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GS Paper: GS3

  • Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity and income of horticulture farms. How far has it succeeded in increasing the income of farmers?

    The NHM was a centrally sponsored scheme launched in 2005-06 to promote the holistic development of the horticulture sector through area-based, regionally differentiated strategies.

    Key Pillars of NHM

    Cluster based approach

    Supply of quality planting material through nurseries and tissue culture units.

    Improving production and productivity through area expansion and rejuvenation.

    Promoting and spreading modern technologies.

    Focussing on training and skill development.

    Infrastructure for post-harvest management and marketing.

    Role of NHM in boosting

    Production

    Horticulture production increased from 280.70 MT (2013-14) to 367.72 MT (2024-25) (Fruits: 114.51 MT, Vegetables: 219.67 MT)

    Fruit production increased by ~30%, and vegetable production increased by ~22%.

    Establishment of nurseries and tissue culture units ensured healthy, disease-free plants.

    Area-focused interventions increased scale and concentration of production.

    Crop diversification – Promotion of high-value and short-duration crops.

    Boost in Productivity

    The productivity has risen from 12.10 MT per hectare in 2019 to 12.56 MT per hectare in 2024

    Distribution of high-yielding and disease-resistant varieties increased output per unit area.

    Technology dissemination – Promotion of drip irrigation, mulching, protected cultivation (polyhouse, net house).

    Farmers trained in scientific cultivation, pest control and nutrient management – improved efficiency.

    Reduced crop loss through improved plant health and management practices.

    Boost in Farmer Income

    Horticulture now contributes about 33% to Agriculture Gross Value Added (GVA) in Agriculture.

    High-value crops – Fruits, spices and flowers generate more income per hectare than cereals.

    Multiple cropping cycles of Vegetables and floriculture ensure regular cash flow.

    Post-harvest infrastructure – Cold storage, pack houses, grading and processing units reduce wastage and increase price realisation.

    Export potential –

    Employment generation – Jobs in nurseries, processing, transport and storage supplement household income.

    Challenges

    Uneven regional performance – Benefits concentrated in better-developed states/regions

    Low Exports – India ranks 14th in vegetables and 23rd in fruits, and its share in the global horticultural market is a mere 1%.

    Input issues –

    less than 5% of Indian soils have sufficient nitrogen

    Only 55% area irrigated.

    Seed replacement rate is 35-45% (over 90% in USA)

    Inadequate cold-chain and logistics – Around 15-20% of the fruits and vegetables in India are wasted

    Climate vulnerability – Sensitive to droughts, floods, heat waves, pests. Eg- Locust Attack

    Sanitary and Phytosanitary (SPS) barriers – Eg- rejection of consignments by EU due to pesticide residue detection.

    Way Forward

    Agro-ecological approach – District-Level Climate-Contingent Crop Planning Cells

    Rural Agri-Logistics Nodes under Gati Shakti Framework to develop cold chains, aggregation centers

    Strengthening FPOs to enhance collective bargaining and direct market access for farmers. Eg- Sahyadri FPO in Maharashtra – increased incomes by 30%

    Raising R&D Investment to 1% of GDP

    Legal Reforms – Simplify land leasing laws, Adopt model contract farming Act

    Budget 2025-26 emphasised Agriculture as the ‘first engine’ for India’s development journey. Horticulture can be the key pillar of this journey.

    Farm Subsidy and Minimum Support Prices

  • Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of intermediaries?

    Supermarkets are organised retail chains that procure, store and distribute fruits, vegetables and other food items through integrated, modern supply chains.

    Role of Supermarkets in supply chain management

    Direct Procurement from Farmers – Eg- Big Basket & Reliance Retail procure directly from FPOs.

    Standardisation, Grading & Sorting improves quality consistency. Eg- Walmart trains farmers on GAP (Good Agricultural Practices).

    Efficient Logistics & Inventory Management – Eg- use of real-time inventory tracking, forecasting tools, barcoding/RFID

    Cold Chain infrastructure reduces losses of perishable goods like fruits

    Contract Farming, buy-back arrangements ensure stable demand and price security for farmers. Eg- PepsiCo in Punjab (Potato farming)

    Value Addition – Supermarkets invest in cut vegetables, ready-to-cook items etc – increases shelf-life of products.

