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GS Paper: GS3

  • What is Integrated Farming System ? How is it helpful to small and marginal farmers in India ?

    Integrated farming system refers to the integration of multiple components of agriculture in a single farm unit to enhance productivity, sustainability and resilience while optimising resource use.

    Integrated Farming System (IFS)

    Multi-enterprise model: crop farming + dairy + poultry + fisheries + horticulture + composting + agroforestry.

    Agro Ecological approach – Biodiversity Conservation

    Waste-to-wealth through nutrient and energy recycling.

    Closed nutrient loop – Minimises external inputs

    System-based planning: farm as an ecosystem

    Benefits of IFS for small and marginal farmers

    Economic Benefits

    Lower input cost: Use of on-farm manure, biogas slurry and feed reduces market dependency.

    Income Security – Multiple income sources reduce climate and market vulnerability. Eg- crop loss can be offset by milk/poultry/fish income.

    Doubling Farmers income – Eg- paddy cultivation + fish farming + poultry in Tamil Nadu saw income rise by over 100%. (ICAR study)

    Better credit worthiness: Regular income improves repayment capacity and access to formal finance.

    Livelihood & Social Security

    Year-round employment: Continuous work across livestock, cropping, fisheries, and horticulture.

    Family labour utilisation: Eg- women and elderly in backyard poultry, dairy and nurseries

    Nutrition security: Access to milk, eggs, vegetables, fruits and fish

    Stable livelihood prevents rural-urban distress migration.

    Women empowerment: Dairy, poultry and SHGs bring direct income to rural women.

    Environmental Benefits

    Improves soil health and carbon content: Organic manure + crop rotation + green manure.

    Water efficiency: Eg- Pond-field-livestock integration allows reuse of water and nutrients.

    Enhanced Biodiversity by offering homes for a variety of plant and animal species. Eg- Agroforestry

    Reduces pollution: Minimizes chemical runoff and stubble burning through recycling.

    Challenges in IFS

    Small and Marginal Land Holdings (86%) restricts integration of enterprises like ponds or livestock.

    High Initial Investment requirement in biogas units, sheds and fish ponds require capital.

    Limited Knowledge & Skills at village level – IFS demands multi-disciplinary expertise.

    Lack of Market Linkages and assured procurement channels for surplus milk, fish, vegetables

    Policy Gaps – Schemes operate in silos rather than landscape-based integrated planning.

    Way Forward

    Promote climate and region-wise IFS models (dryland, coastal, hill).

    Financial Support – low-interest loans + integrated crop-livestock insurance.

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

    Extension Support through Krishi Sakhis, FPOs and Agri-Startups for training and backward-forward linkages.

    Raising R&D Investment to 1% of GDP

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

  • Elaborate the scope and significance of the food processing industry in India

    India’s food processing sector is projected to grow from $307 billion (2023) to $700 billion by 2030, driven by rising demand, technological change, and strong policy support.

    Scope of the Food Processing Industry in India

    Large agricultural base

    India is the world’s largest producer of milk, spices, pulses, millets,

    Wide product spectrum – Includes dairy, fruits & vegetables, meat, fisheries, beverages, ready-to-eat (RTE), and organic foods.

    Lifestyle Shift – 65% of Indians under 35, rising incomes, urbanization & busy lifestyles have boosted demand for ready-to-eat & processed foods.

    Rapid growth in Organised retail and “shopping mall culture”– better supply chain management. Eg- D-mart

    Export potential – India exports processed foods to 200+ countries

    Nearly 70% of food processing units operate in the unorganised MSME sector – generate rural employment and entrepreneurship.

    Significance of the Food Processing Industry

    Demand for horticulture, poultry, fisheries, spices, and nutri-cereals supports diversification away from rice-wheat systems.

    Strengthens food security – Processing improves food availability, safety, nutrient retention and supports a resilient supply chain.

    Reduces post-harvest losses (15-20% of perishable losses annually) – processing improves shelf life and reduces wastage.

    Doubling farmer’s income – Value addition ensures better price realisation.

