viable path to modernize India:
• Removing Resource constraints in delivering adequate healthcare and education services to its vast population.
o Privatization can attract private investment and mobilize additional resources for sectors like health and
education that can help address infrastructure gaps, improve facilities, and expand access to services.
• Efficiency and quality: Privatization can introduce market-driven mechanisms, competition, and innovation, leading to
enhanced efficiency and improved service quality.
• Meeting Diverse Needs and Preferences: Private healthcare providers can offer specialized services and treatments,
and private educational institutions offer specialized courses and programs to meet diverse interests and career
aspirations.
• Improving Governance and Accountability: Privatization can bring in improved governance and accountability
mechanisms.
o Private institutions are often subjected to market forces, customer feedback, and performance-base d
assessments, which can drive them to maintain high standards and quality.
• Promoting Innovation and Technology Adoption: Private sector involvement can promote the adoption of new
technologies and innovative practices in healthcare and education.
o Private hospitals often invest in advanced medical equipment and technologies. similarly, private educational
institutions may have better access to digital learning tools and resources, fostering innovation in pedagogy.
Concerns associated with the privatisation of sectors like health and education:
• Inequality in access: Privatization will increase the gap between rich and poor which will encourage the survival of the
richest, which cannot be the goal of any civilized society.
o For example, private hospitals offering specialized treatments may be out of reach for low-income
individuals.
• Regional imbalance: Private providers will concentrate on better-off districts, leaving the poor and remote districts for
the public sector to manage. This will further worsen inequity in access to health and education facilities.
• Neglect of Marginalized and Vulnerable Sections: Privatization may result in neglect of marginalized and vulnerable
sections of society.
o Private institutions often focus on serving the affluent sections of society, neglecting those who are socio-
economically disadvantaged or located in remote areas.
• Commercialization and Profit Motive: Privatization may prioritize profit over public welfare, potentially compromising
the quality and affordability of services.
o For instance, there have been cases of private schools compromising on infrastructure or quality of education
to maximize profits.
• Regulation and accountability: The lack of regulation of private players is likely to exploit its clients and customers
either financially or physically.
o There is no answerability of the private sector to the government regulatory board over their functioning and
operations.
Conclusion
The agenda of the present government for the social sector is greater collaboration between the private and public sectors for
delivering services e.g., introducing the public-private partnership model for medical colleges and district hospitals. A balance d
approach between public and private healthcare networks remains vital for transforming the socio-economic trajectory of India.
Q5. Discuss the untapped opportunities and challenges in harnessing the full potential of the tourism industry in India. (10M)
Introduction:
The World Economic Forum's Travel and Tourism Development Index 2021 ranked India 54th out of 117 countries overall, far
below its true potential. The tourism industry encompasses various sectors such as hospitality, travel agencies, transportation,
and tour operators, providing a range of services to cater to the diverse needs and preferences of travelle rs.
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Untapped opportunities in the tourism industry

• Medical and Wellness Tourism: India has a well-established healthcare system and traditional wellness practices such
as Ayurveda, Yoga, and meditation.
o Promoting medical and wellness tourism by offering quality healthcare services, rejuvenation retreats, and
specialized treatments can attract international tourists seeking affordable healthcare and holistic wellness
experiences.
• Rural and tribal Tourism: Rural areas in India have unique cultural and natural assets that can be showcased through
rural tourism initiatives.
o This can involve agri-tourism, handicraft demonstrations, and community-based tourism projects.
• Adventure Tourism: India's diverse landscapes offer ample opportunities for adventure tourism, including trekking,
mountaineering, wildlife safaris, river rafting, and more.
• Eco-Tourism: India's biodiversity hotspots, national parks, and protected areas offer great potential for eco-tourism.
o Developing sustainable tourism practices, promoting wildlife conservation, and creating nature-based
experiences can attract nature lovers and contribute to environmental conservation efforts.
• Film Tourism: India's vibrant film industry has a significant fan following worldwide. Capitalizing on film tourism by
promoting shooting locations, film-related tours, and experiences can attract film enthusiasts and create economic
opportunities.
• Culinary Tourism: Indian cuisine is renowned for its diverse flavours and regional specialities.
o Promoting culinary tourism by organizing food festivals, culinary tours, and cooking classes can showcase the
richness of Indian cuisine and provide visitors with immersive culinary experiences.
Challenges in harnessing its full potential

• Infrastructure and Connectivity: Inadequate infrastructure and poor connectivity pose challenges for the tourism
industry.
o Ex- many remote tourist destinations in the northeastern states of India lack proper transportation facilities
and accommodation options, making them less accessible to tourists.
• Quality of Services: Maintaining consistent quality standards in tourism services is a challenge.
o Lack of adequate garbage disposal facilities, disabled-friendly infrastructure and general lack of cleanliness
can negatively impact the tourist experience and deter repeat visits.
• Safety and Security: Incidents of harassment and safety concerns can hamper tourism.
o Ex-cases of crimes against women tourists in Goa have raised concerns about the safety of female travellers in
certain areas.
• Environmental Sustainability: Popular tourist destinations such as hill stations and beaches face challenges related to
waste management, as the large influx of tourists puts pressure on the local infrastructure and ecosystems.
o Ex- Himalayan treks in Uttarakhand
• Regulatory Framework: Complex regulations and bureaucratic hurdles can hinder the growth of the tourism industry.
Obtaining permits and licenses for setting up tourism-related businesses can be time-consuming and cumbersome,
discouraging potential investors.
• Marketing and Promotion: Some lesser-known destinations in India struggle with limited exposure and lack of
marketing efforts, resulting in missed opportunities for tourism development.
• Seasonal Imbalances: Seasonal variations in tourist arrivals pose challenges for the tourism industry.
o Ex-popular areas like Shimla and Manali experience overcrowding during the peak summer season, while
other destinations remain underutilized during off-peak periods.
Conclusion:
Collaborative efforts from the government, local communities, and industry players, investments in infrastructure
development, training programs to enhance service quality, implementation of sustainable tourism practices and targeted
marketing campaigns can help overcome these challenges and harness the full potential of the tourism industry in India.
Q6. How does crop diversification promote sustainable and resilient agriculture in a changing environment? Illustrate using
an example. (10M)
Introduction
Crop diversification refers to the practice of growing a variety of different crops instead of relying on a single crop or a few
dominant crops. It involves expanding the range of crops grown in a particular area to reduce dependence on a single crop and
promote agricultural resilience. It plays a dynamic role in improving the resilience of agricultural production systems to a
changing environment.
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A changing environment:
Globally, climate change has become a significant threat to the sustainable development of agriculture and agriculture -based
livelihoods. The threat is more pronounced with extreme events such as droughts, floods, heat waves, and cyclones. Such extreme
events affect agricultural productivity and food supplies, cause loss of productive assets (e.g., livestock), trigger over-exploitation
of natural resources, etc.
Crop Diversification for Sustainable and resilient agriculture:

• Adaptation to climate shocks:
o Both rainfall deficit and heat-stress damage agricultural productivity, and the damage increases with an
increase in their severity. So, in developing countries such as India, where formal markets for risk products are
underdeveloped, crop diversification is one of the widely used adaptation measures to cope with climatic shocks.
• Response to shocks:
o Crops differ in their response to climatic shocks. With crop diversification, farmers can choose crops or their
varieties that are less vulnerable to climatic shocks.
o Also, in order to achieve maximum benefits, farmers are shifting from low-value, low-yielding crops to high-
value high yielding crops.
• Cost-effective:
o Small landholders are often risk-averse and lack the resources to invest in costlier adaptations to cope with
climate and economic risks.
o For them, crop diversification is one of the low-cost, effective adaptations to avoid productivity loss due to
climatic shocks.
• Other benefits of crop diversification that build resilience:
o Increase in the income of small landholder farmers.
o Conservation of natural resources.
o Agronomic benefits in pest management by breaking insect habitats and disease cycles.
o It promotes the interaction of beneficial soil bacteria, interrupts the disease cycle, and reduces the number of
weeds.
o Reduces soil erosion, and conserves soil moisture.
o Enhances productivity, sustainability and maintain ecological balance.
Illustration:
In Punjab where 85% of the geographical area is under agriculture, farmers traditionally followed a maize-wheat or sugarcane-
maize-wheat cropping pattern. However, in recent decades, the focus shifted to the wheat-rice pattern due to higher returns
and stable yields. Unfortunately, this prolonged adoption of the same cropping pattern led to land and water degradation,
making agriculture unsustainable and vulnerable to climate and economic shocks.
To address these challenges, crop diversification emerged as a solution. Farmers began replacing water-intensive crops with
less water-intensive ones, considering the local agro-climatic conditions. For example, they started intercropping maize and
kharif pulses with wheat. This shift had several benefits, including groundwater conservation, soil revitalization, improved
productivity, ecological gains, and job creation. By diversifying their crops, farmers in Punjab were able to make agricultur e more
sustainable and resilient.
Conclusion
Crop diversification allows farmers to employ biological cycles to minimize inputs, conserve the resource base, maximize yiel ds,
and thus build sustainable and resilient agriculture.
Q7. In what ways do agricultural cooperatives enhance market access, bargaining power, and profitability for farmers in
India? Explain. (10M)
Introduction
Agricultural cooperatives are voluntary organizations formed by farmers to collectively engage in agricultural activities. These
cooperatives allow farmers to pool their resources, knowledge, and efforts to achieve common goals. The Indian cooperative
movement is the world’s largest cooperative movement, with more than 8 lakh cooperatives. The collective strength of the
agricultural cooperatives offers unique benefits to farmers in various ways.
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Market access and bargaining power:
• Marketable surplus:
o With agricultural cooperatives, the constraint of small and fragmented landholdings and less produce is
overcome.
o The marketable surplus of food grain and industrial raw materials can be transported and marketed on a bulk
basis for remunerative prices.
▪ To facilitate this, schemes such as the Formation and Promotion of 10,000 Farmers Producer
Organizations (FPO) provide for the registration and support of new cooperatives as FPOs.
o
• Market reach:
o With collective strength, cooperatives enable farmers to control supply and marketing channels.
o Agricultural cooperatives assist farmers in expanding their market reach so they may sell their products for
remunerative prices.
o Cooperatives increase the farmers’ creditworthiness, and thus, they have a better capacity to sell surplus items
for more money.
• Collective strength:
o Small farms would not have been able to expand irrigation potential and land production on their own.
o Farmers in cooperative farming have access to more land and resources, including men, materials, and money,
thus increasing production capacity.
▪ The Indian Farmers Fertilisers Co-Operative Limited (IFFCO) is a successful model in this regard.
▪ IFFCO enables farmers to prosper through a timely supply of reliable, high-quality agricultural inputs
and services in an environmentally sustainable manner.
• Better price realization:

o Cooperatives could offer better competitiveness for smallholder farmers.
o They can thus give farmers more negotiating leverage, access to new markets and technology, and cost savings
by pooling their resources and expertise.
▪ NAFED helps cooperatives to organize, promote and develop marketing, processing and storage of
produce, etc.
• Government interaction:
o From the administrative viewpoint, cooperatives facilitate easier interaction and transactions with the
government.
▪ E.g., collecting taxes, distributing subsidies, introducing improved methods of production, etc.
o This, in turn, increases the bargaining power of the cooperatives in terms of price fixing, subsidies, etc.
▪ Under the “Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC),” the Government
of India provides subsidies to agri-cooperatives.
o
Profitability:
• Knowledge sharing:
o Agricultural cooperatives can play a vital role in educating the farmers to reduce the cost of cultivation through
the balanced use of fertilizer and improve water-use efficiency.
o It also helps farmers understand new technologies in farming.
• Credit facilitation:
o Cooperatives can give farmers access to finance, which they can use to buy farming-related supplies and
equipment.
o It facilitates credit to farmers at a reasonable rate of interest.
• Income generation:
o Cooperatives can help establish more warehouses to avoid distressed sales of produce, link with National E-
market (e-NAM), emphasize value addition and encourage farmers to take up other allied activities like poultry,
beekeeping, and fisheries.
Conclusion
Agriculture cooperatives are an efficient tool for empowering farmers towards remunerative and resilient agriculture.
Q8. Mention the benefits of adopting drip irrigation and fertigation techniques. What barriers hinder their widespread
adoption in India? (10M)
Introduction
Drip irrigation involves dripping water onto the soil at very low rates (2-20 litres/hour) from a system of small diameter pipes
fitted with emitters or drippers. Fertigation is a method of fertilizer application in which fertilizer is incorporated within the
irrigation water by the drip system.
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Benefits of adopting drip irrigation and fertigation techniques:
1. Even distribution of fertilizer solution.
2. High moisture level in the soil as applications are more frequent (usually ever y 1-3 days) than with other methods.
3. Greater absorption of fertilizer by the crops as nutrients and water are supplied near the active root zone.
4. The availability of nutrients is very high and therefore, the nutrient efficiency is more.
5. Cost savings due to reduced fertilizer amounts.
6. With less amount of water and fertilizer, time, labour, and energy use are also reduced substantially.
7. Early maturity results in higher and faster returns on investment.
8. Fertilizer use efficiency in fertigation is increased from 80-90% and so, scope for 25-50% higher yield. Fertigation is a
suitable method for both liquid and water-soluble fertilizers.
Barriers to widespread adoption in India:

• Energy challenge:
o Drip irrigation techniques require pressure for water delivery in delivery lines, and so, electricity supply for
pumps is a must, irrespective of surface or groundwater source.
o The widespread power outages and unscheduled interruptions across rural and urban India pose a challenge
to this requirement.
• Less cost-effective:
o The large proportion of drip irrigation and fertigation techniques adopters belong to a relatively wealthy group
of farmers.
o Poor farmers have not benefited much from such technologically-intensive options due to financial constraint s
including the high cost of instalment and cropping patterns.
o If diesel pumps are used in place of electricity, then the cost of diesel is an additional burden on the farmers.
• Size of landholdings:
o As of 2010-11, marginal and small landholdings of less than 2ha constituted 85% of the operational landholdings
in India. Of this, holdings of less than 1ha constituted 67%.
o The declining size of landholdings impacts farmers’ incomes. Such low farm incomes do not even cover the
consumption expenditure of expensive micro-irrigation options such as drip irrigation and fertigation.
• Other barriers:
o Clogging of water emitters, poor quality of products, poor component repairs and inadequate technical support.
o Loan approval delays, delays in subsidy approvals.
Conclusion
Given the barriers to the widespread adoption of drip irrigation and fertigation techniques in India, the approach could focus on
bringing in collective farming practices and choice of water-efficient crops, among other measures, to fully reap the benefits of
such micro-irrigation techniques.
Q9. Explain the principle behind the integrated farming system. How do they contribute to agricultural productivity and
sustainability in India? (10M)
Introduction
An integrated farming system refers to a holistic approach in agriculture that combines multiple agricultural activities within a
single farming system. It involves integrating crops, livestock, poultry, fishery, and agroforestry to create a sustainable a nd
efficient farming system.
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Principle of IFS:
The key principle is to utilize the by-products and waste of one

component as inputs for another component, creating a closed-loop
system that minimizes waste and maximizes resource utilization. For
example, crop residues can be fed to livestock, and their manure can
be used as fertilizer for crops. Similarly, fishponds can be integrated
with crop fields, where water from the pond is used for irrigation and
fish waste acts as a fertilizer.
Integrated farming system contributing to agricultural productivity and Sustainability in India:

• Nutrient Cycling and Soil Health: IFS promotes nutrient cycling and improves soil health. Livestock manure and crop
residues, when used as organic fertilizer, enrich the soil with essential nutrients, improving fertility and productivity.
• Enhanced Productivity and Income: IFS can lead to increased productivity and income for farmers. By diversifying their
activities, farmers can tap into multiple income streams from crops, livestock, poultry, fishery, and other value-adde d
products.
• Cultivation of fodder crops as intercropping and as border cropping will result in the availability of adequate nutritious
fodder for animal components like milch cow, goat/sheep, pig and rabbit
• Resource mobilisation: IFS promote the efficient management of resources. This enhances the productivity of farming.
For example, crop residues and by-products are utilized as feed for livestock, minimizing waste and improving resource
efficiency.
o Livestock waste, such as manure, is used as organic fertilizer for crops, reducing the need for chemical inputs.
• Integration of allied activities will result in the availability of nutritious food enriched with protein, carbohydrates, fat,
minerals and vitamins. It also reduces the production cost of components through input recycling from the by-products
of allied enterprises.
o E.g. Integrated Fish Cum Pig farming in the Northeast.
• Environmental protection: Integrated farming will help in environmental protection through effective recycling of waste
from animal activities like piggery, poultry and pigeon rearing
o E.g. IFS components are known to control the weed and are regarded as an important element of integrated
pest management and thus minimise the use of weed killers as well as pesticides and thereby protect the
environment.
• Conservation of Natural Resources: IFS contributes to the conservation of natural resources. Agroforestry practices, such
as planting trees or shrubs on agricultural land, help prevent soil erosion, conserve moisture, and enhance biodiversity.
o This improves the long-term sustainability of farming systems and promotes ecological balance.
• Diversification and Risk Reduction: IFS promotes diversification by integrating multiple agricultural components that
spread risks, as the failure of one component does not lead to complete crop failure.
o For instance, in a mixed farming system, if a crop fails due to adverse weather conditions, farmers can still rely
on income from livestock or other components, enhancing their resilience to risks.
Conclusion
IFS is very promising for improving overall farm productivity, and profitability, generating employment opportunities, conserving
natural resources and maintaining the sustainability of agroecosystem by effectively recycling the farm by-products and efficient
utilization of available resources.
Q10. Is natural farming key to sustainable agriculture in India or a 'pipe dream'? Discuss (10M)
Introduction
Natural farming, also known as zero-budget farming or organic farming, is a farming method that promotes the use of natural
inputs and avoids the use of synthetic chemicals, fertilizers, and pesticides. It emphasizes the principles of sustainability,
biodiversity, and ecological balance.
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Potential of Natural Farming:

• Minimized Cost of Production: It is considered as a cost-effective farming practice with scope for raising employment
and rural development.
• Ensures Better Health: As Natural Farming does not use any synthetic chemicals, health risks and hazards are eliminated.
The food has higher nutrition density and therefore offers better health benefits.
• Employment Generation: It generates employment on account of natural farming input enterprises, value addition,
marketing in local areas, etc. The surplus from natural farming is invested in the village itself.
o As it has the potential to generate employment, thereby stemming the migration of rural youth.
• Environment Conservation: It ensures better soil biology, improved agrobiodiversity and more judicious usage of water
with much smaller carbon and nitrogen footprints.
• Livestock Sustainability: The integration of livestock in the farming system plays an important role in Natural farming
and helps in restoring the ecosystem. Eco-Friendly bio-inputs, such as Jivamrit and Beejamrit, are prepared from cow
dung and urine, and other natural products.
• Resilience: The changes in soil structure with the help of organic carbon, no/low tillage and plant diversity are
supporting plant growth even under extreme situations like severe droughts and withstanding severe flood and wind
damage during
o NF impacts many farmers positively by imparting resilience to the crops against weather extremities.
Natural farming a 'pipe dream':

• Lower Productivity: Natural farming techniques often result in lower yields compared to conventional farming,
especially during the initial transition phase.
o Sikkim, the first organic state in India saw a decline in yield following conversion to organic farming. So states
may need to support farmers for initial period.
• Knowledge and Skill Requirements: Natural farming requires a deep understanding of ecological processes, soil health
management, and integrated pest management.
o Farmers need access to training, technical support, and information to adopt and practice natural farming
effectively which is a challenge for India to address.
• Scale and Feasibility: Scaling up natural farming practices to cover large areas of agricultural land can be challenging due
to the need for additional resources, trained manpower, and supportive infrastructure.
o Also, its feasibility can vary depending on factors such as landholding size, agro-climatic conditions, and market
demand. E.g. In India, 86% are small and marginal farmers.
• Market Challenges: While the demand for organic produce is growing, accessing profitable markets for organic products
can be challenging. Organic certification and compliance can be costly, and price premiums may not always be sufficient
to offset the lower yields and production costs associated with natural farming.
o E.g. The organic certification (NPOP or National Programme for Organic Production) is long-drawn and tedious
for small farmers in India.
Successful case study:
Sikkim, India, successfully promoted natural farming by transitioning to organic practices through training, incentives,
certification (Certification and Market Access) and policy support. This led to environmental benefits, such as improved soil
health and biodiversity, economic empowerment with new market opportunities, and improved health outcome s from
pesticide-free food. Sikkim's organic farming initiative serves as a successful example of sustainable agriculture and its positive
impact on the environment, farmers, and consumer well-being.
Conclusion
Thus, Natural farming can be seen as a viable and desirable alternative to conventional farming, but it requires further rese arch,
support, and a balanced approach to ensure a sustainable and food-secure future.
Value addition:
Q11. The de-dollarization trend has been emerging in the global economy. Discuss its driving factors and the potential
challenges and opportunities that it presents for India. (15M)
Introduction:
De-dollarization refers to the process of reducing the dependence on the U.S. dollar in international trade, financial
transactions, and currency reserves. It involves diversifying currency holdings, exploring alternative settlement mechanisms,
and promoting the use of other currencies for global transactions.
The de-dollarization trend has gained momentum in recent years due to geopolitical considerations, economic diversification
goals, and the desire for a more multipolar global financial system.
Body:
Driving factors of De-dollarization

• Geopolitical Considerations: Geopolitical tensions and concerns about economic sanctions imposed by the United
States have motivated countries to reduce their reliance on the U.S. dollar.
o Ex- Russia.
• Economic Diversification: Countries seeking to diversify their economies and reduce exposure to currency risks see de -
dollarization as a means to achieve economic stability.
o Ex- China has been promoting the use of the renminbi (RMB) as an alternative to the U.S. dollar to bolster its
economic influence globally.
• Enhancing Financial Sovereignty: Many countries view de-dollarization as a way to assert their financial independence
and reduce vulnerability to external factors.
o Ex- Venezuela has been exploring the use of cryptocurrencies to regain control over its financial system.
• Regional Integration: Regional blocs and organizations are promoting de-dollarization as a means to strengthen
regional economic cooperation and reduce dependence on external currencies.
o Ex- The European Union has been working to boost the role of the euro as an alternative to the U.S. dollar
within its member states.
• Development of Alternative Financial Infrastructure: The development of alternative financial mechanisms and
infrastructure, such as regional payment systems and currency swap agreements, has facilitated the shift away from
the U.S. dollar.
Potential challenges of De-dollarization

• Currency Volatility: Shifting away from the U.S. dollar may expose countries to increased currency volatility, especially
if the alternative currency is not as stable or widely accepted. This can impact trade and financial transactions.
• Market Acceptance: Establishing an alternative currency or payment system requires building trust and confidence
among market participants. It may take time for businesses, financial institutions, and individuals to adopt and accept
the new currency or system.
o Ex- the international acceptance of the Chinese renminbi (RMB) as an alternative to the U.S. dollar has been
relatively limited, despite China's efforts to promote its use.
• Economic Interdependencies: The global economy is highly interconnected, and the dominance of the U.S. dollar is
deeply entrenched in various financial systems and transactions. Disentangling from the dollar may have unintended
consequences.
o Ex- countries heavily reliant on U.S. dollar-denominated debt may face challenges in managing their debt
obligations if they shift away from the dollar.
• Trade and Financial Costs: De-dollarization can result in increased transaction costs, particularly in trade and financial
activities. Businesses may need to navigate multiple currencies, exchange rate risks, and potential barriers to cross-
border transactions.
• Global Power Dynamics: The U.S. dollar's status as the dominant global reserve currency is closely tied to U.S.
economic and political influence. Any significant shift away from the dollar may have geopolitical implications and
could impact global power dynamics. The United States may resist or respond to de-dollarization efforts in ways that
could create tensions between countries.
Opportunities for India

• Diversification of Reserves: A substantial portion of India’s foreign exchange reserves is denominated in U.S. dollars.
o Shifting towards a more diversified reserve portfolio that includes other currencies can help reduce the
country's exposure to dollar volatility.
• Enhanced Trade Relations: De-dollarization can create opportunities for India to strengthen trade relations with
countries that are also seeking alternatives to the U.S. dollar.
o Ex- India has been exploring trade arrangements with countries like Russia, Iran, and the Gulf Cooperation
Council (GCC) nations, by using local currencies for trade settlements.
• Attracting Foreign Investment: India, with its large consumer market, growing economy, and robust financial sector,
can position itself as an attractive investment destination for countries looking to diversify their investment
portfolios away from the dollar.
• Strengthening Regional Cooperation: De-dollarization can encourage regional cooperation and integration among
neighbouring countries. India can play a proactive role in promoting regional cur rency arrangements and financial
mechanisms that reduce dependence on the U.S. dollar.
o Ex- BRICS New Development Bank.
• Financial Innovation and Technology: De-dollarization can spur innovation in financial technology and payment
systems. This can promote financial inclusion, reduce transaction costs, and foster greater economic integration
within the region.
• Boost to Domestic Manufacturing: As countries move away from the dollar, there may be a shift in global supply
chains and trade patterns. This presents an opportunity for India to attract more foreign direct investment (FDI) and
expand its manufacturing sector.
Conclusion:
To leverage the opportunities and address the challenges, India can focus on strengthening regional financial institutions,
promoting regional trade and investment agreements, expanding currency swap arrangements, and enhancing financial
market infrastructure to facilitate non-dollar transactions.
Q12. Analyse the role of labour-intensive industries in addressing unemployment and promoting inclusive growth in India.
(15M)
Introduction:
Labour-intensive industries refer to sectors that rely heavily on manual labour for production processes. Ex- textiles,
garments, agriculture, construction, hospitality, and food processing. Labour-intensive industries play a vital role in the
economy by generating employment opportunities, contributing to economic growth, and driving inclusive development
Body:
Role of labour-intensive Industries in addressing unemployment