    Diverse products– Gives greater choice for consumers and promotes crop diversification.

    Challenges faced by supermarkets

    Lack of infrastructure – Eg- cold storage can only accommodate about 11% of the country’s total produce.

    Poor forward and backward linkages – Eg- Only 13% mandis digital.

    Fragmented landholdings – 86% farmers are small and marginal – prevents economy of scale

    Regulatory Hurdles – APMC monopoly and interstate movement regulations complicate direct buying from farmers.

    Organised retail remains concentrated in metro and Tier-1 cities, with limited rural coverage

    Low investment – Private investment <1% Agri-GDP.

    Supermarkets eliminating intermediaries

    Enhancing efficiency of supply chain and doubling farmers income requires FPO strengthening, cold-chain expansion and adoption of Model contract Farming Act.

  • How has the emphasis on certain crops brought about changes in cropping patterns in recent past? Elaborate the emphasis on millets production and consumption.

    A cropping pattern is the distribution of various crops within a specific area at a given time. Though the rice-wheat system became the backbone of Indian agriculture after the Green Revolution, in recent years India’s cropping pattern has moved towards diversification and high-value crops.

    Emphasis on certain crops – changing cropping pattern

    Dominance of rice-wheat in Green Revolution regions – account for over 75% of GCA in Punjab & Haryana

    Shift from food crops to commercial crops- Area under commercial crops increased from 30.4 million ha (2000-01) to 41.2 million ha (2022-23)

    Expansion of sugarcane due to ethanol policy- increased from 285 MT (2010-11) to 405 MT (2022-23)

    Rise in horticulture crops – Eg- In 2022-23, fruits and vegetables accounted for 28.3% of the Gross Value Output, surpassing cereals

    Expansion of oilseeds under National Mission on Edible Oils- increased from 25 MT (2010-11) to 41 MT (2022-23)

    Growth of organic farming- 2.9 million hectares under organic farming, highest globally. Eg- Sikkim fully organic

    Climate change impact on crop choice- Eg- 14% decline in sugarcane area in Marathwada (2015-2023) due to water stress

    Commercialisation and mechanisation- BT cotton covers 95% of cotton area, promoting

    Emphasis on millet production

    Total millet production: 180.15 lakh tonnes in 2024-25 (Increase of 4.43 lakh tonnes)

    Millet exports (2024-25): 89,164.96 tonnes worth $37 million

    MSP for Ragi (2025-26): Second highest absolute MSP increase among crops

    Policy focus

    National Millet Mission

    NFSM – Nutri Cereals

    International Year of Millets 2023 (India-led)

    Branding as Shree Anna

    Increase in millet exports

    1.5 million tonnes exported in 2023

    50% increase over 2022

    Climate-resilient nature – Drought resistant, low water, heat tolerant

    Expansion in dryland states – Increased area in Rajasthan, Karnataka, Telangana, MP, Maharashtra

    Emphasis on millet consumption

    Rising health consciousness

    High in iron, calcium, fibre and protein

    Helpful against diabetes & malnutrition

    Improvement in nutrition security – Reduces hidden hunger and micronutrient deficiency

    Inclusion in government schemes – PDS, Mid-Day Meal, ICDS, Anganwadi

    Urban & processed food demand – Used in biscuits, noodles, bakery & breakfast foods

    MSME & startup growth – Eg- “Millet Challenge” for startups,, with a seed grant of Rs 1 crore each to three winners.

    Policy and market-driven emphasis on selected crops is transforming India’s cropping pattern, with millets emerging as a sustainable pillar of nutrition and livelihood security.

  • What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low-income trap?

    MSP is the government-declared assured floor price at which the government procures specific agricultural crops from farmers, through agencies like FCI, NAFED and state procurement bodies.

    Announced before the sowing season based on recommendations of the Commission for Agricultural Costs and Prices (CACP)

    Intended to cover the cost of production + reasonable margin (50% over A2+FL cost)

    Notified for 23 crops (22 mandated crops andFRP for sugarcane)

    Role of MSP in rescuing farmers from the Low-Income Trap

    Predictability – Assured pricing helps farmers plan crop investments, buy better inputs and adopt new technologies.