    Investment – Eg- Recent,World Food India attractedinvestment by global, domestic giants like Coca-Cola

    Boosts employment generation – Food processing creates one of the highest employment multipliers, across harvesting, sorting, packaging, and logistics.

    Drives industrialisation of rural economy – Mega Food Parks, agro-processing clusters, and cold chains stimulate local industry and logistics networks.

    Foreign exchange earnings through exports improve India’s trade balance and economic growth.

    As India moves forward under the Make in India vision, the food processing industry will continue to be a key driver of economic growth, ensuring food security, quality, and global competitiveness.

  • Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India.

    ADB describes PPP as “a cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards.”

    Importance of PPP in Infrastructure Projects

    Investment – NIP requires Rs 111 lakh crore. PPP mobilises private capital, reducing fiscal pressure on the government.

    Efficiency – Private players bring managerial expertise, technological upgrades, and project management capabilities

    Risk Sharing between government and private players improves project viability.

    Cost Reduction – performance-based contracts, ensures asset quality, lower maintenance costs, and better service delivery.

    Faster Project Execution by reducing bureaucratic procedures. Eg- Delhi Metro

    Revenue Generation for government – Eg- Toll, commercial leasing, advertisements

    Role of PPP Model in Redevelopment of Railway Stations in India

    Station Redevelopment as multimodal commercial hubs. Eg- Gandhinagar Capital Station

    Monetisation of railway land parcels through commercial development. Eg- Habibganj (Rani Kamlapati) Station, Bhopal

    Improved Passenger Amenities with better maintenance, cleanliness and world class infrastructure. Eg- Ayodhya Railway Station

    Revenue generation for Railways via lease rights and development rights.

    Faster Implementation through EPC-PPP Mix, ensuring speed + financial viability.

    Catalyst for Transit-Oriented Development (TOD)- Redeveloped stations become urban nodes supporting business, tourism, and last-mile connectivity.

    Challenges in PPP for Railway Station Redevelopment

    Land acquisition delays due to overlapping jurisdictions, unclear titles, and restrictions on commercial use.

    Uncertain Demand & Revenue Realisation

    High Capital Requirement & Long Gestation period deter private players.

    Regulatory Issues- poor coordination between railway authorities, urban local bodies, and concessionaires.

    Rigid Contract Structures and concession agreements – lead to Litigation

    Way Forward

    Transparent Model Concession Agreements with clear risk allocation and dispute mechanisms.

    Stronger Institutional Capacity in Indian Railways for PPP management.

    Hybrid PPP Models – EPC for core assets + PPP for commercial components

    Single-window clearances for faster approvals.

    Implementation of VIjay Kelkar Committee recommendations on PPP can transform railways into modern, inclusive, multimodal transport hubs

  • Do you think India will meet 50 percent of its energy needs from renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.

    Under panchamrit Targets at COP26, India committed to achieving 50 percent of its installed electricity capacity from non-fossil (clean and renewable) sources by 2030.

    Progress towards 50% energy needs from renewables – Justification

    Non-fossil capacity reached around 50% of installed capacity in 2025, ahead of the 2030 deadline.

    India stands 4th globally in Renewable Energy Installed Capacity, 4th in Wind Power capacity and 3rd in Solar Power capacity (as per IRENA RE Statistics 2025).

    India focuses on five key priorities to achieve its 2030 target of 500 GW non-fossil capacity.

    Better Contracts: Long-term power deals to attract investors.

    Stronger Grids: Modern grids and battery storage for steady power supply.

    Make in India: Boosting local production of solar panels and wind turbines.

    Smart Land Use: Using land wisely with floating solar and solar on farms.

    Easy Financing: Making funds available to support clean energy projects.

    Government efforts

    National Solar Mission – Expansion of solar capacity at utility and rooftop level.

    PM-KUSUM – Solarisation of agricultural pumps and rural feeders.

    National Wind-Solar Hybrid Policy – Maximises land and grid utilisation.

    PM Surya Ghar Muft Bijli Yojana – Accelerates residential rooftop solar.

    Institutional mechanisms

    Green Grids Initiative under OSOWOG

    BEE and PAT Scheme – Promote energy efficiency.

