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GS Paper: GS2

  • How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position?

    The Constitution of India envisages the Finance Commission under Article 280 as the ‘balancing wheel of fiscal federalism’ in India.

    Key Recommendations & Impact

    Tax Devolution Raised to 42% – Increased untied resources, enhanced fiscal autonomy.

    Reduced Dependence on Central Grants – Gave States more predictable, formula-based transfers.

    Greater Spending Autonomy – Fewer tied schemes allowed States to set local priorities.

    Plan vs Non-Plan Expenditure removed – Simplified budgeting, better fiscal management.

    Incentives for Fiscal Discipline – FRBM compliance encouraged prudent debt management.

    Support to Local Bodies – Higher allocations improved grassroots fiscal health.

    Special Grants for Environment & Judiciary – Helped States strengthen governance and green initiatives.

    GST Compensation Mechanism (recommended later) – Protected States from revenue loss during tax transition.

    Positive Impact

    Strengthened fiscal federalism

    Improved fiscal indicators of states

    Encouraged competitive federalism

    Concerns

    Rise in Cesses & Surcharges – Cesses & surcharges rising from 12.8% (2015-20) to 18.5% (2020-24).

    States’ effective share shrank – Fell from 35% (2015-20) to ~31% (2020-24) of Centre’s gross tax revenue.

    GST Compensation Delays – Especially during COVID, strained States’ finances.

    Reduced Central Grants – Decline in discretionary and plan-based transfers cut flexibility.

    Borrowing Restrictions (Art. 293, FRBM) – Limited States’ ability to raise resources.

    High Centrally Sponsored Schemes (CSS) – Continued tied funds reduced States’ expenditure autonomy.

    Way Forward

    Increase Devolution to 50% under 16th FC.

    Include Cess/Surcharge in divisible pool

    Restructure CSS – Consolidate into fewer umbrella schemes

    As the Punchhi Commission noted, “true federalism requires fiscal autonomy alongside political autonomy.”

  • Clean energy is the order of the day. Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics.

    Climate change has emerged as a global security and geopolitical concern. India, 3rd-largest energy consumer, has transitioned from a “climate obstructionist” to a “climate leader and solution provider”

    Clean Energy is the Order of the Day

    Combating Climate Change – Transition to renewables

    Social Benefits – women’s health. (Ujjwala Scheme)

    Economic Benefits – lowering Current Account Deficit (CAD).

    India’s role as a “Vishwaguru of sustainability”

    Geopolitics of Climate Change

    Oil geopolitics (Middle East)

    China’s monopoly in critical minerals (over 90%)

    Green tariffs and carbon taxes. Eg- EU’s Carbon Border Adjustment Mechanism

    North-South Divide and Climate Justice Diplomacy

    Climate-linked Geoeconomics – Eg- G20 Green Development Pact (2023)

    Climate and Security Interlinkages – Climate-induced disasters

    Emerging ‘Energy Identity Politics’

    EU as a “Green Regulatory Power.”

    China as “Green Manufacturing Hub.”

    India as a “Responsible Global South Leader.”

    India’s Changing Policy Towards Climate Change in Various International Fora

    Early Phase -Defensive Stance (Pre-2010)

    Advocated equity and right to development under Kyoto Protocol (1997).

    Opposed binding emission targets for developing countries.

    Supported the principle of CBDR and respective capabilities.

    Shift from defensive to constructive negotiation (2010-2015)

    Copenhagen (2009) & Cancún (2010): Voluntary emission intensity reduction (20-25% by 2020).

    Formation of BASIC bloc (Brazil, South Africa, India, China) to represent emerging economies.

    Leadership Phase (Post-2015 -Present)

    Paris Agreement (2015): India’s NDCs –

    Reduce emission intensity by 33-35% by 2030.

    Achieve 40% non-fossil fuel-based power capacity.

    Create carbon sink of 2.5-3 billion tonnes CO₂ through afforestation.

    COP-26 (Glasgow, 2021): Announced “Panchamrit” commitments -including Net Zero by 2070 and 50% energy capacity from renewables.

    UNFCCC (COP28): Leading Global South demand for loss and damage fund and fair carbon markets.

