Cracking the UPSC Mains: Essential Themes for Success

GS-3 (Economy Section)

This document aims to provide you with insights into important themes that UPSC has
asked in the mains exam and potential topics that UPSC may ask in the 2023 mains exam

 Economy-
A) Inclusive Growth-

S
1) With a consideration towards the strategy of inclusive growth, the new companies bill, 2013
has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its

I A
implementation in right earnest. Also discuss other provisions in the bill and their
implications (2013)

E
2) Capitalism has guided the world economy to unprecedented prosperity. However, it often
encourages shortsightedness and contributes to wide disparities between the rich and the

C
poor. In this light, would it be correct to believe and adopt capitalism driving inclusive

N
growth in India? Discuss (2014)
3) Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the

A
institutional finance fold. Do you agree with this for financial inclusion of the poorer section

D
of the Indian society? Give arguments to justify your opinion (2016)

I
4) Comment on the challenges for inclusive growth which include careless and useless

U
manpower in the Indian context. Suggest measures to be taken for facing these challenges
(2016)

G
5) What are the salient features of ‘inclusive growth’? Has India been experiencing such a
growth process? Analyze and suggest measures for inclusive growth. (2017)
6) It is argued that the strategy of inclusive growth is intended to meet the objectives of
inclusiveness and sustainability together. Comment on this statement (2019)
7) Explain intra-generational and inter-generational issues of equity from the perspective of
inclusive growth and sustainable development (2020)
8) Is inclusive growth possible under market economy? State the significance of financial
inclusion in achieving economic growth in India. (2022)
Prepare all PYQ themes, in addition to this-
 Role of MGNAREGA in Post-COVID
 Role of DBT- India saved over $27 bn in key central government schemes through Direct
Benefit Transfers (DBT).
 Urban employment guarantee scheme- because Recently, Rajasthan launched Indira
Gandhi Urban Employment Guarantee Scheme
 PM Swanidhi scheme- About 41% of beneficiaries of PM-SVANidhi (PM Street Vendors’
AtmaNirbhar Nidhi) are women.

1
  Securities and Exchange Board of India (SEBI) has introduced a framework for social
stock exchange
 Insurance sector- because government issued new insurance rules
 The debate on pension reforms has intensified over Old Pension Scheme (OPS) vs New
Pension Scheme (NPS).
 In the recent budget, the government announced the new small savings scheme “Mahila
Samman Savings Certificate” for women

B) Growth-
1) The nature of economic growth in India in described as jobless growth. Do you agree with

S
this view? Give arguments in favour of your answer (2015)

A
2) Among several factors for India’s potential growth, savings rate is the most effective one. Do

I
you agree? What are the other factors available for growth potential? (2017)
3) Do you agree with the view that steady GDP growth and low inflation have left the Indian

E
economy in good shape? Give reasons in support of your arguments. (2019)

C
4) Define potential GDP and explain its determinants. What are the factors that have been
inhibiting India from realizing its potential GDP? (2020)

N
5) Explain the difference between computing methodology of India’s Gross Domestic Product

A
(GDP) before the year 2015 and after the year 2015 (2021)

D
6) Do you agree that the Indian economy has recently experienced V- shapes recovery? Give

I
reasons in support of your answer (2021)

U
Prepare following themes-

G
 Recently, RBI has recently launched a pilot project on Central Bank Digital Currency
(CBDC) and issued a Concept Note on CBDC.
 Role of Microfinance sector in growth
 Difference between GDP-GVA- Recently, the gap between Gross Domestic Product
(GDP) and Gross Value Added (GVA) of India increased.

C) Employment-
1) While we found India’s demographic dividend, we ignore the dropping rates of
employability. What are we missing while doing so? Where will the jobs that India
desperately needs come from? Explain (2014)
2) “Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme
and radical labour reforms.” Discuss with logical arguments. (2015)
3) “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. (2022)
This year prepare following themes-
 Gig economy as a new form of employment

2
  Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and Skill India programme
 Demographic dividend- because Unemployment rate highlighted in recent PLFS has
raised concerns about the ability of the country to reap the demographic dividend.
 The Ministry of Housing and Urban Affairs (MoHUA) has launched the ‘National Initiative
for Promotion of Upskilling of Nirman workers’ (NIPUN) project to train 100,000
construction workers.