    Economic incentives

    PLI Scheme for Solar PV Modules and Batteries

    Viability Gap Funding and Capital Subsidies

    Green bonds for clean energy projects.

    Global efforts and partnerships

    Technology transfer and funding through ISA, IBSA, G20

    Participation in Just Energy Transition Partnerships (JETP) and multilateral climate funds.

    Challenges

    Policy inconsistency (continued approval of coal plants) weakens investor confidence in renewables.

    Financial Challenges

    India needs nearly

    High upfront capital costs and slow RoI discourage private investors.

    Limited availability of low-cost green finance for small and medium developers.

    Intermittency issue and limited energy storage solutions.

    Grid integration problems due to weak transmission and distribution.

    Import Dependence. Eg- China supplied ~56% of India’s solar cells in FY2024. 100% import-dependent for lithium, cobalt, nickel, graphite, copper.

    Skilled manpower shortage in advanced RE technologies.

    Land & Environmental Constraints – Eg- Sillahalla Hydro Project (Tamil Nadu) raised concerns over biodiversity loss and displacement.

    E-Waste – No comprehensive solar recycling policy or sufficient recycling infrastructure

    Delayed payments and PPA renegotiations/cancellations coupled with weak financial capacity of DISCOMS impact market stability

    How shifting subsidies from fossil fuels to renewables will help

    Level playing field – Removing fossil-fuel subsidies makes RE more competitive and attractive.

    Lower cost of clean energy – Redirected subsidies can reduce tariffs of solar and wind

    Crowding in private investment due to higher returns and lower risk

    Savings can be used for battery storage, smart grids, green corridors and EV charging networks.

    Reduced fossil fuel demand due to higher prices

    Global leadership – Strengthens India’s position in climate negotiations and green diplomacy.

    Way Forward

    Optimize Land and Water Resources – Eg- Omkareshwar Floating Solar Park.

    Develop Renewable Energy Clusters with single-window clearances and fiscal incentives.

    Leverage Emerging Technologies – Eg- blockchain-based P2P renewable energy trading

    Expand Renewable Infrastructure – Scale rooftop solar, microgrids and solar pumps for rural electrification and off-grid solutions.

    Circular Waste-to-Energy Parks using anaerobic digestion, gasification and pyrolysis. Eg- Jamnagar

    India’s energy transition can help realise SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 9 (Industry, Innovation, and Infrastructure).

  • Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.

    As per OECD, inclusive growth is economic growth distributed fairly across society and creates opportunities for all. A market economy drives efficiency and innovation, but without corrective policies it can widen inequalities.

    Inclusive Growth under Market Economy

    Efficient Resource Allocation- improve productivity, reduce costs, and expand economic opportunities.

    Market economies enable entrepreneurship, MSME growth and innovation-driven jobs. Eg- Indian start-up ecosystem.

    State as an Enabler- Government gets resources to invest in public goods.

    Property rights, contract enforcement and regulatory frameworks ensure fairness.

    Technological development enabling inclusive development – Eg- DBT.

    Challenges to Inclusive Growth under a Market Economy

    Rising inequality– Eg- the top 1% control 40% of net personal wealth.

    Regional disparities due to unequal investment and infrastructure. Eg- BIMARU States

    Jobless growth – Service sector contributes 55% of GDP but employs less than 30% workforce

    Weak social protection for informal workers (over 85% of India’s workforce).

    Market failures in public goods. Eg- Digital Apartheid in Education

    Significance of Financial Inclusion in Achieving Economic Growth in India

    Enhanced credit access for MSMEs, SHGs – boosts investment and employment. Eg. PM MUDRA has sanctioned over since inception.

    Greater savings through Jan Dhan accounts (53 crore accounts) ensures financial stability

    Formalisation of the economy via UPI, GSTN, Aadhaar – wider tax base and better compliance.

    Poverty reduction through targeted DBT, eliminating leakages and improving consumption.

    Women’s economic empowerment through SHG-bank linkage, Stand-Up India, digital microcredit – raises household productivity.