    Crop diversification through higher MSPs for nutri-cereals and oilseeds. Eg- higher MSP hikes for millets in recent years

    Improved creditworthiness of farmers due to MSP-backed income – Reduce dependence on moneylenders.

    Enhances Food Security through the Public Distribution System (PDS)

    Strengthens Rural Economy – higher rural demandmultiplier effect on rural economy

    Benchmark for private buyers: If traders offer prices below MSP, farmers can opt to sell to government agencies instead.

    Limitations of MSP

    Effective mainly for wheat and rice in states like Punjab, Haryana, MP, UP

    MSP growth has not kept pace with rising production costs. (CRISIL Report)

    Limited Reach – only 6% farmers benefitted (Shanta Kumar committee)

    94% of the total agri and allied sector output is outside MSP support.

    Limited storage capacity has resulted in huge piling of stocks in FCI warehouses.

    Way Forward

    Shift towards Regenerative Agriculture Incentives – Eg- DBT for farmers adopting soil-friendly inputs, micro-irrigation, and low-carbon practices

    Price Deficiency Payment (MP’s Bhavantar Bhugtan Yojana)

    MSP 2.0 based on 3 D’s – Decentralisation, Diversification and Digital Procurement.

    MSP can act as a meaningful income stabiliser only when it is complemented by efficient procurement, strong market linkages, and inclusive access

  • Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019.

  • How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

    The rising protectionism and currency manipulations have disrupted global trade flows and have direct implications for India’s growth, inflation, fiscal balance, and external vulnerability.

    Tools of Protectionism

    Tariffs

    Quotas

    Import Licensing

    Sanctions

    Exchange Controls

    Industrial Subsidies

    Impact of Protectionism on Macroeconomic Stability of India

    Export Slowdown due to high tariffs. Eg: US protectionism under Section 232 hurt India’s steel exports.

    Supply Chain Disruptions lead to higher Production Costs. Eg- higher oil prices after Israel-Palestine conflict

    Imported Inflation due to barriers on food, energy and intermediate goods. Eg: Indonesia palm oil ban.

    Weak Employment in Export-oriented Sectors – Eg: Fall in European demand hit India’s textile and leather clusters.

    Lower FDI Inflows – Uncertain trade regimes discourage long-term investments. Eg- Apple cancelling plant in India after Trump threat.

    Impact of Currency Manipulations on Macroeconomic Stability

    Widening Trade Deficit – Undervalued currencies make their exports cheaper. Eg- China’s managed yuan

    Rupee Volatility creates monetary Policy Challenges. Eg: Yen depreciation in 2023-24 triggered pressure on Asian currencies including INR.

    Higher Inflation and BoP Pressure – Eg: INR touching 83-84 per USD raised petroleum import bills.

    Capital Outflows due to dollar strengthening. Eg: 2022-24 saw FPI outflows during phases of aggressive US Fed tightening.

    Pressure on Forex Reserves – Eg: RBI sold USD in 2022-23 to stabilise INR, reducing reserves temporarily.

    Opportunities for India Amid Protectionism & Currency Politics

    China+1 Advantage in electronics, chemicals, renewables. Eg- Mobile exports crossed USD 11 bn in 2023-24.

    Boost Make in India to build self-reliant supply chains. Eg: PLI schemes in semiconductors, textiles, solar modules.

    Diversification of Trade Partners – Eg- Recent FTA with UK

    Strategic Attractiveness as a Stable Market – Amid volatile currencies and geo-economic blocs, India is seen as a stable investment destination.

    Promoting Rupee Trade Mechanisms – Eg- INR invoicing and Vostro accounts.

    Opportunity to Lead on Fair Trade Norms in WTO, G20 on currency transparency and non-tariff barriers.

    Way Forward

    Enhance R&D (2.5% of GDP), reduce logistics costs (PM Gati Shakti), and expand PLI schemes to boost manufacturing resilience.