• Job Creation: Labour-intensive industries typically require a significant amount of labour to carry out tasks, leading to
direct employment opportunities for a wide range of individuals. The expansion of labour -intensive sectors can reduce
unemployment rates.
o Ex: The textiles and apparel industry in India is the 2nd largest employer providing direct employment to 45
Mn people and 100 Mn people in allied industries.
• Absorption of Unskilled and Rural Workforce: Labour-intensive industries often offer employment opportunities to
unskilled and rural workers who may lack formal education or specialized skills.
o They serve as a stepping stone for individuals to gain work experience and gradually acquire higher-paying
jobs.
• Skill Development: Labour-intensive industries can serve as platforms for skill development and human capital
formation. Workers employed in these industries have the opportunity to acquire on-the-job training, learn technical
skills, and enhance their productivity.
o Ex: The construction industry offers opportunities for skill development in areas such as masonry, carpentry,
plumbing, and electrical work.
Role of labour-intensive Industries in Promoting Inclusive Growth

• Regional Development: Labour-intensive industries have the potential to promote inclusive growth in rural and less-
developed regions by attracting investment and creating employment opportunities closer to local communities. This
helps to reduce regional disparities and migration pressures.
o Ex- the agro-processing industry in India has the potential to transform rural economies.
• Women's Empowerment: These industries often provide employment opportunities for women, contributing to their
economic empowerment and social inclusion.
o Ex- textiles, garments, and handicraft industries, where female workers form a significant portion of the
workforce.
• Poverty Reduction: These industries contribute to poverty reduction by providing income opportunities for vulnerable
groups, including the poor, marginalized communities, and youth.
• Inclusive Value Chains: These industries have the potential to promote inclusive value chains by involving small-scale
producers and suppliers.
o This ensures that benefits from economic activities are distributed more equitably among various
stakeholders.
• Social Cohesion: These industries can foster social cohesion by providing a sense of belonging, purpose, and stability
within communities.
o The establishment of industries in previously disadvantaged areas can contribute to social integration and
reduce inequalities.
• Entrepreneurship and Innovation: These industries can stimulate entrepreneurship and innovation, creating
opportunities for individuals to start their own businesses and contribute to economic growth.
o Ex- the tourism and hospitality industry.
Challenges faced by labour-intensive industries
• Low Productivity: These industries often struggle with low productivity levels due to factors such as outdated
technology, inadequate infrastructure, and lack of skill development.
o Ex- the handloom and handicraft sector in India.
• Informal Employment: Many labour-intensive industries in India rely heavily on informal employment, which can lead
to issues such as low wages, lack of social security benefits, and limited access to formal training and skill
development.
o Ex- The construction industry.
• Compliance with Labor Laws: These industries need to comply with various labour laws and regulations, which can be
complex and burdensome for both businesses and workers.
o Ex- The garment manufacturing industry in India has faced scrutiny and challenges related to labour rights
violations and non-compliance with safety regulations.
• Access to Finance: Many industries, particularly micro, small, and medium enterprises (MSMEs), face challenges in
accessing finance for working capital, technology upgradation, and business expansion. Lack of access to formal
credit institutions and high collateral requirements can hinder the growth and development of these industries.
• Skill Gap: There is often a mismatch between the skills demanded by industries and the skills possessed by the
workforce.
• Infrastructure Bottlenecks: Inadequate infrastructure, such as transportation networks, power supply, and logistics,
can increase production costs for labour-intensive industries.
Conclusion:
The National Manufacturing Policy identifies employment-intensive industries like textiles and garments, leather and footwear,
gems and jewellery and food processing, etc. as special focus attention sectors.
Q13. How has the 'Digital India' program transformed the Indian economy? Discuss its impact on var ious sectors such as e-
governance, digital infrastructure, and digital literacy. (15M)
Introduction:
Digital India is an initiative taken by the Government of India for providing high-speed internet networks to rural areas. Digital
India Mission is mainly focused on three areas: Providing digital infrastructure as a source of utility to every citizen,
Governance and services on demand, and digital empowerment of every citizen.
Body:
How the 'Digital India' program has

transformed the Indian economy
• Financial Inclusion: Initiatives
like the Pradhan Mantri Jan
Dhan Yojana (PMJDY) have
enabled the unbanked
population to open bank
accounts and access financial
services, fostering economic
participation.
• Digital Payments: The adoption
of digital payment systems, such
as the Unified Payments
Interface (UPI) and mobile
wallets, has revolutionized the
way transactions are conducted in India.
o Digital payment platforms like Paytm, PhonePe, and Google Pay have become widely accepted across the
country.
• Start-up Ecosystem: Digital India has nurtured a vibrant start-up ecosystem, fostering entrepreneurship and
technological innovation.
o Initiatives like the Start-up India program, incubation centres, and funding support have encouraged the
growth of digital start-ups, leading to job creation, and technological advancements, and attracting
investment in the digital space.
• Easing the Operations of Businesses: The Electronic Customer Identification System (e-KYC), the Electronic Document
Storage System (DigiLocker) and the Electronic Signature System (eSign) were introduced to help businesses streamline
their operations.
• Digital Infrastructure: The development of digital infrastructure, including broadband connectivity, has expanded
internet access and connectivity across the country.
o Projects like BharatNet, which aims to connect villages with high-speed internet, have helped bridge the
digital divide and enable rural communities to participate in the digital economy.
• E-commerce Growth: The growth of e-commerce in India has been fuelled by the Digital India program.
o Online marketplaces like Flipkart, Amazon, and Snapdeal have witnessed substantial growth, providing a
platform for small businesses and artisans to reach a wider customer base and contribute to the digital
economy.
Its impact on various sectors

• E-Governance: Digital India has revolutionized e-governance by promoting the digitization of government
processes and services.
o Initiatives like digital identity (Aadhaar), and e-KYC (Know Your Customer) have transformed service
delivery. Initiatives like e-Courts and e-Office have digitized judicial processes and administrative
functions, enhancing efficiency and transparency in governance. This has reduced paperwork and
improved the efficiency of government service delivery.
• Digital Infrastructure: The program has focused on developing robust digital infrastructure to expand connectivity
and access to digital services.
o The establishment of Common Service Centers (CSCs) across the country has provided digital access
points for citizens to avail of various government and private services. Since its inception, around 12000
post office branches in rural areas have been linked electronically.
• Digital Literacy: Digital India has placed significant emphasis on digital literacy and skill development.
o Programs like the National Digital Literacy Mission (NDLM) and the Digital Saksharta Abhiyan (DISHA)
have been launched to impart digital literacy training to citizens, particularly in rural and disadvantaged
areas.
• Education: Platforms like SWAYAM and ePathshala provide online courses and educational resources, expanding
access to quality education. Virtual classrooms and digital learning tools have enabled remote learning and
improved educational outcomes.
• Healthcare: Digital technologies have transformed the healthcare sector, enhancing access to healthcare services
and improving patient care.
o Telemedicine initiatives like eSanjeevani have enabled remote diagnosis and treatment. Digital health
records and e-prescriptions have streamlined healthcare administration and improved coordination
among healthcare providers.
• Agriculture: Platforms like e-NAM (National Agriculture Market) enable farmers to sell their produce online,
eliminating intermediaries and ensuring fair prices. Soil health cards and weather information systems assist
farmers in making informed decisions about crop planning, fertilizers, and irrigation.
Conclusion:
The 'Digital India' program has significantly transformed various sectors of the Indian economy. Moving forward, the focus
should be to lower the costs of devices such as smartphones, providing high speed, seamless connectivity (5G, 6G) and quality
and local language content, strengthening cybersecurity measures, and fostering innovation and entrepreneurship.
Q14. What are the seven priorities (“Saptarishi”) unveiled in the Union Budget 2023-24, and why are they important? Briefly
examine the various measures taken by the government to achieve each of them. (15M)
Introduction
In 2023-24 Budget, announcement Finance Minister of India listed seven priorities of the Union Budget and said that they
complement each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal. They are as follows: 1) Inclusive
Development 2) Reaching the Last Mile 3) Infrastructure and Investment 4) Unleashing the Potential 5) Green Growth 6) Youth
Power 7) Financial Sector.
Body:
Importance of seven priorities ("Saptarishi") unveiled in the Union Budget 2023 -24:
• Vision for the Amrit Kaal: These priorities will direct the nation toward 'Amrit Kaal'." Amrit Kaal is described by the
government as the 25-year period culminating in the centenary of India's independence.
• builds a strong foundation for the future with a focus on clean energy in India. It reflects the government's continued
push towards sustainable growth and energy transition.
• Aims to empower the youth and help the ‘Amrit Peedhi’ realize their dreams through various initiatives.
• These aspects complement each other and act as the Saptarishi guiding us through Amrit Kaal.
• Envisions to reduce development lag between villages and cities, thus bettering the lives of Indian citizens.
• Underlines the significance of inclusive development and last-mile delivery of welfare measures of government.
• These priorities align with India's long-term developmental goals. This includes sectors such as infrastructure
development, education, healthcare, agriculture, manufacturing, digital transformation, sustainable development, and
social welfare.
Various measures taken by the government to achieve each of them:
Priority Measures Taken Evaluation