    Global South Leadership – Eg- FIPIC (Forum for India-Pacific Islands Cooperation)

    International Solar Alliance (ISA, 2015): Jointly launched with France to mobilize solar adoption across 100+ countries.

    Coalition for Disaster Resilient Infrastructure (CDRI, 2019): Focus on climate-resilient infrastructure in developing nations.

    G20 Presidency (2023): Advocated Green Development Pact and Just Energy Transition for Global South.

    Quad Climate Group: Promoting clean hydrogen, green shipping, and resilient supply chains.

    BRICS & SCO: Advocates equitable climate finance, green technology transfer, and multipolar environmental governance.

    India’s other efforts towards climate change and Clean energy

    National Action Plan on Climate Change (NAPCC)

    National Solar Mission (280 GW solar capacity by 2030)

    National Green Hydrogen Mission (5 MMT by 2030)

    One Sun, One World, One Grid (OSOWOG)

    IPEF (Indo-Pacific Economic Framework): Includes clean energy, decarbonisation.

    As per Dhanasree Jayaram (Climate Diplomacy and Emerging Economies) India has evolved from a ‘naysayer’ to a ‘responsible’ player in Climate Diplomacy.

  • The Gati-Shakti Yojana needs meticulous coordination between the government and the private sector to achieve the goal of connectivity. Discuss.

    The PM Gati Shakti National Master Plan (2021) aims to transform India’s infrastructure landscape through integrated, multimodal connectivity across roads, railways, ports, airports, and logistics.

    Six pillars of Gati Shakti – a transformative approach for economic growth:

    Analytical: GIS-based, helps identify gaps and assets.

    Dynamic: Updated regularly.

    Prioritization: Focused and need-based planning.

    Comprehensive: Covers 16 ministries under an integrated approach.

    Synchronization: Digital platform enabling coordination.

    Optimization: Better resource and asset utilization.

    Need for Coordination between Government and Private Sector

    Improved Quality and Efficiency – Public sector ensures regulatory and policy stability, while the private sector ensures better project management and minimizes cost and time overruns.

    Exchange of Expertise and Competence – Eg- PPPs in Sagarmala and Bharatmala projects.

    Augmenting Fiscal Capacity – Private investment supplements limited public capital.

    Fostering Entrepreneurship and Innovation – Encourages startups in logistics (e.g., Rivigo, Delhivery) leveraging digital platforms.

    Synergies with National Monetisation Pipeline (NMP) – Monetised assets create fiscal space for new projects under Gati Shakti.

    Efficient Dispute Resolution – Joint mechanisms improve grievance handling and PPP trust.

    Challenges in Coordination

    Institutional Overlaps among ministries.

    Regulatory Uncertainty deters long-term private investments.

    Land Acquisition and Environmental Clearances remain bottlenecks.

    Data-Sharing Gaps and silo mentality

    Way Forward

    Single-Window Digital Interface

    Standardize risk-sharing frameworks under PPP.

    Empower the Network Planning Group (NPG) for inter-ministerial coordination.

    “Connectivity is the new currency of competitiveness.” – NITI Aayog. Gati Shakti Yojana will help propel the Indian economy to a $5 trillion level and beyond in “Amrit Kaal.”

  • How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics ?

    The I2U2 grouping was formalized in 2022 as a minilateral platform to promote cooperation in food security, energy, technology, and infrastructure. It is termed as the West Asian Quad.

    Six Key Areas of Cooperation

    Health

    Water

    Energy

    Transportation

    Food Security

    Space

    I2U2 Transforming India’s Position in Global Politics

    Geopolitical Transformation

    Positions India as a bridge between the Indo-Pacific and West Asia, linking Act East and Link West policies.

    Strategic autonomy – cooperation with the US and Israel while maintaining relations with Iran and the Arab world.

    Elevates India as a regional stabilizer in a volatile West Asian geopolitical landscape.

    Countering China’s influence in West Asia

    Geoeconomic Dimension

    Joint investments in infrastructure, energy, and food security. Eg- UAE funding a $2 billion food corridor in Gujarat.

    Integrates India into emerging West Asia–Indo-Pacific supply chains.

    Defence and Security Cooperation

    Strengthens intelligence sharing and counterterrorism collaboration.