    Accelerate FTAs with EU, GCC to reduce over-dependence on a few partners.

    Strengthen FOREX buffers and expand rupee trade settlement

    Encourage domestic production of critical inputs (electronics, APIs, green tech) to reduce vulnerability to global shocks.

    Scale IT, fintech, health tourism, education services to offset goods-trade shocks from rising protectionism.

    By strengthening domestic competitiveness, India can position itself as a reliable, rules-based and resilient player in the evolving global economic order.

  • “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”. Comment on the progress made in India in this regard.

    The SDGs recognise energy as a foundational driver of human development. SDG-7 emphasises ensuring affordable, reliable, sustainable and modern energy for all.

    Importance of Energy for SDGs

    SDG 1 & 2 – Affordable energy reduces poverty and improves food security through irrigation, cold chains. Eg- Solar pumps under PM-KUSUM

    SDG 3 – Clean cooking reduces indoor air pollution and respiratory diseases. Eg- 10 Cr LPG connections under PM Ujjwala

    SDG 4 – Electrification improves learning outcomes and digital access. Eg- Electrification of over 1 lakh schools under Saubhagya Scheme

    SDG 8 – Creates green jobs and boosts industrial productivity. Eg- India’s renewable industry employs over 3.7 lakh workers

    SDG 9 – Supports innovation and sustainable infrastructure. Eg- Green Hydrogen Mission

    SDG 10 – Reduces inequality through universal access. Eg- Rural electrification through DDU Gram Jyoti Yojana

    SDG 13 – Clean energy drives climate change mitigation.

    SDG 5 – Clean cooking reduces drudgery of women and improves participation in the workforce.

    Progress Made by India in Energy

    Clean Cooking Energy – PM-Ujjwala raised LPG coverage to 99% of households.

    Renewable Energy Expansion

    India ranks 4th globally in renewable capacity.

    244+ GW installed RE capacity (50% of total demand)

    Energy Efficiency Gains- PAT, BEE standards saved significant electricity and reduced CO₂ emissions.

    Global Leadership

    International Solar Alliance (ISA) promotes global solar cooperation.

    Coalition for Disaster Resilient Infrastructure (CDRI) integrates climate-resilient energy systems.

    New Technologies – National Green Hydrogen Mission to produce 5 MMT of green hydrogen by 2030.

    Updated NDC Commitments

    45% reduction in emission intensity of GDP by 2030.

    50% electricity from non-fossil sources.

    Net Zero by 2070.

    Challenges

    Import Dependency: over 85% of its crude oil and 50% of its natural gas

    Financing Needs: $160 billion per year to meet 2070 goal ((IEA)).

    Rising Energy Demand: double by 2040

    High DISCOM losses affect reliable supply.

    Affordability concerns – rising LPG refill prices.

    Land acquisition issues for solar/wind parks.

    Going forward, technology integration, financial reforms, domestic manufacturing, and a just transition is needed for Energy Security.

  • Elaborate on the policy taken by the government of India to meet the challenges of the food processing sector.

    Food processing refers to the transformation of raw agricultural commodities into value-added, marketable, and storable products through physical, chemical, or biological methods. India’s FPS is projected to grow from USD $billion (2023) to $700 billion by 2030.

    Challenges of the Food Processing Sector in India

    Low Level of Processing – Only ~10% of total agricultural produce is processed (vs 60-70% in developed countries).

    Post-harvest losses of 15-20% due to shortage of cold-storage, and transport infrastructure.

    Fragmented Supply Chain – 86% of farmers are small/marginal – limits aggregation

    High Logistics Cost of 13-14% of GDP (vs 8-9% in developed countries).

    Delay in project implementation – Eg- only 25 out of 42 approved Mega Food Parks operational

    Regulatory & Compliance Issues – Complex FSSAI norms and licensing delays discourage small processors.

    Micro and small units struggle to access formal credit, collateral, and working capital.

    Skill gap – Only 3% of the food processing workforce is formally trained

    Quality & Safety Gaps – Inconsistent adherence to food safety standards, and limited testing infrastructure. Eg- Rejection of Indian exports by EU.

