1. What are the major economic challenges India is facing today?
✅ Why it matters:
Demonstrates awareness of current economic trends and policy impacts.
Shows ability to analyze and propose balanced solutions — a critical skill for administrative roles.
📝 Core Answer (Detailed Explanation):
India faces several significant economic challenges:
Unemployment and Underemployment
Youth unemployment remains high; many graduates struggle to find jobs matching their skills.
Underemployment in rural areas and informal sectors means low productivity and wages.
Policy focus: Skill development (PMKVY, Skill India), labor reforms, and job-rich sectors like manufacturing and digital economy.
Rural Distress and Agrarian Crisis
Overdependence on agriculture with insecure incomes due to unpredictable weather and low market access.
Fragmented landholdings limit economies of scale.
Policy focus: PM-KISAN, MSP reforms, agro-processing, contract farming, and irrigation support.
Income Inequality and Poverty
Despite growth, wealth and income gap is widening.
Millions still live below the poverty line or in vulnerable economic conditions.
Policy focus: Subsidy reforms (DBT), rural employment guarantee (MGNREGA), social security schemes like PM-JDY pension, and targeted welfare.
Non‑Performing Assets (NPAs) in Banking
High NPAs strain banking capital and reduce credit availability.
Affects corporate and MSME sectors.
Policy focus: Insolvency and Bankruptcy Code (IBC), bank recapitalization, and tighter credit norms.
Infrastructure Deficit
Gaps in transport, energy, water, sanitation, and digital connectivity hinder economic development.
Policy focus: Infrastructure investment (National Infrastructure Pipeline), Public‑Private Partnerships (PPPs), and rural electrification (Saubhagya).
Inflation and Fiscal Deficit
Balancing growth with inflation while meeting expenditure targets.
COVID‑19 impacted government revenue and widened fiscal deficit.
Policy focus: Fiscal consolidation, monetization of assets, rationalizing tax exemptions, and GST reforms.
Environmental and Sustainable Development
Climate change impacts agriculture, water resources, and public health.
Clean energy transition, pollution control, and biodiversity conservation are vital.
Policy focus: National clean energy initiatives (e.g., solar capacity targets), Swachh Bharat missions, and pollution regulations.
Skewed Urbanization and Migration
Rural-to-urban migration strains city infrastructure, creating slums and social issues.
Policy focus: Affordable housing (PMAY–Urban), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), smart city projects, and urban governance reforms.
2. How has India’s Digital India initiative transformed governance and service delivery?
✅ Why it matters:
Reflects understanding of technological governance.
Ideal for roles in e-governance, digital infrastructure, public utilities.
📝 Core Answer (Detailed Explanation):
Digital India, launched in 2015, is a multi-pronged initiative with these pillars:
Broadband Highways
BharatNet project targets fiber connectivity to gram panchayats.
Rural digital infrastructure supports e-services, telemedicine, education, and commerce.
Universal Access to Mobile Connectivity
Tower development in remote regions has doubled network coverage.
Mobile access supports financial inclusion (UPI), digital literacy, and education.
E-Governance – Reforming Public Services
Government services available digitally via portals like DigiLocker, UMANG, e-SHRAM, Saral, and e-Pathshala.
Reduces red-tapism, increases transparency, and saves time and cost.
e-Kranti – Electronic Delivery of Services
Key services like health, education, farming, and financial aid are digitized.
Telemedicine, digital classrooms, e-filing for taxes, and online licenses are widely used.
Information for All
Government websites and data platforms (e.g., Open Government Data Platform) provide public access to information.
Promotes transparency and data-based decision making.
Electronics Manufacturing
“Make in India” pushes for domestic production of mobile devices and electronics.
Incentive programs such as PLI schemes enhance local manufacturing.
IT for Jobs
Training and capacity-building programs like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) aim to digitally empower citizens.
Focus on youth and employment.
✅ Impacts:
Financial Inclusion: Dramatic rise in Jan Dhan bank accounts, UPI transaction volumes, and PMJDY Jan Dhan–Aadhaar–Mobile bridging.
Transparency: Less corruption; enhanced service delivery through automation.
Efficiency: Reduced paperwork and administrative delays.
Behavioral Change: Enabled digital literacy, especially post-COVID.
Challenges ahead: Cybersecurity, last-mile connectivity, digital divide, and informed consent.