Q.1) In the wake of frequent repo rate cuts by RBI,discuss the significance and effectiveness of policy rate cuts.
Keywords for answer
- Introduce the rate cut undertaken by RBI: A fact will help like it has cut the policy rates from 115 basis points since the lockdown.
- Discuss the tools available with RBI as a part of its Monetary Policy like Repo, Reverse repo, MSF, etc..
- Explain the significance like management of liquidity in the market, Increasing growth, etc.
- Then discuss the limitations of such policies like Lack of Monetary transmission, State of Economy-Structural issues like NPA,etc.
- Also take into account the diversity of issues like MSMEs credit, NBFC liquidity woes, etc.
- Rate cuts shouldn’t be a norm. It should be balanced by structural reforms and Fiscal policies by the government.
Q.2) Recently Nepal Government has proposed a new political map of Nepal which includes Indian territory.In this regard discuss the border dispute between India and Nepal and suggest way ahead.
Why this question:
- The dispute over Kalapani between Nepal and India was revived in November 2019 when India published a revised political map showing the newly created Union Territories of Jammu and Kashmir and Ladakh.
- Nepal has published a revised official map incorporating the territory from the Limpiyadhura source of the Kali to Kalapani and Lipulekh pass in the northeast of the triangular region as its territory.
Discuss about the recent developments and you can also start with the significance of India Nepal relations.
- Mention the Kalipani dispute-India and Nepal stand
- Discuss about the cause of dispute and importance of lipulekh pass
Based on the discussion above and considering the special bond between India and Nepal,suggest a way ahead
Q.3) As Chinese companies push deeper into emerging markets, inadequate enforcement and poor business practices are turning the BRI into a global trail of trouble. Explain.
Why this question?
- In recent weeks, China has faced calls from countries in Asia and Africa to delay or waive debt repayments for BRI projects in wake of the Coronavirus pandemic.
Introduction to the answer:
- About BRI
- Financial assistance under BRI
Concerns for BRI:
- Increasing Chinese debt: In recent weeks, China has faced calls from countries in Asia and Africa to delay or waive debt repayments in wake of the Coronavirus pandemic.
- According to AidData, China’s grants and loans totalled $354.4 billion between 2000 and 2014, of which 23% was grants while the rest were commercial loans at market or close-to-market rates.
- The world’s debt to China grew 10 times between 2000 and 2017, with developing countries owing $380 billion to China, the Kiel Institute for the World Economy in Germany said in a report last year.
- Belt and Road countries having poor debt ratings, they also tend not to fare so well in international corruption indexes.
- Examples of wrongdoings:
- The Hambantota fiasco
- Bangladesh shut down a highway project that was supposed to have been built by the China Harbour Engineering Company due to bribery allegations.
Conclusion: Countries along the corridors are now operating with far more caution and scrutiny, pumping the breaks on many projects and potentially setting the BRI back for years to come.
Leveraging following initiatives:
- Blue Dot network
- The Bangladesh-China-India-Myanmar (BCIM) Economic Corridor.
- the Trans-Himalayan Economic Corridor
- Project Mausam
Q.4) The time has come to think seriously about merging different income support schemes at central and state levels to alleviate the sufferings of not only farmers, but also other stakeholders in the agriculture sector. Discuss (15 marks - 250 words)
Why this question? - The Chhattisgarh govt has launched the The Rajiv Gandhi Kisan Nyaya Yojana recently.
Intro - A brief about income support schemes and their importance.
Body - Tell the salient features of these schemes their shortcomings. Then tell the advantages of merging these schemes based on the shortcomings - covers landless labourers, rationalisation of funds etc.