BPSC CCE Mains Answer Writing

Introduction

The CCEA has cleared the sale of 60.72% of IDBI Bank to a Fairfax Financial Holdings unit at ₹81 a share (about ₹52,878 crore). The Government will keep 15% and LIC 19%.

Case for privatising public sector banks

• Fiscal relief: over ₹3 lakh crore has gone into PSB recapitalisation since 2017-18.
• Efficiency: private banks generally show better return on assets and faster technology adoption.
• Governance: the P.J. Nayak Committee (2014) flagged dual control and political interference.
• Market depth: strategic investors bring long-term capital and risk-management skills.

Concerns

• Inclusion: PSBs carry most Jan Dhan accounts and rural branches.
• Concentration risk: fewer, larger private lenders raise systemic risk (e.g., Yes Bank, 2020).
• Employment and morale of staff.
• Valuation and timing: selling during weak markets can lose value.

Additional dimensions

• Banking structure: after the 2019–20 mergers, 12 PSBs remain; the Budget 2021-22 announced privatisation of two PSBs and one general insurer.
• LIC's role: LIC acquired IDBI in 2019, raising questions about policyholders' money being used to rescue banks.
• Bihar angle: the credit-deposit ratio in Bihar remains among the lowest in India; any privatisation must protect branch presence and lending in such States.
• Regulatory lens: the one-bank rule means Fairfax must merge or exit CSB Bank within a set period.

Way forward

• Retain a regulatory, not ownership, role for the State.
• Enforce RBI's fit-and-proper criteria and a dilution glide path.
• Protect priority-sector and rural commitments by covenant.
• Use proceeds for capital expenditure, not current spending.

• IDBI sale: 60.72% at ₹81/share; Government keeps 15%, LIC 19%
• P.J. Nayak Committee (2014) on PSB governance
• PSB recapitalisation since 2017-18: over ₹3 lakh crore

Introduction

INS Samarthak, commissioned at Karwar, was built by L&T at Kattupalli with over 75% indigenous content — the first major warship from an Indian private yard.

Why the private sector matters

• Capacity: public shipyards and DPSUs have long order backlogs.
• Speed and cost: competition shortens delivery times.
• Technology: private firms bring design, digital and supply-chain skills.
• Exports: defence exports crossed ₹23,000 crore in 2024-25, with a large private share.

Enablers

• Positive indigenisation lists; 75% of the capital procurement budget reserved for domestic industry.
• Strategic Partnership model under DAP 2020; FDI up to 74% (automatic route).
• Defence corridors in Uttar Pradesh and Tamil Nadu; iDEX for start-ups.

Constraints

• Uncertain, lumpy orders and long trials.
• Dependence on imported engines, sensors and steel grades.
• Limited R&D spending and testing infrastructure.

Additional dimensions

• Maritime security: MPVs support towing, target launch and trials, freeing frontline ships.
• Employment: shipbuilding has strong backward linkages to steel, electronics and MSMEs.
• Comparisons: South Korea and Japan built shipbuilding leadership through long-term state–industry partnerships.
• Inland waterways: Bihar's Ganga (NW-1) terminals at Patna and Kalughat could host smaller yards for vessels and repair, spreading the industry beyond the coasts.

Way forward

Assured long-term orders, shared test facilities, faster trials and joint DRDO–industry R&D can turn projects like Samarthak into a sustainable ecosystem.

• INS Samarthak: 107 m, about 3,750 t, first of four MPVs
• DAP 2020; FDI in defence up to 74% automatic
• Defence exports 2024-25: over ₹23,000 crore

Introduction

India adopted flexible inflation targeting in 2016: a CPI target of 4% ± 2%, set by the Centre in consultation with the RBI, and a six-member MPC. September 2026 CPI inflation of 5.54% (food 7.74%) tests the framework.

Effectiveness

• Average inflation fell from about 9% (2009–14) to near 5% afterwards.
• Household inflation expectations became more stable.
• Voting records and minutes improved transparency.
• Accountability: the RBI must report to the Government if the target is missed for three consecutive quarters.

Limitations

• Food has a large weight in CPI; vegetable and pulse shocks drive spikes.
• Rate transmission is partial, especially for small borrowers.
• Fiscal dominance and fuel taxes limit monetary control.
• Rural–urban gaps (rural 6.08%, urban 4.88%) complicate policy.

