SYNOPSIS: IASbaba’s TLP – 2018: UPSC Mains General Studies Questions [30th November 2017]- Day 9
1. The traditional factors that determine the location of secondary industries have undergone major transformations. Do you agree? Substantiate with the help of suitable examples.
In introduction, mention what are secondary industries with examples. In body, first mention what are traditional factors for a line or two and then shift to Modern factors. Maintain a proper flow and give suitable examples to each point.
Secondary industries are those types of industries which are involved in conversion of raw materials from Primary industries to finished products which can be offered to consumers for consumption purposes like Automobile industry, Iron and steel, Oil refineries, Jewelry etc.
Points to be covered
Traditional factors that determined industries were four main ones. They were
- Raw material availability.
But over time they have under major transformations and now the modern factors are:
- Political: This includes, government policies for easy enter and exit, incentives for business houses, tax exemptions, political stability of country, government ideologies etc.
- Economic: The future growth prospects of country, availability of cheap loans, Demands for product, market accessibility, infrastructure facility like transport facilities, power, government support etc.
- Social: Availability of Human Infrastructure like skilled labor force, youth population in working age, cheap labor, Acceptability to changes etc.
- Technological: Availability of latest technology, Research and Development facility and environmental support for research, Internet of things etc.
- Environmental: Environmental clearance issues, Climate change and global warming issues, Quality of land, raw materials among others.
Note: The points have been categorized under these five headings. Each heading can be divided into sub-points and explained with a line or two. 8 to 10 points are enough in exams.
Change is the only permanent thing in this world. The traditional factors were during first industrial revolution period. Presently we are in fourth industrial revolution phase so changes are certain and even this factors are not permanent and bound to change in near future with aggressive changes in Science and technology.
Connecting the dots:
- Impact of third and fourth Industrial revolution.
- Issues related to Industrial sectors.
Best Answer: M_Ayushi
2. Identify the major hubs of IT and software services in the world. Do you witness a shift in their location? Examine the factors behind the prevailing trend.
The following infographics has been made by MIT to show the important IT hubs in the World currently.
Apart from the above eight prominent centers, the IT hub is shifting to many developing countries like India, Singapore, China (Hongkong), and some African Nations.
Some of the important reasons for this shift are:
- The basic requirement to establish an IT hub is skilled work force. As these developing nations are progressing in education, work force is easy to find.
- IT industry can be treated as a footloose industry which is not dependent on any raw material or any market. Because of global penetration of internet, a company in Bangalore can access the market around the world without any problem.
Note: Many of you have written that the reason of shift is a huge market in developing countries. This is wrong. Most of the IT companies are still making product either for the parent country or for the global use. They can access any market from anywhere.
- Protectionist policy of developed nations – Usually many people migrated to US and UK from developing countries to work in IT sector. To curb inflow these countries came up with protectionist policies. So it became more profitable for the companies to shift their offices in developing countries to tap the local resource there itself.
- Low cost in establishing an industry and cheap workforce.
- With weak labour laws in developing countries, companies can make people work for longer hours and with lesser pay as compared to developed countries.
- Local governments are promoting FDI and inflow of money. This is also creating new job opportunities in developing countries.
- Fast growth of infrastructure like internet penetration, better finance etc. in developing world.
- Many countries including India are trying to increase the ease of doing business. This is also attracting many big MNCs to establish their business here.
Note: Many of you have written that good weather and environment is one of the reasons for this shift. This is factually incorrect. IT industries are being developed in urban areas. The condition of Urban areas is almost same everywhere. And if you compare the cities of India (Bangalore, Hyderabad, Gurgaon) it can even be bad as compared to American cities.
More details you can read from the best answer. It is extremely comprehensive so we don’t need to give extra information in the synopsis.
Best Answer1: Maximus
Q.3) What is outsourcing of services? What is the rationale behind outsourcing. Examine the major trends of outsourcing.
- Please start your introduction with What is outsourcing
- Explain rationale behind it
- Major trends of outsourcing
Outsourcing, which started in the early ’90s as a revolutionary phenomenon of sending unskilled work from developed countries to developing countries, has experienced tremendous growth over the past ten years. Now, after more than a decade of outsourcing, the success of outsourcing is being questioned, due to increase in protectionist policies from developed world.
What is outsourcing?
Outsourcing of services is a practice in which an individual or company performs tasks, provides services or manufactures products for another company — functions that could have been or is usually done in-house. Outsourcing is typically used by companies to save costs.
Rationale behind outsourcing:
Organizations have many reasons for outsourcing one or more non-core business functions; The rationale behind outsourcing is to balance the possible benefits, such as:
- Streamlining processes and focus on core business functions
- Reducing costs
- Weakening your competitive advantage by outsourcing a critical component of the business.
- Advanced technology
- Specialized expertise
- Strategic focus
However, outsourcing is not always the most effective way for companies to save costs. Insourcing, or assigning tasks to people or departments in-house, is sometimes more cost-effective for businesses than hiring outside staff or companies.
Major trends of outsourcing:
Present demand of the companies is bringing new challenges for outsourcing companies. The latest business environment and outsourcing is more dynamic than ever and changing rapidly with the ever-increasing client demands. According to subject matter experts, near future will prove to bring substantial shifts in the wake of new trends on the cards.
- Automation – future of relationships: ITO and BPO companies are now focused on moving it to machines Since finding opportunities to give work to lower-cost people seems impossible.
- More Services required: Companies are anticipated to utilize cloud-based technology to produce superior services. The cost effectiveness and automated processes will lighten up the work thereby creating more scope for competition.
- Security greater importance: Security has become the prime factor for all companies and their management and will play the pivotal role for the strategy of outsourcing in 2016.
