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GS Paper: GS3-12.Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

  • Goldilocks situation has kept food inflation at bay

    Why in the News?

    India is experiencing very low food inflation, with average food price inflation at 0.2% in 2025 and negative inflation during July-December 2025 (-2.7%), compared to 8.5% in 2023. This shift reflects a “Goldilocks” zone, where temperatures, rainfall, and crop output remain neither excessive nor deficient, ensuring steady supply. Despite El Niño concerns and global commodity volatility, this indicates a structural break from recent food inflation cycles.

    Why is the current situation described as a “Goldilocks” phase?

    1. Moderate Temperatures: Ensures crop stress remains limited, with all-India mean surface temperature in 2025 only 0.28°C above normal, compared to 0.65°C in 2024.
    2. Rainfall Surplus: Supports soil moisture and sowing conditions across seasons without triggering flood-related crop losses.
    3. Balanced Extremes: Prevents yield shocks associated with heatwaves, cold spells, or prolonged dry phases.

    How did temperature moderation alter agricultural outcomes?

    1. Rabi Season Stability: Strengthens grain filling and tuber development due to cooler night temperatures.
    2. Winter Temperature Data: January-April 2025 temperatures remained near-normal, unlike early heat spikes seen in 2023.
    3. Heatwave Absence: Limits premature ripening and yield compression in wheat and pulses.

    What does crop output data reveal about rabi performance?

    1. Wheat Productivity: Improves grain weight and yield formation due to extended cool periods.
    2. Potato Output: Ensures tuberisation remains optimal; output projected at 161 million tonnes, up from 158.1 million tonnes in 2023-24.
    3. Mustard Production: Rises from 86.5 lakh tonnes (2018-19) to 93.6 lakh tonnes, easing edible oil pressures.
    4. Chana and Barley: Record higher yields due to favourable sowing-to-harvest climate continuity.

    How do buffer stocks reinforce food price stability?

    1. Central Pool Stocks: Provide supply-side insulation against market volatility.
    2. Stock Levels (Jan 1, 2026):
      1. Wheat: 274.63 lakh tonnes (Norm: 138 lakh tonnes)
      2. Rice: 679.32 lakh tonnes (Norm: 76.1 lakh tonnes)
      3. Total: 953.95 lakh tonnes
    3. Excess Over Norms: Enables price intervention without procurement stress.

    Why has food inflation remained low despite demand recovery

    1. Wholesale Potato Prices: Fall from ₹500-700/quintal to ₹200-300/quintal. (Less than half)
    2. Retail Potato Prices: Decline to ₹15-18/kg, registering -18.5% YoY inflation in December.
    3. Vegetable Basket: Benefits from synchronised harvests and low storage losses.
    4. Demand-Supply Balance: Ensures consumption recovery does not translate into price escalation.

    Why is resurgence of food inflation considered unlikely?

    1. Climate Outlook: La Niña conditions reduce probability of temperature extremes.
    2. Stock Cushion: Enables rapid market release during price spikes.
    3. Crop Pipeline: Successive rabi and kharif buffers reduce seasonal gaps.
    4. Exception Clause: Only a sudden extreme weather event could reverse the trend.

    Conclusion

    The current suppression of food inflation reflects a rare convergence of climatic moderation, agricultural productivity, and policy preparedness rather than transient demand weakness. While structurally beneficial, this equilibrium remains contingent on climate stability. Sustaining low food inflation will require adaptive agricultural planning, climate-resilient cropping, and prudent stock management, rather than reliance on favourable weather cycles alone.

    PYQ Relevance

    [UPSC 2024] What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.

    Linkage: Questions on inflation have been recurrent in GS III, reflecting its centrality to economic stability and welfare outcomes. The article provides current, data-backed supply-side explanations, enabling candidates to enrich answers with contemporary evidence and analysis.