D) Development-
1) Craze for gold in Indians have led to a surge in import of gold in recent years and put
pressure on balance of payments and external value of rupee. In view of this, examine the

S
merits of Gold Monetization Scheme (2015)
2) Account for the failure of manufacturing sector in achieving the goal of labour-intensive

I A
exports rather than capital-intensive exports. Suggest measures for more labour-intensive
rather than capital-intensive exports (2017)

E
Prepare following themes-

C
 RBI has released its annual publication titled “State Finances: A Study of Budgets of
2022-23” with the theme “Capital Formation in India - the Role of States”.

N
 Recently, RBI has recently launched a pilot project on Central Bank Digital Currency

A
(CBDC) and issued a Concept Note on CBDC.

D
 Semiconductor Industry in India- need, challenges and way forward

I
 Make in India initiative and Toy sector in India- because Make in India has yielded

U
positive results for the toy sector

G
E) Planning-
1) How are the principles followed by the NITI Aayog different from those followed by the
erstwhile Planning Commission in India? (2018)
Prepare following themes-
 The Union Ministry of Commerce and Industry notified the Foreign Trade Policy 2023.
 How to strengthen state finance- because The Central government has raised alarm on
the mounting debt burden and the deteriorating fiscal situation in some States due to
excessive doling out of freebies.

3
 Government Budgeting-
A) Budgeting-
1) What are the reasons for introduction of Fiscal responsibility and Budget Management
(FRBM) act, 2003? Discuss critically its salient features and their effectiveness (2013)
2) Women empowerment in India needs gender budgeting. What are the requirements and
status of gender budgeting in the Indian context? ( 2016)
3) One of the intended objectives of Union Budget 2017-18 is to ‘transform, energize and clean
India’. Analyse the measures proposed in the Budget 2017-18 to achieve the objective.
(2017)
4) The public expenditure management is a challenge to the government of India in the context

S
of budget-making during the post-liberalization period. Clarify it. (2019)

A
5) Distinguish between Capital Budget and Revenue Budget. Explain the components of both

I
these Budgets. (2021)
Prepare following themes-

E
 Budgetary allocation to Local bodies- because Recently the Reserve Bank of India (RBI)

C
has released a report on municipal financing.

N
B) Tax-

A
1) GST- Discussion the rationale for introducing Good and services tax in India. Bring out

D
critically the reasons for delay in roll out for its regime. (2013)

I
2) GST- Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax

U
(GST) in India. Also, comment on the revenue implications of the GST introduced in India
since July 2017. (2019)

G
3) GST- Explain the rationale behind the Goods and Services Tax (Compensation to States) Act
of 2017. How has COVID-19 impacted the GST compensation fund and created new federal
tensions? (2020)
4) What is meaning of the term tax-expenditure? Taking housing sector as an example, discuss
how it influences budgetary policies of the government. (2013)
5) 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. (2018)
Prepare following themes-
 Digital Tax- because India and other developing countries in the G24 grouping objected
to the proposal of making sovereign commitments to not introduce any future digital
services tax like equalization levy
 Asset monetization- because government has set up a National Land Monetisation
Corporation (NLMC)
 How to widen tax base- challenges and way forward

4
 Infrastructure (energy, ports, roads, airports, railways); Investment model
A) PPP-
1) Adaptation of PPP model for infrastructure development of the country has not been free
from criticism. Critically discuss the pros and cons of the model. (2013)
2) Explain how private public partnership agreements, in longer gestation infrastructure
projects, can transfer unsuitable liabilities to the future. What arrangements need to be put
in place to ensure that successive generations’ capacities are not compromised? (2014)
Prepare following themes-
 National Logistics Policy (NLP)
 Multi-modal logistics park

A S
I
B) Transport-
1) National urban transport policy emphasizes on moving people instead of moving vehicles.

