Q.1) Israeli foray into the Gulf has the potential to disrupt the existing politico-economic architecture India has carefully built with the GCC states. Critically analyse. (250 words)

Why this question?

  • Recently, the U.S. President announced that a peace agreement has been reached between Israel and the United Arab Emirates (UAE). 

Introduction: Mention in brief about the deal.

Body: Discuss the following aspects

  • Significance for India: India’s socio economic engagements with Israel and the Gulf countries.
  • Implications for India:
    • Diplomatic: In general, the Israel-Gulf Cooperation Council (GCC) eases India’s diplomatic balancing act on the Palastinian issue.
    • Strategic: A new arena of the proxy war between Iran and Israel cannot be ruled out, particularly in Shia pockets. 
    • Economic fallout: Currently, India is the preferred source of manpower, food products, pharmaceuticals, gem and jewellery, light engineering items, etc in the gulf. But Israel can become a tough competitor to India.

Conclusion: Summarize with a word of caution for India


Q.2) Towards the aim to increase the income of farmers and making agriculture remunerative, Minimum Support Price (MSP) has been a cornerstone of the agricultural policy since 1965. Critically examine the MSP policy and suggest a way forward for addressing various related issues. (250 words)

Why this question?

  • The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has approved the increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops for marketing season 2021-22.

Introduction: Highlight the need to analyze the MSP policy in the light of its efficiency and market distortions.

Body: Discuss the following aspects

  • Need of MSP
  • M.S Swaminathan headed National Commission on Farmers recommended a 50% margin over C2, which is also being the demand of the farmers
  • Issues behind calculating MSP: Shanta Kumar panel on MSP

Way forward: Recommendations of National Farmers commission, Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS)

Conclusion: Summarize the above points.