    Rural economic growth through Kisan Credit Cards, PM-Kisan and digital banking in villages.

    Improved risk management via insurance (PMJJBY, PMSBY) and pensions (PM-SYM) – stabilises vulnerable households.

    Boost to digital economy with UPI handling over – strengthens service sector growth.

    Inclusive growth under a market economy is possible when markets are balanced with public investment, regulation and financial inclusion.

  • “Economic growth in the recent past has been led by increase in labour productivity.”Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

    With 7% growth in 2025-26, India is one of the fastest-growing major economies and a bright spot on the global economy (IMF). A major driver of this performance has been the expansion in labour activity.

    Economic growth attributed to labour activity

    Demographic dividend – Median age of 28 and 65% working-age population (65%) has increased labour supply and productive capacity.

    Shift towards labour-intensive sectors: Growth in construction, retail, transportation, tourism, gig and platform economy

    Surge in self-employment – from 52% (2017) to 58% in 2024 (PLFS data)

    The government’s skilling push through Kaushal Vikas Yojana and the Skill India Mission improved workforce capabilities.

    India becoming the 3rd largest start-up ecosystem has generated new entrepreneurship-led employment.

    Rise of gig economy- Platform-based work has widened job opportunities.

    Labour Code reforms- consolidation of labour laws has improved hiring flexibility and EoDB.

    Other reasons

    GST reforms

    Ease of Doing Business reforms

    IBC

    PLI schemes

    However, this growth pattern is problematic due to

    Low productivity trap: Most new jobs are in informal, low-wage, low-productivity sectors.

    Disguised employment rising: Higher labour supply masks underemployment.

    Limited wage growth: High labour participation has not translated into better wages.

    Structural transformation incomplete: Manufacturing’s share in jobs and GDP remains stagnant.

    Suggested Growth Pattern to Create More Jobs Without Compromising Productivity

    Manufacturing-led, technology-enabled growth

    Expand labour-intensive manufacturing such as textiles, toys, leather, electronics assembly. Eg: PLI schemes for electronics, textiles.

    Use AI, robotics, lean production to improve productivity while expanding scale.

    MSME upgradation – Enable cluster-based development, digitalisation, easier credit. Eg: MSME Champions Scheme, ONDC for market linkages

    Skill-based job creation through programs like Skill India, PMKVY 4.0.

    Boost food processing, millets, horticulture, and FPO-based value chains.

    Employment in solar manufacturing, EV ecosystem, recycling, energy efficiency can raise both jobs and productivity.

    Strengthen urban employment ecosystems – Invest in urban infrastructure, housing, logistics, and city industrial clusters.

    Improve FLFPR through childcare support, flexible work, safety, and skilling.

    India’s recent growth has been driven more by labour mobilisation than by labour productivity. A shift towards manufacturing-led, technology-driven, and green growth is essential for Viksit Bharat 2047.

  • What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization(WTO) in relation to agricultural subsidies.

    The total government subsidy for food and fertilizers for the fiscal year 2025-26 is budgeted at It constitutes around 2% of India’s GDP and 21% of farmer’s income.

    Direct subsidies –

    These involve direct budgetary support or cash transfers to farmers and agricultural institutions.

    Income support schemes –

    PM-KISAN

    Raythu bandhu Scheme of Telangana

    MSP For 23 crops to ensure Income Security

    Interest subvention through Kisan Credit Cards – KCC)

    Crop insurance premium subsidy under PMFBY (Pradhan Mantri Fasal Bima Yojana)

    Indirect subsidies to the farm sector

    These reduce production costs or guarantee revenue without direct cash payment:

    Fertiliser subsidy – Subsidised urea, DAP and other fertilisers under the Nutrient Based Subsidy

    Subsidy on agricultural infrastructure

    PM-KUSUM – Subsidy for Solar Pumps

    PMFBY – Subsidy for Micro Irrigation

    Agriculture Infrastructure Fund (AIF) – Credit-linked subsidy for cold storage

    Gramin Bhandaran Yojana – Support for rural godowns and storage

    Power & irrigation subsidy

    Free or highly subsidised electricity for irrigation pumps

    Subsidised canal and micro-irrigation schemes (Eg- PMKSY)