    Supports maritime security and enhances India’s strategic depth in the Western Indian Ocean region.

    Connectivity and Infrastructure

    Aligns with India–Middle East–Europe Economic Corridor (IMEC).

    Enhances security in chokepoints like the Suez Canal.

    Enhances India’s credibility as a reliable partner in minilateral frameworks (Quad, BRICS, SCO, G20).

    Challenges Associated with I2U2

    Complex strategic balancing: Balancing ties with Iran while deepening cooperation with US–Israel–UAE bloc.

    Regional Instability: Ongoing Israel–Palestine conflict and tensions in Iran–US relations.

    Limited Institutional Framework: Absence of a formal secretariat or enforcement mechanism.

    Uncertainty of US Leadership under Trump

    China may view I2U2 as a containment alliance, increasing competition in West Asia.

    Way Forward

    Institutionalize I2U2 with clear mechanisms for project implementation and funding.

    Leverage the platform to promote peace and stability in the region.

    Expand the agenda to include climate resilience, humanitarian aid, and disaster response.

    Strengthen linkages with Quad, IMEC, and G20 initiatives.

    The I2U2 marks a paradigm shift in India’s diplomacy and emergence as a bridge nation between East and West, consolidating its role as a key pillar in 21st-century multipolar global politics.

  • Do you agree with the view that increasing dependence on donor agencies for development reduces the importance of community participation in the development process ? Justify your answer.

    The Indian Constitution envisions a Welfare State under the DPSP. Donor agencies play a vital role in financing and technical support for these welfare measures.

    Increasing Dependence Reduces Community Participation

    Top-Down Project Design, with limited grassroots consultation.

    Erosion of Local Ownership – Beneficiary communities become recipients, not stakeholders

    Conditionalities restrict local policy space. Eg- IMF’s 1991 Structural Adjustment Programme reduced social sector expenditure

    Dependency Syndrome – Over-reliance on external funding discourages domestic resource mobilization and self-reliance. (A.G.Frank – “development of underdevelopment.”)

    Marginalization of Traditional Knowledge – Donor-driven modern approaches often ignore indigenous practices and local innovation.

    Transparency and Accountability Gaps – lack of clear monitoring frameworks or open reporting mechanisms limits public scrutiny and impact evaluation.

    Foreign Influence – Eg-Concerns were raised about World Vision India allegedly promoting religious conversion using foreign funds.

    Positive Role of Donor Agencies in Development

    Resource Mobilization – World Bank funding for the National Rural Health Mission (NRHM)

    Capacity Building – – DFID’s Bihar Rural Livelihood Project (JEEViKA) strengthened the capacity of SHGs and Panchayats.

    Donor agencies often introduce bottom-up approaches and emphasize stakeholder consultation.

    Catalyzing Policy Reforms – Eg- IMF’s fiscal frameworks encouraged better macroeconomic management post-1991 reforms.

    Promotion of Human Development – – UNICEF and UNFPA have supported India’s Reproductive and Child Health Programme (RCH-II) and Poshan Abhiyaan.

    Strengthening Civil Society – – UNDP’s Disha Project (with IKEA Foundation) enhanced employability of 1 million rural women across 10 states.

    Donor agencies are “integral cogs in the wheel of good governance”. A balanced partnership with government is crucial make development inclusive, sustainable and rapid..

  • The Right of Children to Free and Compulsory Education Act, 2009 remains inadequate in promoting incentive-based system for children’s education without generating awareness about the importance of schooling. Analyse.

    Enacted under Article 21A, the RTE Act (2009) aims to provide free and compulsory elementary education to all children aged 6-14 years.

    Key Features of RTE Act

    Fundamental Right: Makes eight years of quality elementary education a justiciable right.

    25% Reservation: Mandates private unaided schools to reserve seats for disadvantaged groups.

    Infrastructure Norms: Sets binding standards for Pupil-Teacher Ratio, buildings, and toilets.

    No-Detention Policy: Prohibits failing or expelling students until Class 8 (subject to later state-level amendments).

    Zero Screening: Bans capitation fees and interview-based admissions for children or parents.

    Teacher Standards: Mandates minimum professional qualifications and clearing of the Teacher Eligibility Test (TET).