Inclusive Creation of Agriculture The establishment of the fund can provide financial support to
Development Accelerator Fund agriculture-related startups, fostering innovation and growth in the
sector.
Setting up cooperative societies This can promote cooperative farming and enhance the livelihoods of
in uncovered districts farmers in previously underserved regions.
Conceptualizing PM Vishwa This initiative can support traditional artisans and craftspeople,
Karma Kaushal Samman improving their skills and integrating them into the MSME value chain.
Launching a mission to eliminate The mission aims to create awareness, conduct screenings, and
sickle cell anaemia provide counselling for affected individuals, addressing a significant
health issue in tribal areas.
Reaching the Last Launching the Aspirational Expanding the successful Aspirational Districts Program to cover
Mile Blocks Program additional blocks can drive development and uplift the socio-
economic conditions in underprivileged areas.
Implementing the PM PVTG Focusing on the socio-economic upliftment of Particularly Vulnerable
Development Mission Tribal Groups (PVTGs) can address their specific needs and improve
their overall well-being.
Enhancing the outlay for PM Increasing the budget allocation for housing schemes can accelerate
Awas Yojana the provision of affordable housing and address housing shortages for
marginalized sections of society.
Infrastructure and Increasing capital investment The higher investment in infrastructure can stimulate economic
Investment outlay growth, create job opportunities, and enhance connectivity.
Providing interest-free loans to Encouraging infrastructure development and complementary policy
state governments actions by offering interest-free loans to state governments can boost
investment and improve infrastructure quality.
Unleashing the Establishing centres of Setting up AI centres in top educational institutions can foster
Potential excellence for Artificial research, innovation, and skill development, positioning India as a
Intelligence (AI) leader in AI technology.
Introducing a National Data The policy can enable access to anonymized data, promoting research,
Governance Policy innovation, and the development of AI-based solutions.
Providing relief to MSMEs Supporting MSMEs through less stringent contract execution can help
affected by COVID-19 them recover from the pandemic and contribute to economic growth.
Setting up labs for developing Creating labs in engineering institutions can accelerate the
applications using 5G development of innovative applications using 5G technology.
Green Growth Promoting environmentally The "LiFE" vision aims to encourage sustainable practices, fostering a
conscious lifestyles greener and more environmentally friendly society.
Committing to net-zero carbon The commitment to reducing carbon emissions can contribute to
emissions by 2070 mitigating climate change and promoting a sustainable and green
transition.
Allocating funds to the National Investment in green hydrogen can facilitate the transition to low-
Green Hydrogen Mission carbon intensity and reduce dependence on fossil fuel imports.
Establishing waste-to-wealth The establishment of these plants can promote a circular economy by
plants under the GOBARdhan converting organic waste into valuable resources.
scheme
Youth Power Launching Pradhan Mantri The program can skill a significant number of youth, aligning their
Kaushal Vikas Yojana 4.0 skills with industry needs and enhancing employability.
Introducing the National Providing stipend support and promoting apprenticeships can bridge
Apprenticeship Promotion the skills gap and promote vocational training for the youth.
Scheme
Encouraging Unity Malls for the The initiative can boost the sales and visibility of products under the
promotion of ODOPs and GI One District, One Product (ODOP) scheme, empowering local artisans
products and promoting regional specialities.
Financial Sector Extending credit guarantee for Providing additional collateral-free credit and reducing the cost of
MSMEs credit can enhance access to finance and support the growth of
MSMEs.
Establishing the National The central repository of financial information can facilitate credit
Financial Information Registry flow, financial inclusion, and stability in the financial sector.
Setting up a Central Processing The centralized handling of various forms can streamline processes
Centre for companies and improve efficiency in company-related filings and operations.
Introducing Mahila Samman The savings scheme can promote financial empowerment among
Savings Certificate women and provide them with investment options to secure their
future.
Conclusion
The 75th year of India's Independence has seen the Indian economy being recognized as a 'bright star' globally. The unveiling of
the seven priorities ("Saptarishi") in the Union Budget 2023 -24 signifies a significant turnaround in India's transformation towards
becoming a more developed, inclusive, and vibrant society by the time it completes 100 years of independence.
Q15. Assess the impact of the MGNREGS in providing employment opportunities and reducing rural distress migration. Do
you think the scheme needs to be reformed with changing times? (15M)
Introduction:
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a program of the Government of India aimed
at providing social security and livelihood support to rural households. Enacted in 2005, MGNREGA guarantees 100 days of
employment per year to rural households, thereby addressing the issues of unemployment, poverty, and rural distress.
Body:
Impact of the MGNREGS in providing employment opportunities and reducing rural distress migration
• Employment Generation: MGNREGS provides employment opportunities to one adult member of every rural
household. This is particularly helpful during lean agricultural seasons.
o MGNREGS has generated more than 31 billion person-days of employment in the last 15 years.
• Reduced Distress Migration: MGNREGS has helped in preventing the displacement of rural communities in search of
livelihood options by providing stable employment opportunities locally.
o Ex- distress migration has stopped in Bandlapalli village in Andhra Pradesh’s Ananthapuramu district.
• Poverty Alleviation: The scheme has contributed to poverty reduction by providing income support to rural
households. It enables them to earn wages, improving their standard of living and reducing their dependence on
distress-driven migration or unsustainable livelihood practices.
o A 2018 study of MGNREGS in Andhra Pradesh, estimated that MGNREGS increased income households’
earnings by 13% and decreased poverty by 17%.
• Social Inclusion: MGNREGS has been successful in promoting social inclusion by providing employment opportunities
to marginalized sections of society, including women, Scheduled Castes (SCs), Scheduled Tribes (STs), and other
vulnerable groups. It has helped in narrowing the gender and social gap in access to employment and income.
o Ex – MGNREGA has led to the formation of the country’s largest group of trained women well-diggers in
Pookkottukavu village of Kerala’s Palakkad district.
• Asset Creation: The scheme has facilitated the creation of productive community assets such as roads, canals, ponds,
and irrigation structures, which have long-term benefits for rural development and agricultural productivity.
o Since 2006, more than 30 million water conservation-related assets have been created in the country’s rural
areas.
• Livelihood Security: The scheme provides a safety net for rural households by ensuring a minimum level of income
through employment. This income support helps in reducing poverty and improving the economic conditions of rural
communities.
• Better standards of life: According to a study conducted by the New Delhi-based Institute of Economic Growth, there
has been an 11 per cent increase in rural household income, a 5 per cent increase in cereal productivity and a 32 per
cent increase in vegetable productivity because of the impact of MGNREGA.
• Environmental Conservation: The scheme has also contributed to environmental conservation through activities such
as afforestation, water conservation, and land development.
While the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has made significant contributions,
there are several issues that need to be addressed to enhance its effectiveness.
Issues with MGNREGA