  • Nearly 44,000 startups registered in 2025, highest since the launch of Startup India

    Why in the News

    India registered nearly 44,000 startups in 2025, the highest annual addition since the launch of Startup India in 2016, marking a decisive acceleration in entrepreneurial activity. The Prime Minister announced that India now hosts over 2 lakh startups and nearly 125 unicorns, reflecting a structural shift from a risk-averse economy to one driven by innovation, capital formation, and job creation. This scale-up positions India as the third-largest startup ecosystem globally, indicating a transformation in growth drivers over the past decade.

    How has Startup India altered the scale of entrepreneurship in India?

    1. Startup Proliferation: Expanded from fewer than 500 startups a decade ago to over 200,000 registered startups, indicating ecosystem maturity.
    2. Annual Acceleration: Addition of 44,000 startups in 2025 alone, the largest single-year increase since inception.
    3. Global Standing: Establishes India as the third-largest startup ecosystem, enhancing economic visibility and investor confidence.

    What does the rise in unicorns indicate about ecosystem depth?

    1. Unicorn Expansion: Growth from four unicorns in 2014 to nearly 125 active unicorns, reflecting scale viability.
    2. Capital Maturity: Transition of unicorns towards initial public offerings (IPOs) signals capital market integration.
    3. Employment Generation: Scaling startups contribute to job creation beyond traditional sectors, supporting inclusive growth.

    How has societal perception of risk-taking changed?

    1. Cultural Shift: Risk-taking normalised and respected, replacing preference for fixed-salary employment.
    2. Entrepreneurial Aspiration: Acceptance of ideas previously considered fringe, strengthening innovation culture.
    3. Labour Market Impact: Encourages self-employment and venture creation as mainstream career choices.

    What role has state-backed risk capital played?

    1. Fund of Funds (FoF): Over ₹25,000 crore invested through government-backed FoF mechanisms.
    2. Capital Crowding-In: Public capital reduces early-stage risk, enabling private investment participation.
    3. Policy Signalling: Demonstrates long-term state commitment to entrepreneurship.

    Why is deep tech now a strategic priority?

    1. FoF 2.0 Corpus: ₹10,000 crore approved in April 2025, with targeted deployment.
    2. Sectoral Focus: Artificial Intelligence, Machine Learning, Quantum Technologies, Defence, Aerospace.
    3. Gestation Support: Addresses long proof-of-concept cycles and capital intensity in frontier technologies.
    4. Strategic Autonomy: Aligns startup policy with national security and technological self-reliance goals.

    Conclusion:

    A decade of Startup India demonstrates a decisive shift in India’s growth strategy from capital-scarce, risk-averse entrepreneurship to a scale-oriented, innovation-driven ecosystem. The record surge in startups, expansion of unicorns, and targeted deep-tech financing indicate that startups are increasingly complementing MSMEs and manufacturing, strengthening employment creation, capital formation, and India’s long-term economic resilience.

    Value Addition

    Startup India Mission

    1. Launch Year: 2016
    2. Nodal Ministry: Ministry of Commerce and Industry (DPIIT)
    3. Core Objective: Enables innovation-led entrepreneurship through regulatory easing, funding access, and ecosystem support.
    4. Policy Significance: Shifts India’s growth model from job-seeking to job-creating; strengthens formalisation and innovation capacity.

    PYQ Relevance

    [UPSC 2023] Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. 

    Linkage: This question directly links to GS III (Economic Growth, Industrial Policy, MSMEs) by examining manufacturing-led growth as a driver of jobs and productivity. Government initiatives like Startup India, PLI schemes, and Fund of Funds strengthen MSME manufacturing, capital access, and scale-up, addressing this requirement.

  • NITI Aayog Report on MSME Scheme Convergence 

    Why in the News?

    In January 2026, NITI Aayog released a report proposing convergence of MSME schemes to reduce duplication, improve efficiency and strengthen last mile delivery.