    Major Incentives Provided

    Mid-Day Meals: Ensures nutritional support to improve attendance and concentration.

    Free Uniforms and Textbooks: Eliminates the direct out-of-pocket costs of schooling.

    Transport Allowances: Provided to children in remote areas lacking a neighborhood school.

    Special Training: Bridge courses for out-of-school children to join age-appropriate classes.

    Infrastructure Grants: Funding for functional girls’ toilets and drinking water facilities.

    Scholarships: Target-based financial aid for SC, ST, and minority students.

    Major Issues in Promoting Incentive-Based System

    Prevalence of Child Labour and lack of awareness about Education importance – Eg- High seasonal dropouts in agriculture-heavy districts of Bihar/UP in 2025. (ASER 2025)

    Marginalized families remain unaware of the 25% EWS quota and online application portals.

    Perverse Incentives: Focus on attendance for meals/books rather than actual learning engagement or outcomes.

    The “Class 9” Cliff: Incentives stop at Class 8, leading to massive dropouts once fees are introduced.

    Learning Poverty Paradox: ASER 2024 reports that only ~43% of Class V students can read a Class II-level text.

    Geographical Exclusion: Over 8.1 million children from urban slums remained out of school in early 2026. (NAC Implementation Report)

    Stigmatization: EWS children in elite schools face social alienation

    Way Forward

    Awareness Campaigns: Use “Nukkad Nataks” and local influencers to explain the “value” of education beyond meals. Eg- “Vidyanjali 2.0” community volunteer programs.

    Extension of Mandate: Extend free education up to Class 12 to prevent the “Class 9 dropout” crisis. (NEP 2020)

    Outcome-Based Incentives: Transition from “enrollment incentives” to “outcome-linked” benefits for schools and students. Eg- NIPUN Bharat performance-linked grants

    Documentation Camps: Organize “on-the-spot” certificate camps in schools for EWS/Caste certificate verification.

    Social Integration Training: Sensitize private school teachers to prevent the stigmatization of EWS students in classrooms.

    Strengthening SMCs: Empower School Management Committees to conduct local social audits of learning quality.

    Public School Revamp: Elevate government school quality (PM SHRI) to make them the “first choice” for parents.

    RTE must shift from a “Right to Enrollment” to a “Right to Learning” by prioritizing awareness over mere fiscal incentives.

  • Critically examine the procedures through which the Presidents of India and France are elected.

    The President of India serves as the constitutional head of the State and the symbol of national unity within a parliamentary democracy.
    The President of France, under the Fifth Republic (1958), is both the head of State and a key executive authority in a semi-presidential system, sharing power with the Prime Minister.
    Their election procedures reflect the differing nature of their political systems.

    Procedure for Election of the President of India

    Constitutional Basis: Articles 54 of the Constitution.

    Electoral College:

    Elected members of Parliament (Lok Sabha and Rajya Sabha).

    Elected members of State Legislative Assemblies (including Delhi and Puducherry).

    Voting System:

    Proportional representation by single transferable vote (STV) and secret ballot (Article 55).

    Vote value of MLAs and MPs ensures federal balance.

    Eligibility: Indian citizen, 35 years or above, qualified for Lok Sabha membership.

    Term: Five years, eligible for re-election.

    Significance

    Indirect election is relevant as president is nominal head

    Federal Balance maintained

    Only elected members participate in elections

    Procedure for Election of the President of France

    Constitutional Basis: Article 6 of the French Constitution (1958).

    Mode: Direct universal suffrage since 1962, following de Gaulle’s reform.

    Voting System: Two-round majority system: A candidate must secure 50%+ votes in the first round; otherwise, a runoff between top two in the second round.

    Term: Five years (reduced from seven in 2000).

    Eligibility: French citizen, 18 years or above, meeting civic and nomination requirements.

    Significance

    Accountability – Direct election is in line with executive powers of president

    President enjoys absolute majority

    Stability due to security of tenure

    Criticism of Procedure for Election of the President of India

    Indirect election limits popular legitimacy.

    Value of votes of state legislators differs as it is based on population

    Symbolic authority-President’s office often reduced to formality under parliamentary control.

    Criticism of Procedure for Election of the President of France

    Personality-based campaigns overshadow policy debates.