    Seed and mechanisation subsidy – Eg- Sub Mission on Agriculture Mechanisation

    Research & Extension services – Funding to ICAR, Krishi Vigyan Kendras (KVKs)

    Issues raised by WTO regarding India’s agricultural subsidies

    Subsidy Classification by WTO

    Green Box – Allowed (non-trade distorting). Eg- extension, infrastructure

    Blue Box – Production-limiting subsidies

    Amber Box – Trade-distorting subsidies. (10% of output) Eg- MSP, input subsidies

    Trade-distorting support – MSP, fertiliser, power & irrigation subsidies classified as Amber Box. May exceed 10% de-minimis limit for developing countries

    WTO decision (Nairobi, 2015) prohibits export subsidies. India’s sugar export incentives were challenged & ruled WTO-inconsistent

    Transparency issues – Allegations of under-reporting or delayed reporting of subsidies

    Environmental concerns – overuse of fertilisers and groundwater, causing Soil degradation, Groundwater depletion and Ecological stress

    The sustainable path for ensuring farmer welfare remains protected includes gradual shift towards Green-Box-compliant support such as direct income transfers, infrastructure creation, R&D, crop insurance and climate-resilient agriculture.

  • Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.

    Structural unemployment occurs when workers lack the skills, education, or geographic mobility required to match available jobs. In India, it reflects a mismatch between the workforce’s capabilities and the evolving needs of a modern economy.

    Why Unemployment is Structural in India

    Skill Mismatch – Majority of workforce is low-skilled; only ~4.7% formally skilled (NSDC).

    Agriculture Dependence – 49% workforce in agriculture producing 16-17% of GDP

    Slow Growth of Labour-Intensive Industries – Manufacturing unable to absorb labour at scale.

    Automation and Digitalisation – Eg- AI, Robotics leading to job losses

    Low Female Labour Participation – FLFPR at 41.7% (PLFS 2023-24) due to social norms, skill gaps, and lack of suitable jobs.

    Regional Imbalances – Job clusters in southern/western India vs labour concentration in BIMARU states.

    Informalization of economy – 89% of workforce in informal sector.

    Methodology to Compute Unemployment in India

    NSSO (under MOSPI) is the principal body responsible for estimating unemployment.

    Periodic Labour Force Survey (PLFS) – NSO measures unemployment through three indicators:

    Usual Status (US/PS+SS) – Based on activity over 365 days

    Current Weekly Status (CWS) – If not worked for 1 hour in the last 7 days.

    Current Daily Status (CDS) – Records activity for each day of last week – best for informal/underemployment.

    Household Surveys – Annual (rural + urban) and quarterly (urban) surveys.

    Establishment Surveys

    QES for formal sector

    ASI for organised manufacturing

    Administrative Data – EPFO, ESIC, NPS payrolls used to estimate formal job creation.

    Unemployment rate = No. of unemployed persons / Total labour force

    Issues with Current Methodology

    Underestimation of Informal Sector – ~90% workforce informal. PLFS & enterprise surveys do not capture home-based, gig, or platform work fully.

    Surveys don’t map job requirements vs worker skills, essential for assessing structural unemployment.

    Low Frequency – Eg- PLFS rural data is measured annually

    Urban Bias – Quarterly surveys are confined to urban areas. Rural distress is under-measured.

    Limited Coverage – Gig economy, digital services, start-ups, and EV/green jobs not adequately represented.

    Way Forward

    Use Big Data Analytics to gather real-time analysis.

    Incorporate ‘underemployment’ into the definition of unemployment.

    Timely release of data.

    Increase Frequency – Monthly or quarterly surveys for rural areas

    Align with International Standards (ILO + SNA 2025)- Update definitions to include multi-job holders, remote workers, freelancers, and platform-based workers.

    Improving methodology is essential to generate accurate employment estimates and design stronger job creation policies.