    About the Report

    • Title: Achieving Efficiencies in MSME Sector through Convergence of Schemes
    • Prepared by Administrative Staff College of India
    • Analyses 18 centrally administered MSME schemes
    • Recommends information convergence and process convergence
    • Focus on better coordination, outcomes and resource utilisation

    Key Facts about MSME Sector

    • GDP contribution about 29 to 30 percent
    • Employment over 28.7 crore, second only to agriculture
    • Share in exports about 45 to 46 percent
    • Total MSMEs more than 6.3 crore
    • Around 51 percent located in rural areas
    • Government MSME budget increased sharply from 2019–20 to 2023–24, raising efficiency concerns

    Why Convergence is Needed

    • Multiple schemes with overlapping objectives
    • Fragmented implementation across ministries
    • High compliance burden for MSMEs
    • Duplication of resources and limited outreach
    • Weak translation of spending into outcomes

    Framework for Convergence

    1. Information Convergence
    • Integration of central and state government data
    • Enables evidence based policymaking
    • Improves coordination and governance
    1. Process Convergence
    • Alignment and rationalisation of schemes
    • Merging similar components
    • Collaboration across ministries and states
    • Creation of a unified MSME support ecosystem
    [2023] With reference to India, consider the following statements: 

    1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore

    2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. 

    Which of the statements given above is/are correct? 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

  • Export Preparedness Index (EPI) 2024

    Why in the News?

    NITI Aayog released the Export Preparedness Index (EPI) 2024, assessing export readiness of Indian States and Union Territories. This is the 4th edition of the Index, first launched in August 2020.

    The Index aligns with India’s targets of USD 1 trillion merchandise exports by 2030

    About Export Preparedness Index

    • Evidence based framework to assess strength, resilience and inclusiveness of subnational export ecosystems
    • Recognises the critical role of States and districts in India’s global trade performance
    • Identifies
      • Structural challenges
      • Growth levers
      • Policy opportunities
    • Focus on districts as core units of export competitiveness

    Top Performing States and Union Territories

    A. Large States

    1. Maharashtra
    2. Tamil Nadu
    3. Gujarat
    4. Uttar Pradesh
    5. Andhra Pradesh

    B. Small States, North Eastern States & Union Territories

    1. Uttarakhand
    2. Jammu and Kashmir
    3. Nagaland
    4. Dadra and Nagar Haveli & Daman and Diu
    5. Goa
    [2020] With reference to the international trade of India at present, which of the following statements is/are correct? 

    1. India’s merchandise exports are less than its merchandise imports

    2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years

    3. India’s exports of services are more than its imports of services

    4. India suffers from an overall trade/current account deficit

    Select the correct answer using the code given below: 

    (a) 1 and 2 only (b) 2 and 4 only (c) 3 only (d) 1, 3 and 4 only

  • District Led Textiles Transformation (DLTT) Plan

    Why in the News?

    The Ministry of Textiles has launched the District Led Textiles Transformation (DLTT) Plan to convert 100 high potential districts into Global Export Champions and upgrade 100 Aspirational Districts into self reliant textile hubs.

    What is the DLTT Plan

    • A sector specific, district level transformation strategy for textiles
    • Uses data driven categorisation to tailor interventions
    • Covers districts at different stages, from advanced export clusters to foundation stage districts

    Objectives

    • Drive inclusive, sustainable, and export oriented growth in textiles
    • Decentralise policy execution to districts
    • Strengthen MSMEs and formalise the workforce
    • Build globally competitive textile clusters

    Significance

    • Moves India up the textile value chain
    • Diversifies export baskets
    • Strengthens MSMEs and formalises labour
    • Boosts women led and SHG led enterprises
    • Accelerates development in aspirational, eastern, and north eastern districts

    Prelims Pointers

    • DLTT follows a district first approach
    • Uses data driven classification
    • Integrates skilling, infrastructure, and exports
    • Strong focus on inclusive and regional development
    [2022] Which of the following activities constitute the real sector in the economy? 

    1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 

    2. A commercial bank lending money to a trading company 

    3. A corporate body issuing Rupee Denominated Bonds overseas 

    Select the correct answer using the code given below: 

    (a) 1 and 2 only (b) 2, 3 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4

  • [9th January 2026] The Hindu OpED: GSDP share as criterion for central-State transfers

    PYQ Relevance

    [UPSC 2020] Explain the rationale behind the Goods and Services Tax (Compensation to States) Act, 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?

    Linkage: COVID-19 exposed structural weaknesses in the GST compensation mechanism.

