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SYNOPSIS: IASbaba’s TLP 2017 [14th March] – Day 41

  • April 6, 2017
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IASbaba's Think Learn and Perform 2017, UPSC Mains Answer Writing
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SYNOPSIS- IASbaba’s TLP 2017 [14th March] – Day 41

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1. Why unemployment will be the biggest challenge for policy makers in the next decade? Analyse. Also discuss the implications of a large unemployed youth population.

Introduction:

Write a short introduction.

Body:

  1. India’s unemployment rate grew from 6.8 percent in 2001 to 9.6 percent in 2011, according to 2011 census. This can be bigger in the 2021 census
  2. The biggest reason for unemployment is quoted as “contractualization”, with contractualization becoming the norm in many manufacturing and services industries, the problem of unemployment and under-employment are going to be significant.
  3. As suggested by India Labour and Employment Report 2016, suggests that in about 511 million work force, hardly 17% are employed in regular formal employment in organized sector with decent standard of wages and social security.
  4. Rural unemployment rates are lower than the urban unemployment rates, mainly because of the disguised nature of rural unemployment.
  5. Female work participation has reduced considerably, there are only 27 females per 100 males in the employed category,
  6. Though the job-seekers have the required qualification, they are lacking skills which has left a large number of them unemployed,
  7. The threat of automation will further aggravate the unemployment problem, as more and more processes are shifted from manual to automated categories because of the increasing competition and the efficiency.
  8. For the employer the salary costs are increasing costs which the automation requires one time capital investment, with minimal maintenance, the employers are leaning towards automation to maximize the economy.

Conclusion:

Write a suitable conclusion.

 

Best answer: Nature

Unemployment is the phenomenon where a person willing to work is unable to find work. There is a “symbiotic relation” between jobs and growth.As India is on the phase of “demographic dividend”,there is a need to create jobs.But there are certain challenges for policy makers regarding unemployment.Some of them are :
a) Jobless growth : As India is one of its kind in its economic transformation bypassing secondary sector which is usually labor absorbing.
b) Economic slowdown worldwide : Economic slowdown world over has direct and indirect impact on employment generation.
c) Increasing population: Due to increase in population,there is a mismatch between number of people willing to work and jobs.
d) Inadequate skill formation : Inadequate skill formation deprives the youth reap the benefits of employment opportunities provided by the government.
And unemployment would have a negative implications on the psyche of the youth :
a) As frustrated youth would be at loggerheads with the government seen as in the case of Patel and Jat reservations.
b) This also inclines them towards “outlawed” groups such as Maoists,terrorists etc.
c) It also creates “brain drain ” as youth would be migrating abroad in search of jobs.
d) At the macroeconomic level,it would also increase the poverty levels.
Thus there is an urgent need for the policy makers to come with out the policies overcoming the challenges mentioned above.


2. The GDP figures released recently have defied the predictions on economy. Do you agree? Examine in light of demonetisation and global economic slowdown.

Introduction:

Write a short introduction.

Body:

The Central Statistics Office (CSO) showed India’s GDP growth is seen decelerating to 7.1 per cent in 2016-17 (April-March) from 7.6 per cent last year, primarily due to slowdown in manufacturing, mining and construction sectors.

Reasons for the positive forecast:

  1. The net tax collections have improved, this has compensated the reduction in gross GVA.
  2. The private consumption expenditure (at constant prices) for the October to December 2016, rose by 10.1 per cent, in comparison to the same period in 2015. This was largely on account of festive season.
  3. The cheap oil prices in the global markets have helped India to continue to keep it expenses in check.
  4. The banking sector has grown due to the positive impact of the demonetization, though the credit off-take is still low.
  5. Although demonetization hit hard sectors like construction, real estate, automobiles etc. but sectors like mining, steel, refinery output and electricity generation recovered due to increase in global commodity prices,
  6. Though the CSO covers most of the sectors, still the big picture is yet to clearly emerge, as the small retail, agriculture and construction work impact has yet to be completely factored in.

Conclusion:

Write a suitable conclusion.

 

Best answer: Axi tak

https://uploads.disquscdn.com/images/35af4cec7d619b9e7cd612dd811984c50feb18a2ec0d77bd9813ea5265644899.jpg

https://uploads.disquscdn.com/images/f982bfa8a65eb4d26cca7be0a7c989f710e4f68844b4c04441be2d4ddf8ce93e.jpg


3. India’s tax to GDP ratio and the number of people in the middle class, when read together, defy conventional economic logic. What does this anomaly indicate towards? Examine.

Tax to GDP ratio is the ratio of tax collection (direct & indirect) against the national gross domestic product (GDP). India’s tax to GDP ratio is 16.6 per cent, which is much lower than the emerging market economy average of 21 per cent and OECD average of 34 per cent.

Usually a middle class population is the largest contributor to taxes in a country. But despite having a large middle class, the tax base of India is less.

Several factors can be attributed to this anomaly:

  • High subsidies and/or exemptions
  • Tax evasion. Tax litigation due to complex laws.
  • Poor tax collection enforcement machinery, corruption in collection of revenue.
  • Higher Borrowing
  • Growth not inclusive. Many poor people coexisting with super rich.
  • Reluctance of people to pay their taxes. Less faith in government can be one reason for this.
  • Large population working under unorganized sector where most of the money is unaccounted.