    Negligible R&D (<0.5% of sectoral GVA) – stall innovation in packaging and product design.

    Policy Measures Taken by the Government of India

    The food processing sector has been recognized as a ‘sunrise sector‘ and a key priority industry under the ‘Make in India’ initiative.

    PM-Kisan SAMPADA (2016) – Central Sector Scheme to build a modern processing ecosystem from farm-gate to retail.

    Mega Food Parks Scheme – Provides land, utilities, common facilities, effluent plants, R&D labs.

    PM Formalisation of Micro Food Processing Enterprises (PM-FME) – Provides 40% credit-linked subsidy, branding support, and training for 2 lakh micro units under the One District One Product (ODOP) approach.

    Production Linked Incentive Scheme (PLISFPI) to boost domestic manufacturing.

    Agriculture Infrastructure Fund (AIF) – A fund for financing warehouses, cold storage, packhouses, and primary processing units.

    Operation Greens (TOP to TOTAL) – Price stabilization fund for tomato, onion, potato, now expanded to all perishable crops

    100% FDI in food processing and 100% FDI under Government route for retail of food produced in India.

    e-NAM Integration – Linking mandis for better price discovery, quality grading, and seamless movement of produce.

    Krishi Udan and Krishi Rail schemes – to ease out freight rates enabling smooth movement of perishables.

    Food processing included under PSL to improve access to affordable credit.

    National Makhana Board to globally position Indian superfoods like makhana.

    Infrastructure Status (HLIS) – Food parks are included in Harmonized List of Infrastructure – enables concessional loans.

    Collaboration with Invest India for FDI facilitation, market access, regulatory assistance.

    Budgetary Push – MoFPI budget 2024-25 increased by 30.19%, reflecting policy priority.

    Way Forward

    Develop Smart Food Processing Hubs using IoT, AI, and blockchain

    Zero-Waste Processing using circular economy models. Eg- converting fruit peels to bio-plastics

    Cluster-Based Development under One District One Product (ODOP) model

    Regulatory Simplification – Create a single-window clearance system

    Develop export-oriented zones with plug & play infra, market intelligence systems & customized packaging

    Effective implementation of these interventions can position India as a global food processing hub.

  • Indian government has recently strengthened the anti-terrorism laws by amending the unlawful activities (Prevention) Act (UAPA), 1967 and the NIA Act. Analyze the changes in the context of prevailing security environment while discussing the scope and reasons for opposing the UAPA by human rights organizations.

    In response to the evolving internal security threat posed by terrorism, GoI amended the UAPA, 1967 and NIA Act in 2019 to strengthen ‘zero tolerance for terrorism’ strategy.

    Amendment to UAPA,1967

    The central government can designate an individual as a terrorist (under Schedule IV of the Act)

    Empowers the NIA officers of the rank of Inspector or above to investigate cases of terrorism

    Adds the International Convention for Suppression of Acts of Nuclear Terrorism (2005) to the schedule

    Empowers the Director-General, NIA to grant approval of seizure of property when the case is being investigated by the agency.

    Amendment to NIA Act

    Widen the authority of the NIA – Includes human trafficking, counterfeit currency, manufacture or sale of prohibited arms, cyber-terrorism, and offences under the Explosive Substances Act.

    Extends the NIA’s jurisdiction outside India

    Constitution of special courts by the Centre in order to conduct trials

    Significance of the changes in the context of the prevailing security environment

    Shifts counter-terror strategy from reactive to preventive – Enables early disruption of terror ecosystems.

    Allows designation of individuals like Masood Azhar as terrorist

    Brings Clarity and uniformity by removing inter-state jurisdictional constraints

    Addresses evolving terror threat landscape – Responds to decentralised, module-based and lone-wolf terrorism.

    Targets terror support networks – Focuses on financiers, facilitators, propagandists and over-ground workers. Eg- NIA Raids on separatist leaders in J&K

    Improves investigation of transnational terror networks. Eg- Khalistan movement in Canada

    Extend powers of NIA to investigate terrorist-organised crime linkage

    Alignment with Global Counter-Terror Norms. Eg- Action against terror financing and international networks.