- Vendors need a makeover: Vendors need to be more adjusting to meet the demands of these companies.
- VMOs go mainstream: Multi-sourcing has increased the work in the vendor management.
- Risk Management Put to the Test: Another important trend is to watch out for natural disasters, 2015 saw the great South Indian floods, which are among the risk factors that play big roles in driving businesses like outsourcing.
On the whole outsourcing is expected to increase dramatically in the years to come. This is because globalization which inextricably links the world’s economies leaves no room for individualism. Companies will not be able to meet the various challenges they face relying solely on their own internal resources but will have to look beyond for more cost-competitive and capable sources. This is where outsourcing and the many advantages it brings with it plays an extremely important role.
Best answer: swathi mittal
Second best answer: Yogesh Parihar
4. ‘Make in India’, ‘Start Up India’ and associated labour reforms can transform the manufacturing landscape in India. Discuss. Also examine the associated challenges.
The answer must have following parts-
- Introduction on the landscape of the manufacturing sector.
- The reforms introduced.
- Associated challenges- the challenges need not be limited to the reforms but overall challenges affecting the manufacturing sector.
- Way ahead- Need of other reforms as well the reforms initiated needs to implemented efficiently.
Manufacturing sector contributes to 16% of countries GDP and employs about 12% of population. India has potential of becoming 5th largest in manufacturing sector by 2020. Given the huge demographic dividend and the potential, changing the manufacturing landscape is the need of the hour.
Can transform the manufacturing landscape:
Make in India aims at making India a designing and manufacturing hub. FDI norms have been eased and sector wise reforms like in defence sector (defence procurement scheme), special incentive package to promote manufacturing in electronics have been brought in.
Start Up India scheme aims to promote entrepreneurships, through fund of funds, technology hubs, tax holidays helping startups to survive.
Labor reforms includes assigning labor identification number in shram suvidha portal, EPF, Apprenticeship scheme, pension schemes providing social security to labourers etc.
- The issue of NPAs.
- Lack of coordination among various government ministries and departments.
- Low level of literacy. Further the educational curriculum is not aligned to requirements of industries. Low level of skill development – only 2% of Indian population is skilled
- Lack of proper regulation framework to monitor progress of government
schemes at grass root levels
- Informalization of labour. Manufacturing landscape dominated by unorganised sector. 86% of India’s working population is in unorganized sector.
- Lack of resources such as Earth metals, energy insecurity, dependency on imports for coal, petroleum and natural gas
- Poor infrastructure
- Lack of research and development.
- Labor intensive industries like that of textile facing stiff competition from South east Asian countries.
Pro-manufacturing government initiative such as Make in India, StartUp India and associated labour reforms can potentially transform the manufacturing landscape of the country. However, other initiatives like Sagarmala, Bharatmala, StandUp India etc. needs to go hand in hand. Though there are sufficient schemes efficient and all-inclusive approach is needed to boost manufacturing sector.
Best answer: Gaurav Joshi
5. Cottage industries have immense potential in India and can bring about economic as well as social transformation. What steps have been taken to tap this potential by the Government? Discuss.
Background: Impact of recent economic measures of Demonetization and GST on cottage industries is in news for various reasons. Governments focus on job creation and self employment further put focus on these industries in India.
- Introduce by substantiating given statement about immense potential of cottage industries in India
- Write how these can bring social and economic transformation within country
- Provide measures and steps taken by government to tap this potential.
Introduction: Cottage industries being small family-oriented businesses typically operated out of homes are usually in labor intensive sectors and thus have great importance in the economy. They provide employment to many low-skilled jobseekers and provide ancillary products to medium businesses as well.
In 2016, the spinning, weaving, garment making units and other village industries notched up a turnover of Rs 50,000 crores under the aegis of Khadi and Village Industries Commission (KVIC). A portion of the cottage industries is also dominated by handicrafts and other such arts, influenced by the rich cultural and social heritage of a region.
- As these industries are labour intensive, they can provide employment.
- Can aid to reduce burden of disguised unemployment in agricultural sector and also reduce MGNREGA burden.
- These can add to GI handicraft production as Banarasi Street etc. And add to exports.
- Will help in improving green GDP as much lower level of waste generation compared to large scale industries.
- Help In efficient utilization of resources in village areas and small towns.
- Will provide opportunities to rural youth and women for capacity building.
- Will add to incomes of people in addition to farm incomes.
- Better living standards and reach to services through cottage cooperatives.
- Will help in cluster based development.
The Government of India has taken various steps to tap the potential of cottage industries.
- Khadi village industries commission (KVIC) has been given the prior responsibility by the Government for the development of cottage industries.
- Other organisations of the Government concerned with development of cottage industries are All India Handicrafts Board, Central Silk Board, Coir Board, All India Handloom Board.
- The Government is providing cheap electricity, raw materials and improved machine tools for enhancing the production of the cottage industries.
- The Prime Ministers Rodger Yolanda scheme for educated but unemployed youth and providing them venture for small scale industries.
- Promotion of Khadhi, by opening khadi stores in the cities.
- Introduction of market development assistance scheme, Co-operative societies for promotion of cottage industry.
- Coir plan general scheme which includes skill up gradation and quality assessment
- New industrial training centers have been opened to train artisans and other cottage industry workers on a large scale
Conclusion: Article 43 in part IV of our constitution emphasizes on the Gandhian principle of strengthening cottage industries to improve livelihood of masses. The Government can develop more of cottage industries in rural areas, proper implementation of various schemes relating to these industries, a committee should be formed by the Government which will look into the problems faced by the cottage industries.
Connecting the dots:
You can be asked questions about location of cottage industries, important centres, globalization and its impact as well use of low cost technology in furthering development of cottage industries in India.
Best Answer: Lawanya Yemulwar