It can have following negative implications for India:

  • Rise of social inequalities – The economy will suffer from wide gap between per capita income of rich and poor.
  • Rise in Interest burden – The funding for Public works programme would be done more out of borrowings. This will increase interest burden. Interest payment means lesser appropriation of funds for Capital Asset building.
  • Inflation – Lesser contribution from tax payers means generating money supply partly through printing of currency.
  • Higher Interest Rates – Inflation will put pressure on interest rates.
  • Higher participation of MNCs and investment of foreign funds in infrastructure, Power generation, technology, etc . Domestic companies will have to face tough competition from MNCs.
  • Rupee will not strengthen in medium term
  • Pressure to contain Fiscal Deficit & Current Deficit.

(Note: You can add more points to this.)

Best Answer: Putta

https://uploads.disquscdn.com/images/800342beee666b27508346f7aa8e22fca46e8cb16d21b8c1c438a658b6d7bb6c.jpg


4. The latest poll results have proved that caste mobilisation for electoral gains is a thing of the past. Critically analyse.

Mention the trends of recently concluded polls in 5 states(especially Uttar Pradesh) –

  • Voters voted across religious and caste identities as long as they were convinced that the candidate they are voting for will bring development.
  • Candidates and parties who used merely caste or religion as a plank had to face serious repercussions in terms of dwindling voter share.
  • There was less talk about religion and caste based identities, and more about promises of development.

(Refer best answer)

Best answer: Kaur

The recently concluded polls in 5 states(especially Uttar Pradesh) showcased following trends:

  1. There was less talk about religion and caste based identities, and more about promises of development.
  2. Voters voted across religious and caste identities as long as they were convinced that the candidate they are voting for will bring development.
  3. Candidates and parties who used merely caste or religion as a plank had to face serious repercussions in terms of dwindling voter share.

Though these elections were not completely bereft of talk about identity politics, there was a positive change as candidates were compelled to talk more about development. Thus we can say that voters are now ready to shun identity politics as long as they are getting desired results on development. But in the absence of any good alternative, they can still fall prey to nasty identity politics of religion and caste.

Best answer 2: brainstorm01

https://uploads.disquscdn.com/images/cfe998540b707857a6f9a1452603b21d69b67d176319bcef3fb55713d5a2e591.jpg

Best answer 3: Arjun

https://uploads.disquscdn.com/images/9c3cc5915d05f147ecce448ed2d900e3044916b29297bc634108639f6a3aa697.jpg

https://uploads.disquscdn.com/images/cfe4bb6e81418e7c695eb4bea2165a821231d366f088beeac751d6155ff38731.jpg 


5. What is Big Data? Discuss it’s significance and possible applications.

Big Data, as the term implies, refers to the storage of unusually large magnitude of data in electronic form (order of terabytes and higher). Big Data in itself hold no significance. It is the big Data analysis enabled by increased computational capability & tools which gives us useful insights.

For significance and applications, refer best answers below.

In India, Comptroller and Auditor General of India (CAG) is creating a repository of multiple databases to add transparency and effectiveness to the audit process. The availability of data with auditors can change the manner of audit itself, moving from a sample-based approach to a total population analysis.

Best answer 1: thevagabond85

Big Data, as the term implies, refers to the storage of unusually large magnitude of data in electronic form (order of terabytes and higher). Big Data in itself hold no significance. It is the big Data analysis enabled by increased computational capability & tools which gives us useful insights.

Significance :

* Throws surprising trends which would be otherwise hard to detect. For example, This year Economic survey utilized Big Data analysis to give several surprising facts e.g. inter-state people movement is rather high.

* Predicting future of the domain under alaysis.

* Conclusion arrived through large sample space is usually healthier and relaible.

* It also helps analyse as to how much specific intervention has had impact.

Possible application :

* HEALTH : Big Data is being used to find solutions of Multi Drug Resistant bacteria, HIV/AIDS, Cancer etc.

* EDUCATION : Andhra Pradesh govt has cooperated with tech giant Microsoft to analyze school drop out rate and suggest solutions.

* CLIMATE CHANGE: A number of variable affecting climate change makes big Data only option for successful analysis and suggesting remedial steps.

* AGRICULTURE : It can be employed to analyze soil health, predict water availability, impact of pesticides etc.

* CRIME TRACKING & PREVENTION : The proposed CCTNS can also be used to reduce crime by exposing Nexus and crime trends invisible by naked eyes.

* OTHER : predicting Population growth, epidemic? burst, traffic management, migration pattern, urban planning.

E-commerce houses have successfully used it to analyse consumer behavior and align market strategy accordingly. Govt departments should be further encouraged to utilize this indispensable tool for effective policy making , efficient public service delivery and better resource optimization. This will require capacity building and change in mindset.

Best answer 2: Axi Tak

https://uploads.disquscdn.com/images/d2f96e3134a48deeb4d2615c5b5c9d6cf828faeb62ad4cba1dd8227300182fd1.jpg

https://uploads.disquscdn.com/images/88d959229a479cbfab4d455621b28c5d44eba97afec4582849f25d44d3107d34.jpg

 

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