GS Paper 3
Indian Economy & Budgeting
Indian Economy, planning, mobilization of resources, growth, development, employment, government budgeting, fiscal policy, inflation, banking.
2026
What do you mean by Digital Rupee ? In this context, explain the working and progress of India's Central Bank Digital Currency (CBDC).
Examine the view that financial inclusion is an integral part of social and economic inclusion in a country like India. Also throw light on the usefulness of the R.B.I.'s Financial Inclusion Index.
How are startups in India promoting entrepreneurship, innovation and employment ? Discuss the global and domestic challenges in their working and suggest suitable measures to overcome these challenges.
2025
Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth ?
What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism ? How can these challenges be met ?
Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies ?
Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements ? In what way can the functioning and outcomes of the scheme be improved ?
2024
Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent has this been in consonance with achieving the objective of inclusive growth?
What are the causative factors behind the persistence of high food inflation in India despite robust foodgrains production? Suggest supply chain measures to stabilize prices.
Discuss the merits and demerits of the four Labour Codes introduced to consolidate and simplify India's central labour laws.
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.
What are the major challenges faced by the Indian economy in generating adequate formal employment opportunities? Suggest policy solutions.
Explain the meaning of investment in infrastructure in the context of economic development. How does the National Infrastructure Pipeline (NIP) address infrastructure gaps?
2022
Why is Public-Private Partnership (PPP) required in infrastructural projects? Examine the role of Hybrid Annuity Model (HAM) in road construction.
Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.
Economic growth in the recent past has been accompanied by increasing inequality. Analyze whether growth has trickled down to the lowest quintiles of the population.
What are the main causes of Non-Performing Assets (NPAs) in the Indian banking system? How does the Insolvency and Bankruptcy Code (IBC) facilitate asset resolution?
2021
Explain the difference between computing methodology of India's Gross Domestic Product (GDP) before the year 2015 and after the year 2015.
Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets.
Do you agree that the Indian economy has recently experienced V-shaped recovery? Give reasons in support of your answer.
2020
Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development.
Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP?
Explain the rationale behind the Goods and Services Tax (Compensation to States) Act, 2017. How has the shortfall in GST compensation fund affected Centre-State relations?
2019
Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.
Do you think India can meet 50 percent of its energy requirements from renewable energy by 2030? Justify your answer. How will the gradual switch from fossil fuels to renewables assist in meeting climate commitments?
It is argued that the strategy of inclusive growth must focus on financial inclusion, health, and skill formation. Elucidate with reference to current developmental programs.
2018
"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.
Comment on the important changes introduced in the Public Expenditure Management in India in recent years.
How are the principles of inclusive growth addressed in the flagship schemes of the Government of India like Jan Dhan Yojana, PM Awas Yojana, and Ayushman Bharat?
2017
Among several factors for India's potential growth, savings rate is the most effective one. Do you agree? What are the other factors that determine the growth potential?
Account for the failure of manufacturing sector in achieving the targeted goal of labor-intensive exports. Suggest corrective measures.
What are the salient features of the 'inclusive growth'? Has India been experiencing such a growth process? Analyze with reference to employment and poverty indicators.
2016
How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?
Women entrepreneurship in India faces diverse cultural, financial and institutional barriers. Discuss how government schemes like Stand Up India promote women entrepreneurs.
Justify the need for Monetary Policy Committee (MPC) in India. How does the inflation-targeting framework adopted by the Reserve Bank of India function?
2015
The concept of 'Make in India' aims to transform India into a global manufacturing hub. What are the major manufacturing bottlenecks that must be resolved to achieve this objective?
What are the main causes of the ongoing slowdown in Indian exports? Suggest policy measures to enhance export competitiveness in the global market.
The Fourteenth Finance Commission (FFC) increased the tax devolution to states from 32% to 42%. Analyze how this structural shift enhances fiscal federalism and state expenditure autonomy.
2014
Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services sector in India?
Capital account convertibility involves both opportunities and vulnerabilities for a developing economy. In this context, analyze India's gradualist approach to capital account convertibility.
Discuss the rationale and significance of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. How far has it succeeded in enforcing fiscal discipline in India?
2013
What are the main reasons for the persistent high Current Account Deficit (CAD) in India? Discuss the policy measures undertaken to rein in CAD and stabilize the rupee.
Examine the impact of volatile foreign institutional investment (FII) flows on the Indian macroeconomic stability. How does foreign direct investment (FDI) provide more stable capital?
Critically examine whether high fiscal deficit necessarily leads to inflation. In this context, analyze India's fiscal consolidation road map post the 2008 global financial crisis.