• Delayed Payments: A delay in payment for work done can cause financial hardships, particularly for vulnerable sections
of society. Most states have failed to disburse wages within 15 days as mandated by MGNREGA. In addition, workers
are not compensated for a delay in payment of wages.
• Inadequate funding: A huge surge in demand for MGNREGA works has been witnessed during pandemic times.
o But the government hasn’t duly allocated funding in a similar proportion. Rs 60,000 crore was allocated in the
recent budget for the scheme, lower than the budgetary estimate of Rs 73,000 crore for 2022 -23.
• Lack of Full Employment: Despite the guaranteed 100 days of employment, many households do not receive the full
entitlement due to the limited availability of work.
• Administrative Challenges: MGNREGS faces administrative challenges at various levels, including delays in job card
issuance, inadequate monitoring and supervision, and limited awareness among beneficiaries.
• Leakage and Corruption: There have been instances of leakage and corruption within the scheme, including cases of
ghost beneficiaries, misappropriation of funds, and fraudulent practices.
• Poor maintenance: Many structures created under MGNREGA become defunct due to poor maintenance.
• Data on the impact of productive assets: The government does not monitor whether a structure has actually helped
water conservation. There is no government data on the impact on groundwater levels, improvements in livelihoods
etc. Following the creation of assets.
• Skill Development and Training: The scheme primarily focuses on providing unskilled manual labour, which limits the
potential for skill development and upward mobility for workers.
These challenges warrant reforms in the scheme.
Reforms needed
• Technology-driven decision making: Usage of AI in the selection of assets to be constructed under the scheme, and
improvised payment methods to ensure timely payments can be considered.
• Strengthening Monitoring and Accountability: Enhance monitoring and supervision mechanisms at various levels to
ensure transparency, prevent leakage, and curb corrupt practices. Regular audits, social audits, and grievance
redressal mechanisms can be strengthened to hold accountable those involved in the implementation of the scheme.
• Skill Development and Livelihood Diversification: Integrate skill development and livelihood diversification programs
within MGNREGS to enhance the employability and income -earning potential of workers. This can involve providing
training opportunities in specific trades, entrepreneurship development, and promoting the establishment of micro-
enterprises.
• Increased funding and working days: The government currently provides 0.47% of GDP while the World Bank
recommends 1.7 % for the optimal functioning of the program. The government can enhance the number of days to
150-200 days depending on the vulnerability in a particular state. The states can increase it as done in Odisha and
Himachal Pradesh which have made it 150 days in a year.
• Convergence with Other Schemes: This can include aligning activities with watershed management, agricultural
initiatives, and rural infrastructure development projects.
• Climate Resilience and Natural Resource Management: Incorporate climate-resilient practices and natural resource
management components within MGNREGS activities. This can include activities such as water conservation,
afforestation, and sustainable agricultural practices, promoting both environmental sustainability and livelihood
security.
Conclusion:
Continuous evaluation and feedback mechanisms should be established to make nec essary adjustments to ensure the scheme's
relevance and effectiveness in changing times and fulfil the constitutional duty of the state under Article 41 (Right to Work).
Q16. How do middlemen and intermediaries affect the income of farmers in the agricultural supply chain? Are government
measures effective at addressing the issue? Critically evaluate. (15M)
Introduction
The agricultural supply chain refers to the interconnected system of activities involved in the production, processing, storage,
transportation, and distribution of agricultural products from farm to consumer.
Farmers in India get only a meagre amount of what the end consumers pay for their agricultural produce. Addressing the issue
of middlemen and intermediaries in the agricultural supply chain goes a long way toward the goal of increasing farmers' income
and making agriculture lucrative.
Body
Middlemen and intermediaries affect agricultural supply chain through:
• Market Monopoly: E.g., APMC legislation sets up regulated markets, it criminalises setting up other competing markets.
It also restricts buying agricultural produce from outside the market yard or sub-yard (except for personal consumption).
o In effect, APMCs prevent competition, thereby affecting farmers’ chances of getting a better price for their
produce.
o Even states that allow trade outside APMCs make it obligatory to pay fees for any transaction taking place in the
entire market area. E.g., Andhra Pradesh
• Trader cartelization: The Competition Commission of India has recently brought to notice the issue of collusion among
traders. Traders come together to fix prices even when the y are to be determined by auction and so, the sale is being
undertaken through secret bidding.
• Licensing regime: APMC (E.g., in Tamil Nadu) requires every trader/warehouse owner/processor/somebody weigh ing
agricultural produce to obtain a license from the market committee.
o This committee is again usually dominated by the trader lobby that has no interest in increasing the number of
licenses, but to just increase their profits.
o The licensing regime, thus, discourages or reduces the supply of buyers in the market.
• Middlemen-led price rise:
o The traders, who are middlemen, reduce the price paid to the farmers and increase the price to the end
consumer, and keep the difference as profits.
o While regular trading facilitates getting buyers and sellers together, in the case of APMCs, the traders are merely
benefiting from the legal position.
Other reasons:
• Less government buying:
o In certain states such as the UP, the government buys very little produce at the MSP fixed by it.
o So, farmers are left with no other option but to sell the produce to the middlemen.
o The middlemen of the mandis, also known as commission agents, buy farmer s' produce below the MSP fixed by
the government.
• Debt:
o Due to poor economic conditions the small farmers who are unable to buy seed, fertilizer, and other inputs
during the cropping season, borrow money in advance from the mandis.
o So, they come under a compulsion to sell their produce through the mandis.
Government measures and their effectiveness:

• Cold storages:
o The government provides for cold storage and warehouses so that farmers sell their products at the right time
when the prices are remunerative.
o While there is still much scope and demand for expansion, the facility helps farmers to an extent.
• Cooperatives:
o Another measure is promoting cooperative farming and marketing.
o Agriculture cooperatives have played a significant role in bettering the far mers’ bargaining power and realizing
better prices for their produce.
• E-NAM:
o National Agriculture Market or e-NAM is an online trading platform that facilitates farmers, traders and buyers
with online trading in commodities.
o e-NAM has helped in better price discovery for farmers and provided facilities for the smooth marketing of their
produce.
Ways to lessen intermediaries’ role and increase farmer’s income:

• In the current structure, intermediaries are acting as buyers and sellers between the two ends and making most of the
profit. So, the market is driven by demand.
o However, smallholders live in a world of cost and benefit. So, establishing linkages of small farmers with
processors, factories and retail is essential.
o This will benefit farmers as well as businesses.
• Alternative options such as contract farming, the opportunity to sell directly to the companies or in the competitive
market should be provided to farmers, for them to get better prices.
• Improvement in transport and infrastructure facilities will help farmers connect easily to wider areas and will give them
a choice to sell somewhere else at a better price.
Conclusion
Any legislation which coerces farmers to sell in a specified area or reduces the supply of traders through licensing has high scope
for the exploitation of farmers. Given this, it is fair on the part of the government to take a relook at the APMCs Act. This should
also be complemented with other market and infrastructure facilitation.
Q17. The effectiveness of national and international trade policies and market dynamics in supporting the competitiveness of
Indian farmers is a subject of critical evaluation. Discuss (15M)
Introduction
India, being an agrarian economy with a significant population engaged in farming, relies heavily on the agricultural sector for
economic growth and livelihoods. However, several factors influence the competitiveness of Indian farmers including various
trade policies and market dynamics at work.
Body:
Effectiveness of national and international trade policies and market dynamics in supporting the competitiveness of Indian
farmers:
National Trade Policies:

• Agricultural Subsidies: Indian farmers benefit from various government subsidies, including input subsidies, minimum
support prices (MSPs), and income support schemes. These policies aim to ensure price stability, income security, and
support for agricultural activities. E.g. PM KISAN.
• Export and Import Policies: Government policies regulating the export and import of agricultural products can impact
farmers' competitiveness. Export restrictions or bans may protect domestic food security but can limit market access and
price realization for farmers. E.g. ban on the export of Onions in 2022.
o Import liberalization can expose farmers to international competition, affecting their profitability.
• Domestic support programs: India has several domestic support programs in place to promote and support agriculture.
These programs aim to enhance agricultural productivity, ensure food security, and improve the livelihoods of farmers
across the country.
o E.g. National Food Security Mission (NFSM), Soil Health Card Scheme etc.
International Trade Policies:
• Tariffs and Non-Tariff Barriers: Tariffs and non-tariff barriers in global trade can influence the competitiveness of Indian
farmers. High import tariffs in other countries can restrict market access for Indian agricultural products, while non-tariff
barriers like sanitary and phytosanitary measures may pose challenges to exports.
o E.g. European Union (EU) has specific phytosanitary standards in place for the importation of agricult ural
products.
• Bilateral and Multilateral Agreements: International trade agreements and negotiations, such as the World Trade
Organization (WTO) agreements or bilateral free trade agreements, can shape market access and trade conditions for
Indian farmers.
o These agreements may provide opportunities for export growth but can also expose farmers to increased
competition. E.g. Amber box of WTO
• Subsidy Disparities: Disparities in agricultural subsidies provided by different countries can affect the competiti veness of
Indian farmers.
o Subsidies provided by developed countries can distort global agricultural markets and disadvantage farmers in
developing countries like India.
Market Dynamics:
• Price Volatility: Indian farmers often face price volatility due to market dynamics, including fluctuating demand, supply
imbalances, and weather conditions. Price fluctuations can impact farmers' incomes, profitability, and ability to compete.
o E.g. Recent rising tomato prices
• Supply and demand: Growing demand for certain agricultural commodities, both domestically and internationally, can
create opportunities for farmers to expand production and increase their incomes.
o For instance, the rising demand for organic products.
• Value Chains and Market Linkages: Farmers' competitiveness is influenced by the structure of agricultural value chains
and their ability to access markets efficiently. Recent efforts have strengthened market linkages, thereby enhancing
farmers' competitiveness. E.g. formation of various FPO.
Challenges and concerns:

• Smallholder Vulnerability: Almost 50 per cent of India's total population consists of small farmers and their families, and
85 per cent of all farms are less than two hectares. They face challenges in accessing credit, technology, and market
opportunities.
• Infrastructure and Logistics: Inadequate infrastructure, including transportation, storage, and cold chain facilities,
hinders farmers' competitiveness by leading to post-harvest losses, limited market access, and increased transaction
costs.
• Climate Change and Sustainability: Climate change impacts, such as unpredictable weather patterns and water scarcity,
pose significant challenges to farmers' competitiveness.
• Lack of Diversification and Value Addition: Limited diversification of agricultural production and inadequate value
addition has constrained Indian farmers' ability to capture higher value from their produce.
o Also, over-reliance on traditional crops and low-value commodities exposes farmers to price volatility and
reduces their competitiveness.
• Inadequate research and extension services: Insufficient investment in agricultural research and extension, limited
dissemination of knowledge, and a gap between research and on-ground implementation pose significant bottlenecks.
• Effective implementation of trade policies and market reforms faces various challenges, including bureaucratic
inefficiencies, inadequate institutional capacity, and lack of coordination among different government departments.
Measures needed:
• Promoting land consolidation, facilitating leasing arrangements, and encouraging cooperative farming can help
overcome this bottleneck and enhance farmers' competitiveness.
• Adopting sustainable agricultural practices, building climate resilience, and promoting climate-smart technologies are
crucial to ensure long-term competitiveness.
• Improving infrastructure is essential to support farmers in reaching markets efficiently.
• Strengthening rural credit institutions, expanding the reach of formal banking services, and promoting innovative
financial mechanisms tailored to the needs of farmers can help overcome this constraint.
• Strengthening research and development infrastructure, promoting farmer-centric extension services, and facilitating
technology transfer are essential to address this constraint.
• Encouraging crop diversification, promoting high-value and niche products, and facilitating value addition through
processing and market linkages can help overcome this bottleneck.
Conclusion
The holistic development of agricultural infrastructure, research and development, capacity building, and support mechanisms
are key to unlocking the full potential of Indian farmers in a competitive global environment.
Q18. The Open Market Sale Scheme (OMSS) plays a crucial role in India's food grain management system, but recent
controversies have raised concerns about its implementation and impact. Elaborate. (15M)
Introduction
Under OMSS, the Food Corporation of India (FCI) sells surplus food grains especially wheat and rice from the central pool in the
open market through e-auction to traders, bulk consumers, retail chains and so on at pre-determined prices. Usually, states are
also allowed to procure food grains through the OMSS without participating in the auctions. This is to meet their needs beyond
what they get from the central pool to distribute to NFSA (National Food Security Ac t) beneficiaries.
Body
Significance of OMSS in foodgrains management:

• The OMS Scheme helps improve and regulate the domestic supply and availability of food grains, especially rice and
wheat during the lean season, the time between harvests.
• Regulating the supply, in turn, helps moderate the open market prices, especially in the deficit regions.
• The scheme, thereby, regulates/brings down their prices in the open market, and specifically curbs food grain inflation.
• E.g., In March 2023, the prices of Wheat came down by 19% in a span of 45 days due to OMSS intervention.
Recent FCI order:

• Restriction on quantity:
o The Centre decided to restrict the quantity that a single bidder can purchase in a single bid under the OMSS.
o While the maximum quantity allowed earlier was 3,000 metric tonnes (MT) per bid for a buyer, it will now range
from 10-100 metric tonnes (MT).
• Discontinuing the sale to states:
o The FCI order discontinued the sale of wheat and rice under the OMSS (domestic) for state governments.
o However, the sale of rice under the OMSS will be continued for northeastern states, hilly states and states
facing law and order situations, and natural calamities.
• Private parties:
o The FCI may liquidate the products to private parties from the central pool as per the requirement in order to
moderate the market prices.
Centre’s rationale:
• The decisions are taken with the primary objective to curb inflation and address hoarding.
• The quantities have been reduced to accommodate more small and marginal buyers and to ensure the wider reach of
the scheme.
• Allowing smaller bids should ideally break monopolies of bulk buyers, and allow more competitive bids by small buyers.
o FCI says that the move would allow the supplies to the general public immediately.
• The States are excluded to ensure that adequate stock levels are maintained in the Central pool.
o The central government is already providing free foodgrains via ration shops to about 80 crore poor enrolled
under the NFSA.
o There are about 40-50 crore non-NFSA beneficiaries from the middle and upper middle class and the
government has a responsibility towards them also.
States’ contention:
• States such as Karnataka, Tamil Nadu and Rajasthan have asked the Centre to remove the restrictions.
• Karnataka’s case:
o Besides what is distributed under the NFSA, many states have their own welfare schemes to distribute
subsidised or free grains to sections of the population.
o E.g., the Anna Bhagya scheme in Karnataka gives rice to marginalised families. The OMSS helps the States in
meeting this extra demand.
o The withdrawal of this might leave some states without the required amount of rice to implement the welfare
schemes and to fail on their poll promise.
• Tamil Nadu’s concern:
o Tamil Nadu runs a universal PDS scheme under which the state gives rice to all ration card holders.
o In line with this, the State intends to purchase 50,000 tonnes of rice from government agencies other than FCI
i.e., under the OMSS. The recent move will affect this option now.
Concerns with the implementation:
• The changes in the scheme and the resultant concerns seem to defeat the very purpose and objective of the scheme in
some aspects.
• Beneficiaries:
o While the Centre argues that it had to take care of the non-NFSA category of beneficiaries, the States’ plea also
considers the needs of sections of the non-NFSA population.
• Inflation:
o If the States are forced to tap the open market, rice and wheat prices are only bound to go up.
o This will defeat the Centre’s objective behind restrictions on quantity sold through OMSS, i.e., to curb inflation.
• Weakening of welfare measures:
o With the FCI move, the Karnataka government could not find an equivalent supplier for its Anna Bhagya
programme, cost is a key reason.
o The controversy over the OMSS has thus left the States to identify their own sources and manage the demands
of their food security schemes.
Conclusion
Ensuring smoothness in foodgrain management has wider implications across the economic and social sph ere, given
the welfare orientation involved. So, the Centre and the States should work together to find a balance in demand and supply,
so that the poor beneficiaries are not affected.
Q19. UN has designated 2023 as the International Year of Millets. Discuss the constraints in millet production and
consumption in India. How does Millet International Initiative for Research and Awareness (MIIRA) aim to address them?
(15M)
Introduction
Millets are incredible ancestral crops with high nutritional value. For ages, millet has been considered a non-staple, even ignored
as a “coarse” grain. But largely on India’s urging, the United Nations General Assembly adopted a resolution in 2021 declaring
2023 the International Year of Millets. Various reports suggest that the area under millet is declining dramatically in India coupled
with lower consumption.
Body:
Constraints in millet production:

• Awareness: Many farmers are not familiar with the agronomic practices specific to millets, such as appropriate seed
selection, land preparation, nutrient management, and pest control measures.
• Low yields and low profitability: The cultivation of millets is often associated with low yields and low profitability, which
can discourage farmers from growing them.
• Competition from Rice and Wheat: Rice and wheat are staple foods in India and are widely available, making it difficult
for millets to compete in the market.
• Access to quality seeds is crucial for millet production. However, there is often a shortage of high-quality, certified seeds
of different millet varieties. This hampers the adoption of improved varieties and affects overall productivity.
• Inadequate Research and Development: Compared to major cereal crops like rice and wheat, millet has received
relatively less attention in terms of research and development.
o Limited investments in millet-specific research, including the development of improved varieties, sustainable
production techniques, and value addition, hinder the growth of the millet sector
• Market linkages and inadequate infrastructure: The lack of efficient market linkages and adequate infrastructure,
including storage facilities and processing units, poses a significant constraint for millet farmers.
o Limited market access and low price realization discourage farmers from investing in millet cultivation.
• Shifting Dietary Preferences: Changing dietary patterns and a shift towards more cash crops and ce reals like rice and
wheat have led to a decline in millet consumption thereby a fall in millet production.
• Also, difficulties in large-scale millet processing and relatively lower productivity giving an economic advantage to the
cultivation of fine cereals (i.e. rice and wheat) are responsible for the decline in millet production in India.
Constraints in millet consumption in India: In the latest available NSSO household consumption expenditure survey (which is
more than a decade old), less than 10 per cent of rural and urban households reported consumption of millet. Various reasons
can be attributed to this lower consumption.
• Preference for Wheat as staple food: Wheat because of gluten makes softer food and is more liked.
• Government policies: e.g. National Food Security Act promotes wheat and rice. Although coarse grains are included in
the definition of “food grains” under Section 2(5) of the NFSA, the distribution through PDS is negligible.
• Lack of awareness: Many consumers in India have limited awareness and understanding of millet and their nutritional
benefits. Millets are often perceived as coarse grains or as food for the poor.
• Marketing and Promotion: Millets have received relatively less marketing and promotion compared to other crops and
food products. E.g. Corn, wheat etc.
• Availability and Accessibility: The availability of millet-based products and dishes is relatively limited in mainstream
markets and eateries. Millets are not widely available in traditional and modern (e -commerce) retail markets, making it
difficult for consumers to purchase them.
• Perceived Taste: Some people believe that millets have a bland or unpleasant taste, which discourages them from
consuming them.
Millet International Initiative for Research and Awareness (MIIRA): On the premises of G20, India is planning to propose the
launch of a global initiative ‘MIIRA’ to encourage the consumption and production of millets. To address these constraints, the
MIIRA aims to take the following steps-
• Research and Development: MIIRA focuses on promoting research and development activities related to millets. This
includes developing improved millet varieties with higher yields and better resilience to biotic and abiotic stresses.
• Awareness: Besides setting up a web platform to connect researchers and holding international research conferences,
the plan is also to promote millet consumption by raising awareness.
• It intends to promote sustainable and climate-smart agriculture practices for millet cultivation, including the
conservation and use of traditional millet varieties and integrated farming systems
• Strengthen the millet value chain by establishing market linkages, improving post-harvest management practices, and
supporting the development of millet-based enterprises.
• Policy advocacy: it also aims to work towards advocating for policy reforms, collaborating with government agencies,
and fostering partnerships with research institutions to provide the necessary support for millet production and
consumption.
Conclusion
Millets are the only crop that will address important issues in the future like food, feed, fuel, malnutrition, health, and Climate
Change. Millets are adapted to a wide range of ecological conditions demanding less water and inputs and fit well even in infertile
soil. For all the right reasons millets should be promoted and branded well to broaden its visible benefits.
Value addition:
Initiatives in India:
• The government declared (in 2018) millets as “Nutri-Cereals”, considering their “high nutritive value” and also “anti-diabetic
properties”.
• The 2018 year: ‘National Year of Millets”.
• Increase in MSP for millets
• The government has included millets in the public distribution system (PDS) and POSHAN Abhiyan.
• Millet Mission (under the National Food Security Mission): It will help develop farm-gate processing and empower farmers
using FPOs.
• Kerala State Agriculture Department: Millet Village scheme
• Millet Startup Innovation Challenge
• A contest for designing a comic story, with the theme ‘India’s Wealth, Millets for Health’
Other Initiatives for Millets:

• SCO: India proposed to organize the “Millet Food Festival’
Q20. Examine the major bottlenecks hindering agricultural extension services in India. What are its impacts? How can these
be overcome? (15M)
Introduction
Agricultural extension can be defined as the “delivery of information inputs to farmers to increase agricultural productivity” and
also it is the application of scientific research and knowledge to agricultural practices through farmer education. e.g. M-Kisan
(mobile-based information).
Body:
Major bottlenecks hindering agricultural extension services in India:

• Irrelevant advice: The major problem reported by those who had access to extension services was the practical relevance
of the advice.
o In India, Agricultural Extension has largely been focusing on production aspects, whereas farmers’ requirement
today is more market-related.
• Limited Reach and Coverage: Agricultural extension services in India often struggle to reach and cater to the vast and
diverse farming population, especially in remote and marginalized areas.
o This is due to constraints such as inadequate extension staff, limited infrastructure, and geographical
challenges. For instance, in remote hilly regions or tribal areas
• Inadequate Human Resources: There is a shortage of skilled and well-trained agricultural extension workers in India.
Insufficient manpower, low motivation, and outdated skill sets among extension personnel limit their ability to provide
quality advisory services to farmers.
• Influence of private input providers: Public extension provides advisory services, whereas input supply is controlled by
the private sector, this duality in the delivery of services also creates confusion, despite the right advice by public
extension, farmers purchase wrong inputs influenced by aggressive sales by private input dealers.
• Language and Cultural Barriers: India's linguistic and cultural diversity poses a challenge to effective communication and
understanding between extension workers and farmers.
o The availability of extension services in regional languages is limited, making it difficult for farmers to access and
understand the information provided.
• Limited use of ICT: The adoption and utilization of ICTs in agricultural extension services in India have been limited.
While there have been efforts to promote digital platforms and mobile-based applications for information dissemination,
it has been limited by access to digital infrastructure, internet connectivity, and digital literacy.
• Information source: Smallholder farmers and socially backward farmers, in particular, tend to rely heavily on local
sources of information for their agricultural practices and decision-making processes.
Its impact:
• Slow Adoption of Research Findings: this hinders the effective dissemination of agricultural research findings and
technologies to farmers, delaying the adoption of scientific advancements and impeding agricultural progress and
innovation. E.g. especially in tribal belts of India.
• Lower Productivity and Farm Income: it deprives farmers of vital information on modern agricultural practices,
technologies, and market trends leading to suboptimal farming practices, lower productivity, reduced farm income, and
overall economic losses.
• Increased Vulnerability: Inadequate access to extension services hampers farmers' ability to manage risks, address pest
and disease outbreaks, and mitigate the impacts of climate change. E.g. drought and floods related losses.
• Knowledge and Technology Gap: Lack of awareness about innovative practices, climate-resilient techniques, and
efficient resource management inhibits farmers from adopting sustainable and productive farming methods. E.g. Jhum
cultivation.
• Inefficient Resource Use: it can result in inefficient use of inputs such as fertilizers, water, and pesticides. Farmers may
apply inputs incorrectly or at suboptimal levels, leading to environmental degradation, increased costs, and reduced
sustainability. E.g. usage of Urea in India.
Measures needed to overcome it:

• Developing and strengthening extension networks involving government agencies, agricultural universities, research
institutions, and (NGOs) to improve outreach and extension coverage.
• Mobile Extension Services: Utilizing mobile technology and telecommunication networks to provide information and
advisory services to farmers, especially in remote areas.
o For example, initiatives like Kisan Call Centers and Krishi Vigyan Kendras.
• Training and Capacity Building: Conduct regular training programs and capacity-building initiatives for extension
personnel to enhance their knowledge, skills, and understanding of emerging agricultural technologies and best
practices.
• Localization of Extension Content: Developing extension material and resources in regional languages to ensur e effective
communication and understanding among farmers.
• Digital Platforms: Promoting the use of digital platforms, mobile applications, and web-based tools to disseminate
information and provide advisory services to farmers.
o For instance, apps like "Kisan Suvidha" provide farmers with access to market prices, weather forecasts, and
crop-related information.
• Increased Budget Allocation: Prioritizing and allocating sufficient funds for agricultural extension services in national and
state budgets. This includes investments in infrastructure, training programs, research and development, and capacity -
building initiative.
Conclusion
Agricultural Extension Services play a crucial role in empowering farmers by granting them access to vital information, knowl edge,
technology, skills, and practices related to various agricultural sub-sectors. Government can look up to certain Western countries
who have successfully rolled out extension services in agriculture and implement them in India as well.

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IWIL2023 TEST7 Eco+Agro Synopsis

Difference between Balance of Trade and Balance of payment:

Policies that can correct a deficit in BOP and restore stability:

Untapped opportunities in the tourism industry

Challenges in harnessing its full potential

Crop Diversification for Sustainable and resilient agriculture:

• Better price realization:

Barriers to widespread adoption in India:

The key principle is to utilize the by-products and waste of one

Integrated farming system contributing to agricultural productivity and Sustainability in India:

Potential of Natural Farming:

Natural farming a 'pipe dream':

Successful case study:

Driving factors of De-dollarization

Potential challenges of De-dollarization

Opportunities for India

Role of labour-intensive Industries in addressing unemployment

Role of labour-intensive Industries in Promoting Inclusive Growth

How the 'Digital India' program has

Its impact on various sectors

Various measures taken by the government to achieve each of them:

Priority Measures Taken Evaluation

Issues with MGNREGA

These challenges warrant reforms in the scheme.

Middlemen and intermediaries affect agricultural supply chain through:

Government measures and their effectiveness:

Ways to lessen intermediaries’ role and increase farmer’s income:

National Trade Policies:

International Trade Policies:

Challenges and concerns:

Significance of OMSS in foodgrains management:

Recent FCI order:

Constraints in millet production:

Other Initiatives for Millets:

Major bottlenecks hindering agricultural extension services in India:

Measures needed to overcome it:

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