    This intensified Centre-State fiscal tensions and revived debates on fair and transparent transfer mechanisms in India’s federal framework.

    Mentor’s Comment

    Debates on fiscal federalism in India often oscillate between equity and efficiency. The article examines whether Gross State Domestic Product (GSDP) can be a fair and reliable basis for sharing Central tax revenues among States, especially in the post-GST era where tax attribution has become complex.

    Why in the News

    The article gains significance amid ongoing debates on Central-State fiscal relations, especially after the implementation of GST, which has weakened the direct link between tax collection and the place of economic activity. The issue is critical because ₹75.12 lakh crore was transferred to States between 2020-21 and 2024-25, and the method used to distribute this amount affects State fiscal autonomy and perceived fairness. A key finding is the very high correlation (0.99) between actual transfers and GSDP, compared to a much weaker link with Finance Commission devolution, making GSDP a stronger alternative measure.

    Introduction

    India’s system of fiscal transfers relies heavily on the recommendations of successive Finance Commissions, which distribute Central tax revenues through tax devolution, grants-in-aid, and Centrally Sponsored Schemes (CSS). However, the post-GST tax regime has disrupted the traditional linkage between tax collection location and economic value creation, raising questions about whether existing criteria adequately capture States’ real contribution to national revenues.

    Why is tax collection an unreliable indicator of State-level contribution?

    1. GST structure: Breaks the link between the location of production and the location of tax collection due to destination-based taxation.
    2. Corporate taxation: Attributes tax payments to the registered office location rather than where economic activity occurs.
    3. Multi-State operations: Dilutes State-wise attribution due to labour migration, inter-State supply chains, and inter-corporate transactions.
    4. Example distortion: Automobile manufacturers pay taxes where offices are registered, not necessarily where factories operate; plantation companies record profits centrally despite dispersed production.
    5. Outcome: Direct tax figures reflect collection points, not value creation.

    Why does GSDP emerge as a credible proxy for tax accrual?

    1. Economic base representation: Captures the size and intensity of economic activity within a State.
    2. Uniform tax base assumption: Assumes broadly similar tax administration efficiency across States.
    3. Empirical validation: Correlation between GSDP and GST collections stands at 0.75 for 2023-24.
    4. High correlation with transfers: Correlation of 0.91 between GSDP and total Central tax transfers.
    5. Policy neutrality: Avoids contentious attribution disputes inherent in GST accounting.

    How do actual transfers align with GSDP shares?

    1. Overall transfers: ₹75.12 lakh crore transferred during 2020-25, including FC devolution, grants, and CSS.
    2. High-alignment States:
      1. Uttar Pradesh: 15.81% transfer share vs 16.85% population share.
      2. Maharashtra: High tax contribution (40.3%) but only 6.64% of transfers, reflecting redistribution.
    3. Mismatch States:
      1. Bihar: Receives 8.65% transfers despite only 4.66% GSDP share.
      2. West Bengal: 6.96% GSDP share vs 6.69% transfers.
    4. Interpretation: Transfers broadly track economic output, not tax collections.

    How does the equity-efficiency trade-off emerge in fiscal transfers?

    1. Redistributive bias: FC criteria prioritize equity over efficiency by favoring population and income distance.
    2. Regional disparities: Persist due to differential expenditure needs and fiscal capacity.
    3. Efficiency trade-off: GSDP-based transfers better reflect contribution but reduce redistributive scope.
    4. Evidence: Correlation between GSDP and FC devolution shares is only 0.58, indicating weak alignment.
    5. Outcome: GSDP balances fairness and efficiency more transparently than current metrics.

    Which States gain or lose under a pure GSDP-based system?

    1. Major gainers: Tamil Nadu and Karnataka: High production but lower tax attribution due to GST mechanics.
    2. Major losers: Uttar Pradesh, Bihar, Madhya Pradesh: Benefit currently from redistributive weights.
    3. Exception States: Haryana, Karnataka, Maharashtra: GSDP share lower than tax collection due to tax concentration effects.
    4. Inference: GSDP corrects distortions arising from centralized tax accounting.