    Ensures timely and speedy prosecution of terrorists through special courts

    Criticism and Opposition by Human Rights Organisations

    Violation of Personal Liberty – Stringent bail provisions and prolonged detention (180 days) affect Article 21.

    Risk of Misuse – Broad definitions allow targeting of activists, journalists and dissenters.

    Absence of Prior Judicial Oversight – Individual can be designated as terrorist without conviction or trial.

    Departure from criminal jurisprudence norm of innocent until proven guilty – Burden of proof shifts to accused.

    Low conviction rate for UAPA cases between 2019 and 2023 (only 3.1%)

    Vague Definitions – Terms like “unlawful activity” and “terrorist act” are broadly defined

    Lack of procedural safeguards – The government is not required to provide grounds for arrest or detention.

    Against the federal structure – amendment has made the NIA “a parallel police structure”

    Way Forward

    Strengthen Procedural Safeguards

    Clear Legal Definitions

    Periodic review

    Time-Bound Investigations and Trials

    A law and institution as powerful as UAPA and NIA respectively, must be wielded with precision, accountability, and a deep commitment to constitutional values.

  • Cross-border movement of insurgents is only one of the several security challenges facing the policing of the border in North-East India. Examine the various challenges currently emanating across the India-Myanmar border. Also, discuss the steps to counter the challenges.

    The instability following the 2021 Myanmar military coup has transformed 1,643 km India-Myanmar border into a ‘high-risk zone’

    Security Challenges Emanating Across the India-Myanmar Border

    Parallel government by insurgent groups. Eg- charging 1% to 2% “revolutionary tax” on legal infrastructure projects and “safe passage fees” from drug mafias

    Refugee Crisis & Demographic Shifts- Since the 2021 coup, over 95,000 refugees (primarily Chin and Sagaing residents) have entered Mizoram and Manipur.

    “The Golden Triangle” Spillover- Myanmar’s civil war has led to a surge in poppy cultivation. Profits are used to fund ethnic militias, creating a “narcotics-insurgency nexus.”

    Arms Smuggling- The border town of Moreh (Manipur) has become a primary transit hub for weaponry smuggled from China.

    With the Myanmar military (Tatmadaw) losing control of nearly 86% of its territory, rebel groups like the Chin National Army (CNA) and PDFs operate freely in “ungoverned spaces”

    China’s deep investments in Myanmar (CMEC) creates threat to India’s “Chicken’s Neck” corridor

    Misuse of FMR- Although the government scraped it in 2024, enforcing the new “Regulated Border Pass System” remains a challenge due to local opposition.

    Overburdened security forces – The Assam Rifles is dual-tasked with border guarding and counter-insurgency.

    Steps Taken to Counter the Challenges

    Shift to “Security-First” border management strategy

    Abolition of FMR (visa-free travel up to 16 km) in 2024

    Push for the completion of the Kaladan Multi-Modal Project and the Trilateral Highway by 2027

    Operation Sunrise – Joint operation by Indian and Myanmar Army against insurgent groups

    Biometric Documentation of all refugees and border-crossers

    15 BSF battalions deployed to aid Assam Rifles.

    Steps Required to Counter the Challenges

    Strict Implementation of the New Pass System

    Federal coordination through North-East zonal council

    Accelerate the Smart Fencing System (SFS) using laser walls and sensors.

    Creation of strictly monitored 10 km “Buffer Zone” to curb spontaneous illegal crossings.

    Intelligence Fusion- Set up real-time data-sharing hubs to track the movement of “Golden Triangle” narcotics and arms shipments.

    Humanitarian Infrastructure- Build refugee camps near the border to prevent undocumented migrants from blending into local populations.

    Engage with local Ethnic Armed Organizations (EAOs) in Myanmar that control the border to secure Indian infrastructure projects.

    Extend Vibrant Villages Programme to the eastern border for better infrastructure

    Upgrade Outposts (BOPs) with drones and satellite imagery for 24/7 surveillance of forested infiltration routes.

    “3C Strategy”of Containment, Cooperation and Connectivity is need to transform the region from a “conflict zone” to an “economic corridor.”