    Cohabitation risk-President and Prime Minister from different parties may create policy deadlock.

    Over-centralization of power in the executive, especially under strong presidents.

    The Indian procedure ensures federal balance and political neutrality through indirect election, while the French model ensures democratic legitimacy through direct popular choice.

  • Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct.

    Model Code of Conduct is the guidelines set by Election Commission of India for political entities during campaigns to ensure decorum. Though not legally enforceable, it has become an indispensable moral instrument for ensuring free, fair, and level-playing elections in India.

    Evolution of the Model Code of Conduct (MCC)

    1960 – First voluntary code introduced during the Kerala Assembly elections.

    1962 – First Nationwide Use in the Lok Sabha elections

    1991 – ECI under T.N. Seshan formalised and reissued MCC with 7 comprehensive parts

    2013 – Supreme Court Recognition in S. Subramaniam Balaji v. Tamil Nadu

    2018-Present – MCC expanded to cover social media, fake news, and online campaigning.

    Role of the Election Commission of India in MCC Implementation

    Acts under Constitutional Authority (Art. 324)- Exercises residual powers to enforce MCC even in the absence of explicit statutory provisions.

    Ensures Free and Fair Elections- ECI enforces MCC to maintain a level playing field among all political parties.

    Restricts the ruling party from announcing new schemes, transferring officials, or using public resources for campaigns.

    Monitors Campaign Conduct- Prohibits hate speech, communal appeals, caste-based propaganda, and personal attacks in campaigns.

    Acts Against MCC Violations- Issues warnings, censures, derecognition, or suspension of political leaders and parties for violations.

    Uses Media Certification and Monitoring Committees (MCMC) to monitor paid news and political advertisements.

    Controls Government Communication- Prohibits use of official media or public funds for election-related publicity.

    Deploys observers and flying squads to detect and address MCC violations promptly.

    Engages Citizens in Monitoring- Introduced the cVIGIL mobile app allowing citizens to report MCC violations in real time.

    Coordinates with Law Enforcement- Works with district magistrates, police, and election observers to ensure compliance on the ground.

    Challenges before the Election Commission in Enforcing MCC

    Legal and Institutional Challenges

    Lack of Statutory Backing- enforcement depends on moral authority, not legal sanction.

    Delay in Judicial Remedies on MCC violations, reduce deterrent effect.

    Administrative Challenges

    Monitoring compliance across 10+ lakh polling stations and multiple states is logistically difficult.

    Limited Human Resources- reliance on district officials who are part of state bureaucracy reduces independence.

    Political Challenges

    Allegations of Bias, especially against opposition leaders.

    Non-cooperation by Political Parties- ignore advisories or delay compliance with MCC orders.

    Freebies and Populism- Lack of clear guidelines to differentiate welfare schemes from electoral freebies (as seen in Tamil Nadu & Telangana cases).

    Technological and Media Challenges – Difficulty tracking fake news, hate campaigns, and paid promotions on digital platforms.

    Way Forward

    Give Statutory Backing to MCC under Representation of the People Act, 1951

    Regulate Freebies and Populism – Implement Supreme Court’s advice in S. Subramaniam Balaji (2013)

    Establish a digital MCC framework in collaboration with social media platforms to tackle misinformation, hate speech, and paid content.

    Enhance Transparency and Accountability – Publish all MCC violations, ECI actions, and outcomes on a public dashboard.

    Set time limits for inquiry and punishment in MCC violation cases.

    Electoral reforms is considered as ‘Mother of all Reforms’. Giving statutory backing to MCC can ensure the trinity of Ethics, Accountability and Fairness of electoral process.

  • Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss.

    The Indian Constitution envisions a Welfare State under the DPSP (Articles 36-51), mandating the State to ensure social, economic, and political justice through equitable development. However, impact is undermined by macroeconomic instability, particularly high inflation (8%) and unemployment (6-8%).

    Welfare Schemes

    Financial Inclusion

    PM Jan Dhan Yojana -55 Cr accounts opened

    Aadhaar -1.35 Billion generated

    Direct Benefit Transfer (DBT) -minimizes leakages.

    Social Security Nets

    Atal Pension Yojana for unorganised sector workers.