E
Discuss critically the success of various strategies of the government in this regard. (2014)

C
2) Airport- Examine the developments of Airports in India through Joint Ventures under Public-
Private Partnership (PPP) model. What are the challenges faced by the authorities in this

N
regard. (2017)

A
3) Railway- Why is Public Private Partnership (PPP) required in infrastructural projects?
Examine the role of PPP model in the redevelopment of Railway Stations in India (2022)

I D
This year prepare following themes-

U
 Centre sets 2030 as target for India to become global hub for green shipping
 Inland Waterways- Recently, Prime minister unveiled inland waterways projects worth

G
over Rs 1000 crore to increase transport, trade & tourism in eastern India

C) Energy-
1) With growing energy needs should India keep on expanding its nuclear energy programme?
Discuss the facts and fears associated with nuclear energy. (2018)
2) 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 (2022)

D) Investment-
1) FDI- Justify the need for FDI for the development of the Indian economy. Why there is gap
between MOUs signed and actual FDIs? Suggest remedial steps to be taken for increasing
actual FDIs in India (2016)
2) Explain the meaning of investment in an economy in terms of capital formation. Discuss the
factors to be considered while designing a concession agreement between a public entity
and a private entity (2020)

5
 3) “Investment in infrastructure is essential for more rapid and inclusive economic growth.”
Discuss in the light of India’s experience (2021)

E) SDGs-
1) 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 (2018)

F) Development-
1) What are ‘Smart Cities? Examine their relevance for urban development in India. Will it

S
increase rural-urban differences? Give arguments for Smart Villages’ in the light of PURA and
RURBAN Mission. (2016)

G) SEZ-

I A
E
1) There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial

C
development, manufacturing and exports. Recognizing this potential, the whole
instrumentality of SEZs requires augmentation. Discuss the issues plaguing the success of

N
SEZs with respect to taxation, governing laws and administration. (2015)

D A
 Effects of Liberalisation on the economy; Changes in Industrial policy & their effects

I
on industrial growth-

U
A) FDI-

G
1) Discuss the impact of FDI entry into multi-trade retail sector on supply chain management in
commodity trade pattern of the economy. (2013)
2) Though India allowed foreign direct investment (FDI) in what is called multi brand retail
through joint venture route in September 2012, the FDI even after a year, has not picket up.
Discuss the reasons (2013)
3) Foreign direct investment in the defence sector is now said to be liberalised. What influence
this is expected to have on Indian defence and economy in the short and long run? (2014)
Prepare Following themes-
 Internationalization of Indian Rupee- Recently, RBI’s Inter-Departmental Group (IDG) on
Internationalization of INR (Indian Rupee) has released its report with various
recommendations.
 De-dollarization- pros and cons for India
 Multi-lateral financial institution- relevance and need to recalibrate
 examines global economic developments and prospects, with a special focus on
emerging markets and developing economies (EMDEs)
 COVID-19 pandemic and war in Ukraine impacted world economy in 2022.

6
 B) Core-
1) 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 vis-a-vis industry in the country? Can India become a developed country without a
strong industrial base? (2014)
2) How would the recent phenomena of protectionism and currency manipulations in world
trade affect macroeconomic stability of India? (2018)

C) Industry-
1) Examine the impact of liberalization on companies owned by Indian. Are the competing with

S
the MNCs satisfactorily? (2013)
2) “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic Product

IA
(GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial
Policy are capable of increasing the industrial growth rate? (2017)

D) Globalization-

CE
1) How globalization has led to the reduction of employment in the formal sector of the Indian

N
economy? Is increased informalization detrimental to the development of the country?

A
(2016)

I
 Other important topics-

D
U
1) WTO: new agreement on fisheries subsidies

G
2) Ruralisation to Rural Industrialization- because There have been some claims that rise in urban
unemployment is forcing a structural shift towards “ruralisation” in India
3) Digital lending- benefits and challenges- because Reserve Bank of India’s (RBI’s) guideline on
digital lending became effective on December

[Please prepare all previous year question (PYQ) themes,