Additional dimensions

• Urjit Patel Committee (2014) recommended CPI as the nominal anchor.
• Global practice: New Zealand pioneered inflation targeting in 1990; many emerging economies follow flexible versions.
• Bihar angle: with high food share in household budgets, food inflation hurts the poor in States like Bihar most; PDS coverage and storage capacity cushion this.
• New CPI series (2024=100) updates weights to reflect current consumption patterns.

Way forward

• Retain the 4% target; review the band periodically.
• Strengthen supply-side measures: cold chains, buffer stocks, calibrated export policy.
• Improve transmission via external benchmark-linked lending.
• Coordinate fiscal and monetary policy during supply shocks.

• September 2026 CPI 5.54% (rural 6.08%, urban 4.88%, food 7.74%)
• Section 45ZA: target set by Centre with RBI; Section 45ZB: MPC
• Urjit Patel Committee, 2014

Introduction

NSAP, started in 1995 under Article 41 (Directive Principles), has been extended to 2030-31 with ₹53,428 crore and renamed Pradhan Mantri Samajik Sahayata Yojana. The disability threshold falls from 80% to 40%, matching the RPwD Act, 2016.

Strengths

• Covers about 3.2 crore elderly, widows and persons with disabilities.
• Direct benefit transfer reduces leakages.
• Lower disability threshold widens inclusion.
• States top up central amounts (some pay ₹1,000–3,000 a month).

Gaps

• Low central share: ₹200–500 a month has barely changed since 2012.
• BPL-based targeting excludes many poor; the old BPL lists are dated.
• Exclusion errors from Aadhaar seeding and digital verification.
• No indexation to inflation.
• Fragmentation across Centre and State schemes.

Additional dimensions

• Demography: India's 60+ population is projected to exceed 19% by 2050 (UNFPA India Ageing Report).
• Gender: most elderly women are widows with little income, so widow pensions matter most.
• Bihar angle: Bihar's Mukhyamantri Vriddhjan Pension Yojana gives a universal old-age pension, a model for moving beyond BPL targeting.
• Constitutional basis: Article 41 directs the State to provide public assistance in old age, sickness and disablement.

Way forward

• Raise and index the central pension; move towards a universal old-age pension with simple exclusion criteria.
• Use SECC/other updated databases; allow self-declaration with verification.
• Grievance redress and doorstep verification for the disabled and elderly.
• Integrate with health cover (Ayushman Bharat for 70+).

• NSAP: started 1995; Article 41
• Extension: ₹53,428 crore to 2030-31; about 3.2 crore beneficiaries
• RPwD Act, 2016: benchmark disability 40%

Introduction

FSSAI has proposed amending the Foods for Infant Nutrition Regulations, 2020 to prohibit added sucrose and fructose in food for infants up to six months; comments are open for 60 days.

Role of food regulation

• Health: early sugar raises the risk of obesity, dental caries and later diabetes.
• Breastfeeding: WHO and the IMS Act, 1992 protect exclusive breastfeeding up to six months.
• Information: clear labels counter misleading claims.
• Industry standards: level rules push reformulation across brands.

Double burden

NFHS-5 shows stunting at 35.5% and rising overweight among children under five (3.4%), so rules must address both under- and over-nutrition.

Limits

• Weak enforcement and testing capacity at State level.
• Informal and online sales escape scrutiny.
• Determinants beyond food: sanitation, maternal anaemia, income.

Additional dimensions

• Legal base: FSSAI is a statutory body under the Food Safety and Standards Act, 2006, under the Ministry of Health and Family Welfare.
• Global practice: Chile's warning labels cut sugary product purchases; the EU restricts added sugars in baby foods.
• Bihar angle: Bihar has among the highest child stunting in India (NFHS-5: about 43%); Anganwadi-based counselling on breastfeeding is critical there.
• Ethics: marketing to parents of infants raises questions of corporate responsibility.

Way forward

• Finalise the ban quickly; extend sugar limits to complementary foods.
• Front-of-pack warning labels and curbs on marketing to children.
• Strengthen State food labs and the Eat Right India movement.
• Link with POSHAN 2.0, Anganwadi counselling and maternity benefits.