    Conclusion

    The debate on using GSDP as a basis for Central-State transfers highlights the need to realign India’s fiscal federal framework with the realities of the post-GST economy. While redistribution remains essential for equity, greater reliance on GSDP can improve transparency, efficiency, and trust by linking transfers more closely with economic activity. A calibrated approach, combining GSDP-based devolution with targeted grants, offers a balanced pathway to strengthen cooperative federalism.

  • RBI Announces ₹1 Trillion OMO Purchase

    Why in the News?

    The Reserve Bank of India announced a ₹1 trillion Open Market Operation purchase along with a 5 billion dollar rupee swap to inject durable liquidity into the banking system amid rupee weakness beyond 90 per dollar and foreign capital outflows.

    What is an Open Market Operation Purchase

    • An OMO purchase is when the RBI buys government securities from banks and financial institutions
    • Objective is to inject durable and long term liquidity into the financial system
    • Leads to an increase in bank reserves and eases short term interest rates

    Purpose of OMO Purchases

    • Inject durable liquidity into the banking system
    • Improve monetary policy transmission so lending rates align with repo rate changes
    • Stabilise money market rates such as the Weighted Average Call Rate
    • Support financial stability during periods of currency and capital flow stress

    Significance of the Recent OMO

    • Offsets rupee liquidity drain caused by foreign portfolio outflows
    • Supports monetary transmission during external sector stress
    • Prevents sharp spikes in government bond yields
    • Strengthens lending capacity of banks for businesses and households

    Prelims Pointers

    • OMO is a quantitative monetary policy tool
    • OMO purchase injects liquidity while OMO sale absorbs liquidity
    • Operation Twist reshapes the yield curve
    • Durable liquidity differs from short term tools like repo and reverse repo
    [2013] In the context of Indian economy, ‘Open Market Operations’ refers to 

    (a) borrowing by scheduled banks from the RBI 

    (b) lending by commercial banks to industry and trade 

    (c) purchase and sale of government securities by the RBI 

    (d) None of the above

  • Electronics Components Manufacturing Scheme 

    Why in the News?

    The Ministry of Electronics and Information Technology approved 22 additional projects under the Electronics Components Manufacturing Scheme involving an investment of ₹41,863 crore.

    About Electronics Components Manufacturing Scheme

    • A flagship incentive scheme to promote domestic manufacturing of electronic components, sub assemblies and capital equipment
    • Implemented by the Ministry of Electronics and Information Technology
    • Aims to reduce import dependence in India’s electronics sector

    Target Segments

    • Printed Circuit Boards, Camera modules, Copper clad laminates, Polypropylene films and Electronics capital equipment.

    Performance Linked Features

    • Incentives linked to incremental production
    • Employment generation based payouts
    • Early movers receive higher benefits

    Strategic Manufacturing Targets

    • 100 percent domestic demand for copper clad laminates
    • 20 percent domestic demand for printed circuit boards
    • 15 percent domestic demand for camera modules

    Ecosystem Linkages

    • Complements Production Linked Incentive Scheme for Electronics
    • Supports India Semiconductor Mission
    • Strengthens the electronics manufacturing ecosystem

    Prelims Pointers

    • ECMS focuses on electronics components rather than finished products
    • Copper clad laminates are critical for PCB manufacturing
    • Scheme uses performance based incentives
    • Electronics manufacturing is a priority sector under Atmanirbhar Bharat
    [2023] Consider the following statements: 

    Statement-I: India accounts for 3.2% of global exports of goods. 

    Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme. 

    Which one of the following is correct in respect of the above statements? 

    (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I 

    (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I 

    (c) Statement-I is correct but Statement-II is incorrect 

    (d) Statement-I is incorrect but Statement-II is correct

  • Land Acquisition and Infrastructure Development 

     Why in the News?

    At the 50th meeting of PRAGATI, the Cabinet Secretary highlighted land acquisition as a major bottleneck in infrastructure development. The meeting was chaired by Narendra Modi.