  • The use of unmanned aerial vehicles (UAVs) by our adversaries across the borders to ferry arms / ammunitions, drugs, etc., is a serious threat to internal security. Comment on the measures being taken to tackle this threat.

    UAVs have emerged as “aerial dimension” of asymmetric warfare along Indian Maritime and Land Borders.

    Threat of UAVs to Internal Security

    Narco-Terror Financing- Drones ferry heroin and “ICE” to fund cross-border insurgencies.

    Small Arms Proliferation- Quadcopters drop Turkish-made pistols and grenades for sleeper cells.

    Explosive-laden drones target high-value military assets. Eg- 2021 Jammu Air Force Station attack

    Radicalization via Propaganda- Drops of subversive literature and inflammatory digital devices in border districts. Eg- Materials recovered in J&K (2025).

    Intelligence and Reconnaissance- map border outposts, fence gaps, and troop movement

    Swarm Overload Tactics- Deploying multiple UAVs to saturate and confuse conventional radar systems. Eg- “Operation Sindoor” .

    Smugglers use “dark vessels” (drones with lights/transponders off) that switch frequencies to evade standard radio-frequency (RF) scanners.

    Small DJI-type drones fly below 100 feet at night, exploiting the “radar gap” where traditional air defense is ineffective.

    Measures Taken to Tackle the Threat

    Mission Sudarshan Chakra – AI-driven air-defense shield for major cities and critical border belts.

    Drone Rules, 2021 – For regulating civilian drone rules. Eg- strict import norms

    Indrajaal – AI-powered Anti-Drone Patrol Vehicle t0 detect and neutralize drones within 10 km.

    Anti-Drone Grid (ARDS) along the Punjab border featuring “Soft Kill” (jammers/spoofers) and “Hard Kill” (lasers/kinetic interceptors).

    DRDO-developed D-4 systems and Bhargavastra – use lasers to destroy targets within 2 km.

    Integration of thermal imagers and radar into the CIBMS.

    Drone Forensics Centers to trace flight paths, launch points, and “Digital Signatures” of captured foreign UAVs.

    Indigenous “Kamikaze” “Zombee” Drones designed to crash into hostile drones mid-air.

    BSF and State Police have set up mobile checkpoints 5–10 km inside the border to intercept ground-level “receivers.”

    Community Rewards Scheme to report drone sounds (contributes to 40% of recoveries)

    Aatmanirbhar Defense Push- Funding startups via iDEX

    Baaj Akh (2025)- Punjab government’s anti-drone system as a second line of defense behind BSF

    Role of private sector

    Nagastra – Loitering munition (suicide drones)

    Bhargavastra – Counter drone system for swarm detection

    A comprehensive National Security Doctrine covering anti-drone measures is needed to ensure “secure skies”

  • Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment?

    Care economy refers to the unpaid or underpaid activities performed within households and communities such as childcare, elderly care, household maintenance, and emotional labour. In contrast, the monetized economy includes all paid economic activities that generate income

    Key Features of the Care Economy:

    Human-Centered

    Labour-Intensive

    Majorly Informal Sector

    Bringing Care Economy into Monetized Economy through Women Empowerment

    Raising investment in the care economy to 2% (>1% current) can generate 11 million jobs for women.

    Draw lessons from Japan’s womenomics for boosting female labour participation.

    Encourage PPP models and CSR initiatives to expand affordable care infrastructure.

    Skill Development and Certification in childcare, geriatric care, nursing, early education, nutrition.

    Formalisation of Care Services by expanding creches, Anganwadis, elderly care centres, community caregiving services.

    Promotion of Women-led Care Entrepreneurship such as day-care centres, tiffin services by providing credit, digital platforms, SHG support, and market linkages.

    Social Protection- Recognising care work under minimum wage laws and social security frameworks.

    Digital platforms like online caregiving services, home-nursing apps, domestic work registries help women monetise care skills.

    Investments in time-saving infrastructure such as clean cooking fuel, piped water, and public transport can increase FLFPR in the formal economy.

    Adopting the 3R Framework (Recognize, Reduce and Redistribute) can help realise SDG 5.4.

    Economic Growth and Macroeconomic Stability