• Foods for Infant Nutrition Regulations, 2020; FSS Act, 2006
• IMS Act, 1992 (infant milk substitutes)
• NFHS-5: stunting 35.5%, overweight under-5 3.4%

Introduction

MoS Dr Jitendra Singh said India's space economy, about US$9 billion now, could reach US$40–45 billion in seven to eight years, driven by private participation after the 2020 reforms.

Reforms driving growth

• IN-SPACe (2020): single window to authorise and support private players.
• NSIL: ISRO's commercial arm, moving to demand-driven missions.
• Indian Space Policy 2023: defines roles of ISRO, IN-SPACe, NSIL and private firms.
• FDI liberalisation (2024): up to 100% in satellite components; 74% automatic for satellite manufacturing and operations.
• Start-up ecosystem: private launches (Vikram-S) and Agnikul's 3D-printed engine; hundreds of space start-ups.
• Venture fund: a ₹1,000-crore fund for space start-ups.

Challenges

• No comprehensive space activities law yet; liability and insurance unclear.
• High capital needs and long gestation.
• Small domestic demand; dependence on government contracts.
• Spectrum, debris and global competition (SpaceX, China).

Additional dimensions

• Global share: India's share of the global space economy is about 2%; the target is roughly 8% by 2033 (Space Vision).
• Applications for governance: crop insurance, flood mapping and land records use satellite data.
• Bihar angle: flood forecasting on the Kosi and Gandak relies on satellite and remote-sensing inputs; better data can save lives and crops.
• Strategic angle: dual-use capabilities strengthen national security.

Way forward

• Enact a Space Activities Act with clear licensing and liability.
• Anchor demand through government procurement of private services.
• Build launch pads (Kulasekarapattinam) and test facilities for private use.
• Focus on downstream services — earth observation, navigation (NavIC), communication.

• IN-SPACe and NSIL; Indian Space Policy 2023
• FDI in space liberalised in 2024
• ₹1,000-crore venture fund for space start-ups

Introduction

Wetlands cover about 4.9% of India's area. They purify water, recharge aquifers, buffer floods and support fisheries and birds. India has 103 Ramsar sites after Sukhna Wetland and Sauj Jheel were added in October 2026.

Threats

• Encroachment: urban sprawl has shrunk lakes in Bengaluru, Chennai and Srinagar.
• Pollution: untreated sewage and fertiliser run-off cause eutrophication.
• Hydrological change: dams, embankments and drainage cut natural flows.
• Siltation and invasive weeds such as water hyacinth.
• Climate change: altered rainfall and higher temperatures.

Measures

• Legal: notify wetlands and their zones of influence under the Wetlands (Conservation and Management) Rules, 2017.
• Institutional: National Plan for Conservation of Aquatic Ecosystems; State Wetland Authorities.
• Programmes: Amrit Dharohar (2023) for Ramsar sites; Save Wetlands Campaign.
• Science: wetland health cards, satellite monitoring.
• People: Wetland Mitras, eco-tourism benefits for locals.

Additional dimensions

• Ramsar Convention: signed in 1971 at Ramsar, Iran; India joined in 1982 (Chilika and Keoladeo were the first sites).
• Montreux Record lists sites under threat; Keoladeo and Loktak are on it.
• Bihar angle: Kabartal (Begusarai) became Bihar's first Ramsar site in 2020; Bihar's chaurs and mauns support fisheries and flood buffering.
• Climate role: peatlands and mangroves are major carbon sinks.

Way forward

Shift from designation to management: notified boundaries, funded plans, sewage treatment and community ownership.

• Wetlands Rules, 2017; NPCA
• Amrit Dharohar (2023)
• 103 Ramsar sites (October 2026)

Introduction

The Montreal Protocol (1987) phased out ozone-depleting substances such as CFCs. The Kigali Amendment (2016) added hydrofluorocarbons (HFCs) — ozone-safe but potent greenhouse gases.

Why it succeeded

• Universal ratification: all 198 UN member parties.
• Clear science linking CFCs to the ozone hole.
• Differentiated timelines for developing countries.
• Multilateral Fund to pay incremental costs.
• Available substitutes and trade measures against non-parties.
• Result: the ozone layer is on track to recover by about 2066 over Antarctica.

India's commitments

• India ratified Kigali in 2021 and is in Group 2.
• Freeze HFC consumption in 2028 (baseline 2024–26).
• Reduce 10% by 2032, 20% by 2037, 30% by 2042 and 85% by 2047.
• India Cooling Action Plan (2019) aims to cut cooling demand 20–25% and refrigerant demand 25–30% by 2037-38.