    About PRAGATI (Pro Active Governance and Timely Implementation)

    • A digital and institutional mechanism for monitoring major infrastructure projects
    • Chaired by the Prime Minister
    • Ensures coordination among Central Ministries, State governments and local authorities
    • Focuses on expediting project implementation and resolving bottlenecks

    Key Data from 50th PRAGATI Meeting

    • Total projects reviewed Over 3,300
    • Total project value Approximately ₹85 lakh crore
    • Issues raised 7,735
    • Issues resolved 7,156

    Major Causes of Project Delays

    • Land acquisition 35 percent
    • Forest, wildlife and environment clearances 20 percent
    • Right of use or right of way 18 percent
    • Other causes Law and order issues, construction delays, power utility approvals and financial constraints

    Important Observations

    • Several long pending projects initiated as early as the 1990s were completed after PRAGATI was introduced
    • Government has not quantified financial savings from timely monitoring
    • States across political lines have cooperated in resolving issues
    • Complex issues are escalated from Ministry level to PRAGATI for final resolution

    Prelims Pointers

    • PRAGATI is a Prime Minister chaired project monitoring platform
    • Land acquisition is the single largest cause of infrastructure delays in India
    • Environmental and forest clearances are the second biggest bottleneck
    • PRAGATI promotes inter ministerial and Centre State coordination
    [2019] With reference to land reforms in independent India, which one of the following statements is correct? 

    (a) The ceiling laws were aimed at family holdings and not individual holdings. 

    (b) The major aim of land reforms was providing agricultural land to all the landless. 

    (c) It resulted in cultivation of cash crops as a predominant form of cultivation. 

    (d) Land reforms permitted no exemptions to the ceiling limits.

  • Central Excise Amendment on tobacco products

    Why in the news?

    The Centre has notified the Central Excise Amendment Act 2025 along with related tax changes on tobacco products. The changes will come into force from February 1, 2026. The move ends the GST compensation cess on tobacco and revises excise duties to meet fiscal and public health goals.

    Central Excise Amendment Act 2025

    The Act amends the Central Excise Act 1944 to revise excise duties on tobacco and tobacco related products, which continue to remain outside the complete GST framework.

    Key features

    Revision of excise duties

    The Act revises central excise rates to maintain and increase the overall tax burden after the withdrawal of GST compensation cess.

    Revised excise duty rates

    • Unmanufactured tobacco increased from 64 percent to 70 percent
    • Chewing tobacco increased from 25 percent to 100 percent
    • Hookah and gudaku tobacco increased from 25 percent to 40 percent
    • Smoking mixtures for pipes and cigarettes increased from 60 percent to 325 percent
    • Cigarettes increased from ₹200 to ₹735 per thousand sticks to ₹2,700 to ₹11,000 per thousand sticks

    Public health objective

    The higher duties aim to raise real tobacco prices faster than income growth, in line with global public health recommendations to discourage consumption.

    GST restructuring on tobacco

    • Beedis placed under 18 percent GST
    • All other tobacco products placed under 40 percent GST
    • New valuation mechanism introduced
       GST value to be calculated on the retail sale price declared on the package for products such as chewing tobacco, gutkha, khaini and jarda

    GST compensation cess

    What it is

    An additional levy imposed on select goods to compensate States for revenue losses due to GST implementation.

    Key points

    • Introduced in July 2017 along with GST
    • Initially meant for five years till June 2022
    • Extended till March 31, 2026 due to pandemic related revenue shortfall
    • Used mainly to repay about ₹2.7 lakh crore borrowed to compensate States
    • Levied over and above GST and central excise on tobacco
    • Being completely phased out from February 1, 2026

    Items covered under the cess

    • Tobacco and tobacco products
    • Pan masala
    • Aerated and caffeinated drinks
    • Luxury cars
    • Motorcycles above 350 cc
    • Specified firearms

    Prelims pointers

    • Tobacco products remain partly outside the GST framework
    • Central excise continues on tobacco even after GST
    • GST compensation cess ends from February 1, 2026
    • Higher tobacco taxation serves both revenue and public health objectives
    [2017] What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 

    1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 

    2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves. 

    3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. 

    Select the correct answer using the code given below: 

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3