    PM Maan Dhan Yojana -old-age income security

    Food Security

    Atal Kalyan Yojana / PMGKAY – 67% population covered

    Mid-Day Meal (PM Poshan)

    Support for Vulnerable Sections

    PM Matru Vandana Yojana

    Ayushman Bharat

    Skills and Training

    PM Kaushal Vikas Yojana (PMKVY)

    ‘Earn While You Learn’ Scheme

    Social Infrastructure

    Swachh Bharat Mission

    Ujjwala Yojana -10 Cr LPG connections

    Gram Sadak Yojana

    Women and SC-ST empowerment

    PM Mudra Yojana

    Stand-Up India

    The Impact of Inflation on the Poor

    Erosion of Real Income: Inflation disproportionately affects low-income households as food and fuel form over 50% of their consumption basket.

    Reduced Effectiveness of Welfare Schemes: High prices diminish the real value of cash transfers under DBT or PM-Kisan.

    Rural Distress: Inflation widens the rural-urban gap, as agricultural incomes lag behind input costs (fertilizer, diesel).

    Fiscal Stress: Rising subsidy bills due to inflation crowd out developmental spending.

    Unemployment and Its Consequences for the Poor

    Jobless Growth: Despite 7%+ GDP growth, unemployment among youth remains 17.3% (PLFS 2022-23).

    Informalisation: Around 90% of India’s workforce remains in the informal sector, lacking job security or social protection.

    Poverty Persists – 12.9% Indians still multidimensionally poor (NITI Aayog, 2023).

    Gender Disparity: Female LFPR, though improved to 41% (2022-23), still trails male LFPR (78%) and Global Average (48%)

    Welfare Dependency: Lack of stable income pushes people to rely on welfare transfers, which creates fiscal burden and undermines self-reliance.

    Policy Measures for Deft Management

    Inflation Management:

    Strengthen Monetary-Fiscal Coordination between RBI and Ministry of Finance.

    Build food supply buffers via eNAM and cold chain networks.

    Promote energy transition to reduce import-driven inflation.

    Employment Generation:

    Expand PM Vishwakarma, PMEGP, and Start-Up India for entrepreneurship.

    Promote labour-intensive sectors – textiles, food processing, tourism. (Economic Survey)

    Urban MGNREGA to reduce urban poverty

    Invest in green and digital jobs through the IndiaAI Mission and National Green Hydrogen Mission.

    Integrate Skill India with industry demand mapping.

    Capability Approach: increase expenditure on Health (2.5% of GDP) and Education (6% of GDP)

    Only by aligning macro-economic management with social justice objectives can India realise the vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas”

  • India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka the light of the preceding statement.

    India and Sri Lanka share civilizational, cultural, and economic linkages dating back over 2,500 years, rooted in Buddhist ties, maritime trade, and shared colonial history.

    Financial Assistance

    India extended over USD 4 billion in assistance through credit lines, currency swaps, and grants

    Provided a USD 1 billion credit line for essentials such as food, medicines, and fuel.

    Supplied over 400,000 MT of fuel, life-saving drugs, and rice consignments

    USD 400 million currency swap under the SAARC framework and deferred USD 515 million in ACU payments, easing liquidity pressure.

    Support for Debt Restructuring and IMF Assistance

    India became the first country to provide written assurance to the IMF supporting Sri Lanka’s debt restructuring plan, crucial for securing the USD 2.9 billion IMF bailout.

    Advocated for equitable debt treatment among all creditors.

    Trade, Connectivity, and Energy Cooperation

    Advanced the India-Sri Lanka Economic and Technology Cooperation Agreement (ETCA) and Bilateral Investment Treaty (BIT) for economic revival.

    Revived strategic projects such as the Trincomalee Oil Tank Farm modernization and proposed India-Sri Lanka power grid interconnection.

    Symbol of Age-Old Friendship

    Non Reciprocity (Neighbourhood First Policy) – India’s assistance came without strategic strings.

    Embodied the ethos of “Vasudhaiva Kutumbakam”, upholding regional solidarity and stability.

    Reaffirmed India’s role as a trustworthy regional leader and first responder in crises.

    India’s response reflected its “humanitarian diplomacy”-guided by empathy, not conditionality.