Additional dimensions

• Vienna Convention (1985) was the framework; Montreal gave binding controls.
• Climate co-benefit: Kigali could avoid up to 0.4°C of warming by 2100.
• Heat stress: rising temperatures in the Gangetic plains, including Bihar, will raise cooling demand — making efficient, low-GWP cooling a public-health issue.
• World Ozone Day: 16 September.

Way forward

• Promote low-GWP refrigerants and energy-efficient ACs.
• Train service technicians; curb illegal trade.
• Apply Montreal's lessons — finance, technology and fair timelines — to the climate regime.

• Montreal Protocol 1987; Kigali Amendment 2016; India ratified 2021
• India: freeze 2028, 85% cut by 2047
• India Cooling Action Plan, 2019

Introduction

As winter sets in, the Commission for Air Quality Management (CAQM) has intensified inspections across Delhi-NCR. Yet the region repeatedly records 'severe' AQI levels.

Causes

• Local sources: vehicles, industry, construction dust, waste burning.
• Regional sources: paddy stubble burning in Punjab and Haryana in October–November.
• Meteorology: temperature inversion and calm winds trap pollutants.
• Geography: landlocked Indo-Gangetic plain.

Governance gaps

• Fragmented jurisdiction across States and agencies.
• Seasonal, reactive measures under GRAP.
• Weak enforcement and limited penalties.
• NCAP funding not tied tightly to outcomes.

Effective approach

• Airshed management: CAQM (2021 Act) to coordinate all NCR States.
• Stubble: in-situ machines, ex-situ use in power plants, MSP support for crop diversification.
• Transport: metro, e-buses, BS-VI enforcement.
• Industry: shift to PNG and cleaner fuels; continuous monitoring.
• Data: source apportionment and real-time public dashboards.

Additional dimensions

• NCAP (2019) targets a 40% cut in particulate levels by 2025-26 in 130 cities.
• Health: air pollution is linked to over a million premature deaths a year in India (Lancet estimates).
• Bihar angle: Patna, Muzaffarpur and Gaya often rank among India's most polluted cities in winter, showing the Indo-Gangetic plain needs an inter-State airshed approach beyond NCR.
• Right to clean air has been read into Article 21 by the courts.

Conclusion

Year-round, regional and accountable action — not winter firefighting — is the answer.

• CAQM Act, 2021; GRAP
• NCAP (2019): 130 cities
• Article 21: right to a clean environment

Introduction

World Food Day marks FAO's founding in 1945; 17 October is the International Day for the Eradication of Poverty. India has largely achieved calorie security but not nutrition security.

Achievements in food security

• National Food Security Act, 2013 covers up to 75% of rural and 50% of urban people.
• PM Garib Kalyan Anna Yojana provides free grain to about 81 crore people.
• One Nation One Ration Card enables portability.
• Record foodgrain output and buffer stocks.

Nutrition gaps

• NFHS-5: stunting 35.5%, wasting 19.3%, anaemia in 57% of women.
• Cereal-heavy diets lacking protein and micronutrients.
• Poor sanitation and maternal health worsen absorption.

Strategies

• Diversify PDS: millets, pulses, fortified rice (now universal in PDS).
• Life-cycle approach: POSHAN 2.0, PM POSHAN school meals, maternity benefits.
• Agriculture: nutri-sensitive farming, kitchen gardens, biofortified seeds.
• WASH: Swachh Bharat and Jal Jeevan Mission.
• Behaviour change: Poshan Maah, breastfeeding promotion.

Additional dimensions

• Poverty trends: NITI Aayog's MPI estimates about 24.8 crore people exited multidimensional poverty between 2013-14 and 2022-23.
• SDG 2: Zero Hunger by 2030.
• Bihar angle: Bihar recorded the largest fall in multidimensional poverty but still has the highest share of MPI-poor; Jeevika self-help groups and nutrition gardens show a path forward.
• Millets: 2023 was the International Year of Millets, an initiative led by India.

Conclusion

Linking income, diet diversity, health and sanitation will turn full granaries into healthy children.

• NFSA 2013; PMGKAY (about 81 crore)
• NFHS-5: stunting 35.5%, wasting 19.3%
• FAO founded 16 October 1945