Q: What steps has the Union Home Minister announced to address the violence in Manipur?
A: The Union Home Minister, Amit Shah, has announced the establishment of a judicial commission headed by a retired High Court Chief Justice to probe the violence in Manipur. The commission will investigate the causes of violence and determine responsibility. Additionally, the Central Bureau of Investigation (CBI) will conduct its own investigation into the cases, selecting five and registering a general case of conspiracy.
Q: What is the purpose of the inter-agency unified command being set up in Manipur?
A: The inter-agency unified command is being established to bring together various security agencies operating in Manipur and create a common ground for their coordination. The command, headed by retired Central Police Reserve Force Director Kuldiep Singh, aims to enhance security measures and ensure effective collaboration among the agencies involved.
Q: Who are the Kuki militant groups and what warning did the Home Minister give them?
A: The Kuki militant groups, represented by the United Peoples' Front and the Kuki National Organisation, are part of the Suspension of Operations (SoO) agreement signed in 2008. The agreement involved 24 insurgent groups with approximately 2,200 armed cadres. The Home Minister warned the Kuki militant groups that any violation of the SoO agreement would be dealt with sternly. The terms of the agreement, including the surrender of weapons at designated camps, will be strictly monitored.
GS Paper 3 (Economy and Economics) of the UPSC syllabus. Possible question and answer for UPSC preparation are as follows:
Q: What was the growth rate of Gross Goods & Services Tax (GST) collections in May, and how does it compare to previous months?
A: In May, GST collections grew by 11.5%, which is the slowest uptick in the past six months. However, it marks the 14th successive month that GST revenues exceeded ₹1.4 lakh crore and the fifth occasion that they surpassed the ₹1.5-lakh crore mark.
Q: How did domestic transactions and imports contribute to the GST revenue growth in May?
A: In May, revenues from domestic transactions increased by 11%, while imports yielded 12% more taxes compared to the previous year. This indicates growth in both domestic economic activities and international trade.
Q: What is the outlook for GST revenue growth in the coming months?
A: According to ICRA chief economist Aditi Nayar, GST revenue growth is expected to remain in the range of 10% to 11% in the coming months. Revenues are projected to be between ₹1.55 lakh crore and ₹1.65 lakh crore. The ongoing drive against indirect tax evasion and increased consumption spending through the use of ₹2,000 currency notes could further boost collections.
General Studies (GS) Paper 3, which covers topics related to the Indian economy, industrial growth, and challenges in the manufacturing sector. Here are some possible questions that could be asked in the UPSC exam along with their answers:
Q. What were the economic reforms of 1991 focused on, and how did they impact the manufacturing sector in India?
Answer: The economic reforms of 1991 primarily focused on liberalizing the trade and industrial policy regime. While the reforms led to a qualitative change in the range and quality of products manufactured in India, they did not result in a significant increase in the share of manufacturing in the economy. This suggests a rising inequality of income.
Q.Discuss the performance of the "Make in India" initiative and the Production-Linked Incentive scheme.
Answer: The "Make in India" initiative and the Production-Linked Incentive scheme were launched to promote manufacturing and attract foreign direct investment. However, the performance of these schemes has not been impressive, as indicated by the low growth rate of manufacturing compared to agriculture and services in recent years.
Q.Explain the role of demand-side factors in constraining the growth of the manufacturing sector in India.
Answer: Household demand for manufactured goods is dependent on the satisfaction of basic needs such as food, housing, health, and education. Since a substantial section of Indian households allocates a significant share of their income to food, the growth of demand for manufactured goods is constricted. The negative relationship between per capita income and the share of food expenditure further highlights this constraint.
Q.What are the challenges faced by India's manufacturing sector in terms of infrastructure and export competitiveness?
Answer: Infrastructure and export competitiveness are crucial factors for a successful manufacturing sector. In India, reaching seaports from inland locations presents a challenge, as goods have to be transported by road before reaching the coast. Additionally, the relatively poor infrastructure and practices in Indian ports result in higher turnaround times for ships compared to countries like Singapore. Furthermore, factors like inexpensive power, space, and industrial waste disposal services are also important for enhancing export competitiveness.
Q.Discuss the state of education and vocational training in India and its impact on the manufacturing sector.
Answer: India lags behind successful manufacturing economies in terms of educational outcomes. The Programme for International Student Assessment and assessments by organizations like Pratham highlight the low reading ability and numeracy skills of Indian children. Employability issues have also been observed among university graduates, including those from prestigious institutions. Neglect of vocational training institutes and a lack of technical training opportunities contribute to a labor force that may not be adequately skilled for manufacturing. Only about 5% of Indian youth have received technical training, while countries like South Korea have much higher rates.
Q.What was overlooked during the trade and industrial policy reforms of 1991, and what is needed for manufacturing to flourish?
Answer: The trade and industrial policy reforms of 1991 focused on liberalization but overlooked the need for an entire ecosystem to support manufacturing, including schooling, training, and infrastructure. Merely relying on legislation and liberalizing reforms is not sufficient. To promote manufacturing, India needs to build a robust ecosystem that includes quality education, vocational training institutes, improved infrastructure, and supportive policies.
General Studies (GS) Paper 3, which covers topics related to the Indian economy, including GDP, sectors of the economy, investment, fiscal policy, and monetary policy. Here are some possible questions that could be asked in the UPSC exam along with their answers:
According to the National Statistical Office's provisional estimates, what was the estimated GDP growth rate for the January-March quarter and the full-year growth rate?
Answer: The National Statistical Office estimated that the GDP expanded by 6.1% in the January-March quarter, contributing to a full-year growth rate of 7.2%, which was marginally higher than projected.
Identify the sectors that experienced decelerations in expansion during the fourth quarter.
Answer: The umbrella utility services sector (including electricity, gas, and water supply) and the omnibus services category of trade, hotels, transport, communication, and broadcasting were the only two sectors that posted decelerations in expansion during the fourth quarter.
Discuss the performance of the manufacturing sector during the fourth quarter.
Answer: The manufacturing sector rebounded from the previous quarter's contraction and recorded a 4.5% expansion. Moreover, manufacturing GVA surged 20.4% sequentially from the third quarter, indicating sustained expansions reported in recent months.
Explain the significance of the factory orders rising at the fastest pace since January 2021, as indicated by the PMI reading.
Answer: The PMI reading showing factory orders rising at the fastest pace since January 2021 is a positive sign for the economy. It indicates an increase in demand for manufactured goods, which can stimulate production and economic growth. This is especially important as the economy faces headwinds from a global economic slowdown and increased uncertainty.
What is the outlook for investment activity based on the gross fixed capital formation (GFCF) data?
Answer: The GFCF, which is a proxy for investment activity, expanded by a healthy 8.9% year-on-year and a robust 20.8% sequentially in the fourth quarter. This growth can be attributed to increased capital spending on infrastructure and other big-ticket public works by the government. The improvement in investment spending bodes well for this year's economic outlook.
Analyze the status of private consumption expenditure and its impact on overall demand.
Answer: Private consumption expenditure contracted by 3.2% in the March quarter, indicating a slowdown in consumer spending. The share of private consumption expenditure in GDP also shrank to at least an eight-quarter low of 55%. As private consumption is a key driver of demand, its weak performance poses challenges for overall economic growth.
Considering the potential rainfall deficit-inducing El Niño, what measures should policymakers take to support growth in the coming quarters?
Answer: Policymakers should ensure that fiscal and monetary measures remain growth supportive in the coming quarters. This may include measures such as targeted fiscal stimulus, expansionary monetary policy, investment in rural infrastructure, and initiatives to boost private consumption expenditure.
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